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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

Industry 4.0: Converting Science Fiction into Reality

T O D A Y

Jan/Feb 2019

Carrier Cargo Liability versus First Party Cover


SUPPLY

CHAIN Keeping track You know those calls from an unknown number? The saleperson on the other end can be irritating although I’ve learnt never to be rude as we all ‘sell’ one way or another in the business world. Being the face, middle or back office person doesn’t mean we have carte blanche. Every time we answer the phone, meet a client at reception, at a function, we convey something of our professionalism and company culture.

On the cover Traction Battery Services www.tractionbattery.co.za

Contents The Next Few Years 4 Insider Guide to Emerging Technologies for the Distribution Centre Working Capital 10 Longer Payment Terms Could Significantly Benefit African Countries

Where we do have carte blanche, is those calls when there is a slight pause and an automated disembodied voice launches into their sales patter. Yeah! Out with the choice words and invective. Time to let off steam.

Customer Sevice 13 Debunking the Spaza Market

Late last year I kept getting calls from a large telephone service provider. Having let loose the first few times, got to the point where I just cut the call the minute I heard the first few seconds of tell-tale silence.

Shipping 16 Understanding Carrier Cargo Liability and 1st Party Cover

Now it’s a Saturday and four of us are headed off to Soweto to enjoy the Kota Festival. ‘Kota’ means a quarter loaf of bread brimming with delicious fillings, like a bunny chow. Nearing the festival grounds, and navigating through the traffic, I really don’t need a fresh onslaught of automated calls, especially persistent ones. I keep cutting them. Then a call comes in from a landline number and I answer it. On the other end is a frantic tracker company checking that I’m ok as I am in a high risk area. Rather than a voice system I would recommend a WhatsApp. I guess they have the stats about ‘high risk’ although I’ve been reading much about hijackings and vehicle/truck theft in the northern suburbs of Johannesburg. One of our friends who joined us that day, related how she received a series of similar calls every evening after purchasing a new vehicle and heading home daily to Alexander. You can’t please all the people all the time. Susan Custers, Managing Editor, BA.Comm

T O D A Y

Tow Tractors 14 Enhancing Warehouse Efficiency

Digitise & Stratigise 19 Getting Ready for Industry 4.0 Cryptocurrencies 24 Colonialism or Upliftment Opportunity? GIS 26 Improving the Supply Chain with Tech

Labour Management 29 The Undercover Investigator After Sales 30 The Golden Age of Service Warehousing 32 Industrial Park Completed in Industria Temperature Control 35 A Sweet Door for a Fruit Company 39 Market Forum Afritag (div of Smart Card Society) CCF (Cold Chain Forum) CGCSA (Consumer Goods Council SA) CILTSA (Chartered Institute of Logistics & Transport: SA) SAAFF (South African Association of Freight Forwarders) SAEPA (SA Express Parcel Association) Sapics (Association for Operations Management of SA) 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 E-mail: supplychain@promech.co.za, www.supplychaintoday.co.za Managing Editor: Susan Custers Advertising Sales: Louise Cresswell (071 886 1263)

Production Manager: Sanette Badenhorst Administration and Circulation Manager: Netta Jansen van Rensburg

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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THE NEXT FEW YEARS

Insider’s Guide to Emerging Technologies for the Distribution Centre What does the distribution centre of the future look like? It’s likely to include more than a few robots and autonomous vehicles with machine learning algorithms helping to make them better at decision making. But humans won’t be entirely out of the picture. There will be a fair number of them working alongside, managing and maintaining the machines that do the heavy lifting. Here are just a few of the technologies that are coming to the DC in the next 3-5 years.

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iva-style Goods-to-Person Bots

These bots are more like conveyor replacements. They move products and materials to the workers, reducing the amount of costly and time-consuming travel that is the bane of today’s DC worker productivity.

Perhaps one limitation with this technology is that the picking operation must be designed for goods-to-person picking, which can make it more difficult to scale up and down easily.

Business Case

• Productivity – reduction in travel time • 24x7x365 availability • Labor savings • Flexibility - on-demand expansion as business grows

The distribution centre of the future is likely to include autonomous vehicles with machine learning algorithms. Material Movement Bots

Several companies, like Locus Robotics and 6 River Systems, are tackling picking from a slightly different angle. These bots receive an order picking assignment and then move to the product location where a worker meets the bot to pick items into the tote. This technology allows for routing orders through multiple pick zones without needing conveyor. The ability to navigate is built into the bots themselves, so they can see objects in their path and go around them or stop and wait for the object to pass. Effidence makes a picking cart that follows a picker through the warehouse so the picker doesn’t have to push/pull a heavy load. And Bionic Hive’s Squid works in a conventional warehouse with standard pallet rack. Units climb the vertical uprights in the racks to pick cases and deliver them to picking/packing stations.

Business Case

• Productivity – reduction in travel time • Flexibility - on-demand expansion as business grows The Material Movement Bots bots receive an order picking assignment and then move to the product location where a worker meets the bot to pick items into the tote.

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• Ergonomics – Workers don’t have to push/ pull heavy pick carts


Self-driving Vehicles and Lift Trucks

Self-driving vehicles and lift trucks have been around for years. The older, familiar AGVs have simplistic routing and low level decision-making capabilities, require fixed paths consisting of permanently mounted beacons, barcodes or magnetic tape, which are inflexible and costly to change. Today’s AGVs are vision-guided with improved sensors and offer more autonomy. There are no pre-programmed routes or wires in the floor because the bots can see objects in their path and learn new ways around the facility through machine learning.

Business Case

• Productivity – reduction in travel time • 24x7x365 availability • Labor savings • Flexibility - on-demand expansion as business grows • Reduced product and structure damage

Co-Bots (Collaborative Robots)

Co-bots include self-driving shuttles designed for heavier payloads, enabling batch picking with help of a human with the addition of multiple totes and pick carts. These can be paired with a pick cart or mobile put wall for more efficient batch or cluster picking solutions. The software works with a number of different warehouse execution systems to enable greater autonomy and expand the type of tasks you can assign to the bots.

Today’s AGVs are vision-guided with improved sensors and offer more autonomy.

Business Case • Productivity

• Labor savings • Flexibility • Greater efficiency through cluster picking • Flexibility to scale operations up/down quickly

Co-bots can be paired with a pick cart or mobile put wall for more efficient picking solutions

Lights-Out Picking Bots

Each picking is one of the hardest problems to solve inside the DC. But new solutions are getting closer to achieving what once seemed impossible. Lights-out autonomous bots often include a picking extension or arm, with varying levels of machine learning so that the bots can execute tasks and make decisions on their own. At this level, the bots have potential applications that go beyond picking to include packing and sorter induction.

Business Case • Productivity

• Labor savings • 24x7x365 availability • Flexibility to tackle different tasks (picking, packing, induction)

Lights-out autonomous bots often include a picking extension or arm, with varying levels of machine learning.

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THE NEXT FEW YEARS

Grippers

The technology that makes lights-out picking bots possible are the unique grippers and arms available. Products vary—they are sometimes soft, fragile or irregularly shaped. They can be transparent, reflective, or geometrically inconsistent. All of these factors amount to infinite variability and a significant degree of chaos for a machine to interpret. The annual Amazon Each Picking Challenge has really accelerated learning by bringing together some of the best minds in robotics to develop solutions that may someday offer a practical and affordable way to accomplish the task.

Robotic Depalletizers

Palletizers have been around for a while, but the ability to address the more complex task of depalletizing multi-SKU and random pallets has just recently been made possible through machine learning. Kinema offers a self-training, self-calibrating software solution for robotic depalletizing. The bots 3-D sensors “look” at a pallet to determine the shape, size and weight of items. And its algorithms determine fastest, most efficient way to depalletize the items.

