Supply Chain Sept11

Supply Chain Today September 2011 1

www.scania.co.za

2 Supply Chain Today September 2011

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September 2011

Contents

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

Advertising Sales:Lelanie DiamondProduction and event Manager: Zinobia DocratDTP: Yolanda FlowerdayAdministration and Circulation Manager: Catherine Macdiva

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

The monthly circulation is 4 025

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

Cover Story4 Pulling Ahead

Express Freight7 Buy Your Wine the Smart Way9 Keeping Up with the Couriers

Transport Management13 Customers on a Roll

Market Forum — Unit 15 Market Forum - Unit

Green Supply Chain Awards18 Winners

Trucking33 Extra Heavies on the Up

Measurement35 Performance Measures - Still Essential

Market Forum — Supply41 Market Forum - Supply

Endorsing BodiesAfritag (div of Smart Card Society)

CGCSA (Consumer Goods Council of SA)

CILTSA (Chartered Institute of

Logistics & Transport: SA)

SAEPA (SA Express Parcel Association) SAPICS (The Association for Operations Management of Southern Africa) also mailed to:

CSCMP (Council of Supply Chain Management Professionals)

Featured on the cover:

ScaniaTel: (011) 661-9751

[email protected]


COVER STORY

Pulling AheadScania is launching its first Euro 6-compliant engines,

featuring performance and fuel consumption as good as the current Euro 5 engines.

S tarting 31 December 2012, all new truck models sold in the European Union must meet the new Euro 6 emission standards. A year later, the same will apply to exist-

ing models, and sales of Euro 5 engines will be phased out.

Early introductionBut even today – more than two years before the law requires it – Scania has two engine alternatives that fulfill the new standards and

are ready for launch. These engines make it possible for keen operators to take the next step and invest in the greenest technology available in the market. They will be able to benefit from lower motorway charges and other incentives that may be introduced by authorities. Another bonus is that vehicles with the latest emission standard also command a higher value in the second-hand market.

“We want to be ready as early as possible to of-fer these new engines to our customers, so that they can begin to take advantage of them,” says Gunnar Nyfjäll, product manager for long-haulage trucks within Scania.

Six-cylinder 13-litre engines featuring 440 and 480 horsepower will be available in Euro 6 ver-

Benefit from lower motorway charges and other incentives

We want to be ready as early as possible to offer these new engines to our customers,” says Gunnar Nyfjäll, product manager for Scania long-haulage trucks.

Inside the boxThe upstream NOx sensor, diesel oxidation catalyst (DOC), full-flow diesel particulate filter (DPF), AdBlue mixer, twin parallel SCR catalysts, ammonium slip catalyst (ASC) and downstream NOx sensor are all integrated in the compact silencer unit. The temperature (°C) is measured all the way up to the catalysts, and the pressure drop (ΔP) across the DPF is monitored to assess the status of the filter.

www.scania.co.za


COVER STORY

sions for the G- and R-series truck ranges. Thus Scania will cover a large proportion of customer applications in the long-haulage and construction fields.

Scania’s Euro 6 engines are based on the new modular engine platform that was in-troduced in 2007. The driving experience will be unchanged, featuring good torque at low revs. Building them with the Scania modular product system simplifies develop-ment work as well as servicing and parts management.

Curbing emissionsThe biggest difference is the entirely new exhaust gas after-treatment system that is built into the silencer. This includes a particulate filter and twin selective catalytic reduction (SCR) catalysts with an advanced AdBlue dosage system that reduces nitrogen oxide (NOx) content.

According to the Euro 6 directive, the permitted NOx level is only a fifth as much as with Euro 5, and the particulate level is less than half. In addition, particulate matter will be counted ac-cording to a new method, and the limitation on the particle count will mean that a vehicle needs to be equipped with a particulate filter. The new Scania engines fulfill these emission levels by a wide margin.

Jonas Hofstedt, head of Powertrain development, says Scania has spared no effort to avoid fuel penalties on the new engines. “Operators will find that fuel economy, driveability and engine response are fully on a par with our Euro 5 en-gines,” Hofstedt says.

“All the development work has been performed in-house at Scania,” he adds. “We have combined

all the new technologies that Sca-nia has developed in recent years: exhaust gas recirculation, variable turbo geometry, common-rail high-pressure fuel injection, selective catalytic reduction and particulate filtering. Add to that our own engine and exhaust management technology, which has now been integrated into one system.”

Scania, Andrea du Toit, Tel: (011) 661-9751, Email: [email protected], www.scania.co.za

Good torque at low revs

Shrinking emissionsEuro 6 is a drastic downward step in emission levels com-pared with previous emissions standards. The European Union directive sets new limits on emissions of nitrogen oxides and particulate matter from heavy trucks. The Euro 6 standard is also a first step towards harmonisation of the emission rules in Europe, North America and Japan. It applies to new models starting 31 December 2012 and to existing models starting 31 December 2013. After that, all new trucks sold in the EU must meet Euro 6 standards.

One of the new features for Euro 6 is the entirely new exhaust gas aftertreatment system that is built into the silencer.

www.scania.co.za


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

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

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Buy Your Wine the Smart Way

South Africa is the ninth largest producer of wine in the world, so we are no strangers to the magic elixir. Although our

wines are world-class, local wineries are not capitalising on their products as much as bottle stores or restaurants – and

consumers are losing out.

D irect delivery from the vineyard to your doorstep is cost-effective and profitable for the estates, express courier company SkyNet tells “Supply Chain Today.”

According to a study by wine producers’ organisa-tion Vinpro, going out of the grape producer, the average price of a 750 ml bottle of wine is R24, on which they would make 44c. Then there’s the cost of distribution and generally a mark-up of up to 100% at stores, while restaurants mark-up the product by 200 to 300%. This means even the waiter serving the wine makes more on the bottle than the producer, given a 10% gratuity on average.

A certain respected brand of wine hailing from Stellenbosch will cost the customer R588 per case with an extra R60 added on per case for delivery to Johannesburg. Meanwhile, at a certain

Straight from the vineyard to their doorstep

In tough economic times, there’s light at the end of the tunnel for wine connoisseurs

EXPRESS FREIGHT

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

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

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EXPRESS FREIGHT

‘discount’ liquor store in Johannes-burg, a case of this same wine will cost R692. As for the case price at a typical local restaurant, a whopping R1920 is enough to drive you to consume the case instantly.

What many consumers don’t realise, however, is that there is a smarter, more economical, way of buying wine - by ordering it directly from the vineyard or through a wine club and having it delivered via courier.

We deliver around 90 000 bottles of wine per month

SkyNet, one of the larger courier companies in South Africa, having identified this opportunity is now in the business of partnering wine clubs and vineyards in their efforts to cut out the ex-tremely expensive middlemen. With their extensive network, SkyNet has the ability to distribute to 450 towns on a daily basis, and is well-equipped to deal with the high demand of South African wine consumers.

SkyNet has partnered with South Africa’s largest wine club, ‘Wine-of-the-Month Club,’ to bring wine drinkers across the country their favourite vintage straight from the vineyard to their doorstep with a simple and cost-effective supply chain solution.

“We deliver around 90 000 bottles of wine per month,” says SkyNet Worldwide Express executive

accounts manager Karin Long. “Wine clubs offer home delivery and advice for those who are not wine connoisseurs.”

