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SUPPLY CHAIN Endorsed by: CCF l CGCSA l CILTSA l CSCMP l SAAFF l SAEPA l SAPICS l SMART X l

T O D A Y

September 2017

MARTIN BAILEY DISCUSSES THE PERILS OF BAD WAREHOUSE DESIGN NEW EMERGING TRUCKING ASSOCIATION LAUNCHED WITH FANFARE


GLTC ISo Advert OPT1 Stamp Supply Chain Today September 2017.qxp_Layout 1 2017/08/04 2:56 PM Page 1


SUPPLY CHAIN

T O D A Y

Contents

On the cover: Jungheinrich, www.jungheinrich.co.za

CILTSA

Cover Story 4

Slasher Economy

At a recent Ciltsa breakfast function, I got chatting to Mike Brice of Sick Automation. He was telling me about a new name for the young worker of today. Expecting Y-Generation, ZGeneration, I was surprised to hear the word ‘slasher’? Sounds ominous. In fact it’s a term for youngsters who do a bit of this and that. Therefore, bartender/seasonal worker/ /part-owner of a freight forwarding online brokerage/ au pair. These kids usually have degrees but can’t find work in the formal sector. Or they’re unwilling to work in the formal sector with its rules and regulations, preferring to do their own thing. Barloworld’s supplychainforesight report indicates that over 75% of youngsters they interviewed plan on opening their own businesses. The message that SME’s will drive the economy looks like becoming a reality. Maybe there’s also more job security this way? A recent chat show on Radio 702 had most of the experts agreeing that around 60% of the job titles in the not-so-far future have yet to be formulated. A scary thought that technology will alter the career landscape to such an extent we are not able to ‘see’ what’s in store. Mind you, formal sector or informal, most jobs have an element of slasher about them. Take me for example, I set out to be a journalist and shortly added media owner/accountant/labour lawyer in-training/psychologist/ motivator/disciplinarian to my list of things to do. Perhaps we should take a leaf out/of/ the/slasher/book! Susan Custers Managing Editor BA.Comm

Pioneer in Lithium Ion Technology

29 Fully-funded Professional Training Programme for Women in Transport and Logistics

Useful Indicators 7

Spotting Bribery and Corruption

Sustainable Business 9

31 Overcoming Challenges

The Cash Flow Conundrum

African Women in Supply Chain Association 10 Determined to Succeed

15 Efficient Standardisation

18 Pick n Pay’s Dedicated Fulfilment Centre

South African Bulk Terminals

19 Extreme Conditions for Wheel Loader

KITE Show 2017

22 A Regional Focus

Track and Trace

25 The Benefits of Serialised Coding

Designing a Warehouse

27 Misperceptions of the Engineering Profession

32 The Country’s Coast

Secondary Distribution

TASA

35 New Trucking Association

16 International Materials Handling Expo

Online Distribution

Maritime Security

33 Improving Efficiencies and Reducing Costs

Forklifts IMHX

IT Asset Disposal

36 Market Forum Endorsing Bodies Afritag (div of Smart Card Society) CCF (Cold Chain Forum) CGCSA (Consumer Goods Council of SA) CILTSA (Chartered Institute of Logistics & Transport: SA) SAAFF (The South African Association of Freight Forwarders) SAEPA (SA Express Parcel Association) Sapics (The Association for Operations Management of Southern Africa) CSCMP (Council of Supply Chain Management Professionals) Also mailed to RFA members

Copyright

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

Proprietor and Publisher: PROMECH PUBLISHING Tel: (011) 781-1401, Fax: (011) 781-1403 E-mail: supplychain@promech.co.za, www.promech.co.za Managing Editor: Susan Custers Advertising Sales: Louise Cresswell (071 886 1263)

Production Manager: Anne Rotteglia and Tish van Niekerk Administration and Circulation Manager: Belinda Siegruhn

Subscriptions: Please email us at accounts@promech.co.za if you wish to subscribe to “Supply Chain Today” Printed by: Typo Colour Printing, Tel: (011) 402-3468 FSC (Forestry Stewardship Accreditation)

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COVER STORY

Pioneer In Lithium Ion Technology With an increased move to electric machines, a powerful battery plays an important role. The intralogistics sector has for decades been successful using what is still a vision of the future for the automotive industry. Jungheinrich has long played a pioneering role in this area.

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n 1953 Jungheinrich built its first electric truck, which led to 95 percent of Jungheinrich trucks that are currently being produced as being electric driven. The company was also the first to launch forklift trucks with 3-phase AC control system in 1996. For more than 60 years, lead-acid batteries have been the standard form of energy storage in electrically operated trucks, but lithium-ion batteries are becoming increasingly popular in materials handling equipment In 2011 Jungheinrich was the first to incorporate lithium-ion batteries into electric pallet trucks and, at the time, was the only intralogistics company to not only produce trucks, but also the associated charging systems and batteries in-house. Currently Jungheinrich already offers lithium-ion batteries as a feature on over 90 percent of their electric truck models. And the latest vehicles using conventional lead-acid batteries can also easily be converted to lithium-ion technology.

Benefits of lithium-ion

Lithium-ion batteries offer many advantages: • They have a service life three times longer than lead-acid batteries. • They are maintenance-free, have short charge times and can easily be opportunity charged. • They are also much more energy-efficient because losses during charging are extremely low and regenerative braking energy is transferred back almost completely into the battery. With today’s technology, every fourth lift is typically powered by this recovered energy. • The battery also communicates with both the truck and the charger. The operator can always see the current charge state in the truck display, including visualisation of recuperation, and is able to plan the next charge process.

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• If the residual capacity of the battery falls below a certain value, however, the energy consumption levels of the truck are reduced so a movement does not come to an abrupt stop. In this way, the battery independently protects itself against improper handling and is optimally adjusted for the specific application.

Energy efficiency

An important aspect of energy consumption is coordinating the individual truck components. Between the battery and charger, this is indispensable, as is adjusting the motor, or more accurately the rotational speeds, for contributing to optimised energy consumption. With energyefficient solutions from Jungheinrich, customers are able to tap enormous potential for savings given rising energy prices. Thus Jungheinrich contributes towards sustainable and resourceconserving alignment of the economy.

Cost savings

The advent of boost charging makes it possible to use trucks with lithium-ion technology continuously for up to 24 hours a day, 7 days a week without changing batteries. And since neither gases or acids can escape from lithium-ion batteries, no special battery bays with expensive exhaust systems are required. Thus the technology is not only reliable, but also saves forklift truck fleet operators space and money. It is no longer necessary to have any reserve batteries or battery changing equipment.

The technology

“Lithium-ion batteries can be considered as intelligent batteries, since they manage themselves. To do this the computer measures the voltage, temperature and the input and output currents, and ensures that the individual cells are balanced,” explains Dr. Carsten Harnisch, Head of Division Energy and Drive Systems, Jungheinrich


The range of Jungheinrich self-produced batteries consists of 24V, 48V and 80V versions

AG. This information is monitored in the battery management system to optimally extract energy from the battery and make it available to the truck. Thus lithium-ion batteries from Jungheinrich are especially powerful, maintenance-free and longlasting: the expected service life is 3 000 full cycles and considerably more partial cycles. By comparison, the average service life for lead-acid batteries is from 900 to 1 200 cycles. In-house production also makes it very flexible and allows the latest development in the batteries and products to be incorporated, as lithium-ion is a fast moving technology. A battery consists of many individual cells combined to form “stacks�, individually configured and installed with other components in the battery tray. For the Jungheinrich lithiumion battery, Jungheinrich uses lithium iron phosphate cells because it is a very reliable, sturdy environmentally friendly technology, free of pollutants.

Lithium ion – the way forward

Companies are advised to switch to lithium-ion technology today. If the Total Cost of Ownership (TCO) has been accurately recorded, including the cost of charging areas and charging infrastructure, as well as the expense of battery changes, and in addition to how much energy could be saved, it is already more economical for many companies to switch to lithium-ion technology right now. There are also companies that produce especially sensitive goods, for example, or work in an environment with high hygienic requirements and therefore consciously choose to use lithium-ion driven trucks. Jungheinrich, www.jungheinrich.co.za

Jungheinrich batteries, chargers and trucks are matched and networked to each other in a complete system. With in-house development and production, Jungheinrich offers a consistent system from the control electronics through the battery to the truck. Jungheinrich offers a 5-year warranty on all of its self-manufactured lithium-ion batteries. If the capacity falls below 65 percent of its nominal capacity within the warranty lifetime of either 5 years or 10 000 hours of operation, Jungheinrich will repair or exchange the lithium-ion battery free of charge, using its local after-sales team to assist with the exchange or repair.