The technology that makes lights-out picking bots possible are the unique grippers.

Business Case

• Labor savings • Increased accuracy • Productivity • Reduced product damage

Machine learning is what enables these technologies to make better decisions about the best route and the best way to pick up an item. Augmented Reality

Second generation Smart Glasses are addressing some of the challenges (weight, battery life and overheating) of earlier models that were built more for consumer than industrial applications. Full augmented reality (AR), where full-sized text is overlaid on top of the “real world” scene the wearer is viewing, starts to deliver on promise of this technology. Initially, the primary applications for this technology are for picking - projecting visual cues and directions for order fulfillment tasks into a wearer’s field of view. But down the road AR could be used for tasks, such as receiving, putaway, placement of items to a put wall, training, troubleshooting and remote maintenance.

Business Case: • Productivity

• Accuracy - reduced error rates • Increased employee satisfaction • Safety-hands-free picking

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Down the road AR could be used for tasks, like receiving, putaway and the placement of items.


Drones can soon be used to way to locate missing inventory in a warehouse.

Business Case Drones in the DC

Within the DC drones can provide an effective means of inventory cycle counting, or a way to locate missing inventory in a warehouse. Wal-Mart is testing drones in warehouses and reported that its drones can check a full warehouse of inventory in about a day. That process previously took up to a full month to do manually.

• Safety (ergonomics of people on lifts counting) • Labor savings • Inventory accuracy

Warehouse Execution Software (WES)

Next generation distribution requires more than technology. It also requires great software to link together people, processes, systems and equipment into an overall solution. Software is what enables the DC to prioritize orders on-the-fly and optimize the work flow. WES provides: • real-time end-to-end visibility to all these things • better insights, faster speed, greater optimization of both labor and assets • flexibility to scale operations for an unknown future • flexibility to switch technologies without ripping out the entire system (requires agnostic WES)

WES is a key enabler, but greater value comes from an overall solution that marries the right design with these advanced software features. Supply Chain Today

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Commercial & Retail

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Mining

Agriculture


THE NEXT FEW YEARS

Exoskeletons

An exoskeleton transfers force from the rest of the body, including chest and back, to the thighs. Third-party logistics provider GEODIS is piloting the use of an exoskeleton by Laevo. When the employee bends over, the spring pushes back so that the load on the back is reduced by 40%. This has great implications for safety, ergonomics and productivity, but also has potential over the long-term to enable employers to tap into alternative labor pools, such as older workers and those with disabilities.

Business Case: • Safety

• Ergonomics • Productivity

The next generation distribution requires more than technology. It also requires great software. Humanoid Robots

This technology is still just over the horizon in terms of maturity, but great strides are being made toward robots of the future that can move like humans. The ability to augment a human workforce with a robotic one is a long-time vision that is starting to take real form and substance.

chines using algorithms can do a better job of making meaning from it and potentially make better decisions as a result. But what machines today lack is flexibility that is inherent in humans. Google Brain was founded five years ago on the principle that artificial “neural networks” that acquaint themselves with the world via trial and error, as toddlers do, might in turn develop something like human flexibility. In the not-too-distant future, your transportation fleet will make realtime decisions based on traffic, weather, expected delivery times and make constant adjustments and tweaks. And robo-execution software will oversee fulfillment decisions in your DC, optimizing workflow from end-to-end across people, processes, systems and equipment. Using an exoskeleton can reduce the load on a person’s back by up to 40%

Machine Learning

Machine learning is what enables all of these technologies to make better decisions about the best route, the best way to pick up an item and the most efficient process, in order to truly optimize processes and workflows. Much of the data we process to make decisions is still very unstructured – maSupply Chain Today

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WORKING CAPITAL

Longer Payment Terms could Significantly Benefit African Countries If suppliers were to offer African companies payment terms of 30 days after delivery of goods and services, rather than demand payment in cash in advance, this could release more than USD 33.5 billion of additional working capital to be put to more productive use. These were last year’s findings by Euler Hermes, a company specialising in trade credit insurance,

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n 2015, Euler Hermes estimated that if a payment term of 30 days were to be granted on the share of imports paid in cash (cash in advance), then it would free up over USD 40 billion of working capital for African companies.

The world is suffering from long DSOs in many places, but African figures show some difference Since then, the trade picture has changed; a commodity shock hit resource-rich African countries

and slashed their exports revenues, reducing their capacity to finance imports even further. This contributed to the -22% fall in African import values from USD 800 billion in 2014 to USD 623 billion in 2016. “Taking into account the new trade picture, our estimate was at USD 33.5 billion of working capital freed up for African companies. Lower imports combined with lower payment terms (64% of imports are paid in advance) explains this result,” says Euler Hermes Chief Economist, Ludovic Subran.

Imports to grow

Euler Hermes expects imports to grow at a +8% annually and should suppliers lengthen their payment terms by 30 days, this would free about USD 45 billion by 2020. The parallel development of trade finance is key to seize this great opportunity for the African continent. This huge amount of money wasted each year is a clear indicator to develop domestic production capacity, since imports come with a cost due to low Days Sales Outstanding (DSO). Here are a few examples: • Oil exporters (Algeria, Nigeria, Angola, Libya) account for USD 14 billion wasted in cash as a result of short DSOs, with Algeria (USD 5 billion, 3% of their GDP) at the top of this ranking. The Republic of Congo for instance would free up the equivalent of 11% of its GDP (USD 0.9 billion) with longer DSOs. • In fast growing East African economies, greater DSOs would also be a nonnegligible growth boost. In Kenya for instance, it would free USD 1.6 billion (2% of its GDP), and about the same amount in Ethiopia. • Potential gains are weaker in value in West Africa (USD 0.4 billion in Senegal, 0.7 billion in Côte d’Ivoire) but range from 2 to 2.5% of their GDPs. On the contrary, it means that these gains are lower in relative terms in countries with the highest income level. For example South Africa (0.4% of its GDP) and Morocco (1% of its GDP).

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Big players are often bad payers, when small players have no opportunity to pay late The world is suffering from too long DSO in many places, but African figures show some divergence. Stéphane Colliac, senior economist for Africa at Euler Hermes, says, “Big players are often bad payers, when small players have no opportunity to pay late. It is especially true in Africa: there is a paradox when we see that key State Owned Enterprises are able to postpone their payments by several years (eg, in Angola or in the past in Egypt) while others have no other choice than cash payment. As an example, Moroccan main corporates have 84 days of DSO but 30% of the transactions (those involving smaller ones) are still paid in cash.”

Euler Hermes Group Jean-Baptiste Mounier Email: jean-baptiste.mounier@ eulerhermes.com www.eulerhermes.com

Additional cash flow freed with longer payment terms

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The Local Manufacturing Expo Aims to:

21 – 23 MAY 2019

Promote local manufacturing

EXPO CENTRE, NASREC,

Demonstrate Southern Africa’s export potential

JOHANNESBURG, SOUTH AFRICA

Provide access to global markets

A Showcase of Southern Africa’s Manufacturing Capabilities Who Will Exhibit?

Networking opportunities Develop public / private partnerships Public / private sector collaborations Identify industry challenges and opportunities for growth

Manufacturers across a variety of sectors, including:

Agriprocessing

Automotive

Business Process Outsourcing

Capital Equipment

Chemicals

Construction

Engineering

Food and Beverage

Furniture

ICT and Electronics

Metals

Mining

Plastics

Textiles/ Clothing/ Footwear

Transport

www.localmanufacturingexpo.co.za In association with:

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Endorsed by:

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Implemented by:

Brought to you by:


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CUSTOMER SERVICE

Debunking the Spaza Market

Informal trade and distribution data specialists, 5M2T (5 Minutes 2 Town) sets some common myths about the spaza market straight – and the facts could change the entire brand to market strategy.

