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Turning experience into excellence
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6 6 strategy
Planning Change and Changing Planning
Why firms need to adopt a best-in-class planning process in order to plan for the future.
Picking Productivity Kept Simple
When it comes to choosing a warehouse picking solution, accuracy beats complexity every time Pick-to-Light systems are easier to learn too
20 Demir Export Turning experience into excellence
Having more than a half centuryâ€™s experience, Demir Export is recognised as one of the leading diversified mining companies in Turkey with extensive know-how and competency.
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28 Gelibolu Shipyard Making waves
Based near to one of Europe’s most historic maritime locations, Gelibolu Shipyard has been delivering expertly designed turn-key vessels for the better part of four decades.
The future is data
Among the forces that bind the people of Azerbaijan together is its mobile communications network: we talk to Azercell’s recently appointed CEO about the technical and social aspirations of the company.
44 Waco Industries The perfect partner
Waco Industries is Southern Africa’s largest manufacturer and distributor of industrial electrical products and as such continues to play a hugely vital role in the development of numerous countries and industries.
52 Seven-Up Bottling Company Making a difference
For more than 50 years Seven-Up Bottling Company has been a significant contributor towards the development of Nigeria, making it one of the country’s most admired businesses.
Why firms need to adopt a best-in-class planning process in order to plan for the future Words by
George F. Brown Jr.
short while ago, I worked with a firm to redesign their planning progress. The motivation for the assignment was described by an executive from that firm: “We felt very good about our planning process, believed that it was structured to ensure that we got ahead of opportunities and addressed the problems that were challenging our business units. A few years ago, for example, we concluded that the business model we had in place in one unit was becoming dated. Customers were looking for more and more customization in the equipment that they bought from this group, and were expecting a much more intelligent product. While the concept of Big Data hadn’t yet become popularized, they were looking for a data stream that would yield significant cost savings in their operations. In any case, our planning process identified these requirements, and our business plan mandated that the team take steps to implement them. “Quite frankly, we fell on our sword as we tried to implement these changes. Looking back, it was surprise after surprise. Trying to even address customer needs for customization was a challenge. We had always relied on our distributors for customer interface. We had no skills in doing this, and even ran into conflicts with the distributors over end customer interactions. And when we muddled
through and got an order, we found we weren’t very good at production to order. All of our processes were designed for high-volume runs, and we basically lost money on each custom order. And to be honest, we never even got to first base in terms of the information idea. That was just outside of our company’s skill set. “What we gained from this unintended ‘learning experience’ was that strategy was only half of the equation. Without equal attention to execution, good strategy goes nowhere. So we realized that our planning process had to evolve to ensure that we were planning for change along both the strategic and implementation dimensions.” This firm’s experience was hardly unique. I will cite two learning experiences of my own, ones that convinced me of the importance of focusing on implementation as a critical element of planning. The first involved a webinar that I conducted several years ago on the topic Best Practices in Strategy Implementation, sponsored by the Institute for the Study of Business Markets. The webinar technology that was used allowed for some real-time polling of the participants, the vast majority of whom said they were currently involved in implementation projects. The quite striking finding that emerged from the use of this polling technology was that only 26% of the respondents said that their companies offered any in-career education programs related
“We realized that our planning process had to evolve to ensure that we were planning for change along both the strategic and implementation dimensions” 8 |
“Firms need to change their planning process in order to plan for change. Planning processes must not only define the appropriate strategy, but also provide a solid foundation for its implementation” to implementation. Most corporations today spend well over $1000 annually per employee on education and training. Such programs span a wide range of topics – from how to develop strategy to how to motivate employees to how to use the newest IT tools. But the finding from this poll, as well as what I’ve heard over and over in discussions with executives in many different companies, is that very little of this money is spent on developing competencies related to implementation projects. Teams are given very important implementation assignments without any training or tools to help them to succeed. The second experience which motivated my understanding of the importance of developing implementation skills emerged from a research project that I did on the challenges of making changes to a firm’s business model, reported in an earlier article in the September 2011 issue of Business Excellence. Such business model changes are frequent, typically motivated by sound strategic thinking, much as was the case of the firm whose case study was reported earlier, addressing critical strategic goals such as profit improvement, growth, new market entry, or the introduction of new technology. In essentially all cases in which firms try to implement changes to their
business model, such changes represent a major challenge to implement. That reality underscores the importance of the following finding from the research cited above. By a very substantial margin, the two reasons cited as responsible for situations in which the new business model failed to deliver the hoped-for results were “Implementation process was poorly managed” and “Internal resistance to the new business model”. Those two factors emerged from a long list of potential problems that spanned a spectrum from a flawed strategy to customer resistance to competitor responses. The teams that will be responsible for implementing business model changes will have to grapple with challenges aplenty, some involving the technical aspects of the change, some involving gaining buy-in from customers and other key thirdparty organizations, and some involving challenges associated with resistance from within the corporation itself. Without a strong implementation plan and a team prepared to execute it, those challenges often prove too much to overcome. Ben Franklin once said “By failing to prepare, you are preparing to fail.” The experience of the firm that I cited earlier and the findings from my ISBM poll and the change management research project certainly suggest that his words remain
true and apply today. Firms need to change their planning process in order to plan for change. Planning processes must not only define the appropriate strategy, but also provide a solid foundation for its implementation. I believe that there are three primary dimensions along which the planning process must evolve to ensure a high probability of success in the implementation of change. The first of these involves the basic blocking and tackling of effective project management. Every project associated with implementation, change management, new business models, or similar motivations has complexity that can only be addressed through a structured and orderly approach, drawing upon best-in-class tools to manage and monitor the project. Defining the change that is required from a strategic perspective is only the tip of the iceberg from an implementation perspective. “Leaving the details to later” is typically a prescription for failure. A best-in-class planning process prepares the implementation team with a detailed plan, providing clarity as to assignments and responsibility at a very detailed “What – Who – When” level of detail. In my experience, more often than not, the processes that are required to move from high-level strategy to “What – Who – When” detail not only raise the likelihood of success, but also uncover important elements of the strategy that were overlooked previously. Requiring that strategy be translated into
