Logistics News October 2013
the independent voice of the
Announcing the 2013 LAA winners
Planning optimised performance • Global transportation benefits • Collaborative distribution networks • Fleet telematics • Training
We donâ€™t talk logistics solutions, we walk it Being able to deliver high-quality logistic and supply chain solutions requires having more than just a onesize-fits-all approach. At Cargo Carriers we pride ourselves on being customer centric and while vertical specific we are always looking for challenges and opportunities in new industries and regions. We strive for the highest levels of reliability in all that we move. With each customer comes an individual set of safety, health, environmental and quality requirements, and our innovative and service orientated offering means that we are consistently able to provide for your specific needs.
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Logistics Achiever Awards 2013
Innovative supply chain solutions
Utilising the planning process to optimise performance
3 Celebrating 25 years of rewarding excellence 5
Platinum Award winners
It is not unusual to note that businesses of all kinds often take the view that their supply chain and manufacturing networks are a necessary evil. In most if not all cases, the externally facing functions – marketing and sales – get most of the attention.
Gold Award winners
Silver Award winners
Bronze Award winners
Enviro Award winner
The value of end-to-end global transportation planning When it comes to world-class transportation and logistics management, companies must strive to deliver on two critical mandates: containing costs and sustaining service. Companies need to find new agility to meet today’s demands.
14 UTILISING THE PLANNING PROCESS … to optimise performance
16 CROWD-SOURCED LOGISTICS … benefits of collaborative networks
18 THE VALUE OF END-TO-END … global transportation planning
Cut the jargon and do some training
Line managers or small business owners will welcome this user friendly, jargonfree guide to the identification of training needs and the steps necessary to implement training that focuses on solving specific business problems.
CUT THE JARGON … and do some training
THE BEST … of stable-mates
Company news 26
IMPERIAL REINVENTS ITSELF … for maximum client benefit
COVER STORY Imperial Retail Logistics and Goscor Lift Truck Company (GLTC) have become the best of stable-mates, with GLTC having supplied them just short of 100 units in the last financial year alone.
MONITORING THE HEARTBEAT … of the road
Regulars 22 27 35 36
BOOKMARK NEWS DIARY INDUSTRY ASSOCIATIONS & EDITORIAL DIRECTORIES
Logistics News thanks the sponsors of the
2013 Logistics Achiever Awards
Celebrating 25 years of rewarding world-class excellence
This year’s Logistics Achiever Awards marks the 25th year of recognising and rewarding logistics and supply chain excellence in Southern Africa. That the entries have again proven to be of exceptionally high quality highlights the sustainability of the awards project to encourage local supply chain executives to meet world-class standards. Logistics Achiever Awards has shown the evolution and strides made each year in the field of logistics and supply chain management. In the 25 years of LAA, remarkable changes have been witnessed in our industry as it matures, evidenced by a growing understanding and acceptance of the role and huge importance that logistics and supply chain management plays in the economics of SA, and in the well-being of our industries, businesses, as well as in the daily lives of our people. From the pure scope, size, sophistication and impact of the entries in this year’s LAA it can be seen that many of the emerging trends are continually enhancing what is being done and achieved. It is about adding value, of trust and relationships; it is about creativity and innovation. We are witnessing an industry and a commercial world maturing to the reality of the new global environment. We are seeing logistics play an increasingly important role in the economics of SA, creating the ability of SA and its industries and its individual business enterprises to create competitive advantage and sustainability. Achievement implies someone took the trouble to invest time, energy and commitment to accomplish a goal or objective set for them by management or by themselves. The best way to prevent mediocrity is to continually raise the bar and strive to improve, increase, progress, advance and expand into new territories.
The long and illustrious history of the competition could be regarded as testimony to a successful initiative but it is at the same time important to realise how much industry has contributed to the continuous professional development. It is important to realise and recognise development over time and we celebrate the achievements to date. The objectives of LAA are: • to recognise professionalism and excellence in the effective application of strategic, tactical and operational logistics and supply chain management principles, concepts and practices in Southern Africa • to encourage all companies and organisations in Southern Africa to review, evaluate and upgrade their current logistics and supply chain management practices • to create a greater awareness and understanding of the value of effective logistics and supply chain management. Logistics News extends thanks to this year’s sponsors – CHEP, First National Bank, and the Improvon Group. Logistics News also thanks the supporting bodies and their representative panel of judges for their invaluable input, and for volunteering their personal time to the project. • October 2013 • Logistics News
Savino took top honours to win Platinum in the Logistics Achievers Awards 2013 for Excellence and Distinction in End-to-End Global Supply Chain management. This peer recognition positions Savinoâ€™s tyre importer logistics cluster as benchmark for the industry. Award winning services from Savino across the value chain in forwarding, clearing, distribution, warehousing, electronic bond store management and reverse logistics
Does your business need traction? Connect with us, together we will win!
www.savinodelbene.com | firstname.lastname@example.org | 0114373000
PLATINUM AWARD WINNER 2013
LAA 2013 PLATINUM AWARD WINNERS
Nissan South Africa for distinction in logistics in improving in- and outbound logistics through collaborative supply chain management
Savino Del Bene for distinction in logistics in clustering the import tyre business sector through distribution excellence and collaborative supply chain management
BAE Land Systems SA / UTi Africa for distinction in logistics in improving the line feed and sequenced container process for upgrading of military equipment through integrated supply chain management
October 2013 â€˘ Logistics News
LAA 2013 GOLD AWARD WINNERS
Merpak Envelopes / CargoSolutions for excellence in logistics in transforming production and distribution into a competitive advantage through using Theory of Constraints
UTi Pharma for excellence in logistics in improving distribution through state-of-the-art warehouse automation
October 2013 â€˘ Logistics News
LAA 2013 GOLD AWARD WINNERS
SA Breweries / InSync for excellence in logistics in optimising distribution of merchandise materials through supply chain management
Sasol Oil for excellence in logistics in improving company performance through integrated supply chain planning
October 2013 â€˘ Logistics News
LAA 2013 SILVER AWARD WINNERS
Beckman Coulter for outstanding achievement in logistics in improving distribution through collaboration with strategic partners and re-engineering and re-designing of the supply chain
Exxaro / Imperial Logistics for outstanding achievement in logistics in optimising bulk terminal operations through suitable technology and equipment
Walvis Bay Corridor Group for outstanding achievement in logistics in improving regional connectivity through the development of a logistics corridor
October 2013 â€˘ Logistics News
LAA 2013 SILVER AWARD WINNERS Dimension Data / Dawn Wing for outstanding achievement in logistics in improving a demand-driven maintenance supply chain through implementation of appropriate systems and effective collaboration
Joy Global Africa / UTi Africa for outstanding achievement in logistics in improving distribution through network consolidation and warehouse optimisation
Sasol Oil / Resolve for outstanding achievement in logistics in improving outbound logistics through implementation of a logistics command centre
October 2013 â€˘ Logistics News
LAA 2013 SILVER AWARD WINNERS
Shell South Africa / Tanker Services for outstanding achievement in logistics in increasing safety and reducing spillages and contamination through advanced driver training
Triton Express / Dovetail Business Solutions for outstanding achievement in logistics in cross-border business development through collaboration, co-ordination and systems application
Compass Waste Services / CargoWare for outstanding achievement in logistics in integration in the supply chain through implementation of appropriate systems
October 2013 â€˘ Logistics News
LAA 2013 BRONZE AWARD WINNERS BAE Land Systems SA / Turnstone Process for recognition of logistics achievement in improving customer service through business process optimisation
Home of Living Brands for recognition of logistics achievement in improving distribution through optimisation of warehousing procedures
LAA 2013 ENVIRO AWARD Automotive Industry Development Centre for an initiative to convert Gauteng taxis to Liquid Petroleun Gas powered engines to significantly reduce emissions and operating costs
October 2013 â€˘ Logistics News
LAA PREVIOUS WINNERS 1989 Volkswagen South Africa 1990 Unifruco 1991 Meadow Feeds Delmas 1992 Foschini 1993 Mondi Board’s Springs Mill 1994 South African Air Force 1995 Polifin PP 1996 Mondi Forests 1997 Vierhoek Trust 1998 Toyota Automotive Components; The Help Foundation 1999 Robor Tube 2000 National Brands 2001 Supply Chain Solutions/Pep Stores 2002 Spoornet Orex; Viamax Logistics 2003 Dimension Data/UTi; SPAR Eastern Cape 2004 Kutama Sinthumule Correctional Centre; Sasol Polymers 2005 Kintetsu World Express SA; Cape Epic/Imperial Logistics; Shoprite Checkers/ILS; Buhle Betfu/Cargo Carriers 2006 BMW SA 2007 Illovo Sugar SA/Barloworld Logistics 2008 Woolworths; Flavourcraft 2009 GMSA/UTi 2010 Nike SA / Barloworld Logistics; UTi Pharma 2011 Maputo Corridor Logistics Initiative 2012 Crickmay & Associates 12