The club has partnered with SkyNet for about ten years. Wine-of-the-Month Club joint director Gis Col-lard says SkyNet stands out from the rest because of their commitment to making things work and ironing out the many lo-gistical challenges associ-ated with home delivery. “Without their absolute commitment to overcome these challenges it would make it very difficult for us to provide such a high standard of service,” she concludes.

In tough economic times, everyone is looking to save money - budgets are stretched to the limit and many luxuries just aren’t affordable. But at least now a taste for good wine doesn’t have to suffer. Buying wine directly from the vineyard or an online wine club not only increases the estates’ profits, but also saves the customer money. Now you can keep your cellar fully stocked without even leav-ing the house.

SkyNet, Tel: 0860555450, Web-site: www.skynet.co.za


EXPRESS FREIGHT

Keeping Up with the CouriersEverything these days is getting faster, fuelled by consumers expecting instant, predictable and traceable service. Courier companies are in a race to compete in this environment and

TNT Express is among those with a bevy of new offerings this year.

Among its additions is Proof of Delivery (PoD) Signature Image Retrieval, imple-mented earlier this year to improve ease of use for shipment customers. TNT

Express National Sales and Marketing Director, Shane de Beer, tells Supply Chain Today these images offer proof that shipments have been delivered and signed for by the receiver, with

digital pictures of their signatures and/or company stamps. “They also allow enquiries regarding the delivery of shipments to be dealt with quickly and efficiently,” he adds.

The PoD images can be seen online with TNT’s shipping tools, such as myTNT, Express Shipper, Express Manager and Express Connect, the morning after a consignment is delivered and signed for. “Our customers can download, save, print and send the images via email or fax, as required,” says de Beer. Currently more than 85 countries worldwide have access to PoD signature images.

Another new addition is the In Cab Scanning system, which replaces TNT’s previous system, the Enhanced Mobile Communications Network. “Customers require state-of-the-art solutions that enhance their business and therefore value the benefits of this new system,” he tells us. “It allows real time status updates on customer shipments, PODs are immediately available on the system and Internet and communication between the customer, control room and drivers is more reliable.”

The platform has kicked up a gear since its imple-mentation, with more robust systems, on-screen signal signature (PoD signature image retrieval) and GPS capabilities.

Medical focusTNT has also extended its medical services, offering clinical and hospital express ser-vices and performing courier services for clinical trials, pharmaceutical, bio-tech and medical device companies.

The company ensures that biological samples, chemicals and reagents, surgical kits, vital spare parts and other life-saving devices get to where they need to be quickly and efficiently. “In fact, we have achieved the highest on-time performance of any express provider to the healthcare industry,” says de Beer.

Meanwhile, TNT Express in Johannesburg acquired a Class 'A' certification in the Technology Asset Protection Association's (TAPA) security grading this year. “This is particularly reassuring to companies transporting both high value and easily disposable goods such as computer chips, cell phones and other hi-tech products,” explains de Beer.

Planet meIt seems as though industry in general

It allows real time status updates on customer shipments


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EXPRESS FREIGHT

is starting to see the benefits of treading lighter on the environment and TNT’s efforts revolve mainly around its global holistic environmental programme called ‘Planet Me.’ The programme focuses on radically improving the carbon effi-ciency of their global operations and getting their employees and extended network involved too.

Locally, the company is working with various stakeholders on different programmes that sup-port the Planet Me objectives, including Johan-nesburg City Parks, with which it is discussing future collaborative projects.

Cutback on carbonTNT is planning internal education campaigns, encouraging employees to start lessening their personal CO2 footprints, by involving friends, suppliers and communities because, as de Beer explains “We believe that small changes by many eventually have a large impact.”

They’re making an effort and seeing results in reducing carbon emissions in business travel too. “We’ve implemented internal measures in the past year, utilising technology like video, teleconfer-encing and Skype, to make our processes more environmentally friendly,” says de Beer.

“Also, we embarked on a fleet renewal project over the last two years, for all vehicles, where vehicles are being replaced with those of a Euro III emission rating,” he adds. The company closely monitors all areas of the business related to carbon emissions and have set reduction targets.

Tough timesUnfortunately, it’s not all good news, as the current economic troubles of our first world counterparts are leaving their mark on the local courier indus-try. De Beer says exports have been decreasing, due to the strengthening of the Rand, as well as the economic crisis in the stronger economies of Europe and the US. However, imports from developing countries are on the increase.

Although TNT is affected, due to the nature of supply chains, they are upbeat and confident that they will continue to seek top position in the industry.

TNT, Nicole Hinton, Tel: 011 437 3523, Email: [email protected], Website: www.tnt.com

The highest on-time performance of any express provider to the healthcare industry

www.tnt.com


Toyota Forklift is the global market leader in materials handling equipment with a reputation for safety & efficiency, innovative research & development and quality products…

AND helping you reach new heights

taking you to new heights

TEL : +27 (0) 11 395 0600 EMAIL : [email protected] WEB : www.eiegroup.co.za

www.eiegroup.co.za


TRANSPORT MANAGEMENT

CustomersCall centres may have their downsides, but in an age of digital information and machine-answered phones,

there are times when none but a clued-up live person on the other side of the phone will do.

T he Goodyear group’s new Customer Service Centre aims to have a trained representa-tive on hand to aid customers’ safety on the road, come power failures, electric

storms or strikes.

In essence, the service provides all customers – dealers, sales force, fleet controllers and end users – with a single communication point with the large organisation. Previously spread between separate centres in Gauteng and Uitenhage, the 21-call representatives are now based on-site at the company’s Uitenhage manufacturing plant.

“By carefully consolidating and integrating the Goodyear, Trentyre Roadside Assistance and 4Fleet (account handling) customer call centres, the group now shares crucial support structures and technology to ensure the service is never interrupted and customers never inconvenienced,” says Ettienne.

The centralised facility is engineered to handle dealer support, including all aspects of sales such as ordering and product availability; sales force support, including price changes, bulk order

placements and sales reports; Trentyre’s non-stop roadside assistance, which facilitates the repair or replacement of tyres through its national dealer and affiliate footprint and Trentyre account administration, to ensure effective inter-branch transfers, invoicing and general enquiries.

It also handles 4Fleet account administration, which supports fleets with invoicing and gen-eral enquiries and customer liaison, including a complaints support line for all warehouse and delivery related concerns.

“Every call is recorded and randomly checked by management to track response quality and end-user customer experience. We also receive valuable feedback on a quarterly basis from an independent research company that surveys our customers so we can track their perceptions and continually improve on our service levels,” adds group customer service manager, Ardiela Savahl, who heads the call centre operation supported by operations manager Vaughn Herbert.

In addition to the Goodyear group centre, a dedicated export division call centre assists the group’s African customers stretching from South African borders to the equator - predominantly a sales administration function.