“One of the realities of most change management projects is that they will lead into some uncharted waters” implementation plans is thus a double benefit to the firm. The second requirement of a bestin-class planning process is that it addresses the organizational and human dimensions of the planned change, considering both the internal and the external constituencies that will be impacted by the changes planned. Far too often, strategy only focuses on the “hard” themes – target markets, competitive positioning, product attributes, pricing, etc. Those factors are clearly important, but so are organizational and human factors. Any significant change to a firm’s business model will ripple through the organization, impacting on departments, systems, processes, and people in ways that are often poorly understood when only the “hard” elements of strategy are considered. The experience of the firm whose case study was presented earlier serves as an example. They had no systems in place to manage production to order, no competencies in end customer relationship management, and no organizational units ready to bring intelligence into their equipment. Their strategy was well founded in that it responded to needs of their customers, but their preparation for implementation was sorely lacking. Focusing on these factors not only responds to the challenge underscored by the finding on internal resistance to
change within the firm, but also to the reality that customers, channel partners, suppliers, and many other external organizations are likely to have an important “vote” on the success of the project. One best practice lesson that emerges over and over is the need to fully understand the external implications of change, and get into a position to sell the concept and gain support from key third-party constituencies. One project manager with whom I recently worked said that “Bringing the voice of our customers into our project plan was the single most important ingredient behind our success. They warned us of multiple problems that each had the potential to derail what we were doing.” His insight is common among leaders and organizations that have brought external messages into the project plan. The third area in which I recommend for inclusion in the planning process involves uncertainty. One of the realities of most change management projects is that they will lead into some uncharted waters. It’s as much of a bad assumption to assume your team can grapple its way through such waters as it is to assume that they are genetically able to manage complex projects effectively without any investment in their skills or in the tools made available to them. Drawing upon lessons from other environments, through processes as simple as talking to people
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with the right experiences through ones as formal as benchmarking, can allow a team to navigate such uncharted waters without running aground. Insights and information are keys to the success of many projects. The ability to gain such insights must be a central part of the skill set of project leaders and their teams. Another dimension of planning for uncertainty involves recognizing its inevitability. It is a rare when a project of any magnitude doesn’t involve surprises and requirements for midcourse corrections, and project success along all dimensions – schedule, budget, and outcome – is often determined by whether those unanticipated twists and turns derail the project or not. Scenario planning is a skill, one that can be learned and embedded into project management processes and disciplines. Sometimes the alternative scenarios reflect the changes that inevitably occur in the business environment, from frequent ones like business cycles to infrequent ones like tsunamis. Other scenarios are driven by competitor responses (or customer responses) to the changes being implemented. The more the implementation team is able to anticipate and monitor changes and have plans (and
“It is a rare when a project of any magnitude doesn’t involve surprises and requirements for mid-course corrections”
budgets) in place to address them, the more likely they are to succeed. Changing your planning to include a focus on managing implementation and change can help you achieve strategic goals. The business environments in which we all operate will demand more and more agility on the part of our companies, in order to realize the opportunities that are emerging and address the challenges that are inevitable. The companies that build solid foundations for implementation during the planning process – getting to “What – Who – When” levels of detail, addressing organizational and human dimensions of change inside and outside the firm, and planning for uncertainty – will be those that are able to realize the goals targeted by their new strategic plans and celebrate the successes that they achieve.
About the author George F. Brown, Jr. consults with industrial firms on growth strategy. He is the coauthor of CoDestiny: Overcome Your Growth Challenges by Helping Your Customers Overcome Theirs (Greenleaf Book Group Press of Austin, TX) and the cofounder of Blue Canyon Partners, Inc. George has published frequently on topics relating to strategy in business markets, including articles in Industry Week, Industrial Distribution, Chief Executive, Business Excellence, Employment Relations Today, iP Frontline, Industrial Engineer, Industry Today, and many others.
When it comes to choosing a wareho complexity every time - Pick-to-Lig Words by
ity Kept Simple
ouse picking solution, accuracy beats ght systems are easier to learn too
mas R. Cutler BE Weekly
dentify the characteristics most needed for an effective picking solution may seem obvious. Indeed high visibility, robust order pick displays, flexible mounting method allowing the system to easily adapt/ grow with warehousing operation and simple intuitive software must be part of the mix. Obviously highly accurate order assembly, orders handled by barcode scanning or manual selection and picking data interfaced with ERP/ WMS for real-time visibility are also must-have requirements. These characteristics for picking solutions are a great starting point for finding a cost-effective and efficient solution. More is not better in the picking world. All the bells and whistles of costly complex solutions completely miss the actual value, picking the right product, at the right place, at the right time. Very large multi-facility warehouses implement very costly WMS (warehouse management systems) often customized to their particular operation. More than 90% of all distribution center locations are single operations with less than 100,000 square feet. They cannot justify high-end multi-million dollar technology solutions to enhance warehouse productivity, accuracy, and exploding SKUs (stock keeping unit). The need is just as great among these smaller distribution centers and single warehouse operators; too often these executives attempt to patch together a best-of-breed picking solution at an affordable price with mixed results. Antonio Rodrigues, a senior manager at Pcdata, based in East Granby,
“One size fits all certainly does not apply to getting the highest productivity out of a warehouse operation. Different technologies are better-suited depending on the SKUs order frequency and value.” Connecticut, suggested, “One size fits all certainly does not apply to getting the highest productivity out of a warehouse operation. Different technologies are better-suited depending on the SKUs order frequency and value.” Analysis of most warehouse orders will show a Pareto curve, where a small amount of the SKUs being processed account for a large percentage of the orders. These fast-moving items are the “A” parts. Any small amount of efficiency gains in picking these “A” parts will have a relatively large impact on the overall productivity of the entire operation.