October 2013 • Logistics News
October 2013 â€˘ Logistics News
Utilising the planning process to optimise performance It is not unusual to note that businesses of all kinds often take the view that their supply chain and manufacturing networks are a necessary evil. In most if not all cases, the externally facing functions – marketing and sales – get most of the attention. By Tony Verlezza, associate partner, Equus Group
While the finance function commands internal respect, the supply chain, which is intricately woven into every aspect of any business, tends to be the utilitarian stepchild – seen to be simply meeting demand and controlling costs. The biggest lever for optimising business performance is to drive supply chain excellence by aligning it with business strategy. One of the elementary components for a high-performing supply chain is a robust set of planning processes. One hears repeatedly in conversations with business partners, their yearning for improved sales and operations planning (S&OP) processes, demand planning programs, supply planning that optimises factory performance, logistics performance, and the desire for better inventory and working capital management. A quick look at key supply chain planning elements is useful in making the point regarding the pivotal nature of superior planning processes. All too often in formal supply chain presentations, there is the propensity to dive so deep into the details that the key points are lost. It is indeed a complex issue, but there must be an effort to not only make the supply chain point, but show how a company and its performance will benefit from the message. While the focus is on the basics of supply chain planning processes, there are, of course other key planning elements in a business, not the least of which is the strategic plan and direction of the company. All of the functions in an organisation must accurately reflect the strategic objectives of the business. But with an eye on superior supply chain performance, another way to look at planning is as a hub, where each spoke connects to a function, all of which are reliant on a sound planning platform.
October 2013 • Logistics News
Key SC planning elements Sales and Operations Planning (S&OP) This is the key business planning element for marketing and sales leaders to interface with their internally focused colleagues from finance and the supply chain. It is through this step, or series of steps, that the business can get input from all parties regarding product promotions, seasonal customer demand, innovation performance expectations, and a proper understanding of material requirements and capacity utilisation at the factories. In essence, this planning step puts the entire business on the same page regarding the co-ordination of supply assets and capabilities in order to meet customer demand requirements for the tactical (60 to 90-day) horizon and longer term (12 to 24 months). This process, typically monthly, is supplemented by a more operational counterpart, the weekly operations process, which focuses on the same issues at the operational, or zero to 60-day level. Potential pitfalls and problems can materialise when hidden agendas fail to unmask complications. For example, the sales group may elect to underestimate upcoming demand in an attempt to ‘overdeliver’ their revenue expectations, or they may simply not understand market
or customer conditions. Businesses will often view this ploy as a good problem, but the fact is that rush shipments, unplanned factory overtime, irritated customers and valuerobbing waste inevitably all cut into bottom line profits. A well run S&OP process can also prevent the business from overselling its installed capacity to produce finished goods. By understanding both the demand and supply details of the business, it can better control both revenue and cost profiles.
A well run S&OP process can also prevent the business from overselling its installed capacity to produce finished goods. By understanding both the demand and supply details of the business, it can better control both revenue and cost profiles. Demand planning This is an area where more confusion and higher levels of inaccuracy are seen than in any other. If there is a ‘magic bullet’ to improve overall supply chain performance, this is it. Why? Because demand forecast accuracy equates to: • accuracy of inbound materials management • accuracy in manufacturing network utilisation • accuracy of inventory management and working capital • accuracy in customer order fulfillment.
longer run sequences (and the associated lower waste), higher asset utilisation rates, more accurate inventory quantities, and better on-time deliveries to customers. Oftentimes, accuracy in the overall planning process allows a company to reduce capital expenditures related to capacity requirements, since better utilisation of installed capacity equates to a built-in increase in system capacity. The elimination of wasteful downtime, reduction of safety stock levels, co-ordination of material flow and inbound freight, knowledge of customer requirements, and the direction of marketing promotions all yield to a classic definition of lean operations and manufacturing. This reduction of waste in all its forms provides the foundation for better margins and higher profitability. While not as sexy as product innovation, branding exercises, promotions, or packaging design, dedication to excellent planning systems helps to drive everything from purchasing efficiency to superior customer service. Powerful planning processes provide the essential elements for business success through material management, lean operations, waste reduction and working capital optimisation. •
This all leads to better financial management, cost control and less organisational waste. This is an area where working closely with customers and suppliers can provide the supply chain with the opportunity to drive incremental value to a company. Think about the knock-on effects of poor demand planning: • Supply management needs to generate ongoing contingency plans for the purchase and delivery of materials to the factory networks, resulting in a waste of time, cash and sub-optimal MRP system performance • Incorrect product mix in the wrong region, resulting in wasteful inter-facility and customer delivery freight costs • Ultimately leading to inaccurate supply planning and excessive levels of safety stock – again more waste of inventory, warehouse space and cash in the form of working capital • And finally, but of utmost importance, customer satisfaction problems. Supply planning Bringing together all of the downstream elements of supply chain performance is the supply plan. It is here that companies can generate the optimum performance from their manufacturing, transportation and inventory management systems. Given that the production network – whether an internal factory network or third-party manufacturers – is the source of conversion cost expenses, greater accuracy in the supply plan (driven of course by an accurate demand plan) invariably leads to fewer line changeovers, (with the associated reduced downtime), October 2013 • Logistics News
Crowd-sourced logistics – benefits of collaborative networks New developments in crowd-sourcing deliveries at the retail level could point at a dramatic way of reducing empty back-hauls, amongst other inefficiencies. By Rick de Klerk
Some readers may recall, two years ago, my amazement with the DHL.BringBuddy system that aimed to crowdsource its deliveries to everyday citizens who would receive discounts and other sundry rewards in exchange for delivering DHL parcels. The idea of crowd-sourcing deliveries seems to have gained traction with a number of large American retailers and online stores who are looking for ways of beating Amazon’s single-day delivery structure. The first is eBay, who in July launched eBay Now, which promises local deliveries within an hour of purchase. Endcustomers download an application on their phone that allows them to browse for products offered by multiple retailers in their local vicinity. Upon placing the order – which incurs a US$5 delivery fee – it will be relayed to an eBay One ‘valet’ who will be responsible for picking up their order and delivering it post haste. eBay One is a compromise at this point, as its employees are fully registered with the company, thus avoiding some of the legal pitfalls of outsourcing your operations to complete strangers. If you’re wondering how this is financially feasible – it isn’t. Not yet, at least – eBay is taking a long-view that the service will gain traction and is taking about US$25 loss on each delivery to make it happen. It’s an extremely interesting scenario, if unlikely to succeed – the time window for delivery is what makes the service impractical. Savings created from routing and scheduling are often gained thanks to the combination of orders that often requires a certain amount of flex in the time windows available. Walmart, in contrast, has announced a radical plan to have customers who have visited the store, to in turn pick up items for delivery to online Walmart shoppers in exchange for discounts on their in-store purchases. While not yet implemented and posing some extremely dangerous legal quandaries, it succeeds by centralising stock and having agents move in a one-way trip from point of purchase (store) to online customer location. Achieving both time savings and a reduction on fleet-related costs, it will likely require an expansion of Walmart stores to more small warehouse-level premises
October 2013 • Logistics News
as well as a way to indemnify themselves against chosen delivery-customers who prove to be less-than-sterling ambassadors for the company. Both are examples of collaborative distribution, which involve store-by-store stock management systems and a means for matching orders in a local area with an agent willing to deliver the goods. Such a concept could provide even better savings in the event of distributors and suppliers employing a similar system at the primary distribution level. One of the primary issues with routing and scheduling is managing vehicle utilisation and ensuring that the vehicles used are never without product – minimising empty back-hauls. Unfortunately, there’s only so far one can go when working with a single fleet delivering only one set of products.