Jungheinrich lithium-ion battery plug-in and charge facility

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“World Class Power local expertise to maximise... performance for your business�


USEFUL INDICATORS

Spotting Bribery and Corruption Companies are required to mitigate financial penalties and reputational risks associated with bribery and corruption within their organisation and third-parties, with adequate preventative measures as per the requirements of the Bribery Act 2010.

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he expectation is that companies must implement effective controls, measures and due diligence procedures by law or risk exposure, penalties and fines.

“Companies have a responsibility to demonstrate their commitment towards preventing bribery as a matter of priority. It is necessary for them to identify potential incidents and to recognise them when they occur. However, many companies are ill-prepared,” says Rudi Kruger, General Manager at LexisNexis Risk Management.

First and foremost, it is important to note that bribery and corruption do not show up in plain sight “First and foremost, it is important to note that bribery and corruption do not show up in plain sight. Companies are often unaware of their risk because they are not aware of the many forms in which bribery and corruption can occur. Daily business functions are the gateway to many of these activities and present serious risks if not controlled,” he adds. Rudi references the list of common corruption indicators, issued by Serious Fraud Office, the UK body which investigates and prosecutes serious and complex fraud. “Although not all inclusive, the list of indicators goes a long way towards creating awareness on the many guises and opportunities for corruption to occur.”

Indicators

Be on the lookout for the following indicators when tackling potential bribery and corruption. o o A bnormal cash payments o o Abnormally high commission percentage being paid to a particular agency. This may be split into two accounts for the same agent, often in different jurisdictions

Rudi Kruger, General Manager at LexisNexis Risk Management

o o A busing the decision process or delegated powers in specific cases o o A greeing contracts not favourable to the organisation either with terms or time period o o Avoidance of independent checks on tendering or contracting processes oo B ypassing normal tendering / contractors procedure o o C ompany procedures or guidelines not being followed o o Individual never takes time off even if ill, or holidays, or insists on dealing with specific contractors him/ herself o o Invoices being agreed in excess of contract without reasonable cause o o L avish gifts being received o o M aking unexpected or illogical decisions accepting projects or contracts o o M issing documents or records regarding meetings or decisions Supply Chain Today

September 2017

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USEFUL INDICATORS

o o Payments being made through 3rd party country, e.g. goods or services supplied to country A but payment is being made, usually to shell company in country B o o Pressure exerted for payments to be made urgently or ahead of schedule o o Private meetings with public contractors or companies hoping to tender for contracts

A valuable tool for meeting anti-bribery, corruption and anti-money laundering requirements o o Raising barriers around specific roles or departments which are key in the tendering / contracting process o o Unexplained preference for certain contractors during tendering period oo U nusually smooth process of cases where individual does not have the expected level of knowledge or expertise o o T he payment of, or making funds available, for high value expenses or school fees etc on behalf of others

Policies and procedures

“In addition to these tell-tale signs, it’s in your organisation’s best interest to have in place com-

prehensive due diligence policies and procedures, which prove highly effective in mitigating risk as they provide you with the relevant intelligence. All parties involved in your business, whether suppliers, partners, acquisition targets, contractors, resellers, grant applicants, other associates and in-house personnel, must be thoroughly vetted on an ongoing basis,” says Rudi. Due diligence is simplified with Lexis Diligence, an online solution that provides access to the intelligence needed to carry out due diligence checks on third parties in-house in accordance with The Bribery Act. It is a highly advanced due diligence research solution that highlights the rule of law and provides rules and guidelines to ensure the legality of all client and company procedures. It comprises a comprehensive database of more than 40 years of global archived news and data, designed to help a company perform the necessary due diligence in the areas of risk, compliance and fraud. This makes it a valuable tool for meeting anti-bribery, corruption and anti-money laundering requirements. LexisNexis South Africa, www.lexisnexis.co.za

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See contact details

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www.storagedirect.co.za or

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world 130x190.indd 1

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September 2017

www.linvar.co.za 2017/03/27 11:27 AM


SUSTAINABLE BUSINESS

The Cash Flow Conundrum “There is more than sufficient funding for business in South Africa,” says Richard Mackenzie, sales director of Transaction Capital Business Solutions. “It is how Small Medium and Micro Enterprises (SMMEs) present themselves that creates a problem with gaining access to funding.”

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he South African Institute of Chartered Accountants (SAICA) 2016 SMMEs survey found that the longer a SMME is in business, the bigger it will be and the more people it will employ. This is an important point considering that the NDP is relying on SMMEs to reduce unemployment to a mere 6% by 2030.

ment processes when on-boarding new clients, especially when starting out. Most often their first clients are businesses and or individuals that they are familiar with. This often becomes a problem, especially when it comes to collecting outstanding and overdue debts. Imagine how difficult it must be to try and ask for a large sum of money while in a social environment? Another common shortcoming is the lack of proper financial controls and accurate reporting. Failure to accurately track income and expenses can lead to zero profits or potential insolvency. Also not paying creditors on time can result in a deteriorating risk score at the credit bureaus; this will ultimately impact negatively on borrowing opportunities and radically increase the cost of funding.

Failure to accurately track income and expenses can lead to zero profits or potential insolvency.

Business know-how

“One of the key findings of the 2016 SMME Insight Report is that SMMEs fail largely because of cash flow related problems and the inability to manage administrative and business processes,” says Jeanne Viljoen, project director: small medium practice at SAICA. Many entrepreneurs don’t know where to access funding, outside of traditional banks. Sadly, they close their doors due to a cash flow crisis which could have been averted. Compounding this shortcoming, many lack the business skills to come up with alternative solutions to resolve the problem of insufficient funds. Richard says that SMMEs currently contribute 34% towards the country’s gross domestic product. He advocates that the private sector and government should do more to support SMMEs. “This would include nurturing SMMEs through the critical first two years and providing access to finance, cash flow management and mentorship,” he adds. His comments are borne out by the 2016 SAICA SMME Insights report’s finding that the first three years of a business are the most critical.

A worrying trend

Many SMMEs don’t follow proper risk assess-

Transaction Capital Business Solutions provides approved SMMEs with access to diverse types of assistance: ranging from cash flow and working capital solutions, credit risk data, trade credit insurance and outsourced accounting services. “Our core business is debtor finance and propertybacked loans,” says Richard. “It’s a well-known fact that SMMEs often have a problem securing finance for expansion or find themselves in a sticky situation because a debtor hasn’t paid them on time. “But they could put themselves in a stronger financial position if they improved their business management skills. They don’t always understand end-to-end business best practice.” He proposes that SMMEs have structured business processes in every area of their operation. This should include, among others; marketing, orders, credit applications, risk assessment, collections, on time cash in the bank, on time creditor payments, operating costs and expense control. The ultimate benefit when implementing sound financial controls, improved business processes and accurate reporting; is creating a sustainable business that grows in value. Transaction Capital Business Solutions, www.transactioncapital.co.za

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AFRICAN WOMEN IN SUPPLY CHAIN ASSOCIATION

Determined to Succeed Mid-July and “Supply Chain Today” set off to brave the Johannesburg evening traffic, for a good cause – the official launch of Awisca (African Women in Supply Chain Association). AWISCA Founder Lebogang Letsoalo delivering the AWISCA dream

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Prof Douglas Boateng of PanaVest: “We all need to build a better future for the African child. It’s time to move from economic entitlement to economic empowerment.”

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ats off to Chairman of Awisca, Lebo Letsoalo, who managed to assemble the who’s who of the supply chain fraternity in one gathering. As former VP of supply chain at Sasol, Lebo has spent over 18 years in the supply chain arena and says it’s now time to give back. She’s not talking about women getting together occasionally to talk about issues they have in common either, Lebo has a very definite focus on hands-on mentoring and coaching. She says, “We want our students to actually go to a trucking depot, to visit a port in person, to see a working warehouse first-hand. “The value chain is long and we want each and every woman to play an active role. As jobs may be scarce in the future, we also want to encourage our students, male and female, to become job-creators not just job-seekers.”