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y its very nature, informal trade is geared around guessing. The lack of definitive data and market research means that once your formalised sales and distribution data reaches the wholesale level, the rest remains a total mystery. Informal trade can fundamentally alter the fortunes of brands in South Africa, and yet market research remains limited to anecdotal evidence and assumptions which couldn’t be further from the actual truth happening on the ground.

Spaza owners only stock what they know they can sell and earn their commissions on “We’ve sat around many boardroom tables listening to brand owners, sales managers and even executive level management while they suggest what they believe or know what their informal market penetration is; what brands they compete with and which areas they are strongest in,” says Stuart Smith, Operations Director at 5M2T. “Once we deploy on the ground, we discover huge gaps and some incredibly rich insights.” These insights include a major correction on commonly misunderstood aspects of the spaza market:

Spaza store owners do not do their own restocking

90% of stock replenishing is done by runners, buying groups, bulk breakers etc. Runners’ lists

are prescriptive and buying groups and bulkbreakers buy only what they know they can sell and earn their commissions on. So what’s the point of running wholesale promotions as an avenue to reach spazas?

Spaza stores are often not the cheapest place to buy a product

In fact, a product can cost more at a spaza than it does at a high-end retailer in Hyde Park. This is because that product has changed hands up to five times before reaching a spaza shelf - each iteration adding on an additional margin. Everyone on the route-to-market is profiting and brands have absolutely no control or idea as to what is happening on the ground.

Spaza store owners are just looking for the cheapest option

In fact, spaza owners are highly reliant on consumer demand. Price isn’t everything and brand loyalty is critically important. If the customers don’t want it, the spaza will not stock it. Dumping stock into wholesale will not land up on a shelf unless there is a consumer demand and regular purchase of it. The informal channel is not immune to the basic principles of supply and demand.

What works in Soweto, will not work in Soshanguve

The truth is there is no ‘one size fits all ‘approach. Even within huge categories like carbonated soft drinks, the purchasing, consumption and brand-loyalty behaviours differ hugely from one area to another and are amplified even greater when one looks regionally. You cannot assume that what works in Soweto, will work in Diepsloot or Mamelodi. The patterns are incredibly diverse.

The spaza market is too unpredictable to execute a long-term distribution strategy

On the contrary, political upheaval and acts-of-God aside, the spaza network is highly reliable and stable and many outlets have been open for decades and a part of the very fibre of the communities they service, even offering informal credit opportunities to regular customers. Stuart Smith E-mail: Reg@5m2t.com Web: www.5m2t.com

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TOW TRACTORS

Enhancing Warehouse Efficiency Southern African Hyster dealer BHBW (previously Barloworld Handling) has added to its electric Hyster range with the introduction of two rider tow tractors designed to enhance efficiencies in automotive manufacturing and other line-feed operations.

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apable of towing up to 7 and 8 tonnes respectively, the new Hyster T7.OHS3 three-wheel and T8.OHS4 four-wheel tow tractors are ideally suited to the manufacturing and engineering industries and for any type of line-feed application. “Tow tractors are increasingly used for the transport of material to and from production lines, to meet just-in-time requirements and optimise space line side,” says Tracy Brooks, industry solutions group manager at the Hyster-Yale Group. “Rather than delivering full pallets to a single station, many applications have adopted a ‘milk run’ concept, using tow tractors pulling several trolleys to deliver kits along a predefined route while at the same time collecting empty containers.

To meet just-in-time requirements with optimum efficiency, tractors are compact yet powerful, with excellent manoeuvrability “In automotive assembly plants, for example, tow tractors today comprise up to 60% of materials

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handling equipment,” says Tracy, who earlier this year visited South African automotive manufacturers operating Hyster fleets. The Hyster T7.OHS3 three-wheel and T8.OHS4 four-wheel models are available with or without a cab and can operate both inside and out.

Compact yet powerful

To meet just-in-time requirements with optimum efficiency, tractors are compact yet powerful, with excellent manoeuvrability. The four-wheel model also allows for good stability over rough, uneven or broken surfaces, and has power steering. Features include an anti-roll back device for improved control on gradients, regenerative braking and inching control to assist with trailer hitching. In addition, easy service access minimises downtime for routine or unplanned maintenance. Productivity enhancing ergonomics includes easy one-step access, a comfortable suspended seat and intuitive controls. Advanced control features, such as easy diagnostics via a handheld controller, help to deliver a low cost of ownership.


TOW TRACTORS

fers a modular tugger train system, with a choice of trolley types to meet the different needs of specific applications. “This ensures that the most suitable trolley can be chosen based on what will be handled on the manufacturing line, the weight of the load, and the type of container the load needs to be transported in,” says Tracy.

Rather than delivering full pallets to a single station, many applications have adopted a ‘milk run’ concept The Hyster tugger train system is suited to a broad range of line-feed applications, as well as mail distribution services, transport and health care. “Regardless of the industry, it provides an intelligent solution for smarter, more efficient operations.”

Options include four different battery sizes and battery extraction options, a choice of tyres, and roll-up PVC curtain side doors.

Choice of trolley types

In combination with the tow tractors, Hyster of-

The Hyster tow tractors and tugger train system were developed following consultation with customers to fully understand their line-feed logistics requirements. “This has enabled us to provide a reliable, flexible solution that can be customised to suit their exact needs,” Tracy concludes. BHBW Wanda Pretorius Tel: 0800-010-088 Email: WPretorius@bhbw.co.za www.hyster.co.za

The Hyster T7.OHS3 three-wheel and T8.OHS4 fourwheel tow tractors are available with or without a cab and can operate both inside and out.

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SHIPPING

Understanding Carrier Cargo Liability and First Party Cover Recently a marine insurer paid a heavy penalty after it was identified that they were breaking the Financial Advisory and Intermediary Services (FAIS) & Short-Term Insurance Act (STIA) regulations. The main issues were that the carrier/third party sold insurance to the cargo owners, and the policy was issued in the name of the carrier on behalf of the cargo owners, without adhering to the relevant FAIS & STIA legislation.

Most carriers do not want to be bothered with the administration and compliance issues around STIA & FAIS,” says Kennedy Ntenjwa, Aon South Africa’s Broking Centre Manager for Marine. “Simply put: Offering the carrier a first party policy on behalf of the cargo owner is not a feasible approach. The situation is further exacerbated when the carrier cannot repay or refuses to repay a loss suffered to goods while in their care, custody or control. The cargo owner’s only recourse is to take legal action against the carrier, not to mention taking their business elsewhere. It is therefore essential for carriers to have liability cover in place to secure their livelihood,” he explains.

Understanding the difference between a first party policy and a carrier cargo liability offering, is crucial Understanding policies

Understanding the difference between a first party policy and a carrier cargo liability offering, is crucial. “A common misconception in the freight industry is that a carrier goods in transit policy, also known as First Party cover, benefits the carrier; when it actually benefits the owner of the goods being transported,” Kennedy points out. Insurable interest arises through ownership and the insurer will always indemnify the owner of the goods. The carrier enjoys no cover under a first party policy. The carrier

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can, however, arrange cover on behalf of the cargo owner if they receive written instruction to do so. However, the carrier can only offer cover if they: • Have a valid FSP licence issued by the FSB, • Are FAIS compliant as a financial service provider as per the amended FAIS Act, • Have approval from an insurer, and • Have the necessary authority regarding STIA to collect/handle premiums in a legally compliant manner. A carrier cargo liability policy is a third-party liability policy that provides cover to the carrier of the goods. “The carrier is able to insure any acts of negligence, whether gross negligence or common-law negligence, for loss or damage to third-party property if the cargo owner is enforcing a claim against the carrier,” Kennedy advises. “The insurable interest arises from any liability that is defined in the insurance policy that may cause damage to a customer’s property while transporting it. The emphasis being: while the customer’s property is in the carrier’s or their approved sub-contractors’ care, custody or control. It indemnifies the carrier and not the owner of the goods.”