An example of four distributors with individual networks delivering to the same customer base (left) versus a collaborative network (right). Collaborative distribution points at huge potential savings for urban delivery networks, where three or four major suppliers – not necessarily in direct competition, but with a similar customer base at retail – share warehousing and fleet assets to create a more integrated transport network. The flow becomes more cyclical, avoiding the dreaded empty last mile. Routing and scheduling systems are having to look beyond the client’s sole logistic domains to provide value – in increasingly congested urban delivery networks, collaborative distribution offers one route to add more value to suppliers. •
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The value of end-to-end global transportation planning When it comes to world-class transportation and logistics management, companies must strive to deliver on two critical mandates: containing costs and sustaining service. Companies need to find new agility to meet today’s demands. By Fabrizio Brasca, vice-president, global logistics, JDA Software
With the unprecedented power of the omni-channel consumer driving behaviour in the global marketplace, companies – regardless of where they sit in the supply chain – must not only find new ways to achieve efficiencies and operational control, but also to accomplish these objectives with the agility necessary to competitively serve today’s end consumer. A significant transformational global logistics opportunity for change can be found in the common practice of taking a siloed approach to managing transportation lanes for intercontinental moves. Under this current process from both an organisational and execution standpoint, a retailer sourcing product from another country – even perhaps on another continent – might divide the multiple modes and legs associated with transporting goods from origin to final destination into separate components and responsibilities. Typically, one group – either the company’s inbound team or an outside consolidator – manages origin routing of the freight traveling into the origin port, while different groups may manage the ocean legs and domestic transportation from port to final destination. Especially for large-scale companies, this segmented practice leaves substantial money on the table and results in significant inefficiencies – particularly stemming from lack of consolidation into the port. It also hinders agility due to limited visibility and lack of cohesion, making it difficult to enact any changes while goods are in transit. Better approach: end-to-end planning Today’s retailers and manufacturers can infuse value into their transportation and logistics networks by adopting an end-to-end intercontinental planning process. Enhancing both upstream and overall visibility, this process delivers end-to-end transportation lane control extending from true initial global point of origin to ultimate final destination. While outsourcing certain execution segments such as trade compliance or freight forwarding might still make business sense, end-to-end planning ownership provides companies with the critical ability to adjust execution across their networks based on changes in their supply chains. Consolidation and port routing decisions can be made on a network-wide basis instead of a single transaction at a time. And with visibility into ultimate freight destinations, companies can dynamically take into account factors such as the bookings process, port congestion and capacity balancing – and then enact routing changes as needed. Rather than the common
October 2013 • Logistics News
practice of setting a predefined itinerary or fixed path each and every time between origin and destination, companies can now re-plan as dynamics change in the network. Controlling the point of origin Companies today tend to conduct more optimisation analysis on the domestic side than on the international origin side, and consequently many of the operational inefficiencies that exist reside on the freight origin front. Both sides currently are independently planning and re-planning, which consumes valuable time and resources. As such, taking control at the point of origin can represent a huge opportunity. To drive synergies at the point of origin, however, companies must first be armed with transportation management capabilities that are equipped to handle the challenges of routing in the origin point’s global region. Today, suppliers often define the terms regarding which party assumes ownership of the various process stages, including whether a retailer assumes responsibility for transporting goods to port or whether it takes over after that step. From an inbound retail workflow perspective, one of the first steps in implementing an end-to-end intercontinental planning approach is to conduct analysis across all suppliers and associated purchase orders to determine the best stage for the retailer to assume responsibility to truly manage end-to-end from a cost perspective. The company can then conduct optimisation analysis on the purchase orders to be processed as well as the best way in which to combine them based on volume, timing and other constraints. Optimised decisions from an end-to-end, informed perspective can subsequently be made regarding factors such as the volume that can be consolidated, actual consolidation into the port, destination port identification, and the individual routings on the domestic side. Maximising consolidation opportunities represents one of the most significant optimisation value drivers. By assuming control of origin-to-destination planning, companies gain the potential to create and leverage scale while moving away from predefined assumptions. Increasing visibility for resiliency The connectivity between origin and destination routing created by global end-to-end planning delivers significant visibility to help drive decisions. Ocean carriers are now offering more extended services, such as providing portto-port rates as well as door-to-door rates in which they handle the trucking at both ends of the spectrum. Looking at the planning perspective from true initial origin point to final destination enables a company to evaluate all the alternatives between routing freight individually or utilising combinations in which the ocean carrier might assume the trucking legs as well. This overall need for increased visibility and effective examination of all options and how they relate to one another has never been more important. The past several years have served as a reminder that extraordinary circumstances, like Japan’s devastating earthquake and tsunami of 2011, can occur that may challenge existing
transportation lanes and disrupt the supply chain. Routine realities such as ever-increasing capacity funneling into specific ports represent more everyday challenges and potential disruptions. The ability to conduct advanced modeling on the network allows companies to examine the available alternatives and then leverage them as part of the procurement process. The ability to identify and analyse what-ifs during procurement and understand the potential cost impacts or trade-offs in spreading capacity across multiple entry points all infuse a nimble flexibility into the process. This closed-loop approach builds resiliency into the supply chain, resulting in an enhanced ability to execute. Gaining end-to-end intercontinental planning control also provides companies with the ability to make en route modifications based on changes in demand and the network. Consider for instance a container of flat screen televisions traveling across the ocean, headed for a final distribution centre destination. While the merchandise is still in ocean transit, the company discovers through its supply chain processes that there is a surge in demand in another region. The port arrival location may be fixed, but with visibility into the change in demand, the company can dynamically re-plan where that last truck goes and arrange for transport to the high-demand location. The bottom line Given the need to drive incremental global transportation and logistics value and continuous improvement through every opportunity, retailers and manufacturers have significant reason to adopt end-to-end planning from true origin to final destination: • Increased efficiency at the origin point. This is the single largest opportunity to drive monetary value, particularly for companies such as large-scale retailers and manufacturers, since traditional optimisation has focused on domestic activities. • Connectivity between origin and destination routing. The connectivity between origin routing and destination routing and the associated interconnected visibility drives improved efficiencies. • Enhanced supply chain resiliency. Breaking away from planning by preset repetition with the ability to instead consider and react to potential dynamic disruptions mitigates risk. The ability to identify alternatives – such as balancing capacity across ports to circumvent port congestion – builds resiliency into the supply chain. • Dynamic re-planning agility. End-to-end planning control enables dynamic diversions if demand changes for in-transit goods. Companies gain flexibility and can re-plan an in-transit container distribution centre destination from one region to another in response to a demand surge, countering long ocean leg lead times. Retaining greater control of the end-to-end transportation chain delivers an enhanced level of agility and economies of scale that save resources and also speed time to market. By doing so, companies can achieve true efficiencies while nimbly minimising overall supply chain risk in an increasingly complex environment. • October 2013 • Logistics News
Cut the jargon and do some training Line managers or small business owners will welcome this user friendly, jargonfree guide to the identification of training needs and the steps necessary to implement training that focuses on solving specific business problems.