Goodyear Tyre & Rubber Holdings (Pty) Ltd, Lize Hayward, Tel: (041) 5055421, Email: [email protected]

A dedicated export division call centre assists the group’s African customers stretching from SA borders to the equator

Consolidating and integrating the Goodyear, Trentyre Roadside Assistance and 4Fleet (account handling) customer call centres

Toyota Forklift is the global market leader in materials handling equipment with a reputation for safety & efficiency, innovative research & development and quality products…

AND helping you reach new heights

taking you to new heights

TEL : +27 (0) 11 395 0600 EMAIL : [email protected] WEB : www.eiegroup.co.za


LIFT TRUCKCOMPANY

www.goscorlifttrucks.co.za


Market ForumEnhanced, safer forklift trucks The TCM range from distributor Criterion Equipment in-cludes new environmentally-friendly Inoma I.C. (internal combustion) engine powered forklift trucks.

The counter-balanced series has capacities between 1,5 T and 3,5 T and features improved performance, durability, comfort and safety.

An over-head guard is welded together in a single piece, providing additional strength to the entire structure. The TCM steering axle design has been strengthened to cope with demanding applications and the front and rear stabil-ity ratio improved for efficient cargo handling. Oil-filled lift cylinders also improve durability.

The optimal positioning of the fan, radiator and muffler has reduced the operating coolant temperature, the upgrading of mechanical components and circuitry, and the operating temperature of hydraulic oil.

The trucks offer enhanced maneuverability and improved safety, with a lowered dash-board for clear visibility of the fork tips and a re-shaped rounded counterweight has improved visibility during back-ward movement.

Multi-cone shift levers enable smooth shifting from forward and reverse positions. There is also a double-action brake release on the lever, an anti-

Criterion Equipment TCM range now includes new environmentally-friendly Inoma forklift trucks

Wider spans trend continuesCrane spans continue to increase in line with the steadily growing width of factories and warehouses.

A 32,5m-span overhead crane, is typical of a trend first reported by Condra in 2005, when an increasing number of overhead cranes with spans of between 25 and 35 m was noted.

However, the economics of a wider factory serviced by a single crane are questionable, because as the span of the service crane increases to match factory width, so does the cost of the structure needed to support the overhead crane load.

The dead load resulting from the wider span also makes the crane itself more expensive. For example, the 3-t girder needed to span 17 m increases in weight to 12 t when the span becomes 25 m. Additional power is also needed to move this dead weight.

A second trend is the installation of a duplicate crane, in tandem, to service the additional space created by factory extension. This practice is also questionable because of the production log-jams created when goods cannot be

The 32,5m-span Condra overhead crane

roll mechanism and a neutral safe device that prevents the engine from being started unless the change lever is in the neutral position.

A new fork-landing mechanism provides a fork-lowering speed that decelerates at a height of approximately 150 mm above the ground, enabling accurate placement of the forks into the load fork pockets or pallet.

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

LIFT TRUCKCOMPANY


Market Forum

Affordable tape marks the wayToughstripe floor marking tape, made of B-514 polyester, offers superior durabil-ity, is easy to apply and gives the same visibility of painted floor markings, only cheaper.

This Brady product, available from Grafo Wiremarkers Africa, is ideal for marking aisles, passageways and stor-age locations and pointing out important safety equipment and egress paths.

The Brady Toughstripe floor marking tape is ideal for marking aisles, passageways and storage locations

moved from one end of the factory to the other, owing to one of the two cranes working at the factory centre.

Experts suggest a more efficient solution could be to design factories with multiple bays positioned in parallel, each one ser-viced by a single crane, allowing factory extension without risk of production log-jams. Additional bays could be added in the event of factory expansion.

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

Toughstripe tape is supplied in black, white, red, green, blue, orange, yellow and combinations of red/white and black/white, in sizes from 50.8 mm to 101.60 mm, and in rolls of 30 m. For markings such as dots, arrows, footprints and corner marks, Brady’s die-cut shapes are

www.unervisal-storage.co.za


The flexible conveyor teamFlexible Conveyor Systems (FCS) is the official dis-tributor in South and Southern Africa of Flexlink, a lighter product handling conveyor system.

Flexlink supplies a wide range of modern, innovative and flexible conveyor systems for diverse industries including food and beverage packaging, automotive, pharmaceuticals and cosmetics across the globe.

The system has been widely used by South African industry for many years in product handling with a maximum item weight of 30 kg and an item width of 400 mm.

The Flexible Conveyor Systems team includes busi-ness manager Nico Wassermann, general application engineer Conrad Bornman and junior application engineer Karina Simas

Flexible Conveyor Systems, Nico Wassermann, Tel: 011 455 4555, Email: [email protected], Website: www.amtc-mechanical.com

Market Forum

Quick detection in cold storageA nine-lane, automatic, high-bay warehouse in Spain with 6 600 pallet storage spaces used to store food, has installed Leuze sensor solutions.

Even at inhospitable ambient temperatures as low as -30°C, the Leuze sensors position the storage and retrieval units for high-bay warehouses, optically transmit data and thereby monitor safe pallet positioning.

The storage spaces are served by dynamic, high-bay storage devices (RGBs) and their transportation paths are measured and positioned by two Leuze

AMS 200/120 laser distance measuring devices: one to control the driving movement and the other to control the lifting movement.

Between the RBGs and a base station, data is transmitted optically by Leuze DDLS 200 optical data transceivers – without any mutual interference with the Leuze AMS 200 sensors, and Leuze 46B sensors monitor the positioning of the cargo. Using the data of the position change per time unit, the software of the Leuze AMS 200 calculates the current velocity, hence velocity can be monitored simultaneously.

The sensor issues pre-failure messages in good time in the event of impermissible temperatures, soiled optics or decreased power of the laser diode. This facilitates timely maintenance and troubleshooting, and thus increases plant availability.

Countapulse Controls supplies Leuze systems and other instrumentation in Southern Africa.

Countapulse Controls (Pty) Ltd, Gerry Bryant, Tel: 011 615 7556, Website: www.countapulse.edx.co.za

The Leuze AMS 200 Absolute Measurement

Systems operate with high accuracy and are easy to use

General application en-gineer Conrad Bornman

pre-spaced on transfer tape, making it easy to lay down evenly spaced lines.

The stiff polyester with liner prevents the tape from stretch-ing and reduces wrinkles and wavy lines. No special floor preparation is required after cleaning with common de-tergents. It has a gloss surface and its low profile of 0.05 mm minimises debris build-up along the edges that occurs with thicker extruded floor tapes. Service temperatures range from -18ºC to 54ºC.

Strong enough to withstand forklift traffic without tearing or lifting, the tape has ultra aggressive adhesive, yet can easily be removed from floors without damaging surfaces or leaving unsightly residue. It also resists smudges and harsh chemicals.

Grafo Wiremarkers Africa, Darryl Crampton, Tel: 011 704 3295, Email: [email protected]

www.amtc-mechanical.com


Distinguishing between which companies have truly embraced environmental sustainability from the great

pretenders is challenging when ‘green’ is the latest buzzword. The third annual Green Supply Chain Awards aims to sieve

out the gems in the sector and recognise their efforts.

E ntrants, interested parties and an excited team of organisers and sponsors gathered for the awards at the Consumer Goods Council of

South Africa (CGCSA) offices in Randburg, on 26 August 2011. Judging from the response to this year ’s bash, the event is set to gain continued prominence in the years to come.

After a difficult judging process, six award winners and two ‘highly commended’ entrants were chosen.