Complying with regulations

Carrier cargo liability policies need to be structured in such a way that they comply with FSB regulations. “In this respect, cargo carriers need to understand that they may


SHIPPING

not offer full first-party goods in transit cover to a client or pass the insurance cost to the actual cargo owners.” Cargo carriers are able to negotiate commercial contracts, independent from insurance policies, with cargo owners. However, they’ll then accept certain liabilities following an event while the goods are in their care, custody or control, which may result in financial loss to the cargo owner.

Carrier cargo liability policies need to be structured in such a way that they comply with FSB regulations “Cargo carriers need to be cognisant of the fact that a private and independent commercial contract between themselves and a cargo owner translates into no cover for consequential losses through an insurer.

policy which a select few marine markets are now offering.” The FSB’s legislational intent and practical application around policies issued to third parties are still considered to be a grey area, even by expert SA maritime lawyers. It is therefore economical to use the Short Term Insurance Act No. 53 of 1998 as a barometer. “This is exactly where the insights and expertise of a professional broker that specialises in maritime insurance can prove to be invaluable. Testing different scenarios and making sure that you have all your bases covered is a task best undertaken with a broker by your side,” Kennedy concludes. Aon Marine Kennedy Ntenjwa Tel: (011) 944-7000 www.aon.co.za

“Any insurance agreement entered into with the cargo carrier is structured around liability and defined perils as per the relevant institute and non-institute clauses or any other warranties that the insurance policy may contain, with cover not extended to gross negligence or damage in general,” warns Kennedy. “Although legal liability goods in transit cover has been around for many years, the difficulty lies in the fact that most insurers offer policies on a strict legal liability basis. Losses will only be settled if it can be proven that the loss/damage directly resulted from gross negligence by the carrier, not providing the carrier with an optimal solution. This has led to the development of a more relaxed or carrier-friendly carriers cargo liability

Kennedy Ntenjwa

Increased visibility means the company can track items from receipt to quality control, through to final dispatch and delivery. GLTC displayed all of its latest forklifts and materials handling equipment.

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DIGITISE & STRATIGISE

Getting Ready for Industry 4.0 “Innovation is a way of life for BPL,” says Willem Bekker, Supply Chain Solutions Manager for South African-based international logistics outfit Bidvest Panalpina Logistics (BPL), and a member of the company’s Innovation Committee. And BPL puts its money where its mouth is: it established an Innovation Platform a while ago, inviting staff members to submit ideas that could improve on the quality of service to its customers.

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his approach has introduced a culture of innovation in the company, and has so far produced over a hundred ideas, many of which have been implemented or are in development. These include an automated purchase-order system, a box-on-demand system, drone technology and a sign-on-glass project.

Move away from the awarding of mediumto long-term contracts for transportation, warehousing and distribution to short-term ‘per transaction’ type service requirements In the competitive digital age, global business consulting firm PricewaterhouseCoopers (PwC) believes that logistics business leaders must carefully consider technology as a key enabler of future growth. Anthea Myatt, BPL’s Financial Director and head of the Innovation Committee, agrees. “As the industry looks to further digitise, standardise, and ultimately streamline complex transportation processes, logistics-focused technology that provides proactive, predictive and automated information is becoming increasingly important,” she says. “Be it artificial intelligence [AI] or simply automating a manual process.”

Dealing with data Cloud-based data analytics has helped the company become far more proactive in how it manages its

operations, and in identifying issues before they arise. “We often see it as the logistics version of the petrol light going on in your car – data (fuel level) used to identify a potential problem (running out of fuel) before it occurs, in order for you to take corrective action (fill up),” Willem explains. The last few years have seen the technology related to cloud-based analytics become much more accessible, and BPL’s challenge is more in identifying where the tools and technology available can be implemented to create customer value, rather than in the application of the technology itself. The challenges of dealing with multiple systems, different units of measurement at various stages of the logistics chain, and the different variables at play for complex freight movements from cradle to grave, has been holding the industry back from truly providing end-to-end visibility. Recently, a cross-functional team of BPL operations experts conceptualised and built a unique data-visualisation platform that links key shipment information across multiple operations and from multiple source systems into a single end-to-end view.

Hardware/software solutions

While confusion about which hardware and software breakthroughs will have the biggest effect on profitability and overall organisational performance may be holding some logistics businesses back Supply Chain Today

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DIGITISE & STRATIGISE

from making changes in the way they do things, this isn’t an issue for BPL. “This is something that’s ongoing, and rapidly implemented as opportunities are identified,” says Willem, citing as recent examples like ‘sign-on-glass’.

Big trends: self-driving vehicles and blockchain technology

“We’re following what’s happening in the selfdriving-vehicle space, and although there’s no doubt that it’s going to become reality in the near future, the main challenges we foresee aren’t linked to the trip aspect of the journey, but more to optimising the loading, route-planning, unloading, and other ancillary activities related to the transport leg,” he says. “Blockchain technology is likely to focus on very specific-use cases at first, where the auditable transparent trail of an item is critical, such as in the pharmaceutical or perishable supply chains”, Willem notes. That said, BPL’s global partner Panalpina has already joined the Blockchain in Transport Alliance (BiTA), a forum of tech and transport companies for the development and implementation of blockchain standards in the freight industry.

transporters, hubs, depots and warehouses to find the most efficient use of capacity.

Blockchain technology is likely to focus on very specific-use cases at first, where the auditable transparent trail of an item is critical, such as in the pharmaceutical or perishable supply chains The future is now

“We view the strides we’ve made of giving operations experts hands-on exposure to the power of data science, data visualisation, the Internet of Things as a very powerful means of taking all these industry 4.0 concepts that can easily appear so much like science fiction, and making them real and tangible by solving actual problems and creating customer value,” Willem concludes. Willem Bekker Tel: (011) 570 6000 E-mail: info@bpl.za.com Web: www.bpl.za.com

The e-marketplace

“The supply chains of the future will move away from the awarding of medium- to long-term contracts for transportation, warehousing and distribution to short-term ‘per transaction’-type service requirements,” says Distribution General Manager Mark Kotze, pointing to the rise of platforms such as Uber and Airbnb as examples of how society and business have become accustomed to conducting business this way. BPL is developing platforms that will make it a relevant major player in this new supply-chain environment, where customers can choose among available Staff members submit ideas that could improve on the quality of service to customers

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CRYPTOCURRENCIES

Colonialism or an Upliftment Opportunity? The rise of cryptocurrencies has both positive and negative implications for Africa, and the world. How their use is managed will determine how well they benefit those most in need.

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t is quite clear that we are developing into a society that is completely driven by information and reliant on technology. As we evolve along this path, those who succeed will be those who are able to equip themselves to handle this future by grasping the fact that the entire paradigm has shifted significantly, says Fay Mukaddam, CEO of 4AX.

Fay Mukaddam

The business world has moved beyond the idea that if it isn’t made of bricks and mortar, then a company has no value. The classic illustration of this principle is that of Uber, which despite being one of the largest transport organisations in the world, actually owns no vehicles.