Too often vendors of picking products are wedded to (and clearly invested in selling) just their solution, whether it is (or is not) the right fit for the distribution center, 3PL (third party logistics), or warehouse. Comparing pick technologies, side by side, often reveals that Pick-to-Light solutions have a clear edge over other solutions when measuring picking accuracy. The light indicators make it difficult to pick from the wrong location, or the incorrect amount, when the light is both the pick instruction and location indicator. There is also a clear cost-advantage
SKUs A-parts (fast movers)
C- and D-parts
“Replacing a paper-based picking process with a single technology helps deliver significant improvements with efficiency and accuracy” and scalability to Pick-to-Light solutions according to Rodrigues who suggested, “The system’s cost is determined by the number of SKUs, as a display is required for each SKU picked. With voice or RF scanning equipment, the variable cost is determined by the number of operators picking.” Better than Paper Replacing a paper-based picking process with a single technology helps deliver significant improvements with efficiency and accuracy. However to optimize warehouse productivity, deploying hybrid solutions in which Pick-to-Light is used for fast moving products, delivers the best possible operational solution.
Too many vendors have ignored the single warehousing operation because there was no reasonable ROI (return-oninvestment) for the proposed technology. Investigating PickStar, Pcdata’s next generation Pick-to-Light solution, the company has designed an installation model with minimal operational impact; bottom-line ease of use and operational simplicity was the company focus will provided a rapid ROI. Most of the 550 systems installed worldwide in 30 countries (100 in North America) required nothing more than basic user involvement due to the intuitive GUI (graphical user interface.) By observing employees at full capability in days, rather than months, the cost-justification becomes clear (especially without the need for IT engineering staff.)
Whse Technology Comparison Chart Labor
Hybrid w P-t-L
Pick Strategy by Order Volume Picks/ manhr
Fully Automated Picking Solutions
RF Picking Pallet Racking / Static Locations
Flowracks / Conveyors
Exponential Growth of SKUs With exponential growth in SKUs, the permutations of one product can be complex. That variety and variability does not need to translate into the design, deployment, and maintenance of an effective picking solution. Rodrigues noted, â€œIt is best when the hardware components are modular and user replaceable, minimizing maintenance and support costs. We have seen that in the right environment these Pick-toLight systems will outperform typical voice, RF scanning or paper based picking and order assembly processes.â€? The industry sectors that are often
Automatic Transport Systems, Carrousels, Mini Loads, Robots, Sorters
most impacted by these simple, ready-toinstall, out-of-the box solutions, are fast moving item picks at any warehouse. Assembly line processes are complex, particularly in food logistics, e-commerce business-to-consumer organizations, spare parts assemblies, and a wide variety of consumer goods distribution centers. Low IT requirements, does not mean ineffective picking solutions. Too many picking solutions require high powered servers or complex network infrastructure. Running from a standard Windows platform, allows the existing IT landscape to be utilized.
About the author Thomas R. Cutler is the President & CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc., (www.trcutlerinc.com). Cutler is the founder of the Manufacturing Media Consortium including more than 4000 journalists, editors, and economists writing about trends in manufacturing, industry, material handling, and process improvement. Cutler is a member of the Society of Professional Journalists, Online News Association, American Society of Business Publication Editors, and Committee of Concerned Journalists, as well as author of more than 500 feature articles annually regarding the manufacturing sector. Cutler is the most published freelance industrial journalist worldwide and can be contacted at: email@example.com
Turning experience into excellence Having more than a half centuryâ€™s experience, Demir Export is recognised as one of the leading diversified mining companies in Turkey with extensive know-how and competency
written by: NilgĂźl Pelit Poyraz research by: Abi Abagun
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ounded under Koç Group, one of the largest and most successful industrial and trading enterprises in Turkey, Demir Export has produced iron ore since 1957. In subsequent years, Demir Export also initiated production of base and precious metals such as zinc, lead, copper and silver ore concentrates in addition to lignite and chromite ore production in lumpy form and as concentrates. The yearly copper concentrate production of Demir Export from its underground operations in Giresun, north east Turkey, comes in at 15,000 tonnes, while yearly chromite production in Bursa province is 30,000 tonnes. Meanwhile, iron ore production from six different iron ore operations in Sivas, Kayseri and Balıkesir provinces has reached 1.5 metric tonnes per year, all of which is sold to domestic integrated steel mills, namely Kardemir, Erdemir and İsdemir. Demir Export is making significant steps to extend this spectrum with new operations that it expects to commence in the near future. Iron ore, after which Demir Export was named, has been the key production product for the company throughout its history. Demir Export has gone on to become a major supplier in the domestic market, serving the largest integrated iron and steel plants of Turkey. The company’s iron ore operations can today be found in Çetinkaya, Purunsur, Elkondu, Otlukilise, Uzunpınar and Şamlı. While the iron ore production in 2012 was 750,000 tonnes, the production capacity for 2013 has been increased to 1,500,000 tonnes. In May 2013, Demir Export acquired 100 percent of the
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Demir Export shares of Ferrocom Madencilik operating in Divriği-Sivas. With this acquisition Demir Export is now targeting to elevate its premium quality iron ore production to more than 500,000 tonnes per annum. Another major product for the company has been its copper ore concentrate production which occurs in Lahanos, in the Eastern Black Sea Region of Anatolia. The production volume in 2012 for copper was approximately 14,800 tonnes, all of which was subsequently exported. Lahanos is still an active operation where the remaining estimated copper concentrate production for 2013 has been determined as being 12,000 tonnes.