Partners

Lebo has assembled an impressive list of partners to work with on capacity building and training: viz, ● ● CILTSA (Chartered Institute of Logistics & Transport SA) ● ● CIPS (Chartered Institute of Procurement and Supply) ● ● SAAFF (SA Freight Forwarders Association) ● ● Samsa (SA Marine Safety Association) ● ● Sapics ● ● Sastalc (SA Shippers Transport & Logistics Council) ● ● TLSA (Transport & Logistics Students Association) ● ● National Treasury ● ● Dept of Trade & Industry ● ● Dept of Transport ● ● Cross Border Road Transport Agency

Yayeri Kisaame, CEO SA Shippers

● ● PanAvest ● ● Teta (Transport Education Training Authority) ● ● Trade + Investment KZN ● ● Unisa ● ● North West University ● ● University of Pretoria ● ● University of Johannesburg ● ● Bidvest Panalpina ● ● Raizcorp As chairperson of Sastalc and director of her own supply chain consultancy, we think Lebo has the reach and determination to build some serious capacity in the supply chain industry. www.awisca.org

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Yuneal Padayachy, Deputy Director BBBEE Procurement Transformation & Verification

Harry Van Huyssteen from Transport Forum

Prof Douglas Boateng from Pan Avest

Matlhodi Senyatsi from Department of Transport

Tony d’Almeida from SAAFF

Donnee Kruger from TIKZN

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AWISCA Student Chapter

Entrepreneur Chapter

Ž Ž Personal development or career path plans and coaching

Ž Ž Focused growth programmes that aim at increasing growth and profitability of the business.

Ž Ž Internships and vacation work: matching students with available internship programmes for practical work experience

Ž Ž Mentorship and coaching circles Ž Ž Supplier and Enterprise development initiatives: SC consulting, Logistics – transportation, warehousing etc.

Ž Ž Workplace Readiness: Close the gap between hard and soft skills

Ž Ž Developing supply chain technical skills of entrepreneurs

Ž Ž Site visits: will assist institutions of higher learning to expose learners to the operational side of the industry

Ž Ž Provide access to business opportunities within supply chain programmes

Ž Ž Mentorship and Coaching Circles: Mentees (students) will gain valuable advice and expand their knowledge base

Ž Ž Invest in emerging entrepreneurs to increase their operational and financial capacity

Ž Ž Foster an entrepreneurial culture in universities to develop future entrepreneurs

Ž Ž Provide entrepreneurs and SMMEs the opportunity to apply for sponsored business growth

AWISCA focuses on elevating and uplifting the transformation of different aspects of supply chain within corporate industries, government entities, universities and businesses. We aim to close the skills and capacity gap and achieve our mandate in the supply chain sector through focused mentorship and coaching programmes.

Rebecca Setino from Bombadier and Dennis Mlambo DENEL with AWISCA Founder Lebogang Letsoalo

Professional Chapter

Women Chapter

Ž Ž Personal development or career path plans and coaching

Ž Ž Personal development or career path plans and coaching

Ž Ž Volunteering time to lead a mentorship circle Ž Ž Volunteering time to coach a student or Supply Chain professional

Ž Ž Re-igniting a renewed focus on gender equity through the implementation of a Women Empowerment Strategy

Ž Ž Volunteering time to coach an entrepreneur or small business

Ž Ž Recognise the wealth of female talent that exists within the Supply Chain arena

Ž Ž Practical mentorship and coaching circles

Ž Ž Increase the percentage of high school girls planning to pursue a career in supply chain

Ž Ž Buddy Network Ž Ž Job rotation Ž Ž Partnering for industry affiliations

Ž Ž Promoting networking and leadership development skills Ž Ž Developing supply chain technical skills through pairing Ž Ž Promote buddy networking Supply Chain Today

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FORKLIFTS

Efficient Standardisation

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o need for an introduction to Puma. It is one of the leading sports brands in the world with a reputation for innovation and quality. “Puma is an iconic company which conducts its business in the most professional manner,” says Gregg Tarr, Goscor Lift Truck Company (GLTC) Western Cape sales manager. “The fact they have decided to standardise their materials handling equipment (MHE) with our Crown range is something we are extremely proud of.” This leading sports brand Puma South Africa recently acquired six units. Four Crown ESR 52602.0 reach trucks and two Crown WT 3040-2.0 powered pallet trucks were purchased for their new warehouse in Contermanskloof, Cape Town.

Standardise

Puma warehouse manager, Adi Munter, says that until recently he was using different brands of MHE but decided to standardise with Crown to optimise efficiency. “It is best to work with one supplier in terms of streamlining operations, service and spare parts availability. We decided

on Crown because of the quality of the product and GLTC’s ability to provide the requisite level of service.” He adds that an example of the added value that GLTC provides Puma is a state-of-the art battery bay, which is crucial to the efficient operation of the machines. Puma’s 3040-2.0 comes with advanced features that suit their specific warehousing needs. With a load capacity of 2 tons, shock reducing suspension systems, completely programmable performance systems, and electronic steering, these machines are designed for efficient, easy and comfortable operation. Crown ESR 5260 reach trucks are especially designed to provide a solution for even the toughest material handling situations. Their low running cost, advanced operator comfort and excellent visibility are a few of the advanced features that encouraged Puma to make the decision to purchase. Goscor Lift Truck Company, Tel: (010) 594- 4338 Email: lifttrucks@goscor.co.za, www.goscor.co.za

In Puma’s new new state-of-the-art warehouse in Contermanskloof, Cape Town: Adi Munter Puma warehouse manager with Goscor Lift Trucks’ Gregg Tarr (3rd and 4th from left) and from l to r, Prins Koopman, Reynold Mouton, Nigel October, Bradley Sass, and Fabian Lottering with Damion Persence and David Khang standing in front.

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IMHX

International Materials Handling Expo July 2017 marked the introduction of a new exhibition in the materials handling sector. Having started life four years ago as an annual trucking conference, this event was boosted through the addition of the TruckX and IMHX (International Materials Handling) exhibitions.

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f the 2 200 attendees, 22% indicated a direct interest in the IMHX offering. These 484 attendees came out on the day to connect with suppliers of materials handling equipment products and services, and to pop into “Supply Chain Today’s” stand.

name at the Kyalami Grand Prix circuit. Although we were not allowed anywhere near the main drag, we all had the opportunity to either drive a truck (with the right licence) or were taken for a spin around the smaller dynamic handling circuit in the new Eichner/Volvo truck.

No other exhibition that we know of can boast these numbers and this for a first-time event. Open to all and free to attendees, there was a great deal of excitement about an exhibition finally catering to the materials handling sector in its own right. Billed as ‘interactive’, this event lived up to its

‘Speed in a suit’

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More serious was the contest laid on by Saepa (SA Express Parcel Association) whereby 20 senior management members were pitted against each other. Billed as ‘Speed in the Suit’, managers had the twisty 8km dynamic handling track to themselves for three hours during which they


IMHX

contested fastest-circuit, fuel economy and careful vehicle handling. Masterdrive set the overall target of 1min 18seconds and then coached each individual contestant with a practice run around the circuit. C-Track installed the telematics and cameras into the Hyundai H1 cargo vans to monitor performance. According to the Saepa newsletter, their members have not had so much fun together in a long time.

Significant savings

On the technology front, CEO of VSc Solutions, Morne Janse van Rensburg emphasised the Internet of Things’ (IoT) which will see not just trucks but the entire supply chain connected. Pallets in warehouses will talk to trailers, containers will talk to trucks, and fleets will talk to fleets. Of particular interest was the CNG (Compressed Natural Gas) stand. Says Stephen Rothman, CEO of CNG Holdings, “We can provide valu-

able information on how to convert and start saving on fuel and maintenance costs. Some of our customers have reported a monthly saving of over 20% after converting their forklifts from LPG to CNG.”

Some of our customers have reported a monthly saving of over 20% after converting their forklifts from LPG to CNG As the only company to have a world-class inhouse fuels technology R&D department in South Africa, Sasol advises it is bringing the country’s first premium 10ppm diesel to market. They claim this premium diesel offers significant advantages through enhanced fleet efficiency and environmental sustainability. “Supply Chain Today” was the only media partner for the IMHX sector and we can attest that we remain fully on-board and supportive of this event.

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Pick n Pay’s Dedicated Fulfilment Centre

ONLINE DISTRIBUTION

In July, Pick n Pay launched its online distribution centre in Gauteng, the first of its kind in the province. This followed the opening of its Cape Town online distribution centre, which made it the first major brick and mortar grocery retailer in South Africa to serve its online consumer customer base with a dedicated fulfilment centre.

Our new distribution centre will enable us to significantly improve service to our Gauteng online shoppers,” says Richard van Rensburg, Deputy CEO of Pick n Pay. “At the same time, our online distribution capacity is significantly increased, enabling us to handle the rapid growth we are experiencing in online sales.

Michael Cotterell, head of Pick n Pay Online, continues: “We were encouraged by the performance of our dedicated online facility that was opened in Cape Town 18 months ago. There was a significant acceleration in sales growth after the facility went live, and we are confident our Gauteng customers will benefit from a similar facility.”