Best Product – Highly Commended: City Power Johannesburg Product/Project: Recycling Promotion Project, launched in April 2011, valued at R85 000

Description and innovations: Distributing colour coded bins and stainless steel bins for recycling, awareness posters and inter-

nal recycling boxes forms the first phase of this project, which is being rolled out to all ten City Power depots. Vehicle emissions, gas turbines and oil recycling plants are also monitored to mitigate/reduce carbon emissions.

Results/principles:

• The revenue collected from this project will be used for environmental sustainability initiatives

• Waste is being reused and reduced to save landfill space

• The Clean Development Mechanism is being applied to reduce the global warm-ing effects of landfill gas and minimise the waste stream to landfill sites by properly disposing of biodegradable waste

Green effect: recycling, sustainability and transport

Best Product - Under R1 million: Stab-a-LoadProduct/Project: Solar powered system for docking equipment, launched in December 2010. Pneumatic dock levellers and 8 motorised sectional doors valued at R109 5000 excl VAT

A Green New World

Babalwa Mbobo and Thabiso Letaoana of City Power

Leonard Wallace (left) and Dean Le Roux (right) of Stab-A-Load

GREEN SUPPLY CHAIN AWARDS



Description and innovations: The solar-powered system operates single or multiple Stab-a-load pneumatic dock levellers, Star 4 truck restraints, LED dock lights and motorised sectional doors, incorporating deep cycle AGM batteries. It in-cludes 185 W mono crystalline solar collectors

sealed, valve-regulated, non-spill, gel deep cycle batteries, 24 V AC to 120 V DC inverters, as well as a Phocos maximum power point tracker. Stab-a-Load claims to be the first company in SA to offer a solar-powered system for materials handling equipment. The product can be retrofit-

Gariella Alberoni (Brandguru) and Irvan Damon of Sustainable Energy Society of Southern Africa (SESSA), a Green Supply Chain judge

Mark Hunter and Annalie Lombard from Eskom



www.barloworld-logistics.com


The TrenStar team from left (standing): Kobus Jacobs, Dawn Dodds and Oscar Pistorius. Sitting: Greg Bouchier and Eddie Fourie

ted and operate in ‘black out’ conditions like power cuts and low UV light penetration.

Results/principles:

• Reduces electrical reticulation and running costs

• 40-50% reserve from deep cycle AGM batteries enable the equipment to be operational for up to 5 days in unavailable UV light

• Testing configuration has shown capability to run without sunlight for up to 5 days, at a rate of 87 to 10 cycles per day

Green effect: energy efficiency, finance, sustainability, transport and warehousing

Best Product - Over R1 million: TrenStar SAProduct/Project: TrenStar Re-turnable Interlayer, launched in August 2008, investment of R3.3 million

Description and innovations: Custom-designed returnable packaging ensures the protection of components during transport and processing in a more environmentally-friendly, cost-effective way versus conventional one-way disposable dunnage. Used either in a standard pool of return-able containers/cages or specifically produced for purpose-designed equipment, replacing traditional one-way dunnage. Every unit is barcoded or fitted with barcoding and RFID to facilitate tracking

Guest Speaker, Simon Gear with Liesl de Wet of Barolworld Logistics



www.stabaload.co.za


Andrea du Toit, Gideon de Swardt and Steven McClurg from ScaniaClinton van Vuuren, Lelanie Ferreira, Shaun Boucher and Chirene Land-man, all from Eqstra Industrial Equipment”

and tracing through the supply chain.

Results/principles:

• Made of black high density polyethylene, it has a life span of more than 5 years, after which it’s 100% recyclable

• Interlayers fit into a returnable, collapsible container occupying minimal space for return transport

• Measureable impact on the industry and en-vironment through waste reduction. Eg. During a two-year, 8-month sample period, one client eliminated the use of 528 578 m2 cardboard interlayer inserts and boxes, a waste saving of 132 144,72 t

Green effect: energy efficiency, finance, inven-tory, management, manufacturing, packaging, people/HR, production, recycling, sustainability,

Catherine Larkin (CILTSA) and Gjalt Hooghiemstra (Hooghiemstra Logistical Services (HLS))

Ashal Hunsras, Shaun Oosthuizen and Marnus van der Merwe from MTN

Paul K Lee, Reiner Biewenga and Etienne Boucher from ProtxL Africa. Reiner won the lucky draw of a Defesive Driving Course for two, sponsored by MasterDrive




implemented July 2010, valued at R5 million

Description and innovations: Increase efficiency and productivity in logistics businesses and reduce costs and wastage through live, always-on, elec-tronic field data from MTN Business Transport & Logistics. Enterprise mobility solutions bundled

cost-effectively with business’ cellular data con-tract – providing required software, hardware, data, support and services. Creating a live field data platform that links customers and staff to always-on, electronic data from the field.

Catherine Larkin (CILTSA) and Frans Booysen (Distell)

transport, warehousing and waste

Best Project - Highly Commended: MTNProduct/Project: Enterprise Mobility Platform,

Helena Marais, Cynthia Nkosi, Reetsang Mothibi of Imperial Distribution


Moses Moshe and Poppy Moshe from the State Security Agency


www.aafc.za.net



Results/principles:

• Increases efficiency and productivity, creating paperless processes and reducing waste

• Allows drivers and other field workers to work directly on line-of-business applications in the field instead of working on paper

Green effect: energy efficiency, people/HR, sus-tainability, transport, warehousing and waste Martin Bailey (ILS) and Kirk Nash (Adcock Ingram)

From left: Annelize Kniep (Barloworld Logistics), Susan Custers (Supply Chain Today) and Carli Venter (Barloworld Logistics)


Green Supply Chain Awards: a joint venture between CILTSA,

the CGCSA and “Supply Chain Today”


Scania strives to minimise the environmental impact of its products, both during manufacture and during use. We take into account the environmental effects throughout the entire life cycle.Scania’s products and operations are characterised by resource efficiency and the principle of caution. Our environmental work is about economising resources and energy as well as on meeting customer demands such as low fuel consumption and emissions.

Environmental strategy from a life cycle perspective

From production to end-of-life treatment, we actively strive to minimise environmental impact. With one of the most efficient production systems in the world, and using modular components, Scania minimises waste in every form. Hazardous materials are only used where absolutely necessary – and their handling and disposal are tightly controlled.

To deal properly with vehicles at the end of their service lives, Scania provides detailed dismantling and disposal protocols. Many parts are designed to be recycled and are marked for easy identification.

Biofuels are part of the natural carbon cycle

Biofuels are part of the natural carbon cycle and don’t contribute to a net increase of CO2 in the atmosphere. Fossil fuels release carbon from fossil deposits and increase CO2 levels. The use of biofuels will thus help reduce CO2 emissions, particularly in heavy transport, where electrification is not easy to achieve.

Only three biofuels today fulfil the important requirements of sustainability, commercial availability and volume production – bioethanol, biodiesel and biogas. Other interesting biofuels will not be commercially available for quite some time.

ENTHUSIASM TOWARDS SUSTAINABILITY

Scania’s participation as the main sponsor at the Supply Chain Green Awards 2011, strengthens our statement that Scania holds a strong enthusiasm towards substantiality and by practicing our verbal commitments.

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

Scania’s biofuel portfolio Scania’s unique biofuel portfolio covers all the three major biofuels, providing solutions that ensure the best operating economy and the most cost-efficient CO2 reduction for each individual customer.