In addition to its iron ore and copper assets, Demir Export’s Güdecek chromite operation is located in Güdecek Sırtı region of Ömeraltı village in Mustafakemalpasa district at a distance of 140 kilometres from Bursa. Last year 25,500 tonnes of concentrate was produced from this operation, whereas the target for 2013 has been increased to 35,000 tonnes. In addition to its existing operations, Demir Export plans to grow its business by developing new projects and adding new products to its production portfolio. Having produced almost 90 million tonnes of coal in Kangal between 1989 and 2012, Demir Export is now in the process of developing an underground coal mine at East Eynez, in Western Turkey, which
ORTADOGU SONDAJ Ortadogu Drilling Ltd., was established with the purpose of providing drilling services for the mining and energy sector. Our company brings drilling and engineering services with continuously being improved drill rigs for diamond drilling projects. With the experienced drilling crew, our main goal is to satisfy the expectations of customers by completing boreholes with the highest possible core recovery. While increasing the knowledge and experience of our personnel by periodical trainings, the company follows the “ISO 9001 Quality Management System”. By observing the national and international
legal legislations and requirements, we commit to follow the change in regulations, ensure the application of these changes, apply and monitor our procedures and continuously improve all of our activities. Especially for the energy sector, our company drills the deepest slim holes in Turkey, which are cored with the purpose of exploring the geothermal heat gradient. These holes, some of which are deeper than 2.000 meters, are drilled with our own manufactured deep hole drill rigs “GEO- 1500”. www.ortadogusondaj.com
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â€œDemir Export has gone on to become a major supplier in the domestic market, serving the largest integrated iron and steel plants of Turkeyâ€? it predicts will start production in 2015. A fully mechanized longwall method will be employed and occupational health and safety will be of utmost importance at East Eynez where 36.6 million tonnes (3 million tonnes per year) will be produced in the estomated 18 years of mine life. Demir Export will be the first company in Turkey to implement Mechanized Longwall Top Coal Caving (LTCC) for underground coal production. Another major operation that the company
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is excitedly preparing to run is BakÄąrtepe gold project where total mineable reserves have been estimated as being 4.0 tonnes of gold metal out of total geological source of 150,000 oz. The EIA approval was granted for the project, which will become a running mine operation by the first quarter of 2014. The operation is estimated to create 96 new direct local jobs for the surrounding community, which in turn will provide indirect economic benefit for 441 people in the region.
To develop the current product portfolio and to explore new production areas, the Exploration and Project Group of Demir Export capitalizes on a know-how which has accumulated over 50 years for domestic and international exploration, engineering and development projects. In a bid to development a sustainable mining structure throughout the business, the company has recently undergone a signifiant corporate reorganization. This has led to the establishment of an environmental and social management framework based on international best practices, in addition to the operational requirements. This framework is aimed to ensure long-term success in applying corporate policies. Looking ahead, and in line with said reorganization, Demir Export is committed
to exploring and operating at the highest standards of responsible resource development. The top priorities of the company continue to be occupational health and safety, environmental protection and the well-being of the communities around which it operates. These primary principles are embedded in all phases of the companyâ€™s operations. Demir Export is today combining a half century of experience with a young and innovative management style in order to achieve remarkable success in sustaining corporate growth and development in the Turkish mining industry. For more information about Demir Export visit: www.demirexport.com
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Based near to one of Europeâ€™s most historic maritime locations, Gelibolu Shipyard has been delivering expertly designed turn-key vessels for the better part of four decades
written by: Will Daynes research by: Peter Rowlston
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elibolu, also known as Gallipoli, is one of Turkeyâ€™s most historic locations. Located in east of the country, on the southern shore of the peninsula that shares its name, the town has a rich naval legacy dating as far back as the 5th Century B.C. Over the centuries that followed the town would go from being the home of important military warehouses for corn and wine under the rule of emperor Justinian I, to falling under the power of Venice in 1204 and the Genoese in 1294, before the Turks conquered it in 1354, making it part of the Ottoman empire. Fast forwarding to the 20th Century and the town, and wider peninsula, bore witness to the infamous Gallipoli Campaign of the First World War. The town was finally returned to Turkey in 1923 under the Treaty of Lausanne and has since gone on to become recognised as an administrative centre within the province of Ă‡anakkale that is home to over 30,000 inhabitants. Lying in close proximity to Gelibolu, along the coast of the Dardanelles, one will find Gelibolu Shipyard. A present day reminder of the historic links this part of Europe has to the maritime sector, Gelibolu Shipyard is a family owned newbuilding yard founded in 1975. One half of Aksoy Shipping Group, it specialises in the building of small-tomedium sized sea and river going vessels for its ship chartering sister company, Ali Riza Aksoy Denizcilik. One of the facets of the business that Gelibolu Shipyard benefits most from is its relationship with Aksoy Shipping Group. This Turkish charterer has achieved wide success
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Gelibolu Shipyard in the local market through its dedication to reliability, quality, and innovation. As a result of this relationship activity at the shipyard has remained at a steady pace and this has given the company’s engineers the time to construct the modern vessels it has become so well known for. Spread over a total area of approximately 50,000 square metres, the shipyard’s facilities include three slipways of 30 metres by 130 metres, approximately 8,000 square metres of enclosed construction workshops with various cutting, bending, welding and shaping machines. From
its facilities the shipyards engineers are capable of constructing vessels of up 150 metres in length and with a beam of approximately 30 metres. Gelibolu Shipyard’s experienced and loyal workforce has a strong track record
ELKON Elkon, a member of Imtech Marine, is Turkey’s leading marine electrical company offering tailor-made electrical system solutions for commercial ships, naval ships, fishing vessels, offshore supply vessels, tugboats and yachts. The vast experience of more than 400 complete electrical systems and 520 automation projects combined with customer-oriented approach enables Elkon to provide flexible and reliable solutions as a trusted Electrical System Integrator for Project Management, Electrical Design, Engine Room Automation, E-Propulsion Systems, Dynamic Positioning Systems, Installation
