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Supply Chain Today

July 2011

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A Daimler Brand 082075

Every order is a race against the clock. I don’t need a van that gives out along the way. My Van. The new Vito. A van you can count on. The hallmark Mercedes quality standards shine through in the new Vito. Thanks to a 12-year warranty against rust-through damage, a fully galvanised body and long service intervals, the new Vito’s downtimes have never been shorter. And, with tailormade CharterWay service and/or maintenance plans to ensure peace of mind, this Vito is more reliable than ever. BlueEFFICIENCY: a bundle of innovative technologies to optimise fuel consumption and emissions. You can experience the positive effects of this package first hand in the new Vito. For more information regarding the new Vito and to book a test drive visit www.the-new-vito.co.za. To locate your nearest dealership contact 0800 133 355.

Vehicle specifications may vary for South African market

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July 2011

Contents Featured on the cover: Toyota Forklift is a division of Eqstra Industrial Equipment Tel. 011 395 0600 Fax. 086 644 0432 Email. Eugenes@sie.co.za www.toyotaforklift.co.za

Cover Story

Transport and Logistics

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27 Just Another Tax?

Getting it Right

Trucking

Forklifts 7

29 Going the Extra Green Mile 31 1 000 000km Clocked

Safe as Houses

Cold Storage

Team Players

8 Real Cool Customers 11 Palpable Difference

35 Breakfast with Gary Kirsten

Market Forum — Supply

Cleaning

36 Market Forum

13 All Things Cleaning

Endorsing Bodies

Market Forum — Unit 17 Market Forum

SAPICS Report-Back 22 Memorable Indeed

Green Supply Chain Workshop Report-Back 25 Oversubscribed

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.

Afritag (div of Smart Card Society) CGCSA (Consumer Goods Council of SA) CILTSA (Chartered Institute of Logistics & Transport: SA) SAEPA (SA Express Parcel Association) SAPICS (The Association for Operations Management of Southern Africa) also mailed to: CSCMP (Council of Supply Chain Management Professionals)

The monthly circulation is 4 025 Proprietor and Publisher: PROMECH PUBLISHING Tel: (011) 781-1401 Fax: (011) 781-1403 E-mail: supplychain@promech.co.za

Advertising Sales: Lelanie Diamond Production: Zinobia Docrat DTP: Yolanda Flowerday and Lilian Kemp

Printed by: Typo Colour Printing Managing Editor: Susan Custers Tel: (011) 402-3468

Website: www.promech.co.za Contributor: Dave Tootill

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July 2011

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COVER STORY

Getting it Right Any company worth its salt knows that the best reference is a repeat customer, particularly when it’s a customer known for setting the highest standards for its suppliers.

W

hen a major supermarket chain recently upgraded its Gauteng distribution centre, their decision to involve long-time forklift partner, Toyota Forklifts, speaks volumes about the relationship. “Supply Chain Today” speaks to Gerhard Greyling, Regional Sales Manager. “The company literally doubled the floorspace of its existing facility,” Gerhard explains. “The new warehouse is 600 metres long. There’s also a new reclamation centre. We’d previously supplied their materials handling equipment and they kept us on board for the upgrade. We assessed the existing fleet and upgraded or replaced where necessary, supplying additional vehicles to cover the expansion.

A promise of 98% uptime, 24/7, 365 days a year, is quite a challenge “The order includes 265 machines,” he tells us. “These range from hand pallet trucks, shuttles and low level order pickers to counterbalance forklifts and 12.5 metre reach trucks.” Both diesel and electric models were specified, and the project includes an on-going maintenance contract to maintain all equipment.

On-site ops

“Some years back, Toyota Forklift introduced a one-stop solution to clients to ensure optimal operation at all times,” he elaborates. “This has gained increasing support as companies realise the value of outsourcing the maintenance of vehicles to a specialist. We take it a step further by keeping a full service centre at their premises.” Gerhard elaborates, giving a description of the operation. “Managing a fleet this size with a promise of 98% uptime, 24/7, 365 days a year, is quite a challenge,” he smiles. “We’re permanently on-site to drive the process. We provide

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COVER STORY

our own brand of batteries, which are maintained in our battery bays. Batteries can be difficult to manage because the charging cycle is not always adhered to, limiting lifespan. This can add up to vast expense for the company. “Our qualified mechanics keep the fleet in full time operation, and we provide training so that drivers are up to scratch in terms of handling. Since operations are often provided by outsourced companies, it’s necessary to make sure they have the relevant skills,” Gerhard emphasises.

Successful launch

The new fleet was unveiled at an impressive launch featuring winding trains of shiny new vehicles. “We included price details so that drivers would understand the value of the equipment they’re using,” adds Gerhard. “It makes a difference to know that you’re being trusted with such an important asset.”