Scania strongly favours the development of a uniform system for certifying biofuels from a sustainability point of view. A good example of this is the EU’s biofuel criteria.

SCANIA. DESTINED TO LEAD

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

Supply Chain Green Awards 2011

Scania South Arica’s Managing Director, Mr Christoffer Ljungner addressing guests on the “Go Green” initiatives Scania SA has implemented in South Africa to date.

Scania’s Winston Muir and Christoffer Ljungner amongst other guests attending the awards.

Supply Chain Award DPS.indd 1 9/5/2011 11:05:56 AM


Scania strives to minimise the environmental impact of its products, both during manufacture and during use. We take into account the environmental effects throughout the entire life cycle.Scania’s products and operations are characterised by resource efficiency and the principle of caution. Our environmental work is about economising resources and energy as well as on meeting customer demands such as low fuel consumption and emissions.

Environmental strategy from a life cycle perspective

From production to end-of-life treatment, we actively strive to minimise environmental impact. With one of the most efficient production systems in the world, and using modular components, Scania minimises waste in every form. Hazardous materials are only used where absolutely necessary – and their handling and disposal are tightly controlled.

To deal properly with vehicles at the end of their service lives, Scania provides detailed dismantling and disposal protocols. Many parts are designed to be recycled and are marked for easy identification.

Biofuels are part of the natural carbon cycle

Biofuels are part of the natural carbon cycle and don’t contribute to a net increase of CO2 in the atmosphere. Fossil fuels release carbon from fossil deposits and increase CO2 levels. The use of biofuels will thus help reduce CO2 emissions, particularly in heavy transport, where electrification is not easy to achieve.

Only three biofuels today fulfil the important requirements of sustainability, commercial availability and volume production – bioethanol, biodiesel and biogas. Other interesting biofuels will not be commercially available for quite some time.

ENTHUSIASM TOWARDS SUSTAINABILITY

Scania’s participation as the main sponsor at the Supply Chain Green Awards 2011, strengthens our statement that Scania holds a strong enthusiasm towards substantiality and by practicing our verbal commitments.


Scania’s biofuel portfolio Scania’s unique biofuel portfolio covers all the three major biofuels, providing solutions that ensure the best operating economy and the most cost-efficient CO2 reduction for each individual customer.

Scania strongly favours the development of a uniform system for certifying biofuels from a sustainability point of view. A good example of this is the EU’s biofuel criteria.

SCANIA. DESTINED TO LEAD

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

Supply Chain Green Awards 2011

Scania South Arica’s Managing Director, Mr Christoffer Ljungner addressing guests on the “Go Green” initiatives Scania SA has implemented in South Africa to date.

Scania’s Winston Muir and Christoffer Ljungner amongst other guests attending the awards.

Supply Chain Award DPS.indd 1 9/5/2011 11:05:56 AM

www.scania.co.za


Transport & Warehousing | Consumer Products | Specialised Freight | Integration Services | Africa

• Reducing diesel consumption by procuring state of the art truck engines incorporating the latest “green” technologies

• Adding additives to diesel to reduce both consumption and CO2 emissions

• Deploying advanced fuel management systems

• Shifting to green suppliers and creating partnerships with experts and like-minded organisations

• Leveraging technology to redesign distribution networks to shorten distances travelled and consolidate shipments

• Altering SLAs by adding carbon to the traditional measurements of cost, quality and service

• Converting from road to rail where practically possible

• Developing employees to demonstrate the right behaviour, e.g. driver training initiatives

www.imperiallogistics.co.za Tel: +27 11 821 5500

Forward thinking is thinking green

Leading the green logistics evolution ultimately resulting in unlocking significant green (CO2 reduction) and gold (cost savings) benefits through the reduction of wastage in the supply chain.

Winner of the 2011 Mail & Guardian Greening the Future Awards Companies and Organisations with Innovative Environmental Strategies that Improve Business Performance.

www.imperiallogistics.co.za


Best Project – R1 to R10 million: DistellProduct/Project: “Give Back Get Back” glass recycling campaign, implemented May 2010, valued at R1 million

Description and innovations: Accelerat-ing glass bottle returns from the public and liquor outlets in Mpumalanga, Gauteng, North West and Limpopo through marketing material, trade visits and in-store marketing campaigns. Reusing bottles, reducing waste, greenhouse gas emissions and elec-tricity use and reducing manufacturing impact on the environment

Best Project - Under R1 million: Hoogheimstra Logistics ServicesProduct/Project: Green Fleet Management Project, imple-mented January 2011, valued at R96 000

Description and innovations: Containment of fleet costs to ensure client’s fuel consump-tion and fleet operating costs stay in desired parameters. This also maintains their car-bon footprint and fleet costs.

Results/principles:

• Given the average distance travelled by the fleet per month is 23 333 km, average fleet carbon saving ~ 5920 kg CO2/yr

• Monitor fuel consumption, fleet routing and distance, kilometre against budget and reduced carbon footprint

• A change in driver behaviour resulted in no major accidents in fleet for six months and optimal vehicle operation

• A reduction in harsh braking incidents resulted in no additional brake replacements needed

• Vehicle costs are maintained through controlled fuel costs and no major or unplanned mainte-nance costs

Green effect: transport, carbon footprint


Christoffer Ljungner from Scania, lead sponsor of the event

Attendees inclded representatives from: African Bank, Afrisam, AIDC, ArcelorMittal, Chemical & Allied Industries’ Association, Dovetail,Ellerine Holdings, Goscor, Homez Trailer & Bodies, JHR Equipment SA, Killer Image Creative Concepts, Maersk Line, Opsi Systems, Oracle, Promo4Good, TNT, Unitrans, UPD (Div of Clicks) and Voigt Shipping

Tjaart van der Walt and Netta van der Walt from Magnet Group



Results/principles:

• 35.2 million bottles returned in 2010/11 in the northern and central region vs. 31.4 million in 2009/10. Amounted to more than R5 million in cost savings.

• Nationwide, Distell re-used 125,5 million glass bottles, saving a total of 68 500 t glass, and 103 440 t in CO2 equivalent emissions

• 413 jobs (Distell bottle merchants) created

Green effect: energy efficiency, packaging, re-cycling, waste

Best Project – Over R10 million: Adcock IngramProduct/Project: Halving the energy consumption in its New Road distribution centre in Midrand, Gauteng

Description and innovations: Halved the ex-pected power requirements by re-engineering the proposed management systems, operational Mapule Ncanywa (CGCSA) and Abrie de Swardt (Imperial Logistics)

Left to right: Dawn Dodds from TrenStar (sponsor), Gjalt Hooghiemstra from Hooghiemstra Logistical Services, Leonard Wallace from Stab-A-Load, Kirk Nash from Adcock Ingram, Mapule Ncanywa from CGCSA, Abrie de Swardt from Imperial Logistics, Thabiso Letaoana from City Power, Susan Custers from Promech Publishing, Eugene Herbert from MasterDrive (sponsor), Simon Gear (guest speaker) and Irvan Damon (one of the judges)


Fred Albrecht, Henry Smith and Etienne Meyburgh from APC Storage Solutions



processes, building, incoming power supply in-frastructure, lighting, air-conditioning, charging and related systems.