Advantages for the customer

In the past, orders placed by Gauteng customers via Pick n Pay Online were fulfilled by a store close to the customer’s location. “There are significant advantages to serving customers with a dedicated facility instead of picking online orders from a store near to their delivery location,” says Michael. “Firstly, availability improves as online customers are not competing with customers in store for products. Secondly, freshness improves as There are significant advantages to serving the supply chain is shortened and customers with a dedicated facility instead of the integrity of the cold chain is enhanced. Products move directly picking online orders from a store near to their from our distribution centre to the delivery location customer and do not go via a store, thereby improving shelf-life for customers. Thirdly, “This distribution centre represents a significant investment in Pick n Pay’s online business, we are able to significantly increase the range of which is one of the fastest-growing divisions in products we offer to our customers. Our facility our business, and represents a conviction by the has the capacity to hold almost three times the company about the long-term opportunities from number of product lines as a regular store. online,” he adds. “Today’s online consumers want convenience, “It is the next step in our journey to build an advanced, convenient and simple omnichannel shopping experience for our clients. Later this year, we will launch a new online shopping

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website and an upgraded version of the Pick n Pay mobile app.”

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affordability and choice. That’s what our new Gauteng fulfilment centre is able to give them,” he concludes. Pick n Pay, www.picknpay.co.za


SOUTH AFRICAN BULK TERMINALS

Extreme Conditions for Wheel Loader The very first SDLG wheel loader, an LG958L, to be sold in southern Africa by regional dealer Babcock International, has now amassed some 5 000 operating hours in extreme conditions at South African Bulk Terminals (SABT) in Durban.

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espite the workload already under its belt, the machine continues to front operations around the clock at the portside facility where some 2.4 million tonnes of dry bulk is loaded and off-loaded per annum. At the SABT diesel workshop, workshop foreman Wentzel Nel says, “In all the time we’ve run this machine we’ve not encountered a single leaking hose or cylinder.” SABT operates twin storage facilities with a combined capacity of 120 000 tonnes, handling a mixture of products including soya, maize, wheat, sunflower seeds and pellets, rice, fertilisers, sorghum malt for beer production and fluorspar.

It’s an incredibly dusty environment in the storage bunkers, so regular maintenance and cleaning is crucial

SABT diesel workshop, workshop foreman Wentzel Nel

While the original SDLG LG958L is in relatively standard specification, Wentzel and his team have fitted LED working lights and mounted the oil cooler on swivels so that it can quickly and easily be swung out for cleaning. “It’s an incredibly dusty environment in the storage bunkers, so regular maintenance and cleaning is crucial. “To this end, we clean the radiators and filters with compressed air every day. Every 250-hours, we pressure wash them and then blow them out with compressed air. With fluorspar in particular, it is essential to keep all critical components clean because if this material is left to dry, it becomes rock solid and would trash items such as a radiator instantly.”

OEM parts “Fluorspar is by far the most demanding product we handle,” explains Wentzel. “It is very aggressive as well as weighing approximately 1.4 tonnes/m 3 because it has to be stored and handled while moist. In this respect, the performance of SDLG LG958L really comes into its own. “With the support of Babcock International, we extended the bucket to a capacity of 4.9m 3 and in this configuration the single SDLG machine matches the productivity of two alternative 9.5 tonne loaders.”

Trials

SABT trialled various wheel loaders before making its purchase decision and the SDLG LG958L impressed from the outset. “We even tested this machine in the hull of a ship and it outperformed all the other machines in the trial,” Wentzel comments. “Unfortunately, at 16-tonnes operating weight, it was just too heavy for the ship cranes, so regular operations are limited to portside.” Subsequent to the first SDLG wheel loader, SABT now operates a second unit, a 6-tonne class LG918, at its 9-line rail yard where it is used to shunt freight wagons.

Another key to reliability has been the company’s dedicated use of original SDLG parts. Says Wentzel, “I’ve made use of the original OEM parts standard practice here at SABT. I firmly believe this policy helps us to avoid problems and prevents a snowball effect towards greater issues at a later date. We run our own spares store and while spares were originally a bit of an issue in relation to SDLG, the situation has improved greatly over the last couple of years.”

Market leader

In port, SABT is a round-the-clock operation during which the SDLG LG958L and its two supporting 9.5 tonne wheel loaders can load 18 000 tonnes of fluorspar onto a vessel in just three days. Similarly, when it comes to loading trucks for road transport from the port, the three machines are capable of loading 55-60 trucks in a single 12-hour shift. “Through a combination of our experience, our ownership of the entire process and the use of highly productive equipment such as this wheel loader, we have achieved a market leading position in this business,” Wentzel concludes. Babcock International Group, Grant Sheppard Email: grant.sheppard@babcock.co.za

Supply Chain Today

September 2017

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27 – 30 September 2017 JHB Expo Centre, Nasrec The most valuable value proposition for the Logistics Sector Be part of the largest and most comprehensive trade fair and business platform for the Logistics Sector in subSaharan Africa; not to be an active participant is to miss out on the personal contact, business potential and opportunities that can only be unlocked at a trade fair of this stature!

An innovative and pioneering trade fair for the Logistics Sector to provide a dynamic business platform, targeting trade visitors from sub-Saharan Africa.

Business Matchmaking Services Business matchmaking services will be available to exhibitors before and during the Show.

Conference and Workshop Programme Stay abreast of the latest developments in the industry by participating in the Conference and Workshop Fringe Programme during the Show.

Exhibition Profile and Product Groups • Logistics • Materials Handling • Distribution, Storage & Warehousing • Specialist Service Providers • Industry Bodies

Increased value proposition and optimising synergies through co-location of Trade Fairs Scalex Johannesburg will be co-located with Futuroad Expo Johannesburg , serving the Truck, Bus and Commercial Vehicle Sectors, and Automechanika Johannesburg, serving the automotive aftermarket (608 exhibitors in 2015, 400 international). As with Scalex Johannesburg, these Shows target trade visitors from the sub-Saharan African Region, optimising the trade visitors.

South Africa´s leading trade fair for transport systems, infrastructure and logistics solutions targeting trade visitors from the Sub-Saharan Region.

27. – 30. 9. 2017 JHB Expo Centre, Nasrec

Contact Us: Show Manager: Robert Kaiser Tel: 010 599 6165 robert.kaiser@southafrica.messefrankfurt.com Enquiries: Tracy Gounden Tel: 079 545 4103 tracy.gounden@southafrica.messefrankfurt.com

3-in-1 Co-located events

Co-located with:


27.09 - 30.09.2017 Johannesburg Expo Centre

South Africa´s leading trade fair for transport systems, infrastructure and logistics solutions targeting trade visitors for the Sub-Saharan Region Fair Dates Opening Hours Location

27 - 30 September 2017 (biennial) 09:00 – 18:00; Saturday 09:00 – 13:00 Johannesburg Expo Centre, Johannesburg, South Africa

Co-Located with

Automechanika Johannesburg Futuroad Expo Johannesburg

Exhibition Profile

Scalex Johannesburg is sub-Saharan Africa's leading professional event for the logistics and materials handling sector bringing regional industry, buyers and suppliers together to share ideas and further business relationships.

Automotive Service Industry Transport, Trucks, Buses & Trailers

Co-location with Automechanika Johannesburg and Futuroad Expo Johannesburg provides participants with opportunity to launch new products and showcase innovative products, services and technology at one all-inclusive industry event. Product Groups

Logistics - Combined Transport Systems; Container & Cargo Handling; Container Manufacturers & Container Sales; Courier, Express & Parcel Services; Customs Clearing Agents; Freight Distribution Centres; Freight Forwarding Companies & Agents; Intralogistics Solutions; Logistics Companies & Service Providers; Roll On and Roll Off Materials Handling - Automated & Driverless transport systems; Castors, Wheels & Tyres; Conveyors & Continuous Handling Equipment; Cranes & Hoists; Forklifts & Hand Lift Trucks; Ground Conveyors & Accessories; Hydraulic & Pneumatic Lifts & Ramps; Industrial Trucks & Trailers; Ladder Systems; Lifts; Loading & Unloading Equipment; Stackers, Trolleys & Carousels; Straddle Loaders; Warehouse Vehicles Distribution, Storage & Warehousing - Cold Chain Equipment & Management; Consignment Tracking & Identification; Distribution & Loading Facilities; Floor Marking & Floor Protection; Hazardous Goods Handling & Storage; Labelling & Identification; Management & Integration Systems; Mobile, Wireless & Telecommunications; Order-Picking Equipment & Systems; Packing, Weighing & Measuring; Pallets, Bins & Containers; Process & Automation Control; Racks & Racking; Research, Planning & Development; Robotics Systems; Stock Management Systems; Storage Systems & Equipment; Warehouse Fire Control Systems Specialist Service Providers - Access Control & ID Systems; Advisory, Business Intelligence & Consultation Firms; Asset Protection & Risk Management; Certification, Education & Training; Emergency Services & Assistance; Finance, Leasing & Insurance; ICT Solutions & Integration; Investment & Project Finance; Research, Planning & Development; Safety & Protection; Security Consultants & Providers; Security Training & Consultants Industry Bodies - Industrial & Supplier Development Parks; Industry Associations; Industry institutions and specialist publishers; Intellectual Property Rights Organisations; Investment Promotion Agencies; Logistics Hubs & Free Trade Zones; Research, Planning & Development; Trade Facilitation & Development Bodies

Admission Fee

Trade visitors only. No admission fee for pre-registered trade visitors. On-site registration fee R50 per person.