Maintaining a two million pallet pick a week is a big operation This sense of pride extends beyond the drivers, to the Toyota team itself. “We realise how important we are to the efficiency of this business,” he finishes. “Maintaining a two million pallet pick a week is a big operation. We take it very seriously.” Gerhard Greyling, Toyota Forklift, Tel. 011 571 0200, Fax. 011 5710222, Email. gerhardg@sie.co.za, Website. www. toyotaforklift.co.za

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FORKLIFTS

Safe as Houses It’s more and more difficult for operators to abuse or mishandle their forklifts. Apart from the obvious benefits of adequate training and supervision, automatic builtin safety features ‘keep an eye’ on your asset. “Supply Chain Today” talks to Gerhard Duvenhage, national sales manager for Criterion Equipment, a wholly-owned subsidiary of Invicta Holdings.

H

e explains, “Our new TCM FRSB-VIII electric sit-on reach truck series, with capacities between 1,4 tons and 2,5 tons, includes a load meter that prevents over-loading. When the truck is stationary and the hydraulic system is not active, the load meter shows the approximate weight of the load on the forks, to avoid an accident.” He adds “One of the biggest causes of forklift damage and injuries comes from over-loading.”

Approximate weight of the load on the forks, to avoid an accident Another safety feature is the password entry system which stops an unauthorised person from jumping onto your truck causing damage as they go. The travelling and load handling interlock system increases safety while an alarm buzzer sounds and both the hydraulic and travel controls are automatically disabled if the operator leaves his or her seat in the middle of an operation

Speed limit

Gerhard adds, “Drivers also can’t abuse the truck by overloading and then moving around the warehouse at speed. If the forks are raised to the maximum fork height with a load, the truck automatically detects the fork height and weight of the load in order to limit the travel, reach and sideshifting speeds.”

The FRSB-VIII electric sit-on reach truck series offers reliable performance, extended run times per battery charge, enhanced safety and improved operator comfort

Then there’s the design of the foot switch, which requires the operator to keep his left foot on the foot switch dur-

ing operation, so that injuries are prevented during operation in confined spaces. A wheel angle indicator, which shows the angle and direction of rotation of the drive wheel, is another important safety feature. Gerhard Duvenhage, national

Kept in check

sales manager

“Any would-be F1 drivers are kept in check with the steering angle sensitive travel speed limiter which automatically reduces the truck speed if the drive wheel angle exceeds a certain value, so that turning takes place at a safe speed. Also, the drive wheel slip control system keeps starts and acceleration smooth, even on a slippery surface, without the need for complicated accelerator control operations. An AC drive motor detects whether the drive wheel is spinning when starting or accelerating and any slippage is eliminated by fine-tuning the drive power,” says Gerhard. As an additional safety option, the rear wheels can be equipped with electromagnetic brakes. This feature enables the truck to come to a stop in a short distance, without sliding sideways, even on slippery surfaces.

Impressive staying power

“What’s really impressive is the FRSB 16 – VIII’s 420 Ah/6 hr battery unit, which can work for 11,5 hours in a specified work cycle pattern, at an operating rate of 55%.” But long hours can mean operator fatigue, so a standard sideshifter moves the fork and load backrest to the left or right to align them perfectly with pallet openings when picking up a load. The sideshifter also allows easy and accurate stacking at the specified location, without having to reposition the truck frequently.. “In our quest for energy efficiency and if a warehouse is poorly lit, an optional fork positioning laser unit shines a visible laser beam from the base of the forks towards the rack, to enable easy insertion of the forks into the opening of the pallet. This device, which reduces damage to loads and pallets, is particularly well suited for stacking and unstacking loads in high locations and for handling loads in dark areas.” Gerhard concludes, “It’s a well-known fact that TCM products command the highest re-sale value in the industry. Our stuff is tough, it’s simple, it’s durable.” Criterion Equipment (Pty) Ltd, Gerhard Duvenhage, Tel: 011 966 9700, Email: gerhard@criterion.co.za, Website: www.criterion.co.za

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COLD STORAGE

Real Cool Customers New legislation surrounding the consumer protection act as well as other international standards puts an increasing onus on the cold chain to monitor and record conditions of products while in storage or in transit. Malcolm Mackay, sales director of Fairbridge Technologies

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ut tighter management of the cold chain is not a form of policing, but rather a heaven sent that provides a level of protection to both the consumers and suppliers along the way. With the correct checks and balances in place it is more difficult for unscrupulous suppliers and operators to get away with substandard handling of goods that can spoil and even put lives at risk. Take for example batches of vaccines that are not properly refrigerated and allowed to be dispatched to clinics for immunisation purposes. Even foodstuffs can be dangerous or lethal if stored outside of safe temperature limits where contaminants such as bacteria may thrive.

