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Supply Chain Today July 2013


The movement

has begun

from fossil fuel to zero fuel Operating cost of your forklift: FUEL CONSUMING TRUCK


Benefits of an electric Toyota Forklift

• Less maintenance less downtime • Reduction of noise • Waste reduction • Operator toxic inhalation eliminated


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• Elimination of fuel costs


• Zero carbon emissions

TEL : +27 (0) 11 395 0600 EMAIL : WEB :

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Total Solutions Alpha Pharm has eight distribution centres located in Bloemfontein, Cape Town, Durban, East London, Newcastle, Oudtshoorn, Port Elizabeth and Pretoria. In addition to the distribution of high-quality pharmaceutical products, Alpha Pharm also operates over 850 pharmacies nationally and numerous AlphaClinic health centres, offering medical care for young and old.

Customer benefits

• Substantial savings in labour costs • Increased efficiencies and thus productivity • Increased security and less opportunity for pilferage • Drastically reduced reaction and delivery times in the logistics and operational systems, resulting in vastly improved service delivery and customer satisfaction. Combined, these benefits constitute substantial savings and thus a good return on investment. • K iSoft WCS with interface to the customer Host JD Edwards • Warehouse visualisation KiSoft i-Point • A utomatic destacking machine • C entral belt autopicker SDA-2000 with 1 400 channels for fast movers • 8 manual picking stations with RF terminals • 3 aisle OSR Shuttle for containers up to 15 kg with subdivided containers, 18 100 tray locations, constituting 26 800 storage locations, 2 ergonomic Pick-it-Easy work stations, 1 goods-in work station • High performance conveyor system


ue to the Pharmaceutical Wholesale Industry being put under strain constantly by means of changing labour laws and the advent of single exit pricing for medicines being introduced in the country, together with the constant demand for good service delivery and having experienced a period of exceptional growth, the logical step was to automate the bigger distribution centres in Pretoria and Durban to facilitate efficiencies and further growth capacity. After proper research and availing ourselves through onsite visits to various automated pharmaceutical warehouses in Europe and America, the logical choice was the proven and total solutions offered by Knapp Logistics. Knapp and Alpha Pharm have a successful, long-term partnership. In 2007 the existing warehouse in Pretoria was equipped with Knapp automation technology. The distribution centre in Pretoria became one of the most highly-developed pharmaceutical warehouses in South Africa. About 80 percent of all products are automatically or semi-automatically processed. Only 20 percent is manually picked. The first OSR Shuttle on the African continent was successfully put into operation at Alpha Pharm.

Callie Olivier, executive manager IT, at Alpha Pharm Pharmaceutical


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The warehouse process in the Pretoria distribution centre includes the following key technologies:

July 2013

• Repack station for smaller orders • Automated dispatch preparation: automatic document insertion, lidding and strapping machine • Dispatch sorting system with 24 target ramps.

The solution in detail Order start station and order consolidation

Each customer can submit as many orders as desired in one day. The Host system generates picking orders from the customer orders and transmits them to the warehouse control system, KiSoft WCS. To make order processing in the warehouse as efficient as possible, orders for one customer are consolidated by the WCS and placed in a single transport order.

Destacking and order start

One container size is used in the warehouse. The containers are transported to the destacking machine in stacks of 10, destacked, and transported by conveyor to the fast-mover autopicker SDA, where order start takes place.

Automatic picking with the SDA

The SDA is the optimal solution for fast moving articles that have square, stackable packaging. The SDA in the Pretoria DC has more than 1 400 channels. The warehouse control software KiSoft WCS Klass-X receives orders from the Host and sends them to the autopicker control computer ASX. The articles are ejected onto the central


belt in a space on the belt specific to the order, and transported to the transfer station. There the articles are transferred to the container allocated to the order. A buffer funnel ensures that all the articles land in the container, and ensures the maximum fill degree. This solution constitutes about 42% of the total amount of 'picks' in a typical warehouse.

Paperless picking with RF

eight stations are available for manual picking, which is carried out without paper using RF terminals. The RF terminals guide personnel along a path optimised for time and distance from one storage location to the next, for the best picking process. The error rate is also reduced through the use of RF technology. This RF solution is ideally suited for the “superfast� lines that are just not feasible on the SDA, as well as those fast-to-medium products that are too heavy, big, wet or not suited to either the SDA and/or OSR solutions.

Storing and picking with the OSR shuttle

A three-aisle OSR Shuttle for containers up to 15 kg is used at Alpha Pharm for space-saving storage and efficient picking. The storage containers have different divisions (1/1, 1/2, and 1/4), which additionally raise the number of storage locations. Articles of various size and characteristics can be optimally stored. The OSR Shuttle is completely surrounded by a fence, and access is possible only through the TĂœV certified access concept. This provides both safety for personnel, and security for high-quality/value articles. The OSR Shuttle has two ergonomic Pick-itEasy work stations. The picking containers are automatically transported to the work station according to the goods-to-person principle. The shuttle automatically retrieves the necessary source containers from the system, and also transports these to the pick-it-easy work station. The employee at the work station picks the quantity of product required for the order from the source container. Optimal process security is provided by the pick-to-light displays that are integrated into the pick-it-easy work station. The required number of articles is displayed above the source container. The employee picks the displayed quantity and confirms the pick. Another work station is available near the OSR Shuttle with the additional purpose of adding and storing articles in the shuttle. This decouples the adding or storing processes from the picking process.