Fringe Programme

Conferences, workshops and business matchmaking service

Contact

Scalex Johannesburg P O Box 3175, Cresta, 2118 Tel: +27 11 494 5003 Fax: +27 11 494 5004

Robert Kaiser, Show Manager robert.kaiser@southafrica.messefrankfurt.com Perusha Singh, Enquiries / Bookings perusha.singh@southafrica.messefrankfurt.com

Make sure to visit ‘Supply Chain Today’s’ stand at the Scalex show


KITE SHOW 2017

A Regional Focus Looking forward to some warmer weather, “Supply Chain Today” went down to the KZN Industrial Show (KITE) in late July this year. Having set up our stand, we found ourselves chatting to many visitors who showed a keen interest in getting to know more about the publication and the industries it serves.

Richard Roughly, Demag

O

ver three days, we also had the opportunity to pay a visit to the other exhibitors covering the supply chain field. We asked these stand-holders to give us a short run-down on their products and services.

Acrow

In business over 70 years, this company is a well-known name in the racking and shelving industry. Offering practical and affordable storage solutions from small through to turnkey products, the management is strong in the belief that you have to be willing to invest in new products and solutions, and collaborate with the right partners if you want to stay on top.

APC Warren le Roux, Stab-A-Load

Not content with designing, supplying and installing sophisticated racking and shelving systems, APC provides the Full Monty with forklifts to boot. In this way, the company ensures that clients have all their warehouse equipment working in sync.

Demag

Having started life in 1819, this company is an industry leader and a local OEM with eleven branches servicing South Africa. In addition, the company has a vast distribution network in sub-Saharan Africa. As the developer of the revolutionary V-type girder, Demag has joined forces with KoneCranes to make for a powerhouse in the lifting industry.

Ifm Electronic

Anton Schilz

22

Supply Chain Today

September 2017

For automated storage space planning via WMS or system ERP, ifm’s O3D300 sensor detects the size, orientation and position of objects.


KITE KITE SHOW SHOW 2017 2017

This intralogistics sensor is used for controlling robots, sorting equipment and distribution gates.

KoneCranes

Jokingly these guys say that the size of their stand accurately reflects the size of their company which happens to be true as this is one of the largest crane companies in the world. In addition to new products, Konecranes showcased their sophisticated diagnostic service suitable for all makes of cranes. Not just a glorified loadcell, instrumentation can record the number of overloads for example making it easier for the user to be alerted to potential trouble and to undertake preventative and planned maintenance.

Interroll

Well-known in intralogistics, this company is so customer oriented that even the MD’s of each subsidiary have to sit the standard written assessment tests given to all Interroll salespeople internationally to make sure they know their oats. Knowing your product thoroughly and being able to prove your claims is a given as this company concentrates on the food and beverage, warehouse and logistics sectors.

Marius Naude

Lift & Shift Equipment

A 40-year family-owned company, the Bowman name is synonymous with lifting equipment. As local manufacturers of aerial platforms, the company has recently taken on the national exclusive distributorship of Steelbro sidelifters. Loadtech Loadcells Specialising in industrial weighing and instrumentation, this company manufactures in Pretoria while also importing a range of equipment. In addition, Loadtech provides support either to installers or to clients direct.

Robbie Weir

Omron

In the pharmaceutical industry, counterfeiting is a risky business not only during manufacture but right through the whole supply chain to the consumer. Omron’s open solution approach means that users are free to select the printers, serialisation software, ERP/master data environment and to integrate these into existing IT and machine environments.

Rapid 3D Printing

3D printing began life in the medical sector and according to MD David

Shawn Gray, APC

Supply Chain Today

September 2017

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KITE SHOW 2017

Bullock still has to really take off in manufacturing. However Pyga bike frames are being 3D printed and the company is working with Kemtek to print barcode scanners.

Stab-A-Load

Happy to report on a strong growth path, quality high speed doors, dock levellers, sectional doors and goods hoists are this company’s stock in trade. Part-manufacturer and part-importer, specialised applications are catered for nationally and through agents in Botswana, Uganda and Mauritius. But a product is only as good as its installation and maintenance, thus the company has worked on turnkey projects both nationally and through Africa.

Traceability Solutions

Although this company offers products from basic marking tools to sophisticated pin, laser and inkjet solutions, they pride themselves on their in-house software design department. These specialists are able to develop and adapt software to specific requirements and integrate these with the customer through their understanding of marking, automation, scanner and host network systems. Advances in 3D printing

Specialised Exhibitions, Natasha Helberg, Email: info@kznindustrial.co.za

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Supply Chain Today

September 2017


TRACK AND TRACE

The Benefits of Serialised Coding Serialisation is the process of assigning each product or product component with a unique serial number or code. This makes it possible to trace these items as they move from the production and packaging floor through the supply chain and onto the end-user. This unique identifier is printed onto these items using coding or marking equipment.

S

erialised coding is a legal requirement in the pharmaceutical industry in several countries around the world, as it acts as an excellent anticounterfeiting measure. Being able to track and trace each individual product and component along the entire supply chain makes it more difficult for counterfeiters to enter this chain and pass off their products as authentic. There are many more reasons why manufacturers and product owners choose to implement serialisation. These include: ’ ’ Better visibility:

This benefits everyone involved in the manufacturing, packaging, shipping, transporting, selling and buying the product. Serialisation numbers allow all stakeholders to see where the product (or raw material) is at any given point, to enable better planning and also to measure exactly how many products have been handled or delivered at each section of the supply chain.

’ ’ Better managed recalls: When product recalls do happen, serialisation makes it much easier for everyone involved to manage the process. As each product has a unique identifier, it is easier to locate the products, pull them off the shelves and protect end users from products that may be unsafe for them to use or consume. Also, fewer untainted products need to be recalled as part of a larger batch, because serialisation makes it easier to identify which units have been compromised and which haven’t. This helps to minimise wastage and reduce the costs of a recall. ’ ’ Better transparency: Serialisation codes provide transparent information on where a product has been made and where it has travelled, which helps to verify and authenticate products – and ultimately, build consumer trust. Pyrotec PackMark., www.pyrotec.co.za, www.packmark.co.za

Supply Chain Today

September 2017

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Your boutique business destination Surrounded by lush gardens in the hub of Johannesburg’s northern suburbs, The Peartree in Craighall Park caters for groups of two through to 100 guests in nine well-appointed and equipped business suites. Breakfast meetings, working lunches, indoor or outdoor dining, half-day and full-day packages including all welcome refreshments, teas and lunches are offered in Standard, Gold and Platinum packages. Secure parking, business centre, fibre optic broadband AV, lockable space, all underpinned by highly qualified and helpful staff dedicated to ensuring your event is a success, make The Peartree a destination of choice.

www.thepeartree.co.za e-mail: info@thepeartree.co.za Tel: 011 781 1401 41 St. Albans Ave, Craighall Park


DESIGNING A WAREHOUSE

Misperceptions of the Engineering Profession Albert Einstein said the definition of insanity is doing something over and over again and expecting a different result. For the last 30 years we have been developing large facilities (we have built over 600 of them locally and internationally). However, we continually go through a process where some Engineers stubbornly try applying the same outdated thinking that has never worked, and will never work - over and over again.

Civil

For example, let’s look at probably the most important part of a warehouse, the floors. Somewhere Civil Engineers are taught that the best floor is a simple unreinforced floor panel 4.5m x 4.5m. For every site, they apply what they are taught, with the same disastrous consequences. The problem is the more joints in a warehouse floor, the more wear and tear on the operations. Also, smaller panels tend to curl and it’s not practical to reinforce so many joints. What we need is a flat floor with minimal joints (say 30m to 30m sized panels). There is plenty of technology to provide such floors (example: re-enforcing with fibres, or post tensioning) but the tendency is to revert to a system that is ineffective and leads to operational issues.

The core problem is that the Engineers are developing floors based on capital cost rather than life cycle costs The core problem is that the Engineers are developing floors based on capital cost rather than life cycle costs. The life cycle costs need to include the cost of maintenance of equipment. We have a site where the poor floor creates an increased maintenance cost of well over R1m per annum! Clearly spending another 30% to create a user-friendly floor would have been a better investment.