There are a lot of conflicting opinions across global markets as to the benefits cryptocurrencies may offer

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“When one looks at it like this, there is no real reason for the financial services and capital markets to be any different. After all, the aim of the game, whatever the industry, is always to see how we can encourage the inclusion and participation of as many people as possible within financial markets, and make things simpler for the client or end-user, using technology,” she says.

Enormous potential

“With this in mind, there is both room and a need for a platform like Blockchain, which we believe offers enormous potential not just to the financial sector, but to industries across the spectrum. Of course, the one that is most often talked about in finance is cryptocurrencies, which is ultimately nothing more than an application built on top of Blockchain technology,” Fay adds. There are a lot of conflicting opinions across global markets as to the benefits cryptocurrencies may offer. Fay believes that before we can truly attribute value to it, we need to both understand what it does and how it may improve things. We also need to contemplate the fears and anxieties it raises, such as the concern around moving large values across borders in a situation where there is no regulatory control. There is certainly more value to be gained from such technologies than there are things to be feared. “The answer most likely lies in managing it and contextualising it properly. The regulators certainly need to approach it from this angle, rather than from a point of fear and anxiety. As


There are speculative market concerns that cryptocurrencies hold the potential to launch a new cycle of economic colonialism, where the rich use it to oppress the poor the latter will only lead to them wanting to shut it down.

African Potential

“From an African perspective, I think we clearly need to recognise the potential that cryptocurrencies offer to the continent, and thereby help close the socio-economic disparity gap,” says Fay. “If we consider just the opportunities this opens for cross-border trading in Africa, the benefits are obvious. No doubt there are challenges that come with this, not the least of which is the sovereignty issues relating to the taxes and customs fees that would be applicable, if we are talking about a physical entity.” However, Fay still believes that cryptocurrencies offer immense opportunities in terms of economic development where, for example, the BRICS community would be able to undertake cross-border trade without all the suffocating regulations that currently govern such a process. “The ease of trade and of movement that comes with this will ultimately help to encourage trade with partners, irrespective of where they are in the world. “I am, in fact, less concerned about the technology than I am the regulatory oversight, as it is imperative to ensure that there is full transparency and disclosure.” There are speculative market concerns that cryptocurrencies hold the potential to launch a new cycle of economic colonialism, where the rich use it to oppress the poor.

Reducing the gap

“Fintech, like cryptocurrencies etc, have the potential to effectively reduce the gap between the haves and have-nots, almost overnight. Where there is innovation, there is positive possibilities for all,” adds Fay. “But, to uplift a significant portion of the African continent, due consideration and appropriate steps must be taken to regulate these new asset classes, as well as education initiatives to ramp up on financial knowledge and literacy. “We must ensure that ordinary citizens are not being defrauded, or are continuously excluded from participating in capital and financial markets. We simply cannot allow those who need to be uplifted to be taken advantage of or oppressed by exclusion.”

Undertake cross-border trade without all the suffocating regulations that currently govern such a process “When it comes to potentially game-changing technologies, such as cryptocurrencies, it is important for markets and authorities, alike, to not allow themselves to be steered by fear of change. Rather, the focus should be on how we can positively map our way through the challenges and utilise such innovation to drive change – and change that will have meaningful impact on positively transforming people’s lives,” Fay concludes. 4AX Fay Mukaddam Tel: (011) 100 8352 E-mail: info@4ax.co.za Web: www.4ax.co.za

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GIS

Improving the Supply Chain with TECH The world of supply chain logistics has been living in the past. Other industries have been enhancing and streamlining their operations on functional and profitable levels with the use of technology.

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oftware has been introduced into operations to create a digital representation of the department and its functionality, but it’s hardly advanced nor is it cutting edge.

However, as more organisations realise how their processes in Supply Chain and Logistics are behind the curve, they are starting to focus their energy and resources into new and innovative technologies and solutions. They are recognising the importance of investing into technology that can give them a competitive edge.

One particular area that has seen significant investment and attention is in the supply chain field is the implementation of Geographical Information Systems One particular area that has seen significant investment and attention is in the field of Geographical Information Systems (GIS). The volume of data at our fingertips from modern day reporting and operations has grown tremendously. The aim of GIS is to allow this vast amount of data to be visualised in an intuitive way so that it can be interpreted intelligently.

Making sense

It is essential that there are tools that allow us to make sense of this data. GIS allows for this visual data to be shown at speed. It represents what is really going on in operations in real time rather than delayed spreadsheet reporting that doesn’t deliver either on immediacy or accuracy. GIS ties varies data sources together into one usable view. As this data is being shown in real time, it allows

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for decision makers to make informed and agile decisions on the spot. They can solve problems, escalate issues, initiate changes, avoid risk and make proactive decisions designed to deliver better results.

The challenge

There is a huge opportunity for companies targeting a GIS approach to optimise their processes at every point along the supply chain. It has become increasingly evident that, as key personnel become more and more competent in their understanding of GIS, they can accurately coordinate their company’s processes around this technology. They are also able to target areas that are necessary for enhancement or growth. Many companies are excited about the idea of implementing this technology to enhance operations but struggle with defining how they want to use it, what their goals are, and what they ultimately hope to learn from the technology. Often there is quick buy-in from top management and executives but significant resistance from the people on the ground, the people who will actually be using the systems. Warehouse staff and delivery vehicle drivers are the ones who make GIS systems work. Without them conforming to requirements and adopting the systems completely, data accuracy will be skewed which will impact the effectiveness of the implementation. This is one of the biggest stumbling blocks when it comes to successful GIS data and deliverables. The reality is that GIS needs relationships. Executives needs to gain buy-in from the employees and


GIS the solutions provider has to build relationships across the board to ensure that everyone understands the technology and the value it provides.

Customisation delivers results

It is also important that implementation skills must be customisable to fit certain business rules. This ensures the best fit and the best possible results. To further ensure that any implementation fits the business, ensure that your service provider can provide unique solutions that help you gain an accurate representation of data in both real time and retrospectively. Another large, industry-wide problem in the delivery process is the location accuracy of customers and delivery points. Tools such as Google Maps have allowed for us to minimise this problem to a certain degree, but manually looking up addresses is a long and cumbersome process that employees don’t have time for. It is also a job done by the Fleet Controller and Dispatch Manager at the very last second before sending the delivery vehicle out.

Feedback

This job needs to be done further up the Supply Chain so that the information provided to the person dispatching the vehicles is complete and accurate. This is where having a reliable team dedicated to data management and control can play a pivotal role, ensuring that the data given is accurate so the deliveries are executed effectively. It is essential that the system is completely dynamic to allow for the change and manipulation of geofences already created so that locations can be plotted accurately. You can then take the feedback from the delivery vehicle drivers and the dispatch mangers to generate informative reports on where mistakes have been made and what needs to be adjusted to show what is accurate. This on-the-spot resolution of problem locations helps drivers to do their jobs more effectively,

immediately, and they look better when being judged on their deliveries. The dispatch managers or de-briefers also don’t need to question driver actions.