on-board, Commissioning, Service Support and Technical Backup. In our state-of-art production facilities in Tuzla, the center of Turkish Shipbuilding Industry, we are able to deliver LV Switchboards, E-Drives, Integrated Alarm and Monitoring Systems with a fully integrated Quality Management System (ISO 9001, ISO 14001, OHSAS 18001) in-house. Having delivered around 20 vessels with Gelibolu Shipyard since 2002, Elkon is looking forward to new projects as Gelibolu Shipyard’s Electrical Systems Partner. www.elkon-tr.com
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of building and delivering turn-key vessels of all types, from small work-boats to fully automated ocean-going vessels of the highest standards. Examples of this work includes dry cargo carriers, product and chemical tankers, container ships, supply boats, tugs, accommodation barges, ferries and landing craft. Each and every member of the shipyard’s workforce has helped the company fashion for itself a reputation for excellence when it comes to the quality of its products,
its ability to deliver on schedule and for the way it always strives to keep the promises it makes to its customers. Gelibolu Shipyard understandably takes great pride in the high quality of its ships and their components. A perfect example of this would be the REMAS, a 75-metre offshore diving support vessel featuring diesel-electric propulsion, Dynamic Positioning Class II and an environmentally friendly design, which is now owned and managed by leading
“Gelibolu Shipyard understandably takes great pride in the high quality of its ships and their components” 34 | be weekly
offshore contractor, Micoperi. The vessel has been specifically crafted for accessing and operating in the Caspian Sea and also possesses a hull that has been designed for river passage, shallow water draft and four point mooring capabilities. The future of Gelibolu Shipyard, like any other yard or associated business, will depend heavily upon the status of the chartering market internationally and the levels of activity that it experiences over the coming months and years. While there is clearly something of an oversaturation of vessels in certain sectors of the maritime industry, including those in which Gelibolu Shipyard specialises in, it is the companyâ€™s belief that the flexibility it possesses will allow it to adjust accordingly to service those sectors of the market where demand remains stable or strong.
The sector where increased demand is confidently predicted to rise in the short to medium term is the offshore sector. This is because of several factors, not least of all the continued resilience of oil and gas prices, the new discoveries being made in this field and the surge in offshore wind farm developments in countries pushing for greater sources of renewable energy. Each of the above developments offers a company like Gelibolu Shipyard, with its hardearned reputation for excellence and quality, fresh opportunities for growth and thus opens up the possibility for an exciting future. For more information about Gelibolu Shipyard visit: www.aksoyship.com
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The future is Among the forces that bind the people of Azerbaijan together is its mobile communications network: we talk to Azercellâ€™s recently appointed CEO about the technical and social aspirations of the company
written by: John Oâ€™Hanlon research by: David Brogan
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Chiril Gaburici, CEO
t is a truth universally acknowledged that by the urge to bring the latest technologies to everyone has to have a mobile phone these the market.” The people of Azerbaijan have a days and Azerbaijanis are no exception. right to the most recent technologies available 9.4 million people live in Azerbaijan, and anywhere in the world, he believes. This is the approach that has brought while there are only a little less than 1.5 million landline subscribers there are more Azercell from number two in the market than ten million mobile network connections. to the position of market leader, with clear In this, Azerbaijan is not very different from water between it and its nearest rival. It is any other modern economy, but things have a matter of choice, and a majority of the developed faster here than in many European population has chosen Azercell as a direct countries. In 1997, the year after Azercell result, he is firmly convinced, of being able to entered the market, it had 20,371 subscribers: offer the right strategies and the best in breed today it has 4.4 million, 53 percent of a technologies. The company has invested market it shares with two more than $1 billion in the other significant players and seven years since it started 800 employees. operating here. “We put in Azercell is part of the the money and rolled out TeliaSonera group, Europe’s the service quickly, and that fifth largest telecoms operator was one of the things that based in Sweden but active differentiated us. Innovative across the Nordic region solutions and technology Azercell subscribers gave us the leadership – we as well as in Turkey, the had the first 24/7 call centre, Balkans, Spain and Russia among the 18 markets it now the Azercell Ekspress concept serves. The company is led by Chiril Gaburici, of a one stop shop where our subscribers who under TeliaSonera’s policy to rotate are receiving all the services of a first rate, its CEOs periodically came in September indeed world class phone network operator, 2012 into this challenging market from with specific business solutions provided by Moldova, 1,000 miles away and on the other third party partners in any areas to which our expertise does not extend. That way every side of the Black Sea. The idea is to circulate these successful Azercell Ekspress customer has a solution to and proven managers so that they can bring all his communications issues.” new perspectives into established markets: With access to TeliaSonera expertise “The telecoms sector is just about the fastest Azercell was able to lead in establishing 3G changing market there is,” he says. “New networks across the country, and has now technologies are being developed every day, become the first to offer a 4G service in the and the customers’ needs are changing just as capital Baku. The list of firsts seems never quick. Whenever we do anything we are driven ending: it was the first to roll out a GSM
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service, the first with its prepaid SimSim card and the first company to achieve ISO 9001/2000 accreditation. Additionally, with more network base stations than any other operator its service is available to 99.8 percent of the population. The key to this success, says Gaburici is the excellence of the team of engineers, which has not only done a great job in Azerbaijan but has been able to export its talent to many other markets within the TeliaSonera group. “We have our experts working in Moldova, Istanbul, Uzbekistan and Nepal. We put the subscribers right at the front of everything we do and do our best to make them happy. Our policy is to become the world’s number one service company, presenting the whole of our offering transparently and clearly so all the information is put in front of the subscriber and he does not get any surprises.” The company’s ISO certification, he adds, extends to personal data, privacy and data security. “We have a saying in the company that the future is data! So we are investing in network quality that will give our subscribers more speed, more capacity and a more userfriendly experience. We will double our 3G network this year compared to last year to meet the huge demand that already exists. At the same time we are developing the future