Structural

Another example is the insistence of Structural Engineers who attempt to reduce column spans to reduce steel costs. From an operational viewpoint, we want spans as large as possible. Typically, we want them well over 30m as this increases flexibility and allows better space utilisation. Over the life of the facility, flexibility is critical.

We typically keep equipment for less than 10 years, but buildings last more than 30 years, and we may re-lay out the facility every 5 years.

Electrical

From an Electrical Engineering viewpoint, we want bus bars everywhere which allows us to change plugs and lighting positions and reduce fault levels. Again, it provides the flexibility we need to future-proof operations. The Electrical Engineer sees cost first and prefers old fashioned plug points. We want LED lights that last 60 000 hours, driven by a desire not to replace the lights too often (especially if the facility is 25m high). We are also more interested in the quality of the light colour and getting the right operational lux where we need it.

Mechanical

When it comes to the Mechanical Engineers, we look at the environment and want to design ventilation as flexibly as possible. For example, we want electrically controlled roof vents that stand vertically (so they don’t leak) and can be opened and closed at will. The engineer will often push for permanently open vents as they are a lot cheaper and easier to install.

Fire

From a fire protection viewpoint, we need a holistic approach that looks at business risk and designs based around this risk. What is the downstream effect on the business in case of fire? How do we see disaster recovery? The Engineer is usually driven by a set of regulations and the associated standards which he believes are sacrosanct.

Environmental

From an environmental and energy viewpoint, we are driven to save by optimising processes (fewer touches equal less energy consumption). Also, if we can design to reduce smaller footprints we have less travel and need less energy. Supply Chain Today

September 2017

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DESIGNING A WAREHOUSE

Martin Bailey

From an operational viewpoint, we want spans as large as possible. Typically, we want them well over 30m as this increases flexibility and allows better space utilisation

For example, most facilities we build are well above 20m high. The professional team is often motivated by the use of better materials and kit that uses less power. That’s great - as long as it does not affect operational productivity. Clearly there are many more examples where the professional team is driven by radically different criteria from the end user. Add some Architects, a few Environmentalists and a Quantity Surveyor and life really gets complicated. Clearly what should drive thinking is to ensure the facilities are wrapped around the processes.

Flexibility

First comes the processes. We then need to ensure the infrastructure is as flexible as possible for the long term. Then comes the engineering of the facility which should be focused on the full life cycle costs of the operations. Maybe what we really need is a different focus in our Engineering Education. More about the need to integrate with the business and process needs rather than simply optimising infrastructure technology. That means more contact during the education process with users of the stuff we design. Martin Bailey, Chairman, Industrial Logistic Systems

Watch out for the new Forklift Guide due out in November this year. 28

Supply Chain Today

September 2017


CILTSA

Fully-funded Professional Training Programme for Women in Transport and Logistics

The Chartered Institute of Logistics and Transport: South Africa (CILTSA) has secured funding from the Transport Education and Training Authority (TETA) for the training of 30 employed women and is inviting employers to enrol learners for this historic learning opportunity. Successful learners will be awarded the International Certificate in Logistics and Transport by UK-based professional body, CILT International.

This is an historic ‘first’ – for both TETA and CILTSA, as this is the first time that TETA has been awarded funding for a Candidacy Programme,” explains Elvin Harris, President of CILTSA. “We are inviting the industry to enrol learners on this exciting programme which will not only enhance the skills levels in their organisation, but will also enable graduates to apply for internationally recognised professional designations.

¾ ¾ Based in Gauteng ¾ ¾ Currently employed in an Operations or Logistics role with a minimum of two years working experience ¾ ¾ Able to attend training/ examinations in Midrand ¾ ¾ Clear record ¾ ¾ Priority will be given to equity targets: 85% of places will be allocated to Black Females (as defined)

“The programme is aimed at women who have some experience in logistics and/or warehousing operations,” says Elvin. “At the end of the programme, these women will be able to add even more value and contribute to increased efficiencies in the workplace, as the theoretical and practical experience this programme offers will equip them with unparalleled learning and growth opportunities.

Training will be provided by CILTSA’s accredited partner, Commerce Edge, and the project will be managed by Alto Training.

“This programme is called a Candidacy Programme, which means that it is very intense and practically oriented,” continues Elvin.

Employer commitments

Local learning, global designations

“One of the most valuable and exciting outcomes of this programme is that, once the candidates have completed it, they will be encouraged and assisted to apply for the professional designation awarded by CILT International, Member (MILT),” says Elvin. “These designations are prestigious, globally recognised and provide successful candidates with a significant competitive advantage. CILT can also award the designations of CMILT (Chartered Member), as well as FCILT (Chartered Fellow), once the candidates have achieved certain additional qualifications and experience.”

Minimum qualifying criteria for applicants

The minimum qualifying criteria for applicants are: ¾ ¾ Matric ¾ ¾ Female

Programme provision and content

“The programme, which is scheduled to be completed by October 2018, is both business- and industry-focused,” continues Elvin. The subjects include: Business Theory, Business Application, Warehousing, as well as Freight Transport Operation.” While all costs for tuition, assessment, graduation and certification, including Student membership of CILTSA, will be paid for by the TETA Fund and administered by CILTSA, employers will be responsible for learner transport costs to the induction, tuition/ examination and graduation venues (all in Gauteng).

Mentoring and work-based experience

A key element of the success of this programme is that learners receive intensive mentoring in order to achieve their training objectives. “We urge employers to provide dedicated, experienced and senior individuals to take on the responsibility of mentoring the learners from your organisation,” Elvin concludes. CILTSA, Catherine Larkin Tel: (011) 789-7327 Email: cvlarkin@ciltsa.org.za

Supply Chain Today

September 2017

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IT ASSET DISPOSAL

Overcoming the Challenges Creating and implementing a successful IT Asset Management programme is challenging, no matter how one approaches it, according to Xperien CEO Wale Arewa.

Xperien CEO Wale Arewa

T

he IT department normally takes ownership of the programme and then has the impossible task of interacting with the many stakeholders including procurement, environmental and risk management, logistics, finance, compliance and security.  The IT needs to present its requirements to procurement.

 Environmental and risk management then needs to ensure that equipment is processed correctly, preventing any unforeseen environmental nightmare that could have dire consequences for the company.

It is essential for data security and the protection of personal, proprietary and confidential information that data is permanently destroyed, deleted or erased from devices Also they need to ensure compliance to environmental regulations and ensure that the equipment is disposed of properly. Electronics often contain highly toxic heavy metals such as mercury, cadmium and lead. As data security is the biggest driver of IT Asset Disposition, there are many regulations to consider such as Protection of Personal Information Act 2013 (PoPI 2013), the National Environmental Waste Management Act 2008 (NEMWA 2008) and the Consumer Protection Act 68 of 2008 (CPA).

Systematic process

“Data breaches often mean a public relations

nightmare, a distrustful customer base, a disgruntled board and uneasy stockholders. Regulatory non-compliance is also a big risk and can be devastating. IT Asset Disposition is a methodical process of securely disposing of retired IT equipment. Companies must implement a systematic process for inventory reconciliation, remarketing and responsible recycling of decommissioned IT assets. The benefits of a well-defined and secure ITAD (IT Asset Disposition) programme can reduce logistics costs, eliminate data security risks and recoup value from obsolete technology.

Old equipment

With a proper ITAD programme in place, a service provider can support day-to-day scheduling, timely communications and coordinate changes and special instructions to facilitate the secure removal and destruction of old IT equipment. “It is essential for data security and the protection of personal, proprietary and confidential information that data is permanently destroyed, deleted or erased from devices,” adds Wale. “When it comes to financial considerations, ITAD service providers can resell equipment to offsetcosts and they can often yield large sums that pay for the entire asset disposition programme,” he concludes. Xperien, www.xperien.com

Supply Chain Today

September 2017

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MARITIME SECURITY

The Country’s Coast South African ports are projected to receive an injection of almost R44.4 billion over the coming five years from state logistics operator, Transnet.

T

his investment is expected to push cargo capacity at the country’s nine major ports up from 255 million tonnes per year to 314 million tonnes by 2022 and 543 million tonnes by 2046 with a particular emphasis on containerised and liquid bulk cargo. The increased expansion will mean more rigs docking for maintenance and repairs. The Saldanha Port can only currently service between six to ten oil rigs per year, for example. With the new facilities in development over the next five years, it will be able to service between 20 to 40 rigs annually. This will mean a larger share of the 120 rigs that sail around the country’s coast, and potentially a larger interest from legitimate and illegitimate operators.