Acts as proof that goods were correctly stored or handled Accountability

The tightening of controls calls for constant monitoring of temperature sensitive goods and up-to-date records being kept in case problems occur along the way. This acts as proof that goods were correctly stored or handled. It also places the burden of accountability on each company responsible for every step in the cold chain. Temperature logging gives you a record that while the goods were in your care they were properly handled. Temperature monitoring protects consumers, outlets, logistics companies,

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warehouses and producers with proof of compliance to set standards. Malcolm Mackay, sales director of Fairbridge Technologies, informs “Supply Chain Today” that tighter legislation is leading to strong demand for temperature monitoring devices from all quarters of industry. Since its establishment more than 5 years ago the company has been helping meet the monitoring requirements of the cold chain and remains dedicated entirely to providing solutions “from farm to fork or factory to shop floor”

Not a luxury

He says nowadays temperature logging of products is a necessity not a luxury. In some instances it even pays to monitor pallets or even individual product temperatures rather than just the general environment. Like the fast food outlet that was baffled by a 10% spoilage of its hamburger patties in transit despite trailer temperature readings being acceptable. When they used specialised equipment from Fairbridge Technologies they found that the layout of the exhaust systems of the trucks (used to carry the patties) heated the trailer floor enough to spoil the patties, but not affect the trailer temperature. As a result they saved a fortune and their reputation was spared further embarrassment. The company has an expanding range of logging devices for almost any application from


COLD STORAGE

high sensitivity devices to disposable tags for one-off usage. Many different loggers supplied by the company are being used in major retail outlets, logistics companies, and pharmaceutical companies and fish wholesalers. Even Capespan, the country’s foremost fruit exporter, has become an important development partner to ensure the country’s fruit is delivered fresh to the rest of the world.

Mercury rising

Malcolm is in high spirits, but becomes serious when he recalls a chance conversation with a logistics company owner at an airport. “I was sitting at the departures lounge and got talking to a passenger who was also sitting riveted to his laptop. We exchanged formalities and when he heard that we were into temperature monitoring his response was surprising. “So you the guys that are out to catch us out!” he said in horror. “I was shocked at his response because I had never seen it in that light. I replied that if his son or daughter were diabetic and injected themselves with spoilt insulin and died as a result, would he feel differently?” “Again I was surprised that he had never seen it in the that light and he immediately conceded that he had not thought about it in that way. Rather than seeing it as an assurance and guarantee to protect himself and his supply chain he had seen it as a policing of his operation,” we both learned a valuable lesson that day,” Malcolm enthuses.

Grudge purchase

Despite all this Malcolm says there is still a war at play between companies’ quality managers and their financial gurus because the addition of technology adds to overheads and argue that such items are not budgeted for in the initial quotations to clients.

industry. Unlike others that sell instrumentation products among other things, we specialise entirely on providing products and services to monitor temperature. We can’t afford to just sell a solution off the shelf, so we work with our customers to find the right solutions for them,” says Malcolm. The range of products available from Fairbridge Technologies is astounding. The line up includes rugged iButtons which are tiny steel button-shaped devices similar in appearance to a watch battery. These devices can monitor temperature and humidity very accurately and can be programmed to

Nowadays temperature logging of products is a necessity not a luxury keep logging temperature for long periods of time. The buttons can be fixed to crates or immersed in liquid or put almost anywhere where they are needed. The devices are discreet and do not take up valuable space on shelves or in transit. They can be read in a number of ways either in-situ or brought to a terminal to be read, downloaded, stopped or reprogrammed.

Magic iButton

Information gleaned from the devices is automatically downloaded to the locally developed software suite, aptly named “Cold Chain Thermodynamics” where information can be recorded, exported and stored for future references. Once the information is downloaded the iButton can be cleared and used over and again. “The iButtons are super robust, reliable and reusable. Overseas they are used by Blue Chip pharmaceutical companies, among others, such as Nova Nordisk, Astra Zenicke and Novartis,” Malcolm adds.

Traditionally companies dealing with items regarded as super critical, such as pharmaceuticals or high value perishable items are well versed in temperature monitoring and reporting. But, with the new Consumer Protection Act and Hazard Analysis and Critical Control Point (HACCP) legislation that protects many export destinations, all temperature sensitive goods should be handled with the same care. Fairbridge products are developed locally or sourced from leading suppliers around the world. Furthermore, loggers can be calibrated by a SANAS accredited authority in line with NIST, UKAS and EA validation standards.