– which I believe is the 4G network.” A strong mobile ecosystem is a tangible contribution to the quality of life of the nation, and he is determined to see the full package of technology and service extended to the more remote parts of the country without delay. Meanwhile there is a constant need to work with the device and platform developers to ensure that the ever-increasing range of applications and modalities is supported
“every Azercell Ekspress customer has a solution to all his communications issues” 40 | be weekly
Azercell’s call centre operates 24/7
by the network. Here again seen. It is also manifest in Azercell takes a proactive the way Azercell picked up stance, he says, making the sponsorship of Eurovision latest smartphones available. 2012 – having won it in 2011 The company’s latest Azerbaijan hosted the event campaign is for the Samsung last year, when it was neatly Galaxy S4, which became the won by TeliaSonera’s home Amount spent fastest selling smartphone in country Sweden. “I am proud on social projects Samsung’s history when it that we were an integral part was released earlier this year. of making it happen – before Recently it was promoting Eurovision even people in the Huawei, before that HTC, and the current company had a hazy idea of where Azerbaijan campaign is for the latest Blackberry. is but afterwards they had no doubt! The company’s mantra is “Add Value: Show But it’s no surprise that Azercell was able to Respect: Make it Happen” and this, says make Eurovision happen – its implementation Gaburici, is the litmus test he uses to judge of new technology has been nothing short every project. The last part is key to the way of unbeatable. By dint of forward planning, the company has grown, as we have already network preparation and testing the
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equipment, services and frequencies it was able to get its 3G network live the day after the licence was granted. More recently, the implementation of 4G was similarly proactive and the team was able to throw the switch just a couple days from getting the go-ahead from the regulator. And Azercell makes a lot of things happen
in the community as well. Chiril Gaburici is very proud of two mobile clinics that have been going round the country, especially places that donâ€™t have the best access to hospital services. One is an eye clinic that visits orphanages to make sure children have eye tests and free glasses if they need them. The other is a dental clinic. In all, the
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Baku in Azerbaijan
company spent $16 million on social projects. In 2009 Azercell founded the Barama Innovation Center in Baku. It is an incubator where young Azerbaijani entrepreneurs can develop their ICT and telecom-related innovations in a supportive environment before launching them in the marketplace. In partnership with Cisco Systems and USAID, up to 20 entrepreneurs at a time are given research space and resources for six to twelve months, depending on the complexity of their concept. “We don’t give them fish; but we do teach them how to fish!” he says. There’s no doubt that Azercell is an effective telecoms company, and a feather in the cap of the country’s economy – it is
after all the largest taxpayer outside the oil and gas sector. In 2012 it contributed $115 million to the state – and in its 16-year history it has paid nearly $1.2 billion. In partnership with the world’s most recognised telecoms companies and with the support of TeliaSonera and its minority shareholder the Turkish mobile operator Turkcell it is in fine shape to take Azerbaijan into the 4G era and beyond, Gaburici promises. “The future is data!” For more information about Azercell visit: www.azercell.com
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The perfect partner Waco Industries is Southern Africaâ€™s largest manufacturer and distributor of industrial electrical products and as such continues to play a hugely vital role in the development of numerous countries and industries
written by: Will Daynes research by: Paul Bradley
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e don’t see our customers them with a plethora of solutions and items. as just customers,” states In many ways this has created a scenario Julian Lipson, General where the wholesalers see us as something of Manager of Waco a warehouse ourselves and as such we work Industries, “we see them tirelessly to ensure that we act as a reliable, as partners that we forge close relationships constantly stocked warehouse.” Waco has five main divisions that make with from day one as we work to meet their requirements and solve their problems.” It is up its business. Its general products division this approach to business that has seen Waco consists of products lugs and ferules, tools, grow from an importer of industrial plugs and step ladders, air conditioners and many more sockets into one of the biggest manufacturers electrical, contractor and hardware orientated and distributors of industrial electrical products, while its power products segment products in Southern Africa. consists of various technical industrial From its humble beginnings in 1949 Waco products such as rotary switches, timers, Industries grew steadily over the subsequent sensors, enclosures and LG switchgear. decades, becoming part of Waco’s lighting division the Voltex group in 1991, meanwhile consists of two which itself merged into parts, the first being light the industrial division of sources and lamps, which comprise Phillips at the top Bidvest, BidIndustrial, in Line items that the end of the market and Waco 2002. Since then Waco has company stocks branded, economically priced expanded its product range and supplies and infrastructure in South lamps, while the second Africa to the point where is light fittings. Here the today is distributes a range of well-known company supplies both locally manufactured local and international brands, such as ABB products from Prism and a range of imported Enclosures, Phillips Lighting, 3M Products, light fittings mainly for domestic use. CCG Glands and CRC Maintenance Chemicals, The aviation warning beacons that the to the electrical wholesale trade and original company produces are particularly interesting as they link back to Waco’s invention of said equipment manufacturers. From its 9,000 square metre distribution beacons which are today used by many large warehouse the company receives and telecommunication companies and airports. distributes its comprehensive range of more These beacons serve as warning devices that than 6,000 line items. “We have always seen can be placed on high buildings, masts, towers ourselves as something of a wholesalers and cranes. These products are very robust wholesaler,” Lipson explains, “and as such and designed to withstand Africa’s unique we have always endeavoured to act as a environmental conditions, and have become one-stop-shop for our customers, providing a highly profitable part of Waco’s business.