At a recent industry business convention the presenters responsible for the education and training slot were given a prize for having the most jargon in their presentations. Over the years this is an area in which a unique language has developed that is largely incomprehensible to those outside of it. Be that as it may, as normal business people we need to ensure that our people are in possession of the skills, knowledge and, hopefully, attitudes necessary to function productively. As normal business people we are also concerned about the rapid pace of development that seems to characterise most businesses, meaning that we need to be training all the time if we are to remain competitive. Whilst this may be all well and good at a strategic corporate level, how can you, as either a line manager
October 2013 • Logistics News
or small business owner, cut through all this jargon and address the skills needs of your unit or your business? To be focused and effective, training needs to change behaviour. Training must be targeted at areas of the individual’s function so as to remove constraints to performance, to improve productivity and/or to give the individual additional/different skills to accommodate change. Training is all about changing behaviour: many of the problems we encounter in the functions we manage revolve around a lack of skills. The diagram on the left shows the process that we need to adopt in solving these problems. Analyse A performance problem needs to be objectively analysed to find its real cause or causes. This phase is essential in gaining an understanding of the problem and determining the scope of the project before attempting to solve it. Skipping this step by simply implementing an off-theshelf training programme that seems to fit the requirement generally results in junk-training, which is just like junkfood – it provides no nutritional value and too much of it is harmful. This phase is best accomplished by a team comprised of those who are affected by the problem and those who will need to develop the necessary training programme. It may well involve observation of the actual function(s) being carried out. At the end of the analysis phase the behaviour changes required should have been defined as measurable performance goals, for example ‘Individuals will be able to produce error free invoices within defined timelines’,
‘Individuals will be able to produce defect-free XYZ model components at a rate of NN per hour’. Well thought-out, measurable goals ensure that the training will have a positive impact upon the problem. Design Designing training is like building a sandwich: the top slice of bread is the defined training objectives, the bottom is the tools that are used to assess whether those who have been trained can carry out the defined training objectives. In between is what will be used to bring about the required changes in behaviour – this can be contact training, group case studies, demonstrations, video clips, interviews or maybe even reference material to be studied. Given the richness of resources out there, it is strongly suggested that reference material should be but one of them. Depending on the number of objectives and the complexity of the subject, this content needs to be interspersed with exercises that are used to determine individual progress and to give encouragement and feedback. Who should be involved in this phase? Three types of people: those who established the objectives (and who are feeling the pain of the problem); those who will be doing the training; and those who will develop the course. The first two types should come from within so that the training can be relevant to the situation. The third type may come from outside but this need not necessarily be the case. At this stage we need to identify our sandwich components: putting it all together comes next. Develop By the end of this phase we will have: • The training objectives: what problems is the training intended to solve? What must individuals who undergo this training be able to do on successful completion? • The training plan: who is going to do what, where are they going to do it and how long will each step in the process take so that training objectives are achieved? • The information resources that will be used to convey the knowledge required • The assessment tools that will be used to determine progress and • The assessment of whether each individual achieved the training objectives. The development of these products requires input from subject matter experts as well as those who are qualified to develop training interventions. Implement Now is the time to get the bang from the buck. All the preparation carried out so far leads up to this stage: provided the previous steps have been followed meticulously, we now have a training product fit for purpose. Successful implementation of a training course revolves around: • The professionalism of the arrangements – scheduling,
venues, internet access and other facilities as required. This is all to do with making participants not only comfortable but also eager • The enthusiasm and preparedness of course facilitators – which should be self-evident, really • The way in which the course is administered and any problems dealt with. Evaluate Conventional wisdom says that a smiley face form at the end is course evaluation. Not so if we are going to realise a full return on our investment. Consider this1: • Level 1: Reaction – how individuals reacted to the training; how well the training was received, which helps improvement of future training, including important elements to be added to the training. • Level 2: Learning – what individuals have learned; to what extent have the learning objectives been achieved as a result of the training? • Level 3: Behaviour (application) – extent to which individuals apply the concepts, processes and procedures that were taught; are the newly acquired competencies being used in the occupational environment of the learner? • Level 4: Results – the results of the training in terms of business metrics, for example, increased production, improved quality, decreased costs, reduced accidents, increased sales, higher profits or enhanced return on investment. If this is how training should be carried out, then two major questions arise (hopefully readers will have some of their own): Q 1: What about all those courses to which we have been subjecting our people over all these years? A: You now have the tools with which to evaluate those courses against their ability to solve your business problems: if they are not fit for purpose, then either have the provider modify them or compile your own – the money will be far better spent. Q 2: What if the training needs to be done against preset learning objectives, for instance where compliance is involved? A: While you need to comply with the minimum requirements of such standards, the trick here is to contextualise and enrich the training to the requirements of your organisation. In conclusion, it is possible to avoid the minefield of ‘trainingspeak’ by applying basic management principles in designing and implementing very effective training programmes: what is needed is the will. • 1
S ource: http://www.kirkpatrickpartners.com/OurPhilosophy/ tabid/66
• J oin the discussion on this and other related subjects at www.charlesrdey.blogspot.com October 2013 • Logistics News
Survival guide for facing global competition The first book that completely described the thought process of Lean – ‘The Machine that Changed the World’ – was published in 1990. Lean continues to gain popularity as the Lean thought processes inspire companies to look for improvements in ways that have never been considered before.
title: Lean Labour subtitle: A survival guide for companies facing global competition author: Gregg Gordon publisher: One World Press on behalf of Kronos Publishing a division of Kronos Incorporated edition: 2011 isbn: 978-1-137-29718-1 pages: 978-0-9777357-07-9 book and cover design: Nic Valentino
October 2013 • Logistics News
The well-known television series ‘How It’s Made’ provides a vision of idealised production. Do the show’s producers realise that in editing the actual video to fit into the show’s time constraints they have created a vision of perfect execution? During each segment, machines never break down, there’s never a ‘cut to commercial’ waiting for a critical operator to arrive, and material never warps and ruins a production run. It’s a production manager’s dream, everything goes according to plan. Is it possible for a manufacturer to transform its processes to achieve the perfect day, every day? There’s good reason to consider this: developed countries have been losing manufacturing jobs at an alarming rate over the past two decades to low-wage countries such as China and Mexico. Even China, with what many consider to be extremely low-wage workers, is not immune to the impact of even lower-wage competition. The reason is that a second generation of modern industrial workers is entering the job market in China with an increased standard-of-living expectation. These young workers see how others live in high-wage countries, and the resulting desire for an improved standard of living is driving up wages. One methodology has recognised the importance of placing the workforce at the centre of a manufacturing transformation: Lean. Lean has done so by recognising that the people who do the work are the same ones who will originate the ideas for improvement and put them into place.