The risk of critical assets being stolen or employees being kidnapped for ransom is a daily reality for companies operating in these regions As our ports are expanding and new liquid bulk terminals are built, maritime traffic will increase substantially, along with the level of risk to these assets. The infrastructure will require new and more advanced systems than those currently installed, to provide protection against the ever-present threat of piracy, damage and theft.

Precautions

The security threats along South Africa’s coast are currently not as high as in West Africa’s Delta region and the greater Guinee Basin, along with the entire East African coast, where there are future exploration ambitions. However, precautions need to be taken, as increased capacity could attract the attention of would-be raiders into Southern Africa.

Saab’s TactiCall Comms solution, combined with a platform guarding solution, can act very effectively to counter the threat of piracy by radically reducing reaction time, should an attack occur. It allows operators to connect to a host of different devices, which means faster reaction time and a drastic drop in downtime. It also allows executives to always be connected to their critical assets, wherever they are based.

Incident free

The platform guarding system is critical as it allows for the identification of the origin of the threat in advance. As the piracy vessel enters a certain area, the system will be able to detect this and notify the command and control rooms, allowing the coast guard to react quickly. With an increasing complexity of operations and congestion, the risk of collisions and damage to equipment is becoming more difficult to manage, especially in South Africa. Saab’s Maritime Traffic Management solution will go a long way in securing South African water and keeping it incident free. The country’s terminals will also need better terminal operating systems (TOS). Phaeros, a recently acquired system used in ports worldwide daily, will also ensure the smooth-running and effectiveness of operations. Saab, Hein van den Ende, Marketing Executive: Maritime for Sub-Saharan Africa, www.saab.com/region/saab-south-africa

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The risk of critical assets being stolen or employees being kidnapped for ransom is a daily reality for companies operating in these regions. Consequently, over the past year, naval forces have increased patrolling along the East and West Coasts of the continent, but this is not a cost-effective solution, nor is it a sustainable one in the long term.

Supply Chain Today

September 2017


SECONDARY DISTRIBUTION

Improving Efficiencies and Reducing Costs ID Logistics South Africa, part of the global group that specialises in contract logistics, has recently embarked on a secondary transport optimisation programme to decrease costs and improve efficiencies across the operation.

T

he company is currently implementing a new and dynamic way of tracking the status of deliveries in real-time using mobile handheld devices. They have implemented a routing and execution management solution, targeting an estimated R10m operating cost savings on secondary distribution per annum.

Enables our mobile workforce to receive alerts, downloadable schedules, signatures-on-line, as well as a lot more functionality “Adopting innovation and technology is part of our group’s ongoing strategy to add value to our clients who all operate in an extremely cost competitive market,” says Etienne Juillard, Managing Director of ID Logistics SA. “To this end we have installed an automated optimiser system instead of master routes and manual reworks, as well as the efficient management of seasonality and integration of new principles, versus constantly redesigning master routes.” According to Etienne, the company is also implementing system-driven workflow to ease and track deliveries in real-time, which will result in improving visibility on all operational KPIs on a daily basis. This also improves customer service, as shorts, damages and missed stops can be calculated before the truck returns.

Complex modelling

The optimisation programme is based on Plato,

which is a suite of enterprise-level planning software modules that provide superior transport management, route optimisation and resource utilisation. “It enables us to model complex transportation operations, including shift changes, external contractors, loading bays, variable stop times based on loading and offloading profiles and more. Its ability to interact with other systems, integrate with multiple tracking and GPS service providers ensures that we have total control of the logistics’ process, from start to the finish,” he adds. ID Logistics is using Zeno online mobile software, which is an online web scheduler for same and next day planning of vehicles and deliveries, with built-in workflow management. “This helps to manage both the planning and execution with real-time events through the use of alerts, automatic adjustment of existing schedules following events. “It integrates with the handheld mobile devices and backend financial system, which enables our mobile workforce to receive alerts, downloadable schedules, signatures-on-line, as well as a lot more functionality,” Etienne concludes. ID Logistics South Africa, Friedel Spies Tel : (010) 005-1822 Email: fspies@id-logistics.com www.id-logistics.com/za/

Supply Chain Today

September 2017

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► EIA Process

► Environmental Risk Assessments

► Geographical Information Systems

► Agricultural Assessment and Advise

► Project Managment

► Wetland and Riparian Services

► Natural Resource Services

► Visual Impact Assessments

► Ecological/Biodiversity Services

► Public Participation Process

► Application Assistance

► Game Ranch Management

► Developement Research, Monitoring and Evaluation

N2 Mnini ECO Duties

Plant rescue

Durban Coal Terminal Site Inspection

Ohlanga Pump station ECO Duties

Freightpak Warehouse Site Audit

Public participation Makhabeleni

Ballito Interchange Botanical survey

Site assessment Sundumbili pipeline

l Tel: (031) 303-2835 l Fax: 086 692 2547 l l Email: info@afzelia.co.za l www.afzelia.co.za l Skills on Site

Septmeber 2012

1


ey

line

TASA

New Trucking Association

Queen Zwane, task organiser at TASA; Mary Phadi, convener at TASA and Sindiswe Chikunga, deputy Transport Minister

It appears that the RFA (Road Freight Association) has lost some impetus as previously-disadvantaged truckers have got together to form a new association, Emerging Truckers Association of South Africa (TASA).

Supply Chain Today” attended the launch event on 21 July at the Sandton Convention Centre where it was clear that a lack of access to finance is the underpinning raison d’être for this association’s formation.

“I can get a loan to buy a car or a house but when it comes to purchasing a truck, the doors are shut” Kabelo Moloi, owner of Proxyvox, gave an impassioned speech about the difficulties he had experienced in entering this industry. He says, “I can get a loan to buy a car or a house but when it comes to purchasing a truck, the doors are shut. Even if you manage to acquire a truck, you need evidence of two major services to land a contract. Catch 22 as you need a contract to do the mileage in the first place.

Bribery route

“So I piggy-backed on another trucker who had a certificate to transport fuel but it cost me 10 cents per litre for the privilege. With the services under my

belt, there was then the matter of R100 000 for the audit to qualify for a contract. At this stage, it becomes very tempting to go the bribery route.” This theme was echoed throughout the room compounded by the perception that truckers are being taken for a ride. Often they are given terms that are simply unsustainable and doomed to fail or owner-driver schemes are perceived as window-dressing and the truckers feel exploited. The Deputy Minister of Transport, Sindisiwe Chikunga questioned the fair representation of all truckers across other industry associations and welcomed the establishment of TASA.

Self-funded

The intention is to ease the way to accessing finance through the wholly black-owned mutual bank VBS. TASA will be self-funded with members paying a once-off fee of R10 000 which will allow them access to verified black-owned business along the entire transport supply chain. “TASA will represent owner drivers, small transport providers to hardware and furniture stores as well as emerging cargo carriers for fuel, steel, gas, powder, sugar and chemicals,” concludes Queen Zwane, task organiser at TASA. Truckers Association of South Africa (TASA) Queen Zwane, Email: queen.zwane@i-tasa.co.za www.i-tasa.co.za

Supply Chain Today

September 2017

35


MARKET FORUM

Industrial Marking Range Cembre SpA, a leading Italian manufacturer of identification and labelling systems, has concluded an exclusive

distribution agreement with ElectroMechanica (EM) of Johannesburg. The family-owned Cembre SpA has its main manufacturing facility in Brescia in Northern Italy, explains Area

Manager Paolo Baldo, who visited South Africa recently as part of a delegation to conclude the distribution agreement with EM. The company has a second smaller manufacturing facility in Birmingham in the UK focusing on speciality products. Cembre SpA also manufactures an industrial marking range to label and identify a range of electrical and automation components, from wires to panels, push buttons, and circuit breakers. The OEM supplies a total solution, from the printer itself to the consumables it utilises.

Cembre’s latest products a thermal marking system, together with its own printer, to tag cables, wires, terminals, and relays.

Dealership in Zambia Volvo Group Southern Africa, in partnership with Titanium Motors Limited, has officially opened a new dealer facility in Zambia’s capital, Lusaka. The dealership will offer complete sales, parts and service for Volvo Trucks and UD Trucks customers operating in the region. The US$10 million investment by Titanium Motors Limited signals the

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Supply Chain Today

importance of Zambia as a regional transport hub. “Zambia is a key African market for Volvo Group, as apart from its very central location in southern Africa, it also has exciting potential as a developing market with a growing economy and emerging infrastructure,” says Torbjörn Christensson, President of Volvo Group SA. Transport, and especially trucks, are essential to the region’s growth, and to drive development and progress. For this reason, Volvo also has a represen-

September 2017

While there is a plethora of consumable producers, there are very few making both the consumables and the printers themselves from scratch. ElectroMechanica, www.em.co.za

tative office in Lusaka, to harness this potential and to take global support right to customers’ doorsteps. The 7 500m² dealership boasts a one-of-a-kind showroom, as well as a training facility to further develop the skills of staff and local fleet owners. It also has six work bays, trained and accredited technicians, mobile service units, parts warehouse, as well as dedicated sales teams for each of the brands. Volvo Group Southern Africa Tel: (011) 842-5000, www.volvogroup.com


MARKET FORUM

Versatile Shuttle

Storax Ramada are market leaders with a versatile and successful shuttle system known as the Storax Ranger Shuttle. With over 300 systems successfully operating across Europe, Barpro Storage is now incorporating the Ranger Shuttle as an important addition to its product line-up to Southern Africa. The shuttle is as space efficient as mobile racking and its flexible design suits all load shapes and sizes. Taking a pallet load weight up to 2000 kg, it operates in temperatures from -28 to 40°C.