Results/principles:

• Original power investment: 1600 KVA; actual achieved 785 KVA. Projected R2 million+ sav-ing in electrical usage over the next five years (R0.80/ KWH)

• Installed a Daiken variable refrigerant vol-ume (VRV) system with direct air expansion for air-conditioning, allowing the air-conditioning demand to reduce from 800KVA to 350KVA


www.ils.co.za



Jan van Rooyen, Marlize Hoffmann and Shalini Ammon from Imperial Logistics

Euphodia Netshakhuma and Thendo Netshiavha from Transnet

David Logan from the South African Association of Freight Forwarders



Tshepo Marumule, Taryn Daniels, Lebone Boikanyo, Neville Kolwane, Jacoleen Richards and Moshisi Lehlongwane, all from the CGCSA

(coupled to insulation improvements)

• 100mm rock wool insulation was inserted under the warehouse roof, allowing a reduction in air-conditioning power of 20%

• Metal halide lights were replaced with T5 type florescent lights and connected to passive infra-red sensors which turn off the lights if there’s no movement in the area under them

• Changing to high frequency battery chargers allowed a power reduction of 15%

Green effect: Energy efficiency, finance, sustain-ability, warehousing

Industry Leader: Abrie de Swardt - Imperial Logistics marketing director

The Award was presented to Abrie due to his far-reaching work on bringing ‘green’ to the supply chain within Imperial Logistics and spreading the message broadly throughout the supply chain and busi-ness communities.

On receipt of the Industry Leader Award Abrie said, “We need to develop a so-phisticated view of the impact that we have on the environment. We need to change our paradigm, our behaviour and the way in which we look at ‘green’.”

Imperial Logistics is on a sustainability focused growth path that balances people, planet and profit. He said that within the company, there are many inspiring, collaborative examples of greening op-erations and customer supply chains.

“Best practice formulation and application has been pioneered through introducing South Africa’s first Euro 5 specification vehicles, innovative water management system development specifically for the

needs of transport companies, ‘extra distance’ analysis, network redesign for cutting carbon emissions and cost simultaneously, as well as an investment in zero emission vehicle refrigeration that operates in complete silence – no moving parts, no harmful emissions and absolutely no noise,” he added.

SponsorsScania was the lead sponsor and an intergral partner in ensuring the event’s success. Bar-loworld Logistics and Trenstar remained on as valued sponsors who have been on board from the get-go. Futher sponsors were Improvon and MasterDrive who sponsored the prize of two Defensive Driving courses for the lucky winner.

To enter for next year’s award or to sponsor the event, please contact Lelanie Diamond on Tel: (011) 781-1401 or Email: [email protected]

Dave Walton from Chep with Jacoleen Richards from the CGCSA Nandie Coetzee and Taryn Thorpe from Volition




Tel: (011) 781-1401 · Fax: (011) 781-1403Email: [email protected] Website: www.promech.co.za

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There has been an exceptional sales performance in the extra heavy commercial vehicle segment, with even more growth expected before year-end

TRUCKING

T his is according to the latest combined results released by the National Asso-ciation of Automobile Manufacturers of South Africa (Naamsa), Associated Motor

Holdings (AMH) and Amalgamated Automobile Distributors (AAD).

This exceptional performance by the extra heavy commercial vehicle segment can mainly be at-tributed to intense buying by fleet owners, with even more growth expected as companies will continue to fleet up before year-end.

“Prospects for the remainder of the year remain positive, with total truck sales of around 25 000 expected at the end of 2011, compared with the 22 022 units achieved last year,” he says. “Trends over the past couple of years have shown irregular buying cycles due to the global recession, but we are expecting the market to continue its upward trend, especially over the short term.”

UD Trucks, Tel: 012 564 9500, www.udtrucks.co.za

Intense buying by fleet owners, with even more growth expected

Extra Heavies on the Up

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“At the moment all the market segments are growing at the anticipated rate, with the exception of the extra heavy segment, which has seen its volumes increase

exponentially and far above industry expectations,” says UD Trucks Southern Africa CEO, Johan Richards. “Proof in point is that on a year-to-date basis, the segment

has increased by 50% or 2 211 units, when compared with the first half of 2010.”

UD Trucks Southern Africa CEO, Johan Richards

www.barprostorage.co.za


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I have never found out who said that first but it is one of the truest statements in the whole firmament of Manufacturing and Supply Chain Management.

Unfortunately, over the years many managers have abrogated the need to measure by passing the buck on to the multitude of computerised systems that surround even the smallest and simplest operations.

They rely on the reports and printouts from their systems without ever placing a critical eye on the information supplied to them.

When the business collapses or, at least, fails to be competitive, these same managers blame their systems and not the only factor that can make a difference – themselves.

Before anyone can rely on a computer system

MEASUREMENT

Performance Measures – Still Essential“If you don’t measure, you can’t control. If you can’t control,

you can’t manage”. MASC Associates owner Eric Warner recently led a workshop on performance measures at Sapics

2011. He shares his insights with “Supply Chain Today”.

to control processes in a plant they must first complete the following steps:

• Understand and clearly specify all the processes in the operation as well as how, where and when these processes interact.

• Identify all of the points at which the processes need to be controlled.

• Set control parameters for each of those points.

• Specify the measures to be implemented at each point.

• Specify the method of measurement as well as the frequency of measurement.

• Describe the procedure for reporting the mea-surements.

• Specify who is accountable for each measure-ment.

• Specify the action to be taken if actual results differ from planned levels by more than the ac-ceptable tolerance.

• Specify the escalation procedure to be followed if the actions taken do not produce the expected results.

• Develop an overall set of measures that review the existing measures and make provision to up-grade the measures as technology or processes

improve.

This paper will only touch on the areas of measurement in broad terms and present a few arguments in favour of certain of the measures discussed.

Areas of measurementAlthough each organisation will have its own specific structure depend-ing on its own needs there will be a number of basic divisions that can be identified. There will also be certain generic measures applicable to those divisions.

The purpose of this paper is to pres-ent the generic organisation and to consider a few measures applicable at the top level.

The MRP11 anchor chart developed over many years is the starting point

Many managers have abrogated the need to measure by passing the buck on to the multitude of computerised systems

Fig 1


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and the chart used by David Buker and Associates (Fig 1) is one of the most effective and clearly understood.

From this chart it is clear that there are three major levels of organ-isational activity and we need to measure performance at each level.

One can also see from the chart that each level of activity supports the level above and that the top levels provide the framework for the activity in the level below. There is a total interdependency that is often not recognised by managers who feel that they can work in a vacuum without reference to the rest of the organisation.

Putting myths to bedMany managers feel that it is im-possible to measure their work or the work of many of the service departments. That is a myth that needs to be laid to rest right now. Everybody, from the chief executive to the person serving the tea (or coffee!) – can be measured and must, in fact, be measured.

The first step is to set the yardsticks for mea-surement. Generally, most measures will have a pre-defined standard against which actual performance will be compared. Simple measure-ment of absolute numbers means nothing if one does not know what should have been achieved e.g. “1000 tonnes per hour” sounds impressive until you learn that the fill rate should be 2000 tonnes per hour. A measurement that reads “fill rate at 50% of target” will probably ring alarm bells immediately.