Cold Chain Thermodynamics

“Our company was set up specifically to service the temperature monitoring Supply Chain Today

July 2011

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COLD STORAGE

Wireless capability

Similarly the company’s range of Fourtec (previously Fourier Systems) loggers has a display and is programmable to be used for short or long periods. The Fourtec range is highly accurate and is used most often in specialised applications. The range also has realtime wireless capabilities so that warehouse monitoring and logging can be done seamlessly at any point where the loggers are placed.

Another interesting system is the Escort range of data loggers with built in displays for ease of operator usage. These devices have a variety of methods of logging and have attachments such as probes which can be used to measure pulp or core temperatures. Others can measure temperature and humidity with attachments for almost any application.

www.barprostorage.co.za

(021) 552 9190 email: james@barpro.co.za

SUPPLIERS OF STORAX MOBILE RACKING

The wireless system can also be used on trucks with information automatically downloaded as the trucks enter the warehouse area. Other options such as SMS notifications when temperatures exceed the set parameters can also be brought on to these systems. The Escort and Fourtec devices make use of software that generates and exports PDF files to the user. These can be date stamped for security purposes. One of the most exciting products in Fairbridge Technology’s line-up is the new disposable single usage card systems for temperature logging. Users simply pull a tag to start monitoring the temperature of goods either on shelf or in transit and snap the perforated board when monitoring is complete.

There is still a war at play between companies’ quality managers and their financial gurus beacause the addition of technology adds to overheads Auto download

The exposed end acts as a USB plug and when plugged into a computer it automatically downloads a PDF to the user’s machine to be used as a record of critical temperatures throughout the period monitored. These user-friendly devices are affordable and do not need any specialised equipment to perform the monitoring. This makes them ideal for users who occasionally need to monitor temperatures or where many temperatures need to be taken simultaneously on a once-off basis. The cards are available in options that give anything from 24 hours to 100 day monitoring.

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Supply Chain Today

July 2011

“We even have logging devices that simulate a chicken egg down to the thickness of the shell and simulated internal conditions of an egg to ensure exact storage and transport conditions, so imagine what we can do for other industries,” concludes Malcolm. Fairbridge Technologies, Malcolm Mackay, Tel: (011) 608 0911, Fax: (011) 608 0401, Email: sales@fairbridgetech.com


COLD STORAGE

Palpable Difference At Bakkavor’s South African operation, Spring Valley Foods, the procurement manager Duard Cloete, now feels in the loop concerning the partnership with their bin supplier.

B

akkavor SA supplies Marks and Spencer in the UK and Woolworths Foods in South Africa, on an exclusive basis, with a range of ready-to eat, pre-prepared fruits and fruit salads.

We received an account ‘reconciliation’ and there was no discussing it really “Since we started using Palogix’ services, we have saved a substantial amount of time and money on managing our systems when sourcing fruit from our producers,” says Duard. “Our logistics systems, which of course include the bins, are crucial to the success of the business and our partnership with Palogix has made a palpable difference.”

Duard adds that ‘partnership’ is accurate. “Before Palogix, there were no discussions with our old bin supplier. At the end of the month we received an account ‘reconciliation’ and there was no discussing it really. The only way out was to pay, even if breakages and/ or losses had nothing to do with us!”

From the beginning

“We work together as a team and work things

Thandazo Tshabalala, Bakkavor’s bin controller with Palogix’ bins

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July 2011

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Company Contact Details

COLD STORAGE

Johnson Taylor Forklifts

Metrofile, Sandy Soal Tel: (011) 677-3000, Fax: (011) 622-9085 sandys@metrofile.co.za, www.metrofile.com

(Pty) LTD

Micron Engineering, Stan Contat Tel: (011) 421-0738, Fax: 086 635 4197 Johnson Taylor Forklifts (Pty) LTD have been stanc@microneng.co.za

marketing the Rhino-Heli since 2004 and have Microsep, Desiree Lahoud Tel: (011) 553-2300, Fax: (011) 553-2400 established a good reputation of being rugged info@microsep.co.za, www.microsep.co.za

andTelematics, exceptionally reliable. We offer a well MIX Hernus Vermeulen Tel: (011) 654-8000, Fax: 654-8122 price from a balanced product at(011) an affordable hernus.vermeulen@mixtelematics.com

company that is this biggest exporter from China.