A reliable team dedicated to data management and control can play a pivotal role, ensuring that the data given is accurate so the deliveries are executed effectively The last mile

Final or last mile deliveries have increasingly become the target of logistics companies as customers are more demanding. They want to receive their ordered goods swiftly, within specific time limits and with accuracy of location. Modern customers want to alleviate the old challenges associated with shopping by managing everything with just a few clicks of a button. Customers have also become impatient when it comes to the time spent waiting from the moment of order to actually receiving the products at their door. The demand for this level of service is daunting for the logistics industry. However, it is something that can be achieved and is a real growth pillar for companies that are focusing on final mile deliveries. Trackmatic Tel: (011) 531-3400 Email: sales@ trackmatic.co.za www.trackmatic.co.za

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South Africa’s perfect blend of ingredients provides the ideal backdrop for this international Congress: adventure, wildlife, magnificent scenery, rich cultural diversity, and efficient infrastructure. Few countries in the world can match the fun, beauty and excitement you will find in South Africa. At the foot of the vast continent of Africa is Cape Town, host city of the FIATA World Congress 2019, also known as South Africa’s “Mother City”. Cape Town is set in a dramatic landscape of exquisite natural beauty, nestled between the majestic Table Mountain and the sea, and is widely regarded as one of the most beautiful cities in the world.

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DAY TOURS It’s not all hard work and no play! A varied selection of day tours in and around Cape Town is available for participants and partners who find that they have a free moment during the Congress week. To book visit: www.kingdomtt.co.za/ fiata-2019/

EARLY ACCOMMODATION SPECIAL Choose from among some of Cape Town’s most convenient Congress hotels, with prices and star-ratings to suit all budgets. Participants that book and pay in full before 30 April 2019 will benefit from special discounted accommodation rates.


ELECTRA MINING 2018 LABOUR MANAGEMENT

The Undercover Investigator Many businesses focus their loss control strategies on preventing unwanted elements from getting in from the outside. While this is certainly an important step in securing assets and minimising risk, what if the truly dangerous element has already made itself comfortable within the operations of the organisation?

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n financial management, internal audits play an integral role in ensuring the financial stability and integrity of the organisation. Similarly, savvy businesses should expose themselves to an internal auditor of a different kind – the undercover investigator.

Businesses should expose themselves to an internal auditor of a different kind – the undercover investigator “If conducted correctly, these investigations become the cornerstone of the loss control portfolio,” advises Kyle Condon, Managing Director of D&K Management Consultants. “The successful deployment of well-trained and experienced undercover agents is the single most effective company security tactic.”

Manage risk from inside out

To Kyle, the undercover investigator serves to manage risk from the inside out, in a consistent manner. “The innermost workings of the business can be seen as the core of an onion. While the outer layers of security prevent threats from getting in, the investigator placed at the centre of the operations ensures that those already at the core are not putting the business at risk.”

Kyle Condon

Undercover investigators are not only useful for theft or loss investi-

gations but also offer valuable insights as deployed auditors. “Undercover investigation services are a fantastic way to identify weaknesses in company policies and operating procedures. If these policies are not ‘audited’, chances are that you may not ever know where the real issues lie. With a consistent presence, the investigator continues to protect the business in real-time, rather than reviewing what went wrong after the fact. This creates a proactive loss control strategy,” he adds. In addition to risk mitigation, undercover investigations offer various advantages. From the development of accurate security budgets and strategies (including elements such as cameras, manpower, policies and procedures, employment processes etc), to the identification of wasted resources, or unethical employees. Having an agent on its payroll gives the business access to essential security and operational information. Undercover investigation services should be introduced into the client’s workforce. Investigators are deployed as everyday workers or contractors, as would be the case for clients’ routine recruiting procedure. Within a short space of time, the right investigator would have integrated him/ herself among the rest of the employees.

Undercover investigator tips

Kyle provides four key tips for ensuring the undercover investigator remains impartial and effective: “Rotate the investigator every six months. Place them in different sectors or departments to get a full view of the business’ operations. Place them strategically to combat crime, taking the guessing out of the game. Use the intel they provide to assist in creating accurate and impactful policies and procedures.” While the undercover investigation services are in progress, information is passed on to the client directly. This should happen on a weekly basis. “The weekly reports enable the investigation firm to formulate graphs and provide analytics that will clearly show trends and patterns of the various associated risks,” concludes Kyle. D&K Management Consultants, Kyle Condon Tel: (011) 824 0334, Email: saint@intrigue.co.za Web: www.investigators.co.za.

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The Golden Age of Services Materials handling equipment (MHE) supplier, Goscor Lift Truck Company, notes that the MHE supply chain has transformed into a service-centric sector, moving away from just supplying products to offering end-to-end solutions.

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n today’s operating conditions, consumers are doing more research before they make their buying decisions. They expect suppliers to meet their needs and respond to their problems effectively and swiftly. This is even more so when it comes to big-ticket purchases.

Ease of budgeting as maintenance is a fixed cost and takes the day-to-day headaches away from maintenance managers

Customers not only prioritise the product, they expect the service they receive once they have bought the piece of equipment to be up to their expectations. The aftersales services play a role in the client’s decision to purchase. This is the view of Darryl Shafto, MD of Goscor Lift Truck Company (GLTC). “Provision of MHE products is one thing, and the ability to provide unparalleled aftermarket support to keep the product running at all times, is quite another,” says Darryl. “What matters more today, and has been for long, is the service delivered after the product has been supplied.”

It is evident that the timely provision of spare parts and aftersales services are crucial pillars of customers’ buying decisions.

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AFTER-SALES Darryl believes that this is a golden age of services, and the MHE supply chain is transforming into a service-centric sector, moving away from just supplying products to offering end-to-end solutions. “Although companies still push products, there is now a bigger focus on delivering the value that customers get out of using those products,” says Darryl.

Although companies still push products, there is now a bigger focus on delivering the value that customers get out of using those products It is evident that the timely provision of spare parts and aftersales services such as conducting repairs; installing upgrades; reconditioning equipment; carrying out inspections and day-to-day maintenance; offering technical support, consulting, and training; are crucial pillars of customers’ buying decisions. This gives them peace of mind, and allows for ease of budgeting as maintenance is a fixed cost and takes the day-to-day headaches away from maintenance managers.

all but makes it impossible for customers not to use the specialist skill and information available at the branch. “The use of newer technologies, such as fleet management solutions, are helping ease maintenance issues. Rapid development in machine technology, particularly the use of electronic controls and remote monitoring systems, have opened up new avenues of fleet monitoring and remote troubleshooting,” he says. “We find that delivering accurate data on fleet performance and all the important parameters of the customer’s operation that speak directly to productivity, total cost of ownership and ultimately the bottom line, is part of the most vital services that we offer, and this all needs to happen swiftly,” Darryl concludes. Goscor Group Debby Marx Phone: (011) 230-2600 E-mail: dmarx@goscor.co.za Web: www.goscor.co.za

While service initiatives are the starting point, Darryl says that it is the speed of the service that really matters. “There is so much emphasis on speed of service as the importance of uptime cannot be reiterated enough in today’s operating conditions. For an MHE supplier of GLTC’s stature, speed of service is at the core of our service strategy,” he says. To be able to execute that strategy, Darryl says a fundamental pre-requisite is to have the infrastructure that allows the company to respond to any service needs timeously.

Evolving landscape

However, infrastructure alone may not be enough in today’s information age. Aftermarket is evolving from just being the provision of spare parts and fulfilling maintenance contracts. Skills shortage and rapid advancement in machine technology

Darryl Shafto

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WAREHOUSING

Industrial Park Completed in Industria Growthpoint Properties has completed the R44 million first phase of its new development at Mill Road Industrial Park in Cape Town, which includes a 5 000sqm facility for Laser Logistics.