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Waco Industries Last but not least is Waco’s Energizer latest venture, its fixings and Energizer, a global consumer goods leader in the dynamic fasteners division. business of providing portable power geared toward The core of Waco’s the new digital age, offers a full portfolio of products business in its early years including the Energizer MAX premium alkaline brand; centred around industry Energizer Ultimate Lithium; Energizer Advanced; Hearing plugs and sockets, and these Aid batteries; Specialty batteries and Nickel Metal Hydride (NiMH) – Recharge batteries and Chargers. simple yet hugely important Energizer also offers a full range of torches for all needs. products remain crucial to its These torches are Guaranteed for Life. customers, particularly those Energizer’s story began in the 1890s with its invention of in the mining sector where the first dry cell battery. Since then its pioneering spirit has virtually every mine across driven the business forward, leaving behind it a rich history the world uses a vast number than spans across numerous consumer brands. of them. These plugs and Energizer continually helps to bring consumer insight and innovation to these important household devices. sockets remain the biggest www.energizer.co.za single product that the company sells to customers in the mining sector. “In the last several years the market around us has changed rather dramatically from being one in which the majority of products that we supply would be sourced from local manufacturers to one where anyone can source cheap goods from China,” Lipson continues. “This has meant that we have had to rethink our own approach and this has led to our business becoming much more nimble and research focused then we were say 15 or 20 years ago.” Another of Waco’s key objectives is to keep on expanding its product range in order to
9,000M2 The size of Waco’s distribution warehouse
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“We have always endeavoured to act as a one-stop-shop for our customers, providing them with a plethora of solutions and items” keep up with technology and the changing needs of its customers. Waco’s innovative approach ensures that its products stay up-to-date with customer needs and has to-date enabled it to develop entire systems. The company’s research & development department develops systems from the ground up and refines customers’ needs to produce many successful end-products. Energy is very much the source of Waco’s growth today and with the cost of energy,
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particularly in South Africa, soaring in the last five years or so the company has become more involved than ever in energy saving initiatives, primarily in the areas of water heating and lighting. In the former category Waco has been getting more and more involved in the supply and installation of heat pumps. With research showing that these devices can produce electricity savings of up to 70 percent there has been a surge in demand for these solutions,
particularly from mine operators looking to make significant cost savings. “The development of LED lighting in the last three years has also been a source of real interest for us,” Lipson says. “Energy saving initiatives will play a big role in our business over the coming months and years and we believe that the single biggest growth area for us will be LED lighting, while we anticipate reaching its peak by no later than 2015. While it is reaching this peak we will be putting in a great deal of effort in the form of research and development to establish Waco as the leading player in this field of expertise.” Since the start of July, Waco Industries has taken over responsibility for growing the retail market for electrical products on behalf of Bid Electrical. The company’s increased involvement in the retail side of
electrical distribution comes at a time when a consumer led boom continues to spread out across African countries. “I believe,” Lipson concludes, “that consumer consumption is going to continue playing a big role when it comes to GDP growth in South Africa and we feel that this is steadily being replicated across the rest of Africa as well. Coupled with the growth of the mining sector across the continent and the development of oil and gas fields in and around the Western coast we are very confident that future opportunities for our company are out there and waiting for us.” For more information about Waco Industries visit: www.wacoelec.co.za
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Making a difference
For more than 50 years Seven-Up Bottling Company has been a significant contributor towards the development of Nigeria, making it one of the countryâ€™s most admired businesses
written by: Will Daynes research by: Candice Nice
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Seven-Up Bottling Company
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Seven-Up Bottling Company
ith its expanding financial, ser vice, communications and entertainment sectors, Nigeria without question possesses all the vital components necessary to be recognised as one of Africaâ€™s most important emerging markets. In fact, as of 2012, the country was ranked 30th in the world in terms of gross domestic product and the second largest in Africa. This places it on track to become one the 20 largest economies in the world by 2020 according to a number of experts and analysts. As various economic sectors have improved across the country, so too has the quality of life enjoyed by a large number of Nigerians. This improved quality of life stems from all manner of sources, but for around 3,500 men and women it comes from their employment with Seven-Up Bottling Company, one of the countryâ€™s largest manufacturing companies and distributor of some of the best known, and widely consumed, brands of soft drinks. From its nine state-of-the-art manufacturing plants, located strategically across Nigeria, Seven-Up Bottling Company produces and markets internationally recognised products including Pepsi, 7Up and Mountain Dew. These are some of the products that the company also markets through its network of more than 200 distribution centres that are spread over the length and breadth of the country. The company was originally founded by one Mohammed El-Khalil, a Lebanese national who first arrived in Nigeria back in 1926. Originally operating under the name El-Khalil Transport, it began life as a very successful