Companies applying Lean have the same goal as the production editor of ‘How It’s Made’. The production editor cuts away at what the film crew captured until just enough remains to educate the viewer about how a product is made. Lean companies perform a similar act when they analyse their processes with the objective of removing those activities that are not adding value to the customer. Lean’s power is in the simplicity of its objective: if an activity adds value – keep it; if it doesn’t, eliminate it. Lean has been steadily growing in popularity over the past two decades. It is a culmination of the many improvements to manufacturing processes that started with Henry Ford who, in 1913, integrated an entire production system to produce the famous Model T. The process was efficient because there were no changeovers in production. With only one model in one colour, the production line could be optimised for that one type of car. In the late 1940s as customers demanded more variety in cars, Toyota recognised there were ways to maintain similar efficiencies in production while offering more choices to customers. Toyota began creating the tools and techniques to improve production and change from a ‘push’ to a ‘pull’ philosophy where cars were built based on current demand rather than on forecasts. While Lean provides significant benefits for companies, it does not deliver these improvements by working employees harder. Since the industrial age began, competition
between manufacturers has forced companies to continually find ways to take costs out of their processes. Companies that practice Lean rely on their employees who know the process best to identify unproductive activities and replace them with productive ones. This additional productive time results in higher output with the same pace of production using the same capital equipment. This book, ‘Lean Labor’, focuses on the workforce and its interaction with the other resources required for production. Readers follow Graham, a production executive at a manufacturer, who is challenged to reduce his company’s product unit cost by 10 percent in a year. Along with Graham’s story, descriptions emerge of ideas, techniques and examples of how manufacturers have changed the way they manage the workforce and then standardise those changes through the use of technology. Resources such as machines and inventory are inanimate objects with well understood attributes. It’s easy to calculate the benefit of reducing inventory in terms of improved cash flow or the return on investment by increasing throughput using automation. When it comes to labour, however, the analysis becomes murky. While the workforce is regularly lauded as the most valuable resource within a company, it also holds a more dubious honour. The workforce is the most difficult resource to manage. Here’s why: • Their costs fluctuate without correlated changes in output
• As a link in a supply chain where predictability translates directly into superior performance, employees are unpredictable • While substitutable, employees are not interchangeable • Companies are subject to new employee regulations from the government, generally adding cost • Turnover and retirement can make a valuable resource disappear overnight. By extending Lean concepts into Lean Labour, the traditional descriptions of Lean tools and techniques begin to evolve. For example, Taiichi Ohno, Toyota’s chief engineer, created seven categories to describe how resources can be wasted. These have evolved into the Seven Wastes of Lean. By viewing these wastes from a workforce perspective, this description can expand to include workforce specific activities Those companies that understand how to make the combination of labour, machines and material more productive will reduce their unit costs and lead times beyond a competitor who brings the solitary advantage of low-cost labour. ‘Lean Labour’ goes on to expand the exploration of Lean principles that can be applied in most companies. Comprising eight chapters, with a comprehensive reference list and glossary, ‘Lean Labour’ makes interesting and enlightening reading. •
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October 2013 • Logistics News
Imperial Retail Logistics and Goscor – the best of stable-mates Both leaders in their fields, both part of the iconic Imperial Group, both with a no-nonsense, efficient management style and both driven and professional, Imperial Retail Logistics and Goscor Lift Truck Company (GLTC) have become the best of stable-mates. Imperial Retail Logistics is a leading South African Lead Logistics Provider (LLP), delivering solutions through partnerships that involve the management, optimisation and execution of inbound and outbound logistics, debtor’s administration and pricing. “Partnership is fundamental to our philosophy for both our customers and suppliers and Goscor has become an important partner for Imperial Retail Logistics. They give us excellent service and their products are world class,” says Imperial Retail Logistics Operations director, Albé van der Merwe. “If this were not the case we would be working with someone else, and outside the group, if necessary.” He adds that because warehouse materials handling equipment is so essential to the efficient running of Imperial Retail Logistics, only the best service is acceptable and GLTC certainly provide this. GLTC MD Darryl Shafto says he is pleased that his team has been able to give Imperial Retail Logistics a service that meets their exacting standards. “They are a thoroughly professional organisation and it’s a feather in our cap to have built such a successful partnership with them,” Shafto says. The quantities certainly back up the words: GLTC has supplied Imperial Retail Logistics just short of 100 units in the last financial year prompting GLTC sales and marketing director, Patrick Barber, to say that working with Imperial Retail Logistics has been one of the highlights of his career. “Not only have they been a pleasure to work with but to have seen our team, from the administrators and salespeople to the service department, pull together to give Imperial Retail Logistics the service they deserve – 100 trucks in a year is demanding to say the least – has been an unforgettable experience,” Barber says. About 40 percent of the units acquired in this period are Crown WT 3040 platform pallet trucks, which were recently awarded the prestigious British Industrial Truck Association (BITA) organised Design for Safety Award in the Industrial Vehicles category at the IMHX 2013 trade show. Another popular item at Imperial Retail Logistics is the Crown ESR 5000 reach truck series, itself a winner of multiple international awards for design and performance. Barber explains that a successful design represents an elegant marriage of form and function. “The ESR 5000
October 2013 • Logistics News
reach truck is an excellent example of this basic principle,” he says. With the ESR 5000 series, the ergonomic design in particular helps create an optimised working environment for the lift-truck operator. The laterally offset clear-view mast and patented overhead guard, for example, provide operators with an almost unobstructed field of vision. A low step keeps operators safe while they climb into and out of the truck, while the infinitely adjustable steering column makes it easy for them to find a comfortable driving position. These features combat driver fatigue and improve productivity. Barber explains that when developing a lift-truck, Crown’s first priority is to ensure that every feature is tailored to the specific needs of operators and the logistical workflow. “It is a time-intensive approach – but it pays off handsomely for our customers,” he says. Van der Merwe says that both Crown and Doosan have performed exceptionally well at Imperial Retail Logistics and downtime has been reduced to an absolute minimum. “This is a critical factor in our business as the old adage of ‘time is money’ is absolutely applicable in a logistics business like ours.” He adds that there are times when things go wrong and that is when the service of one’s supplier is tested to the maximum. “Goscor has excelled in this regard and goes the extra mile to ensure the smooth running of our operation,” he concludes. •