Mobile Scanning Systems, Paul de Klerk With ISO 9001 approval, this company Tel: (011)the 823-4668, Fax:and (011)CE 823-2778 paul@mobilescan.co.za, produces upwards ofwww.mobilescan.co.za 33000 lift trucks a year. Mobile Training, Naomi van Schalkwyk Now rated as one of the top 8 forklift companies Tel: (016) 976-7299, Fax: (016) 976-5002 mobiletraining@gmail.com in the World. Mobile Waste & Rubble, Vanessa van Akmelo Tel: (021) 951-6318, Fax: (021) 951-6308 pajburger@mweb.co.za out in this spirit. Their flexibility has been Mobilift, Brian Wylie, Tel: (011) 974-3100, Fax: key (011) Currently we have approximately 1000 liftto974-3872 trucks the success of the operation in both peak times, mobilift@iafrica.com, www.mobilift.co.za working in South Ourand largest fleet with when we may need Africa. more bins, in slacker MobiScan (About Time), Hoy he says. times when fewer may Raymond be required,” one customer Transnet. They have spent well Tel: (082) 056-5149,isFax: 086 542 5438 Palogix MD, Peter Friedman concurs, “It’s been a raymond@aboutime.co.za, www.mobiscan.co.za over R40million andtheare one of Our ourteam happiest win-win situation from beginning. Moir Industrial Agencies, Charlie Moir works very closely withwe Thandazo customers because backupTshabalala, our promise. Tel: (021) 762-8610, Fax: (021)which 762-7724 Bakkavor’s bin controller, has contributed Transnet are using 68 Forklifts rangingof from moirind@iafrica.com, www.castorking.co.za significantly to the overall smooth running the Peter adds that one of Palogix’ 5 – operation.” 20 tonners. Mondi Plastic Containers, Lynette Venter strengths is its ability to supply customers with Tel: (021) 577-1205, Fax: (021) 577-3399 tailor-made solutions. “We are not an ‘off-thelynettev@mpcsa.co.za, www.mondiplasticcontainers.co.za With’ product respectand toservice your requirements to support shelf supplier, but prefer to Monitor Samson Sven Humboldt understand the Controls, specifics of of what is required your/our fleet in terms parts backupand on site, Tel: (021) solutions 552-6088,that Fax:are (021) provide fit 551-2515 for purpose,” he says. we are able to tailor-make awww.samson.de solution to suit your sven.humboldt@samson-sa.com,

Highest levels

Montana Resourcing, Charlie major Hayward needs.says Duard that another advantage of Tel: (021) 683-0999, Fax: 086 611 Palogix’ bins is that they are5177 plastic. “Our hycharlie@montanaresourcing.co.za giene standards are at the highest international

Cnr Bridget & Barney Road, Benrose, Johannesburg P.O. Box 3665 Randburg, 2125 Tel: 011 614 5120 Fax: 011 614 7231 info@johnsontf.co.za www.johnsontaylorforklifts.com Reg No. 2004/000760/07

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SUPPLY CHAIN BUYERS GUIDE

Supply Chain Today

July 2011

July 2011/12

levels atEquipment, all times and Mopping Guy wooden Williamsbins are almost impossible to keep sufficiently clean. Our bins are Tel: (011) 792-9044, Fax: (011) 791-1406 easily sanitized andwww.mopping.co.za when wear and tear makes guy@mopping.co.za, them unhygienic, we have a simple and mutually Morris Materials Handling, Mark Walter well-understood replacement system,” he says. Tel: (011) 748-1000, Fax: (011) 748-1093 Icelandic-owned Bakkavor supplies over 6 000 mwalter@morris.co.za, www.morris.edx.co.za products in 18 fresh-prepared food categories Motoman Robotic Systems SA, Terry Rosenberg and a variety of fresh produce categories which Tel: (011) 608-3182, Fax: (011) 608-3186 are sold predominantly under its customers' own terry@motoman-sa.com, www.motoman-sa.com brands. It operates in 10 countries, has 50 facMoving Methods, Nigel Bracegirdle tories and employs over 19 000 people. Tel: (011) 392-1190, Fax: (011) 392-1724 Palogix supplies plastic pallets and bins on a mov452@global.co.za, returnable basis. They also, where necessary, www.movingmethods.co.za offer systems and on-site management where its MS Safety Consulting, Michael Scholtz dedicated logistics specialists manage the pallet/ Tel: Fax:proprietary (011) 764-1512 bin(011) pool764-1512, using their software, Atrax, mssafety@lantic.net whereby all returnable packaging is uniquely identifiable and their movements MSC Logistics, Francois Blignault tracked using remote all(011) locations. Tel: (011) scanners 627-6542, at Fax: 613-6084 fblignault@msc.co.za, www.msc.com Palogix International, Peter Friedman, Tel: 011 262 3015,

Brian Dawson 0797769324

Email: rentals@palogix.com


CLEANING

All Things Cleaning Two friendly streams

Goscor Cleaning Equipment’s (GCE) Tennant ec-H2O technology, which converts plain tap water into an effective and efficient cleaning agent, has been a significant advance in ‘green’ industrial cleaning given the combination of its extraordinary effectiveness as a cleaning agent and its significant environmental friendliness. So says GCE MD Ricky Bodmer.