Dispatch preparation

The automatic label insert station inserts the appropriate address label in a pocket on the front of the container, so that the container is assigned to a customer and a ramp in the dispatch area. Containers with articles that must be repacked

into plastic bags are specially marked. The containers are conveyed to the automatic invoice insert station when picking has been completed. The invoice is inserted in the last container of an order.


Specific articles are repacked into plastic bags at the repack station, and then placed back in the container. Containers whose contents need not be repacked pass through the station.


Finally, all containers are strapped automatically. The container-turning station that follows orients the containers so that the address label can be read by the employees in the dispatch area.


In the dispatch area, the containers are distributed among the 24 dispatch ramps and then loaded into transport vehicles. The dispatch ramps correspond to specific routes. Each day, 140 deliveries leave the Pretoria distribution centre.

Advantages of the solution

The Knapp solution is a classic, efficient solution that optimally fulfils all of the requirements of Alpha Pharm. The OSR Shuttle with sectioned storage containers offers a space-effective, flexible and secure solution for storing small articles. The pick-it-easy work stations permit ergonomic and reliable order fulfilment, because the goods-toperson principle reduces employee walking time and increases efficiency. In the manual picking areas, paperless picking with KiSoft RF enables personnel to work with the fewest possible errors. The entire container flow has a lean design. Containers are only diverted to those areas in which they must be processed. In total, the Knapp solution raised the productivity and throughput, while lowering the error rate.

Key data

The main warehouse is 4 500 sq. metres (with a mezzanine floor of 2 050 sq. metres. The despatch is 1 200 sq. metres and goods received 1 000 sq. metres. KNAPP Logistic South Africa (Pty) Ltd,, 011 512 0621

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Managing director of Criterion Equipment, Brenton Kemp

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Imperial Logistics

Scaw Metals


Lazarus Pillay

Bashier Enoos

Leani van Jaarsveld


A network of agents throughout South Africa ensures excellent technical and installation support, and quick delivery times.

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RFID Track & Trace

Racking Flow Systems

Overhead Crane & Lift

Ergonomic positioning


Drum Handling

Dura Strip For more information contact: +27 (0)41 486 1997 Allen: +27 (0)82 651 5461• Email:

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Truly efficient cold storage for less Since cold storage space comes at a premium, we’ve introduced the Movirack® mobile racking system at reduced cost per pallet prices that guarantee greater warehouse profitability. • Increase SKUs to the maximum with compact storage • • • • •

Speed up pallet handling and throughput Improve accessibility to each pallet position Advance operating staff’s safety with automation Aid refrigeration and lower energy costs Gain better inventory control, traceability and security

Let us revolutionise the way you do cold storage. Contact us today! 18 0861 61 61 61 • Supply Chain Today

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Question 1

You know you are going to have a good day at the office when........

Question 2

You know you are going to have a bad day at the office when.........

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FF A 3 A 01 lS 2 ua ess nn r A ong C

The South African Association of Freight Forwarders

Shaping Global Economies Through Freight Forwarding Innovation

The South African Association of Freight Forwarders (SAAFF) Annual Congress, presented by Lombard Insurance Group will be a melting pot of debates, trends, opinions, issues and opportunities facing today’s evolved freight management logistics providers. Date: 8 – 9 October 2013 Venue: Hilton Sandton – Johannesburg

Cost: 2-day Package 1-day Package

SAAFF Members R4,300-00 R2,300-00

Non-Members R5,100-00 R2,800-00

Bookings: Please contact Nadine on 011 894 2767 or


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July 2013

Supply Chain Today July 2013


Industrial Shelving

Qlock Pallet Racking

Live Pallet Racking

Pallet Racking

Supermarket Gondola Johannesburg:Tel: +27 11 824 1527 Cape Town: Tel: +27 21 931 5263 Kwazulu Natal: Tel: +27 39 976 7002 Acrow UK: Tel: +44 (0)784 139 1421 Acrow Italy: Tel: +39 0124 350696 ww 08600 ACROW


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Supply Chain Today July 2013


LogiMat® - your ideal storage and picking solution for small parts Working according to the convenient principle of “goods to man”, this automated storage and order picking solution can efficiently reduces the proportion of travel time by more than 70% and increases the commissioning speed by 6 to 10 times. LogiMat® provides efficient space utilisation that helps reduce energy and storage costs, thanks to its extremely compact design. Contact us today for more information.