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The new Laser Logistics premises enjoys excellent highway visibility. It is fairly specialised compared with most storage and distribution warehouses. Built on a raised platform, it includes numerous roller shutters on opposite sides of the structure to optimise its cross-docking capacity.

ill Road Industrial Park is in the es- Laser Logistics has put its people at the centre of tablished industrial area of Bellville its property strategy, with its new Industria, opposite the well-known facility including a canteen, Sacks Circle. It is a 40 000sqm kitchen, and cloakroom With storage, warehousing and distribution park area for drivers and the future development consisting of premium-grade warehouse staff. It in mind, the site warehouse and office space. It is ideally is also brilliantly located near the R300 highway, with includes expansion located for public easy access to the N1, N2 and R300 potential, and there are transport, with the highways. also future expansion

opportunities within the park

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WAREHOUSING Sarepta passenger rail station being 300 metres away. The custom developed building also includes some 800sqm of offices for operations, administration and management. A double security perimeter ensures the safety of the facility. The company’s dedicated entrance features its own gatehouse admission in addition to the Mill Road Industrial Park access control. The park also has full perimeter security fencing, onsite management and 24/7 security guarding.

More sophisticated

“Our latest move to Bellville South positions us in a property that will look after us for a number of years. We have moved from a smaller, lesssophisticated property to one that is bigger, more

sophisticated and probably better located too,� says Phil Hayes, Chairman of Laser Logistics. With the future in mind, the site includes expansion potential, and there are also future expansion opportunities within the park. Of particular appeal to warehousing and storage businesses, buildings at the park have stacking heights of 12 metres, ample yard space, and modern offices in the secure park. In addition, the park is energy and water efficient, resulting in lower occupation costs. Growthpoint Properties Rudolf Pienaar Tel: (011) 944 6282 www.growthpoint.co.za

Buildings at the park have stacking heights of 12 metres, ample yard space, and modern offices in the secure park

All smiles as Phase 1 is completed

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TEMPERATURE CONTROL

A Sweet Door for a Fruit Company Maxiflex’s was recently called upon to install and overhead panel sectional door at a citrus fruit handling company situated in the Eastern Cape.

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he customer required a specialised door solution for their new 11 000 square metre warehouse with a capacity of handling tons of citrus produce every hour. A superior quality door solution was essential as product handling in and out of the warehouse must be swift to maintain the facility’s interior temperature in order to reduce the risk of costly produce spoilage and losses. The project was spearheaded by Viaplan Consulting Engineers and Randcivils, two professional and highly respected companies in the civil engineering and construction industry. With quality product and service support stipulated by the customer as prerequisites, the two companies immediately turned to Maxiflex to provide an optimum door solution.

From a safety perspective, the panels are filled with flame retardant polyurethane so the door won’t accelerate a fire Exact requirments met

“Maxiflex is known to Viaplan Consulting Engineers and Randcivils as we have been involved

with them on a number of similar installations in the area,” explains Bram Janssen, Managing Director of Maxiflex. “Once we had identified the customer’s exact requirements, we immediately knew that the 1042P overhead panel sectional door from ASSA ABLOY Entrance Solutions would cater to the customer’s exact requirements.” Bram adds that in addition to its exceptional features, the door’s pleasing aesthetic appearance perfectly complements the warehouse’s façade. Ideally suited for warehouses, logistics centres and factories, the robust, flexible, efficient and safe door system presents excellent sealing properties. Each part of the overhead panel sectional door is built to the highest standards to ensure reliable operation even under extremely high workloads and harsh conditions. Made up of 42mm panels, the door forms a 4-way seal when closed, ensuring outstanding insulation from all weather conditions, protecting the fruit inside the warehouse. The door’s design has earned a class 3-certification for water tightness, wind load and air permeability. Furthermore, by helping to regulate the warehouse’s internal temperature, energy costs are kept to a minimum with subsequent costs savings for the customer. From a safety perspective, the panels are filled with flame retardant polyurethane so the door won’t accelerate a fire and a control panel fitted to the door will indicate any faults.

The robust, flexible, efficient and safe door system presents excellent sealing properties Installation of the overhead sectional door was completed during the first quarter of 2018 to the satisfaction of the customer who also confirmed that they were impressed with the quality of the product. The customer also confirms that they have confidence in the door system as Maxiflex has successfully supplied these panel sectional doors for similar warehouse applications in the local area.

Maintenace included

Maxiflex is responsible for door maintenance and provided the customer. “Correct use of the door system is critical as it will extend the product’s lifespan and keep running costs to a minimum for subsequent lowest total cost of ownership for our customer,” concludes Bram. Maxiflex Door Systems Marloes Joseph Tel: (01)1 392 1709 E-mail: info@maxiflex.co.za Web: www.maxiflex.co.za

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TRANSFORMING FREIGHT LOGISTICS

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TRANSNET FREIGHT RAIL

www.transnet.net www.transnetfreightrail-tfr.net

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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 fifteen through to 100 guests in three 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, Wi-fi, 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


MARKET FORUM

QR code shows your meat’s history Ambrosus will be formally responsible for identifying and tracing all of Mega Mart’s’ beef using distributed ledger technology. It will also configure the data from each piece of meat into a consumer-oriented application, designed to facilitate trust and maximise customer satisfaction. Through a QR code, the specific cow, its origin, the veterinarian’s health check of the meat, and the transportation conditions of the product will all be easily accessible to the consumer through the scan of a smartphone.

Ambrosus, the globally decentralised blockchain and IoT platform, has partnered with NDS, a subsidiary of Korean food producer Nongshim, to track and trace premium quality beef sold by food retailer Mega Mart. Using the AMB-NET

blockchain, Ambrosus will pioneer a beef traceability model in Mega Mart, which will let company partners and consumers easily access detailed information about the history and transportation surrounding each cut of beef.

“This proof-of-concept of the Ambrosus Network follows a recent partnership with Premium Goods, a French flavouring company, to use Blockchain and the IoT to provide transparency and proof-of-quality to Madagascar bourbon vanilla,” says Angel Versetti, CEO and co-founder of Ambrosus. Ambrosus, Angel Versetti Email: info@ambrosus.com www.ambrosus.com

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Mining

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Transportation of normal & abnormal loads Building & repairing of truck bodies Supply of petroleum pumps and tanks

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Email: linda@lpmprocurement.co.za Web: www.lpmprocurement.co.za Supply Chain Today

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MARKET FORUM

EASIER blockchain navigation Blockchain Technology Partners recently announced the availability of Sextant, a blockchain management platform, on the Amazon Web Services (AWS) Marketplace for Containers. Sextant accelerates innovation by providing enterprises with a platform that they can build upon; ensuring that they focus on business application development, not blockchain infrastructure. “AWS Marketplace for Containers enables AWS customers to use the Amazon Elastic Container Services (ECS) console and AWS Marketplace for Containers to discover, produce, and deploy container solutions, including a comprehensive blockchain management platform from Blockchain Technology Partners,” says Dave McCann, Vice President Migration Services, AWS Marketplace and Service Catalog. “With the help of Sextant, enterprises can navigate blockchain management with ease and, with the launch of AWS Marketplace for Containers, they can be up and running and exploring the brave new world of blockchain in no time at all,” adds Duncan JohnstonWatt, CEO of Blockchain Technology Partners. BTP has identified Hyperledger Sawtooth as the best emerging open

source blockchain technology for the enterprise on the basis of its support for Ethereum smart contracts, its pluggable consensus mechanism and its scalable, highly modular architecture. In addition, the clear separation between the network and the application tiers makes it exceptionally easy for

developers to create new blockchain applications leveraging existing code and applying existing programming best practices. Blockchain Technology Partners Duncan Johnston-Watt www. blockchaintp.com

Software helps manage the supply chain Developed in Pretoria by AppliSential, iSimPlan is a demand driven supply chain management platform. According to Victor dos Santos, iSimPlan senior software development engineer, success stories for DDMRP implementations are increasing as more businesses recognise the benefits of this methodology. Because iSimPlan developers and consultants are based in South Africa, they have the distinct advantage of daily exposure to supply chain management in an emerging market, allowing them to provide cost effective solutions tailored to these markets. “iSimPlan’s customisable dashboards allow organisations to have an overview of the health of their strategic buffers, supporting the organisations’ ability to respond to supply chain volatility,” says Victor. An added benefit to organisations based in Africa is that iSimPlan support and training staff are close at hand when needed. This is enhanced by the coaching and change management training that come as a prereq-

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uisite to any implementation. These features provide organisations with a competitive advantage that will allow them to grow.