Electrolysis

Water-electrolysis is an age-old technology that has been used in many applications as a cleaning agent. Up until now this process has typically generated two species (streams) of water: alkaline and acidic. These streams must remain separate in order to prevent them from naturally recombining into normal tap water with each stream providing a unique set of uses and benefits, although not every application requires the use of both streams. As a result, in most applications, there is a waste-stream created during electrolysis that is simply disposed.

Radical improvement

The revolutionary ECH20 technology is a result of new and radical improvements to simple water electrolysis described above. The key is that ec-H2O allows the two streams of water - alkaline and acid - to combine and remain independently active for 45 seconds. This creates a powerful cleaning agent before recombining into normal tap water. This has not only vastly improved the cleaning properties of water but it is also a far more environmentally friendly method of cleaning. With no chemicals added, the water remains uncontaminated. It is important to note, however, that there are some applications where the use of chemicals is still necessary but, in these cases, ec-H2O can be applied during rinse cycles, which are crucial in removing chemical residue build-up. The significant advantage is that the rinse cycles also act as cleaning cycles as, even though there are no chemicals, ec-H2O cleaning is taking place. So, even when chemicals must be used, the ec-H2O process reduces re-soiling, extends the periods between cleaning, saves chemicals costs and reduces the impact on the environment. For more information please contact Goscor Cleaning Equipment on 011 393 1413

Gone are the days of the good old mop and broom. Industrial cleaning is an increasingly sophisticated business with many products aimed at the specialist cleaning and recycling challenges which abound in industry and warehouses.

S

upply Chain Today” set off to meet recentlyappointed GCE (Goscor Cleaning Equipment) product manager, Graeme Kruger, to talk about all things cleaning and their new industrial vacuum cleaning division, which will market the products of their latest international partner, Delfin, who are based in Turin, Italy. Graeme has been in the industrial vacuum business for a good 13 years and is one of our leading experts in the recycling and cleaning of hazardous materials. He says that the new division, apart from servicing standard industrial vacuuming requirements, provides specialist solutions for hazardous environments.

90-minute lunch hours

Graeme’s introductory visit to new principal Delfin in Turin gave him a lesson in dealing with 90-minute lunch hours (“Supply Chain Today” thought this was more of a French tradition), which made him wonder how all the pasta didn’t seem to affect waistlines over there. When we meet, Graeme is loyally keeping the Chloorkop June cold off with a typically stylish Italian tracksuit top from the Torino rugby club, who toured South Africa recently.

Made him wonder how all the pasta didn’t seem to affect waistlines over there Delfin’s special application products for GCE are engineered and manufactured to order, for a wide range of customer industries. They include the high-risk organic industries. That’s not just the Woolworths definition of free range eggs and cheese, but goes down a list containing pharmaceuticals (obviously, such as clean rooms), food, paper/tissue, clothing, and so on. Supply Chain Today

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CLEANING

Sparks and static

Graeme has experienced in his career a growing interest in solutions, particularly as European parent organisations have introduced new controls including those of safety measures in high risk arGraeme Kruger eas and clean room environs. The Atex equipment must comply with both European Union standards as well as local SABS standards before being delivered to the end user. For any company, this type of

Combustible Dust Does your company or firm process any of these products or materials in powdered form?

If your company or firm processes any of these products or materials, there is potential for a “Combustible Dust� explosion. Agricultural Products Egg white Milk, powdered Milk, nonfat, dry Soy flour Starch, corn Starch, rice Starch, wheat Sugar Sugar, milk Sugar, beet Tapioca Whey Wood flour Agricultural Dusts Alfalfa Apple Beet root Carrageen Carrot Cocoa bean dust Cocoa powder Coconut shell dust Coffee dust Corn meal Cornstarch Cotton

Cottonseed Garlic powder Gluten Grass dust Green coffee Hops (malted) Lemon peel dust Lemon pulp Linseed Locust bean gum Malt Oat flour Oat grain dust Olive pellets Onion powder Parsley (dehydrated) Peach Peanut meal and skins Peat Potato Potato flour Potato starch Raw yucca seed dust Rice dust Rice flour Rice starch Rye flour Semolina

Soybean dust Spice dust Spice powder Sugar (10x) Sunflower Sunflower seed dust Tea Tobacco blend Tomato Walnut dust Wheat flour Wheat grain dust Wheat starch Xanthan gum Carbonaceous Dusts Charcoal, activated Charcoal, wood Coal, bituminous Coke, petroleum Lampblack Lignite Peat, 22%H20 Soot, pine Cellulose Cellulose pulp Cork Corn