Once the measurements are set and account-abilities assigned and accepted they need to be clearly and regularly communicated to all mem-bers of the organisation. It appears that simply communicating this will improve productivity by around 15%. Much of this is due to two factors – if people clearly understand the performance criteria they will tend to work towards the goals of the organisation since these are visible to ev-erybody via the measures. Further to this, staff better understand the parameters of their jobs and are no longer uncertain of their role in the company. Their confidence is higher and their “empowerment quotient” is greater, this leads to greater productivity immediately, even before implementing improvements.

The other point that needs to be clearly com-municated is that measurements are not there as a stick to beat underperformers. They must be used (and seen by staff) as a tool for the continual improvement of processes. Hence the

type of measurement is critical. This is a complex subject in its own right.

Top management planningThe top level plans would include the overall Business Plan, the Sales and Operations Plan (SOP) and the Production Plan (PP).

The first measure would be to ensure that the SOP and PP are aligned with and support the overall Business Plan. Each of the measures below needs to be compared to the level set in the plans.

Measures for the Business Plan would include:

• Overall Income vs. Planned Income

• Level of investment in the business

• Return on investment

At the end of the day all businesses are there to make a profit for their investors. This profit (re-turn) must be regulated against the risk inherent in the business. The higher the risk the greater the return needed as there is a greater chance that the return may fall away quite soon.

Measures for the Sales and Operations Plan:

• Sales in Monetary units

• Sales in product units

• Sales by product line (Mix of orders received)

• Period closing Inventory

• Capacity available for operations

Everybody, from the chief executive to the person serving the tea (or coffee!) – can be measured and must, in fact, be measured

MEASUREMENT


www.tnt.com


Measures for the Production Plan:

• Match Production Plan to Sales Plan

• Match Production rates to Plan

• Measure Capacity constraints

• Measure Planning horizon achievement

• Actual Production vs target for the period

What will not be measured directly will be plant utilisation percentage or any similar anti-planning item.

The result of measurement must be an analy-sis of shortfalls or overruns and consequent revision of plans to take changing conditions into account, or a revision of processes if they cannot support otherwise valid plans.

Other measurement levelsWhat has been presented above are only a few of the more macro measures for these top level plans. There are other high level plans that support what is presented here – for example; personnel plans and cash flow plans – and these have their own measures.

I am not going to go into any details about the kind of measures used for the likes of Master Schedule Performance or MRP performance etc, suffice to say that the measures must ensure that these operations plans support the top level plans.

However, I must emphasise the need for extremely high accuracy for all static data in the system as this is the basis for any system to be effective. Any ERP system (or even a simple accounting system) is doomed to failure if the basic static data is not accurate.

It is no longer possible to ignore the effects of all the other links in the supply chain, both up-stream and downstream and so these must also be measured.

Remember that the performance of the total sup-ply chain is only as good as the performance of the weakest link.

The trouble with weak links in the supply chain is that you often can’t just say “Goodbye”, you need to appraise it and assist in strengthening it – as such it must also be measured.

Traditional measures used by traditional (read “outdated”) management tend to result in a build up of unnecessary inventory and a culture of “cover your back” in the organisation as well as adversarial relationships with third parties.

Modern measures are aimed at identifying op-tions for improvement and need to be understood as such by all staff so that they buy into them

Remember that the performance of the total supply chain is only as good as the performance of the weakest link

and actively co-operate in feeding timely, ac-curate and reliable information into the system. This ultimately benefits everyone in the supply chain and leads to opportunities for competitive advantage that may not be forthcoming through traditional products or services.

Eric Warner CA(SA) CPIM, Email: [email protected]

MEASUREMENT

www.pioneerplastics.co.za


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Market ForumOpportunity awaits property seekersProperty group Improvon Properties has three main projects it is cur-rently working on, namely N1 Business Park, Montague Park and Tunney.

The 32 Ha N1 Business Park, midway between Johannesburg and Pre-toria in Gauteng, provides an ideal opportunity for businesses looking to position their warehousing, cross-docking and distribution facilities in a secure and easily accessible environment.

Montague Park in Milnerton is Improvon’s flagship property in the Western Cape and the largest project of its kind to be undertaken in the area in many years. Launched to the market in June this year, the new 62 Ha mixed-use business park currently under development is fast attracting several national ‘big box’ retail chains and modern dis-tribution centres, due to its prime location, eco-friendly focus, security and overall aesthetic appeal.

A much smaller development than the two business parks, Improvon’s Tunney property, an established industrial node on the East Rand in Gauteng, will offer 20 000 m2 of industrial space to either one large client, or several smaller clients, by the time construction is completed at the end of September this year.

Improvon, Susan Waugh, Tel: 011 409 9308, Email: [email protected]

Conservation and technology improve fuel efficiencyUS-based logistics company UPS has again managed to reduce the amount of fuel it’s using to deliver each pack-age in the United States, according to their latest annual Sustainability Report.

UPS’s US package volume rose 1.8% in 2010 compared with 2009, yet it still reduced the amount of fuel consumed per package by 3.3%. This improvement was through deploying the right vehicle on the right routes, using technology to minimise the miles driven and focusing on how behaviour can affect fuel use.

All told, technology enabled UPS to avoid driving more than 102 million km in 2010 with an associated emis-sions avoidance of 68 000 metric tonnes.

The new report, spotlights key ways that UPS technology has reduced fuel consumption, including routing technology, which reduced the kilometres flown and driven; loading optimisation so more packages are delivered with fewer vehicles on the road, and telematics, which provides data on how a vehicle performs mechanically as well as on a driver ’s route and behaviour. Telematics saved 15.4 mil-lion minutes of engine idling time in 2010.

“The data we gather from Telematics enables us to make

Business DSL services get data price reductionsVodacom’s Business Services has significantly reduced broadband prices for its Premium Business DSL offerings.

“Our premier DSL services cater for the specific needs of businesses in South Africa and provide companies, from SoHos and SMMEs to large corporations, with an Inter-net connection that delivers greater choice, exceptional quality, increased cost efficiencies and an excellent user experience,” says commercial development managing executive Chris Ross.

Delivered through Vodacom’s Business Services, and ex-clusively for business customers, DSL broadband services are delivered over fixed lines to business users almost anywhere in the country. Additional and optional 3G failover brings even higher reliability to users.

Chris explains that Vodacom procures bandwidth from a variety of cable systems, including SAFE, SAT3, SEA-COM and EASSY, and uses technology that blends these to create reliability. “We are not dependent on any one system and so if one fails there is a transparent switch to another source. With the addition of an optional 3G failover service, available on our CPE routers, our users enjoy reliable connectivity – one of the most important benefits.”

Existing customers can either upgrade or renew contracts to take advantage of the new pricing.

Vodacom Ltd, Chris Ross, Tel: 011 653 5000, Website: www.vod-acombusiness.co.za

small adjustments with big payoffs,” says UPS chief sustainability officer Scott Wicker. “For example, one of our metrics is ‘stops per mile,’ which measures our ability to deliver more packages with fewer engine restarts. Increasing the number of stops per mile by just 0.01% in 2010 was the equivalent of not driving 14.7 million km.”