Imperial reinvents itself for maximum client benefit Imperial Logistics has been reinvented – and the newly consolidated group is in a better position than ever before to offer tailored solutions to boost its customers’ competitiveness. “We are perfectly positioned for our next step forward, which is essentially focusing not on what we can do, but what we can do for our clients,” reveals chief integration officer, Cobus Rossouw. “Imperial Logistics’ diverse and expansive experience and capabilities extend from procurement to brand activation, and include all the logistics services in between. The challenge is to improve our clients’ competitiveness by customising our experience in outsourced value chain management,” says Rossouw. The group has simplified its business and honed in on its capabilities, to better meet customers’ requirements. One such consolidation merged group companies Volition and e-Logics, as well as their associated businesses, into a powerhouse of business process knowledge and technology expertise. “Dubbed Resolve, this new business amalgamates all of our experience and expertise in business process and technology outsourcing,” Rossouw elaborates. Similarly, Imperial Managed Logistics was established following the consolidation of BROCO and Cargo Africa. “The strength of this business lies in its capacity to move large load volumes through its comprehensive and well managed national network of service providers,” Rossouw explains. Notably, the reinvention process also saw the formation of Imperial Retail Logistics, previously known as TFD Network Africa. The company focuses on enhancing customers’ logistics and supply chain network capacities and capabilities through its services offering. A growth strategy with three dimensions will ensure that Imperial Logistics continues to offer its customers the best possible solutions. Rossouw elaborates: “Today, Imperial Logistics is the only company that can take your product from manufacturing to the point of purchase. The three dimensions of our growth strategy are new geographies, new industries and new capabilities. We will achieve this by effectively deploying and customising our existing skills and expertise; by partnering with other players where necessary; and through acquisitions.” Expanding on this, Rossouw says: “Accordingly we moved into Africa’s consumer market with the acquisition of CIC Holdings, through which we are now operating
October 2013 • Logistics News
Cobus Rossouw, chief integration officer, Imperial Logistics within the FMCG industry, with a service offering that includes distributorships, merchandising, warehousing, distribution, debtors’ administration and staffing solutions.” Imperial Logistics entered the pharmaceutical space with the acquisition of RTT Medical. It also entered the logistics sector of the fast growing Nigerian FMCG, telecommunications and pharmaceutical industries with the acquisition of 49 percent of MDS, a leading logistics provider in Nigeria. While the recent acquisition of mobile technology firm ForeFront Africa has seen the group further explore the mobile and telecommunications industries and ensuring it is well placed to partner with clients in leveraging the potential of mobile commerce in their value chains. Outlining other elements of Imperial Logistics’ strategy, Rossouw notes that the group is playing a growing role in the mining, construction and petrochemicals industries. “Imperial Logistics’ success over more than three decades in business has been built on our people, our real experience and our ability to do more than one thing. Now, with the advantage of a simplified and consolidated organisation, our focus going forward will be on customising our vast experience for the benefit of each of our customers, to most effectively drive their competitiveness. Our goal is to be seen not as the biggest, but as the best for our customers,” Rossouw concludes. •
DHL invests in CT facility
To cater for a growing local and global customer base, DHL Express SA has opened a new gateway facility – a fixed base for cargo and freight handling – at Cape Town International Airport. According to MD Hennie Heymans the new gateway facility takes the place of its existing Maitland station that will effectively double its local processing capabilities. “The processes utilised will now be fully automated to minimise the lead time for the flow of material to and from the airline and clients. The new location at Cape Town International results in enhanced customer service, as our couriers are able to start their deliveries earlier and be on the road later, thereby maximising the amount of deliveries per day,” says Heymans. DHL Express has introduced 50 new vehicles to its growing fleet and is in the process of purchasing an additional 41 vehicles. “These will be imported from Germany and are specifically designed for the courier industry, complete with fold-up shelves that will double our current load capacity per vehicle. The emergence of technology and e-commerce, driven by consumers using the internet to conduct business, is increasingly requiring a higher volume of goods to be transported same-day.”
Gauteng’s integrated transport plan In its 25-year Integrated Transport Master Plan (ITMP25), the Gauteng province has taken the movement of freight into the equation. Dr Ismail Vadi, Gauteng MEC for roads and transport, says “The ITMP25 proposes a radical shift in spatial and transport planning. It ushers in an innovative way of structuring our societal development. The plan sets out a ‘strategic framework’ to better the lives of residents, stimulate economic growth and render the province as an attractive destination for investment.” This 25-year plan, developed by an inter-disciplinary team of experts led by Gautrain CEO Jack van der Merwe, provides an assessment of the current transport and land-use challenges. It also forecasts economic growth scenarios, which have been used to plan the future transport needs and solutions in the province. To facilitate the implementation of the ITMP25, eight mutually supportive ‘strategic interventions’ have been identified, which have been arranged into four clusters. One of these is for freight transport and deals with the strengthening of freight hubs in the province. October 2013 • Logistics News 1166_CP50 Ad (255X90)NEW.indd 1
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Monitoring the heartbeat of the road Road transport is the life blood of the South African economy, from an 18-wheel truck-trailer combination to a mom’s taxi on the morning school run. Ctrack is fast becoming the heart monitor of the vast wheeled sector of society. In a recent test at the Gerotek facility near Pretoria, Ctrack’s fleet management technology was fitted to three vehicles: a small family car, crossover SUV and sports car. The equipment’s ability to accurately detect and report driver behaviour patterns was the objective of the test session. Harsh acceleration, harsh cornering, harsh braking, speeding, as well as harsh bumps were monitored on each of these vehicles as they negotiated Gerotek’s challenging and sometimes arduous road surfaces. Control conditions were rigid and overseen by Gerotek officials. These tests focused on a set of new algorithms and an intelligent alignment capability added to the latest system. “By comparing our in-house developed technology against the sophisticated instrumentation available at Gerotek, we can ensure that Ctrack continues to deliver accurate and consistent information to its clients,” says Deon du Rand, Ctrack’s CTO and Strategic Projects director. The company’s product and service development strategy drives the on-going process of innovation to continuously improve its sophisticated driver behaviour and risk monitoring solutions, and provide significant value-added features and benefits for users and owners. Bespoke telematics solutions offered by Ctrack include both driver and fleet profiling to ensure optimal use of today’s highly sophisticated and expensive vehicles, as well as the reduction in CO2 emissions and fuel consumption possible through efficiencies enabled by Ctrack. Escalating fuel prices are making it far more difficult for fleet managers and logistics practitioners to plan costs and expenditure in daily operations. It has become imperative to deploy the most fuel efficient vehicles available and affordable, pre-plan cost-effective routes and closely monitor the precise fuel consumption of every vehicle in a fleet, minute by minute. Besides tracking monitored vehicles and cargo as a security measure, one of Ctrack’s most useful functions is to record and report actual vehicle fuel consumption, being compatible with the CAN J1938 protocol, a link provided by the CAN (controller area network) on-board computer system.