Dust Control Measures The dust-containing systems (ducts and dust collectors) are designed

Chemical Dusts Adipic acid Anthraquinone Ascorbic acid Calcium acetate Calcium stearate Carboxy-methylcellulose Dextrin Lactose Lead stearate Methyl-cellulose Paraformaldehyde Sodium ascorbate Sodium stearate Sulfur Metal Dusts Aluminum Bronze Iron carbonyl Magnesium Zinc Plastic Dusts (poly) Acrylamide (poly) Acrylonitrile (poly) Ethylene (low-pressure process)

Epoxy resin Melamine resin Melamine, molded (phenol-cellulose) Melamine, molded (wood flour and mineral filled phenolformaldehyde) (poly) Methyl acrylate (poly) Methyl acrylate, emulsion polymer Phenolic resin (poly) Propylene Terpene-phenol resin Urea-formaldehyde/ cellulose, molded (poly) Vinyl acetate/ ethylene copolymer (poly) Vinyl alcohol (poly) Vinyl butyral (poly) Vinyl chloride/ ethylene/vinyl acetylene suspension copolymer (poly) Vinyl chloride/ vinyl acetylene emulsion copolymer

Supply Chain Today

July 2011

The facility selects and uses industrial trucks that are approved for the combustible dust locations.

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CLEANING

investment is often a sort of insurance, against dangers such as sparks and static.

Many materials which oxidise can generate a dust explosion, such as coal “Dust explosions” are often not reported. Many materials which oxidise can generate a dust explosion, such as coal. Other common materials such as maize, flour, sugar, powdered milk and pollen can also create a dangerous dust cloud. Many powdered metals can form explosive suspensions in air. A similar problem occurs in saw mills and carpentry shops. To create combustion, the dust must consist of very small particles with a high surface area to volume ratio, for instance

in bakeries and the confectionery industry, where the vacuums are used for dust extraction on production machinery and the cleaning of charred particles from ovens.

Filtration

Similarly, mobile or fixed machines can be used. In the engineering and metals industries, cleaning can be extended to the filtration and recovery of oil and coolant, and the saving and recycling of the clean liquid into machine tools. GCE has years of experience and expertise in high efficiency particulate air (HEPA) filtration techniques. The Delfin range provides the same filtration capability on its equipment should it be required for the collection of hazardous dusts and to meet clean room specifications.

Appropriate filter systems are supplied, and maintenance costs are low. GCE, together with Delfin, aims to put a solution together to suit clients’ needs with a complete range of applications. Founded in South Africa, GCE (formerly known as Tennant SA) also offers a range of sweepers (available for rental) and high pressure cleaners. Goscor Cleaning Equipment, Graeme Kruger, Tel: 011 230 2600, Email: gkruger@goscor. co.za, Website: www.goscorcleaning.co.za.

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Market Forum Refurbished machines

Refurbished high capacity machines, designed for safe and efficient loading and unloading of heavy materials and large crates onto and off trucks, are available nationally from BLT,” says Clinton van den Berg, products manager for BLT, which is based at the Durban harbour. “Robust forklift trucks – available with capacities of 16 T, 18 T and 32 T – are offered as rental machines or for purchase. Empty and full container handlers are also available. “To keep up with growing demand and to maintain its position as a key supplier of handling equipment, BLT has recently opened a new operation in Cape Town to improve service levels in the region.

erating range, it can considerably reduce CO2 emissions from heavy and long-distance transport operations. “By using liquefied gas in an efficient diesel engine, we make it possible to use gas-powered trucks in heavier and longer-distance transport operations, making us the first manufacturer in Europe to do so,” says Claes Nilsson, President Europe Division at Volvo Trucks. The fact that the company is developing gas technology and making it more attractive for the transport sector creates future potential for significantly reducing the collective environmental impact of heavy transports. This technology with natural gas generates 10 % lower CO2 emissions than a diesel engine. In the long term, Volvo Trucks regards the increased use of natural gas as a major step towards greater availability and use of biogas, which reduces CO2 emissions still further. Compared with conventional gas-powered sparkplug engines, Volvo’s gas technology offers 30 to 40 percent higher efficiency which in turn, cuts fuel consumption by 25 percent. This means that if a Volvo gas-powered truck is run on biogas, emissions of carbon dioxide would be able to be cut by up to 70 percent compared with a conventional diesel engine.

BLT has extended its fleet of materials handling equipment to include a fleet of refurbished forklift trucks, container handlers and reach stackers

“Initially the focus of BLT’s business was on hiring equipment for ocean-going containers and related cargoes, but by securing the exclusive distributor rights locally with leading heavy materials handling equipment manufacturers abroad, the company’s offering has been extended to include the sales and service of a wide range of equipment.”