It also offers greater selectivity than drive-in racks since each level can hold a different product. Pallets are deposited in the front of the rack, the rest of the work is left to the shuttle. Barpro Storage SA, Email: info@barpro.co.za

Projected 207% Employee Growth TraceLink Inc, the world’s largest track and trace network for connecting the life sciences supply chain and providing real-time information sharing for better patient outcomes, has announced that it will relocate its European headquarters to a larger, newly renovated office space in Uxbridge, UK. The move will accommodate the company’s projected 207 percent year-on-year increase in EU staff growth for 2017. To help the life sciences industry meet global regulatory deadlines for pharmaceutical track and trace and accommodate its explosive 658 percent growth in EMEA new sales bookings for Q1 2017, the company

is expanding its overall European team by hiring 55 new EU-based employees in sales, services, marketing and administration during 2017. “By 2020, over 80 percent of the world’s prescription drugs will be covered by track and trace laws; a challenge that involves massive amounts of data and a complex web of supply chain partners. Expanding our presence in Europe is a natural step due to the urgent demand we’ve seen from the region for our proven solution in meeting EU Falsified Medicines Directive (FMD) requirements,” says Shabbir Dahod, president and CEO, TraceLink.

and trace industry, we are building localised support and services for our customers who have mission-critical operations across 24 countries to best accommodate our rapid-growing global customer base.”

“As part of our $70 million investment in 2017 into the pharmaceutical track

TraceLink, www.tracelink.com

The development of the European team will be focused on continuing to build regional and native expertise in these areas, and expanding the 15 languages already spoken by the current TraceLink services team in EMEA. Worldwide, TraceLink expects to have nearly 400 employees by the end of 2017, a 68 percent year-on-year increase in global employee growth.

Good Business Practice Guidelines The CEO of leading South African pharmaceutical manufacturer Adcock Ingram, Andrew Hall, signed the “Guidelines for Good Business Practice by South African Companies Operating in the Rest of Africa” in July this year. The guidelines are an initiative of the Department of Trade and Industry (the dti). They were developed in consultation with other related government departments, private sector and labour organisations. The guidelines are a voluntary set of principles and standards that aim to promote responsible business conduct. They provide a

guiding framework for South African companies, as active members of the continental business community, to promote sustainable economic development in Africa, in accordance with the continent’s socio-economic developmental imperatives. The guidelines were approved by Cabinet in September 2015 and launched by Minister Davies in Pretoria in July 2016. Adcock Ingram manufactures, markets and distributes a wide range of healthcare products. It trades in, or exports to over 13 markets on the

African continent including Kenya, Zimbabwe and Ghana. “Signing our commitment to the Good Business Practice Guidelines is an enhancement of our existing commitment to doing business in the rest of Africa, at the highest standard of ethical business practice. The signing also reflects our commitment to providing quality products that improve the health and lives of people in the markets we serve, while operating responsibly and ethically,” Andrew concludes. The dti, www.dti.gov.za Adcock Ingram, www.adcock.co.za

Supply Chain Today

September 2017

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MARKET FORUM

Cleaning Equipment Goscor Cleaning Equipment (GCE) has launched the Kaivac No-Touch Cleaning system. It is described as a cleaning concept that aims to replace the mop-andbucket system, Peter Esterhuizen, GCE National Sales Manager, comments. The introduction of Kaivac into the local market is part of GCE’s underlying philosophy of providing the latest technology to ensure its customers benefit from the lowest total cost of ownership at the end of the day. It is designed specifically for smaller facilities, while the Kaivac 1750 combines high capacity and compact size for added value. It includes innovative features such as a removable ‘black box’ engine compartment for rapid repair and exchange. The range combines automatic chemical

metering and injection with an indoor pressure washer and a powerful wet vacuum. “It is a fully-integrated cleaning system that allows workers to hygienically clean contaminated surfaces without any danger to their own health and safety. The end result is not only improved cleaning, but also reduced labour, chemical, and equipment costs, and much higher productivity,” Peter concludes.

Goscor Cleaning Equipment Debby Marx Tel: (011) 230-2600 Email: dmarx@goscor.co.za www.goscorcleaning.co.za

The Kaivac No-Touch Cleaning system

Medical Devices Imports From 1 June 2017, a new regulatory body called The South African Health Products Regulator Authority (Saphra) was appointed replacing the Medicines Control Council which regulates the import of medicines into the country. With the new board appointment, medical devices and complementary medicines will now be regulated going forward.

Although the body is not yet operational as Health Minister Aaron Motsoaledi has yet to appoint a board, this will have an impact on imports for medical devices which is estimated to be worth $732 million in 2017. In fact, as of 2018 all companies that trade within the industry will be required to apply for a licence of trade which can be either one of two – manufacturer

On The Move

Shulami Qalinge has been appointed Chief Executive (CE) of Transnet National Ports Authority (TNPA), becoming the first female CE of the organisation. She succeeds Richard Vallihu who has been appointed Group Executive: Operational Readiness, Transnet Corporate Centre. Both appointments were effective 7 July 2017. Shulami will provide strategic direction and leadership in the implementation of the overall TNPA strategic objectives and operational targets, including total oversight of the operation of eight commercial ports with more than 3 500 employees. She will also drive Transnet’s overall strategy to ensure attainment of growth targets and compliance to the National Ports Act 12 of 2005.

Shulami Qalinge

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Supply Chain Today

She joined Transnet 23 years ago as an engineering technician at Transnet Freight Rail (TFR) before rising through September 2017

(manufacture, label, service, import, export) or distributor (import, distribute, export). A distributor licence would only apply where the device imported bears the name and address of the registration holder (in South Africa). Investec Import Solutions, Greg Cline, www.investec.com

the ranks holding various General Management positions at TFR and at the Group Corporate Office before joining the Group Chief Executive’s office as General Manager. Shulami has a demonstrable track record in people management and development, results orientation, building successful teams and a vast knowledge and understanding of the Transnet corporate direction and its operations. She also holds an MBA from De Montfort University in the UK. Shulami, an Industrial Engineer by qualification, has most recently been Transnet’s Group Executive: Strategy, where she was responsible for leading and directing Transnet’s growth strategy in international markets, with particular focus on generating revenue from the rest of the African continent and the Middle East.


16 - 20 OCtOber 2017

Durban ICC / Inkosi Albert Luthuli International Convention Centre A FULL WeeK OF ACtIVItIeS DeDICAteD tO GrOWING KWAZULU-NAtAL'SeXPOrt bUSINeSSeS AND INDUStrIeS

MASTERCLASS AND TRAINING

NETWORKING AND RECEPTIONS

CONFERENCES AND WORKSHOPS

Make sure you join us at the 2017 KZN Export Week - the annual programme of Trade Invest KZN developed to recognise, promote and assist with growing KwaZulu-Natal’s export businesses and industries!

AWARDS

BUSINESS SHOWCASE / EXPO

WHAt tO eXPeCt? 600+ AtteNDeeS: Network and build new relationships with fellow attendees from across the continent.

GOLF DAY CHALLENGE tIKZ Nw offe ill be ri plac ng 100 F es to ree em expo rters erging ! To out find if yo uq cont ualify danie a ct l.claa se n@e

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30 tOP SPeAKerS: •

Meet trade partners and associations who can help you to reach new markets

Network and build new relationships with fellow attendees from across the continent

Hear some of the top business minds share their tips and stories on how to build a global business

Hear some of the top business minds share their tips and stories on how to build a global business.

20 LeADING SerVICe PrOVIDerS: Learn about the latest technologies and services on offer from leading service providers participating in the expo showcase.

10 COUNtrIeS: Meet with global trade partners and associations who can help you to reach new markets.

Limited seats available! Contact us today! +27 87 890 0898 Richard Desha: richard.desha@exportweek.co.za Phyllis Wasarirevu: phyllis.wasarirevu@exportweek.co.za

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2017/09 - Supply Chain Today  
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