UPS South Africa (Pty) Ltd, Paul Horsfall, Email: [email protected]

www.eci-international.com


zetes mobility_supply chain today.FH11 Tue Aug 23 06:52:04 2011 Page 1

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Market ForumNamibian warehouse eyes systemFrozen food producer Pescanova Group has selected solutions provider RedPrairie's Warehouse Management System (WMS) to support growth at its Southern African subsidiary, NovaNam.

NovaNam implemented the system at its Walvis Bay cold-store ware-houses in Namibia.

Over the past few years, the company faced the challenge of manag-ing a business with increasing levels of process complexity, driven by a growth in SKU’s, increased number of customers in different countries and compliance-driven control requirements. They were looking for a company with the required system and resource capabilities to meet their business needs and a solution that would eliminate manually-driven processes and thus reduce the potential for human error.

They also needed a system that could handle their specific requirements relating to batch control and traceability, handling and automated weigh-ing of variable-weight products, and container loading and management.

“Given our market is entirely export driven, and mainly to EU countries, we had very specific batch management and product packaging requirements with outbound labelling in multiple languages and formats depending on where the product is being delivered,” explains NovaNam project lead and management accountant Ryan Coldman. “The WMS system needed to manage this effectively and without intervention.”

RedPrairie, Tel: 0861 339 251, Email: [email protected].


Real-time data transfer reaps benefitsDistributor of manufactured and semi-manufactured products Danske Fragtmænd’s drivers and warehouse workers have been equipped with 1 700 Ikôn PDAs from Psion.

The Ikôn allows drivers constant connection to the host and real time updates to bookings while on the road. Warehouse staff also use Ikôn PDAs for stock-picking and more accurate, real-time stock inventory. Psion’s Software Development Kit enabled Danske Fragtmænd to easily integrate the device with existing sys-tems. Ikôn also has the high-est battery capacity currently available on the market and ensures full-day productivity for mobile workers.

i-Serv was selected as a compre-hensive global service plan as part of the solution, to minimise downtime costs and provide a simple and reliable process for rapid collection, repairs and returns of equipment. The distributor also imple-mented Mobile Control Center to allow new features and enhancements to be deployed centrally and to eliminate problems with individuals, monitor units, check status and install and update software from a central location.

The Ikôn’s GPS function allows customers to follow ship-ments with Track & Trace, substantially reducing cost and time. Real-time communication of bookings to drivers saves Danske Fragtmænd an estimated 12 to 15 man-years and a service agreement with Psion dramatically reduces unplanned downtime and costs.

Real-time-data transfer benefits include increased ef-ficiency and productivity and an improved view of where items are during the delivery process for the company and their customers.

Psion Africa, Michelle Hollis, Tel: 011 805 7440, Email: [email protected], Website: www.psion.com

Market Forum

Catherine LarkinTel: (011) 789-7327 / 787-9127

083 300 0331Email: [email protected]

0861 CGC 000(0861 242 000) 0866 749 929

www.cgcsa.co.za

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Market Forum

Financial and sustainable convergence trendsSustainability may be an environmental problem but it will also have far-reaching financial implications. To gain the traction they need to meet sustainability goals they must examine the sustainability of their own operations, investments and business partners.

Business analytics software and services company SAS principle consultant, Francois Beyleveld says, “A report-ing framework needs to be built that takes into account an organisation’s strategic objectives, governance and business model and material financial and non-financial information -something the International Integrated Re-porting Committee (IIRC) itself is trying to drive.”

He says regulation will force the hand of energy intensive industries such as industrial manufacturing, metals, and mining now. But within the broader business community, there is a definite shift with less talk about carbon, and more about waste streams, water, energy efficiency and responsible lifecycle management,” states Francois.

There also needs to be a desire and need to confirm - according to Francois this is where the need for investor

Harvesting a new opportunityLogistics provider Cargo Carriers’ agricultural expertise will come in handy when it undertakes Cape Concentrate’s supply chain work in an ambitious tomato growing and processing project.

The new venture aims to grow 1.4 million t of tomatoes a year which will be processed into over 250 000 t of tomato paste (5% of world production) by 2014. Cape Concentrate’s Eastern Cape production facility is the largest of its kind locally, with the longest tomato paste production cycle of any processing plant in the world. The processing plant will start producing in July, at ap-proximately 1% of world volumes.

Cargo Carriers expect to have a continuous stream of tomatoes in the supply chain with an average four-hour period from harvest in any of the multiple fields to the Coega-based processing plant.

One harvester, seven Mercedes Axor 3344 truck tractors, 14 specialised trailers with a load capacity of 34 t for delivering tomatoes from the loading zones to the plant and two 10 t trailer and tractor combinations used in the infield operations make up the logistics assets of this venture.

“At full production, this process will operate 24 hours a day, six days a week,” says Cargo Carriers marketing director Andre Van Vuuren.

Cargo Carriers, Tel: 011 485 8700, Email: [email protected], Website: www.cargocarriers.co.za

Market Forumand consumer interest comes into play. In addition, this is driving the need for funds within business that focus on sustainable, social and responsible investments. Even local banks are betting their future growth on ‘green’ product lines, however the major challenge is how to match a product’s qualifications to the current consumer perception of sustainability.

He believes an area where the most impact can be made is procurement reform, where standards including sustain-ability measurement in product and services evaluation, need to be adopted by governments and business.

SAS Institute South Africa, Jennifer Meyer, Tel: 011 713-3400, Email: [email protected]

www.cargocarriers.co.za


Market ForumPoint-of-sale: business extension, or an add-on?Most retailers, especially smaller operators or independent outlets, tend to operate with isolated, disconnected POS systems with no connection to goods receiving, warehousing or the general ledger, says HansaWorld SA sales and channel manager Andre Wiid.

“HansaWorld’s complete POS system is designed to run on inexpensive, standard hardware and creates a connected solution for managing every aspect of the store,” he notes.

For companies with several outlets, the system provides equal performance whether it is online or offline. It doesn’t depend on the network or connectivity to the back-end server which characterise multi-site operations, to function. He says that given a connectivity interruption, every outlet continues working as usual; when connectivity is restored or a server crash recti-fied, the system synchronises itself.

"Live data means the ability to know what is happening in-store or across a group of stores, directly feeding into stock management, replen-ishment and providing for a more lean supply chain with optimised stock holding patterns," adds Andre.

"It runs on almost any hardware, even that considered obsolete, and any operating system, whether Linux, Mac OS or Windows, without the requirement for any additional software," he says. While it is an extension of the HansaWorld Enterprise ERP solution, suitable for companies ranging from under ten users to those with hun-dreds, Andre says the POS system can also run as a standalone solution.

HansaWorld SA, Andre Wiid, Tel: 011 656 6113, Email: [email protected]

APC 34Barloworld 19Barpro 33Cargo Carriers 36ECI International (Tyrexpo Africa) 41Fiat 10Fried International 44GEA Refrigeration 8 Goscor 14HLS 22ILS 29Imperial 26JIMS 40Mercedes-Benz Fuso Inside Front CoverMercedes-Benz Sprinter 6Nissan 43Pioneer Plastics 39Scania Outside Front & Back Cover, 24, 25Stab-A-Load 20TNT 38Toyota 12Twintec Inside Back CoverUniversal 16Zetes (Proscan) 42

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