P: +27/11/7072600 · ·


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Dr Ismail Vadi

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Prize Winner At the annual Sapics conference in June, Stephanie Fourie, Group Marketing and Business Development Co-ordinator, won a Full Page/Full Colour advertisement on behalf of her company, Supergroup Supply Chain.

Stephanie (left) is pictured here with Lelanie Diamond, sales exec on "Supply Chain Today"


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James Reddy

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With our patented Hydrostatic Drive technology, Linde forklifts oer the best fuel consumption and lowest running costs. The unique two pedal system means that there is no clutch, no mechanical brake and no transmission. This, coupled with the indestructible drive train, equates to fewer breakable parts, which means longer service intervals and less downtime. In short the patented Linde Hydrostatic Drive technology will save you time and money.

Linde Material Handling

For more information on Linde dealerships, products and services contact us on Tel : +27 11 723 7000 or visit

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2011/08/05 8:55 AM

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The efficient solution

INTERROLL HIGH SpEED CROSSbELT SORTER As an independent supplier, Interroll offers a product range perfectly tailored to the value creation and requirements of system integrators. It includes installation-friendly sorters which are quick and easy-to-integrate into larger systems.


INTERROLL Supply SA (PTY) LTD • P.O. Today BOX 327 • ISANDO 1600 • ZA-GAUTENG • TEL. +27 11 281 99 00 • WWW.INTERROLL.CO.ZA Chain July 2013

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Focusing on the theme “Greening the Bottom Line”, this morning seminar is aimed at bringing delegates up to speed with new trends and developments in the green arena.

SEMINAR - 09h00 – 12h15 09h00 - 09h20 09h20 - 09h30

Registration of Delegates: Tea/Coffee Served Opening and Welcome: Irvan Damon, CEO at Carbon Track Justin Smith of Woolworths Woolworths, as a diversified retailer, has a broad sustainability programme with over 200 targets. A key part of the programme is to look across the entire value chain of our business and ensure we are managing key impacts and identifying opportunities at all points in the chain. A further imperative is to develop sustainability partnerships with other corporates, suppliers and NGO’s.

09h30 - 10h00

Prakash Parbhoo, McKinsey and Company (Johannesburg), a global management consulting firm. Sustainability and the Green Economy: Latest Research and Insights. Who’s doing what out there in the green arena and how do we as South Africans measure up?

10h00 - 10h30

10h30 - 11h00 Tea Break Shameela Ebrahim - Senior strategist at the Johannesburg Stock Exchange involved in driving a number of key sustainability projects such as investigating the viability of voluntary carbon trading. 11h00 - 11h30

The JSE annually rates their All Share Index companies against environmental, social and governance criteria for the SRI (Socially Responsible Investment) Index. Barloworld Ltd, the Bidvest Group and Massmart Holdings are among the 10 best performers. Come and hear how it’s done. Frances Wright (BSch, MBA) - MD of Trinitas Consulting and lecturer on Business Management for the Logistics and Supply Chain degree for the Open Learning Group.

11h30 - 12h00

12h00 - 12h10 12h10 - 12h15

What really affects business success? To achieve business success is a complex process and South Africa has a 96% entrepreneurial failure rate. Why do some business people achieve success and others not? The impact of various process related factors on business success has been researched to identify the issues that will assist in achieving success. MC to summarise Vote of Thanks and Closure

The Green Supply Chain Awards lunch follows directly on the seminar, also at the Sandton Convention Centre You and your team can choose to attend the seminar only, the awards lunch only or both. Seminar: R1 900 per person (excl VAT) Lunch: R850 per head or R7 000 per table of 10 (excl VAT) Seminar and lunch: The rate for the seminar reduces from R1900 to R1500 (excl VAT) if attending the lunch as well. The entire event is scheduled to run from 09h00 to 14h00. Contact Belinda on Tel: (011) 781-1401/2, Email: or Platinum Sponsor:


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Silver Sponsor:

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Bronze Sponsors:

Support Sponsors:

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Green Supply Chain Awards Lunch 13 August 2013 Sandton Convention Centre 12h30 - 14h00

Invitation The prestigious Green Supply Chain Awards recognise people, projects and products that have gone above and beyond the call of duty to enhance the environment in which they operate. Join us for a three-course plated lunch (wine and soft drinks included) to celebrate this special occasion.

Price R850 per head (excl VAT). R7 000 per table of 10 (excl VAT).

Don’t delay


your table now!

Contact: Belinda on Tel: (011) 781-1401/2 or Email: The annual Green Supply Chains Awards is a joint initiative of the CGCSA (Consumer Goods Council SA), CILTSA (Chartered Institute of Logistics & Transport) and ‘Supply Chain Today” the only South African magazine covering the entire supply chain and logistics arena.



Sponsors: 42

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Jacques Steenkamp


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We’re in it for the long haul.


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"Supply Chain Today" is endorsed by the Council forSupply Chain Management Professionals (CSCMP), the Consumer Goods Council of SA (CGCSA),...