October 2013 • Logistics News
In vehicles without an onboard computer, an aftermarket Fuel Flo meter is installed that integrates with the tracking unit and transmits fuel consumption information to the centralised data hub environment. In addition, Ctrack can also integrate with several market-leading routing and scheduling functions. A Driver Behaviour Interface (DBI) is an in-vehicle device that monitors vehicle parameters such as speeding, harsh braking and acceleration, harsh cornering and over-revving, with an in-cab green, yellow and red light display for driver awareness of deviations from ‘green band’ driving. Ctrack has been integrated with FleetConnect, a comprehensive fleet management software programme that enables fleet owners to manage all aspects of a fleet from fuel usage, licence renewals and traffic offences to toll fees, vehicle service schedules, tyre management, driver profiles, records, driving hours and performance, vehicle life cycles and many other factors. Ctrack’s carbon emissions monitoring technology is assisting companies throughout the world to track their carbon footprint. By monitoring fuel consumption and tracking variables such as harsh acceleration, excessive idling and route deviations, fleet operators are able to identify where CO2 is being unduly emitted to implement corrective actions. Ctrack’s job scheduling tools ensure minimum kilometres are travelled, while excessive idling and green band driving are monitored to minimise fuel consumption. Vehicle use is monitored per driver and unauthorised use can be prevented. To date Ctrack has sold more than 750 000 systems globally with an increasing proportion being configured for emission reporting. “As this trend continues we hope to see more businesses adopting fleet management solutions to make a difference to our environment,” concludes Nick Vlok, CEO at DigiCore, supplier of Ctrack.•
Bidvest Panalpina Logistics joins prestigious AMD
Bidvest Panalpina Logistics has joined a prestigious list of members with its recent acceptance to the Aerospace, Maritime and Defence Industries Association of South Africa (AMD). AMD is the only trade association of SAâ€™s defence industry (SADI) and is mandated by its members to promote and champion the collective interests of the industry. It comprises a cluster of leading companies in the SA private and public sector that supplies defence material, products and services. The Department of Trade and Industry (the DTI) recognises AMD as the industry association representing the aerospace and defence sectors. It also recognises AMD as a Joint Export Action Group. AMD has worked closely with the DTI in developing and implementing the aerospace strategy and is engaging the department in developing a strategy for the defence industry.
Barloworld software rule waves Feeding, entertaining and accommodating up to 3 500 passengers for several days before arrival at the next port is a logistics challenge for a luxury cruise ship that requires accurate forecasting and contingency planning. In essence, each ship is a floating town separated from its many suppliers for lengthy periods. P&O Cruises and Cunard invited Barloworld Supply Chain Software to review the existing processes with a view of applying Optimiza Demand Planner, an advanced demand planning software application designed to compile and maintain an accurate requirement forecast. Optimiza uses multi-level forecasting techniques that intelligently select the right algorithms for each product level and collects results up or down the product, geographical, or channel hierarchy. Barloworld Logistics executive, Christopher Comodikes (pictured), notes many SA organisations realise that a robust demand plan sets the tempo for all other supply chain activities. October 2013 â€˘ Logistics News 1166_CP50 Ad (255X90)NEW.indd 2
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Further orders for Liebherr container cranes
Liebherr Container Cranes has secured separate orders from DPWorld Manila for both a ship-to-shore container crane and for two rubber-tyre gantry cranes. In addition, a recent delivery of a ship-to-shore container crane at DPWorld Melbourne further expands Liebherr’s presence in the Oceania / Philippines region. The shipto-shore crane on order for Manila is identical in size to a pair of Liebherr ship-to-shore container cranes commissioned in 2011 at the ATI-run port. The cranes feature a waterside outreach of 44,5 m, a back reach of 12 m and a safe working load under twin-lift spreader of 60 tonnes. The lift height over rail is 31 m. The crane will form part of expansion plans for Manila’s South Harbour with investment of almost US$1-billion over the next three years.
Beyerskloof wines for Moz A contract to distribute Beyerskloof wines into Mozambique has been secured by CIC Holdings. Milton Vellios, managing director of Marulo Comercio – the CIC Holdings operating company that has partnered with Beyerskoof – explains that local expertise is crucial for success. “To expand operations in Mozambique, it is important to understand the legislation, ordinances, political environment, networks and infrastructure. Marulo Comercio netted this contract based on its ability to meet all these requirements.” The company has been doing business in Mozambique for almost two decades. “Road infrastructure is poor and it is often difficult to move freight in this country,” Vellios adds, noting that a further challenge is the illegal importation of wine and spirits into Mozambique. Marulo Comercio has four warehouse and distribution facilities in Mozambique and a sales team that operates from Maputo and Matola up to Inhambane.
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New Hino models at Expo Hino will highlight several new models and derivatives in its comprehensive display at the Johannesburg Truck & Bus Show at the Nasrec Expo Centre in October. The display will include models in the Hino 700, 500 and 300-Series ranges as well as the Toyotabadged Dyna, which is a popular urban logistics transport vehicle. An important new addition to the 700-series range of extra-heavy trucks is an 8x4 model, well suited for various applications in the construction industry. The 8x4 model can be used as heavy duty freight carrier, tipper and mixer. Another 700-Series model on display will be the flagship 2848 model, a medium to long-haul truck-tractor with a GCM of 65 000 kg and a 480 hp engine. All Hino 700-Series are now fitted with a Euro 4 engine that is more economical to operate, with lower exhaust emissions. The popular Hino 500-Series will be represented by the 500 FL, which is a 6x2 freight carrier. It will be the first model in this series to have a Euro 4 engine. Two models from the topselling Hino 300-Series will be exhibited including the Crew Cab 815 derivative.
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Call to ban heavy vehicles on Field’s Hill T he D emocratic A lliance has urged KwaZulu-Natal transport MEC Willies Mchunu to ban heavy vehicles from using Field’s Hill. “The ongoing use of Field’s Hill as a route for heavy vehicles travelling to and from Durban has been a concern for many years,” DA MPL Radley Keys said in a statement. “The DA has consistently campaigned for a ban on ‘heavies’ on this stretch of road.” This came after 27 people were killed when a truck crashed into four minibus taxis and a car on the M13 recently. Apparently truck drivers frequently use the Field’s Hill route to avoid paying tolls on the main highway that bypasses the dangerous steep section.
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SA’s ‘greenest bottling plant in Africa’ Global consultancy firm SMEC SA has played a fundamental role in ensuring that Coca Cola has become the first company in Africa to obtain internationally recognised Leadership in Energy and Environmental Design (LEED) Gold and Silver certification at its Valpré Water Bottling facility in Heidelberg, Gauteng. Developed by the US Green Building Council, LEED is an internationally recognised green building organisation that provides building owners and operators with a framework for identifying and implementing practical and measurable green building design, construction, operations and maintenance solutions. SMEC SA was appointed as the principal consultant and project manager in 2007. Technical director Gert Wentzel says that the site selection followed extensive geo-hydraulic studies. The facility is located outside the urban footprint since it has to be close to the water source; according to natural bottled water legislation. The substantial reduction in electricity consumption has been complemented by the use of the solar power plant and motion and daylight sensors, and has been sized to generate enough power to fulfil the administration offices’ needs, which practically makes the office block a net-zero building.