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Seven-Up Bottling Company transport business, growing BUA Sugar Refinery into the largest company of its Congratulations to a Bottling Giant, 7Up. It just goes to kind in the whole of Western prove that hardwork and commitment always makes a Africa. The metamorphosis difference. BUA Sugar is proud to be associated with you on of the business came on 1 the occasion of your well deserved recognition by Business October 1960, when the very Excellence Africa and Food & Drink online magazine and first bottle of 7Up rolled off wish you a much greater accomplishment ahead. www.buagroup.com the production line and out of the company’s factory in Ijora. In the years that followed the growth of the soft drinks industry partnered the growth of the company itself, with it establishing two additional plants, in Ibadan and Ikeja, in the late 1980s. It was then in the early 1990s that Pepsi International took control of 7Up International, a move which opened the door for Seven-Up Bottling Company to introduce another world leading brand to the people of Nigeria. Today the company retains the same core vision that it has held since day one and that is to become the most admired and innovative company in Nigeria. In order to achieve this it conducts each and every task or operation with a set of core values at its heart. The first of these revolves around the concepts of commitment and ownership. These ideas can be seen throughout the business with
“Seven-Up Bottling Company produces, Pepsi, 7Up and Mountain Dew” be weekly | 57
A leading supplier of PET preforms in West Africa We pride ourselves not only on product quality, but also on the technical support we provide for our customers. This includes : • Bottle design • Lightweighting of preforms • Introduction of different neck finishes • Development of new preforms for specialised applications BevPak also supplies multilayer preforms, for shelf life extension of carbonated soft drinks, beer, fruit juice, sauces, etc. In fact, any product which is sensitive to gas loss or gas entry into the bottle benefits substantially from this technology.
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Seven-Up Bottling Company employees often referring to BevPak (Nigeria) Limited Seven-Up Bottling Company BevPak (Nigeria) Limited was established in 2008, and as “our company”. This is said has rapidly become recognised as a leading supplier of PET to reflect the entrepreneurial preforms in West Africa and beyond. spirit and sense of ownership BevPak specialises in advanced technology and superior that exists within the technical support. Its multilayer technology facilitates PET’s business, traits that have use in non-traditional PET applications such as beer. Bevpak offers a range of technical support services for helped build the organisation customers with difficult applications. into what it is today. www.bevpaknigeria.com Along a similar vein to the aforementioned characteristics is the sense of teamwork that runs throughout Seven-Up Bottling Company. Its people also carry with them a reputation for unflinching integrity and having high ethical standards. Such qualities have allowed the management of the company to have total confidence that all employees act in the best interests of Seven-Up Bottling Company, a significant level of trust that is also extended in the opposite direction. As a business that is so closely linked to the development of Nigeria it is not surprising to see Seven-Up Bottling Company doing its bit towards contributing to a better future for the country. One of the ways it is doing so is through the 7Up Harvard Business School Scholarship. Launched in January 2011, the program sees one deserving Nigerian youth selected to have their higher education
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“The unveiling of the scholarship program was part of the 50th anniversary celebrations of Seven-Up Bottling Company in Nigeria back at the end of 2010” sponsored at the prestigious Harvard Business School. The scholarship itself covers the costs of tuition, housing and tickets to and from the United States at the start and end of the individuals’ course. The unveiling of the scholarship program was part of the 50th anniversary celebrations of Seven-Up Bottling Company in Nigeria back at the end of 2010, and came as a result of those in charge of the company deciding
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that they wanted to create a unique legacy that a further 50 years from now people would remember them for. The theme of this legacy was to be education, a choice that is particularly significant when it comes to Nigeria due to the complaints that have been raised in the past about the quality of the products and services that came from many of the country’s institutions. It was Seven-Up Bottling Company’s desire to take
Seven-Up Bottling Company
measures to help reverse this trend, however it did not want to simply replicate what other organisations have done, and continue to do, which is provide funding towards professional training in one of the countryâ€™s universities. In wanting to be unique the company devised the Harvard Business School Scholarship. As previous winners, Misan Rewane in 2011 and Olujimi Williams in 2012, can attest, there is no bond attached to the recipient of the scholarship and they are not tied into working for Seven-Up Bottling Company upon their graduation. All that is asked of the recipients is that they eventually return to Nigeria, this could be some years after graduating Harvard Business School during which time they can acquire greater business experience in the US, at which time their skills can contribute
further to Nigeriaâ€™s national development. Many prominent Nigerians have walked a similar career path in their lifetime, including current Minister of Finance Dr Ngozi OkwonjoIweala and the Minister for Commerce and Investment, Dr Segun Agagan who at one point held the position of Managing Director at Sach & Sach Corporation in the US. There are of course countless other individuals in both the public and private sectors silently doing their part in making national development a reality and Seven-Up Bottling Company is proud to be contributing in its own way. For more information about Seven-Up Bottling Company visit: www.sevenup.org
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