January/February 2019

AppliSential Victor dos Santos Tel: (011) 023 6701 info@sapics.org.za, www.isimplan.com


MARKET FORUM

Extended contract for egg distributor Imperial Logistics’ initial three year contract with Quantum Foods has been extended for five years based on its continued success in delivering efficiency enhancements and cost savings while distributing 12 million eggs annually. The scope of Imperial Logistics’ contract encompasses all outbound distribution to Nulaid customers. Inbound distribution is also undertaken in Gauteng, where the organisation transports eggs from laying farms to packing stations. In addition, Imperial Logistics delivers primary inbound loads from Gauteng to Durban and Komatiepoort, says Imperial Logistics chief strategy officer, Cobus Rossouw. To optimise its solution to Nulaid, the supply chain and logistics company has invested in purpose-built ‘egg spec’ vehicles, with insulated bodies, vents and fans. The trucks also feature drop

safes in the cabs for cash handling. Imperial Logistics has added further value for Nulaid by leveraging the group’s technology solutions business, Resolve Solution Partners. “An important contributor to Nulaid’s distribution success is our partnership with Resolve on this contract. Technology solutions delivered by Resolve have

ensured optimal distribution planning, with the analytics and reports driving continuous improvements like enhanced vehicle utilisation and a fleet reduction initiative. These have yielded cost savings and enhanced efficiency and customer service,” Cobus concludes. Imperial Logistics, Cobus Rossouw www.imperiallogistics.com

Industrial IoT key to reducing environmental impact Improving the environmental sustainability of their operations through the adoption of Industrial Internet of Things (IIoT) technologies is a crucial priority for organisations in the transport and logistics sector, according to a new study undertaken on behalf of Inmarsat. The research reveals that, across the industry, the two largest drivers behind the adoption of IIoT-based solutions are monitoring environmental conditions

and improving resource efficiency. The research also highlights the good news that many organisations in the transport sector are realising their sustainability objectives through the use of IIoT. 75 percent of respondents with fully deployed or trial-stage IIoT solutions stated they were achieving environmental sustainability improvements. Reported early successes in achieving

sustainability objectives have been seen in the implementation of smart asset tracking, real-time route planning, environmental and fuel efficiency monitoring and telemetry. However, the research also uncovered that those organisations with unreliable connectivity were far less likely to be achieving improved environmental sustainability, reinforcing the importance of connectivity for successful IIoT deployments. “The transport and logistics sector is faced with a multitude of challenges, tasked with reducing its impact on the environment and adhering to stricter government regulations, while needing to carry greater quantities of goods and people across the world. Our research shows that organisations are adopting IIoT to help them achieve these goals, and that many are succeeding in this aim,” says Mike Holdsworth, Director of Transport at Inmarsat Enterprise. Inmarsat Enterprise, Mike Holdsworth GlobalCustomerSupport@inmarsat.com www.inmarsat.com

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MARKET FORUM

East Africa lands first ever inland dry-port DP World and the government of Rwanda have set up a state-of-the-a logistics hub, located 20 kilometres from the capital city Kigali, close to the international airport. The facility is East Africa’s first ever inland dry port developed by DP World. DP World Kigali is a secure, bonded facility spread over 13 hectares and features an Inland Container Terminal

(ICT) with modern warehousing capacity, a container yard, administrative and services buildings, parking areas and other facilities.

that will add a direct rail corridor to the two existing road routes, further improving connectivity for containers and bulk goods.

The hub accesses two secure trade gateways for eastern Africa, the port of Mombasa in Kenya and Dar es Salaam in Tanzania. Rwanda is working closely with Tanzania on a new standard gauge railway from Dar es Salaam to Kigali

Currently the cost of transport of a 20 foot container from Shanghai to Mombasa costs anywhere between 500USD to 1000USD. The cost of transport of the same container from Mombasa to Kigali varies between 3 000USD to 4 000USD. The introduction of DPWK will solve the inland logistics problems, delays and cost by providing a one stop shop for all logistics requirements and cargo services. The facility offers container handling, stuffing and de-stuffing, warehousing, storage and other cargo handling services. Imports from overseas can be routed through Kigali Logistics Platform for onward distribution to the surrounding countries of Uganda, Tanzania, Burundi and the DRC, a growing region of over 40 million people. Customs officers at the incoming port use highly advanced e-tags, to seal incoming containers. These active RFID tags allow real-time tracking of cargoes en route to Kigali, for complete transparency and added security.

Spreading its wings into Africa Baoli, a player in the international forklift truck manufacture scene, is currently expanding into the African market by entering into an agreement with ICOGEF, a company that has been operating in the Republic of Côte d’Ivoire. The agreement will allow Baoli to supply forklift trucks to the food and agriculture sectors.

tenance,” comments Giovanni Grandi, Baoli EMEA’s business development manager.

“The agreement signed with ICOGEF represents an important step towards the expansion in the African territory. Thanks to this structure, we will be able to rely on a large warehouse of forklift trucks ready for delivery, spare parts available in just 48 hours and spaces for the direct training of the personnel in charge of main-

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Supply Chain Today

January/February 2019

Baoli Giovanni Grandi Email: export@baoli-mh.com en.baoli-mh.com

On the Move

DP World Kigali Email: info@dpworld.com www.DPWorld.com

Thorsten Steinle

Thorsten Steinle has assumed responsibility for Interroll’s service activities in the Europe, Middle East and Africa (EMEA) region. In his new role as Head of Service EMEA, Thorsten will promote the country-specific expansion of service activities as well as the expansion of the service offering in the Interroll service network. The focus here is on further increasing customer satisfaction. One focal point will be process harmonisation of the service chain across all Interroll products and services.


High security welded mesh

Pallisade

Gates

Gate Automation

Razor wire and more ....

What is High Security Weld Mesh HIGH Security Weld Mesh is wire fused and welded at a Horizontal distance of 76.2mm and a vertical distance of 12.7mm also known as 35B/3510 where 3 denotes 3”(distance between vertical wires), 5 denotes 0.5” (distance between horizontal wires), and B or 10 denotes gauge of wire

Salient Features • Difficult to Climb: The spaces between the Horizontal wires are too narrow for fingers to have grip • Impregnable: Extremely difficult to cut with a hand cutter as the beak of a wire cutter will not be able to penetrate the horizontal wires • Excellent Replacement option to Solid Wall as: 1. More economical than a solid wall 2. Faster to install than a solid wall 3. CCTV Camera has a clear view • Further upgrade possible with electric security system • Anti-corrosive & low maintenance

Standards

• Manufactured according to BS EN 10016-2 • Wire Sizes in accordance with BS EN 10218-2 • Tolerance on Mesh Size in accordance wiht EN 10223-7 • Tolerance on Panel Size in accordance with EN 10223-4 • Welding Strength in accordance with BS EN 1461 • Zinc Coating in accordance with EN 10245-1 • Anti Corrosion in accordance with BS En 3900 E4/F4

Tensile Strength • Wire has a tensile strenght of min 550 MPA

MARK: 083 454 6488

Email: mark@palifence.co.za

www.palifence.co.za

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Supply Chain Today Jan/Feb 2019  

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