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SAAFF Congress promises insights The South African Association of Freight Forwarders (SAAFF) will host its fifth annual congress from 8-9 October at the Hilton Hotel, Sandton. The congress has become entrenched as the definitive knowledge event focused on the trends, opinions, issues and opportunities facing today’s freight logistics providers. “The freight forwarding market has been a major beneficiary of an increasingly globalised world economy and Africa’s booming trade and investment environment is yet another golden opportunity for serious growth. Our industry is in a unique position to tap into the incredible growth currently shaping the African continent where some of the fastest growing economies reside,” says David Logan, CEO of SAAFF. For more information contact Teresa Settas Communications on Tel: 011 894 2767, e-mail nadine@tscommunications. co.za or visit http://saaff.org.za/saaff-congress-2013
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Supply chain game BMA into spotlights future leaders Europe with UK
‘The Fresh Connection’ is an innovative web-based business game that challenges supply chain professionals to demonstrate and improve their knowledge of how supply chain decisions affect corporate success. The Fresh Connection was launched in SA in 2010 by SAPICS (The Association for Operations Management of Southern Africa). This year three rounds were played locally, with 26 SA teams participating. The team representing Ernst & Young emerged with the highest weighted return on investment across all three rounds to earn a spot in the Fresh Connection international final in Istanbul. Two teams representing Resolve (previously Volition Consulting Services) demonstrated their mastery of the supply chain business when they finished second and third. The aim of the game is to take a loss-making, fictitious company and generate a positive return on investment. Each function (supply chain management, sales, purchasing and operations) can make a limited number of decisions and the team members must work together closely to positively impact return on investment. Supply chain risks are randomly activated in the game and can seriously harm the company if not mitigated.
Members of the Resolve teams that gave a good account of themselves.
Business Modelling Associates (BMA), a leading business analytics, supply chain design and solutions development firm, launched its UK operation this month. This is on the back of the successful awarding of a seven-year contract to supply advanced business analytics and strategic risk and cost modelling technology to one of the world’s largest water utility companies. In terms of its European expansion, BMA will initially focus on developing solutions for the UK utility sector (water, waste, gas and electricity) along with the more traditional areas of integrated business planning and supply chain design. BMA is also exploring further opportunities in the consumer packaged goods (CPG), manufacturing and logistics sectors in Europe. “Although we have been active in this territory over the past three years we are now pleased to be officially establishing our European operations with the opening of our UK office,” said BMA co-founder and director, Rod Stout. “In South Africa, we have some exceptional people with world class business analytics skills and we are proud to offer members of our rapidly growing team the opportunity to showcase their creative talents in more mature markets.”
Hatch Goba boosts municipal water infrastructure Consulting engineering and project implementation firm Hatch Goba has successfully assisted municipalities across South Africa in streamlining their water management strategies by providing expertise and assistance through the company’s Water Business Unit, which boasts more than 100 water engineering staff nationwide. Hatch Goba Water Business Unit Regional Director Andrew Officer points out that the division specialises in the planning, designing, commissioning and operation of numerous types of water projects, including bulk water infrastructure; dams, tunnels and hydropower, mining and industrial water services, water and wastewater
October 2013 • Logistics News
treatment and trenchless technology. “We offer a full spectrum of services to municipal clients. This includes water demand and water loss management, in addition to bulk water supply and wet services infrastructure design. Our understanding of local water conditions, combined with project experience and technical knowledge enables us to develop strategic and integrated plans for short and long-term water resource management,” he says. Among the most high profile municipal projects currently being undertaken by the Hatch Goba Water Business Unit is the East London Sewer Diversion Tunnel.
Forthcoming Events TransAfrica
Event: The inaugural Transport, Infrastructure and Investment Expo Date: 1-4 October Venue: Expo Centre, Nasrec, Johannesburg Contact: Umthombo Exhibitions, Events and Promotions
Event: SAAFF Annual National Conference Date: 8-9 October Venue: Hilton Hotel, Sandton Contact: Nadine 011-894-2767
Event: The Johannesburg Truck and Bus Show takes place from 16 to 27 October and co-locates with the Johannesburg International Motor Show Date: 16-27 October Venue: Expo Centre Nasrec, Johannesburg Contact: www.jhbmotorshow.co.za
Event: Energising the Industry Date: 15-16 October Venue: The Forum, Bryanston Contact: Bookings www.cgcsa2013.co.za
Event: CSCMP Annual Global Conference Date: 20-23 October Venue: Denver, Colorado, United States of America Contact: Madeleine Miller-Holodnicki, ABC, email@example.com
Event: Port Management Association of Eastern and Southern Africa 40th anniversary conference Date: 4-5 November Venue: International Conference Centre (ICC), Durban Contact: Conference organiser Landy Blake Tel: 021-462-5793, email: landy@ pmaesaconference2013.co.za or visit pmaesaconference2013.co.za
The South African Association of Freight Forwarders
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Event: ‘Meet the Gurus’ Global Supply Chain Update Date: 22 October / 24 October Venue: Mount Nelson Hotel, Cape Town / Maslow Hotel, Sandton, Johannesburg Contact: Bonnita Becker at CVLC, email: firstname.lastname@example.org Tel: 011-789-7327/ 011-787-9127 or visit www.ciltsa.org.za
Shaping Global Economies Through Freight Forwarding Innovation
The South African Association of Freight Forwarders (SAAFF) Annual Congress, presented by Lombard Insurance Group will be a melting pot of debates, trends, opinions, issues and opportunities facing today’s evolved freight management logistics providers.
Date: 8 – 9 October 2013 Venue: Hilton Sandton – Johannesburg Cost: 2-day Package 1-day Package
SAAFF Members R4,300-00 R2,300-00
Non-Members R5,100-00 R2,800-00
Bookings: Please contact Nadine on 011 894 2767 or email@example.com
October 2013 • Logistics News
Directory of supporting
industry associations CGCSA Consumer Goods Council of South Africa 0861-242-00 • www.cgcsa.co.za CILTSA Chartered Institute of Logistics and Transport SA 011-789-7327 • www.ciltsa.org.za CIPS Chartered Institute of Purchasing and Supply Southern Africa 012-345-6177 • www.cips.org/southernafrica CSCMP Council of Supply Chain Management Professionals SA Round Table 011-678-1820 • www.cscmp.org RFA Road Freight Association 011-974-4399 • www.rfa.co.za SAAFF SA Association of Freight Forwarders 011-455-1726 • www.saaff.org.za SAEPA SA Express Parcel Association 0861-106-402 • www.saepa.org.za SAIIE Southern African Institute of Industrial Engineering 011-607-9557 • www.saiie.co.za SAPICS The Association for Operations Management of Southern Africa 011-023-6707 • www.sapics.org.za
Celebrating 30 years as the independent voice of the Supply Chain industry
Publishing Editor: Dianne Holton Editorial & advertising: Tel: 011-784-7697 Fax: 086-515-5247 firstname.lastname@example.org P O Box 784621, Sandton 2146, South Africa www.logisticsnews.co.za www.supplychainonline.co.za Deputy Editor: Michael Brandt Consulting editor: Gerard de Villiers Advertising: Juanita le Roux Tel: 082-494-6592 email@example.com Subscriptions: www.logisticsnews.co.za Design & DTP: Kerry Dimmer – Directions Tel: 011-792-1930 Repro and Printing: Paradigm Print Tel: 011-683-1911 The publisher is not responsible for the opinions expressed by individuals. © No part of the publication may be copied or reproduced by any mechanical or electronic means without the written permission of the publisher. Thirtieth year of publication. ISSN 1025-0492
Logistics News October 2013
the independent voice of the
SCC Supply Chain Council 011-918-7518 • www.supply-chain.org
October 2013 • Logistics News
Announcing the 2013 LAA winners
Planning optimised performance • Global transportation benefits • Collaborative distribution networks • Fleet telematics • training
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Published on Feb 6, 2014