The engine technology is based on a conventional diesel engine equipped with gas injectors, a special Thermos-like fuel tank that keeps the gas liquefied and chilled to -140 degrees Celsius, and a specially modified catalytic converter. By using liquefied gas, more fuel can be stored in the tanks than by using compressed fuel. This gives the methane-diesel truck a far greater range than that of traditional gas-powered trucks that utilise spark-plug technology. In a truck with a gross weight of 40 tonnes, the fuel tank holds enough gas for a range of up to 500 kilometres in normal driving. Jenny Björsne, Tel +46 31 664523, Email: jenny.bjorsne@volvo.com

BLT’s fleet includes Taylor container handlers, which efficiently handle empty and loaded containers, Meclift variable reach trucks for swift and safe container stuffing and handling and the Mobicon mobile container handling system, designed to efficiently lift loads onto and off trucks and to safely carry containers around sites. BLT also distributes conveying equipment that includes link conveyors, grab hoppers, surface feeders, radial boom stackers and mobile shiploaders. Big Lift Trucks, Clinton van den Berg, Tel: 031 274 8270, Email: clinton@biglift.co.za, Web: www.biglifttrucks.com

Gas-powered long-haul trucks

Volvo Trucks is enhancing its focus on alternative fuels with the launch of the new Volvo FM MethaneDiesel. This truck is powered by up to 75 percent gas. Thanks to its fuel-efficient technology, which extends the vehicle’s opSupply Chain Today

July 2011

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Market Forum Thumbs-up

Two leading South African transport companies, Bakers and Manline, have given the thumbs-up to their recentlydelivered Serco-made Interlink trailer combinations.

Safety first

Steve Harper

Steve Harper, owner of Alpha Load Testing, is assisting organisations to comply myriad regulations covering the forklift industry.

"I believe that lifting equipment and safety should be synonymous, and I am passionate about ensuring safe working conditions for all involved. The reality is that an accident can not only ruin a company's reputation, it can also destroy the lives of the people who have been injured. High safety standards benefit the organisation as well as its employees, and correctly load testing equipment such as forklifts can help to prevent accidents before they happen," says Harper.

Manline is a diversified logistics company providing transport, warehousing and supply chain services. The new interlink is part of a fleet of vehicles which transport bread for BB Cereal. A Manline spokesman says: “Stand out features are the new inter-leading double centre doors and ramp which have been designed for safe and easy use.” Bakers Transport also recently took delivery of a new Serco interlink.

Aside from the moral and ethical obligations of employers to ensure machine operators can perform their jobs in a safe environment, organisations are also under pressure from legal regulations that govern operating standards. The DMR18 of the Occupational Health and Safety Act prescribes regulations for the maintenance, load testing and inspection of all lifting machines and lifting tackle. Failure to comply will lead to penalties imposed on the organisation involved. "This Act requires that organisations ensure their lifting machinery or equipment is inspected every 6 months and load tested every 12 months. It is illegal to operate lifting machinery that does not comply with these requirements and standards, which are in place to ensure the safety of everyone who works with or around these machines," he adds. In order to load test equipment individuals need to have relevant experience as well as a mechanical qualification, be registered with the Engineering Council of South Africa, have qualified as a Lift Machine Inspector (LMI) and be affiliated with the Lift Machine Entity (LME). Steve, with two decades of experience in the industry as well as six years as a safety officer, has proven his worth in this sector and in addition is qualified to load test MEWPS (Mobile Elevated Work Platforms) and lifting tackle. Alpha Load Testing is based in Gauteng and operates nationally, with current customers across the country in areas such as Mpumalanga, Limpopo, Northwest, the Free State and Durban. Alpha Load Testing, Steve Harper, Email: harper@telkomsa. net

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Johann Strydom, fleet manager at Manline Durban and Tyrone Deyes of Serco

A spokesman for Bakers says: “An interlink allows for more volume and payload. The Serco trailer has a sliding fifth wheel which allows a forklift to drive through from the rear trailer to the front and has an aluminium roll-over door which suits our cargo”. A lifting axle system is also fitted to both trailers. Serco managing director, Clinton Holcroft, says that by using the new coated birchply floor and offering various options for through-loading, they have produced an Interlink combination lighter than that previously offered. “Customers have become acutely aware of having a vehicle that is durable and lightweight and these are exactly the features we have concentrated on with our latest Interlink offerings.” Clinton Holcroft on 031 508 1000


Market Forum Smart reset door

Technikon Laboratories, an independent pharmaceutical contract manufacturer, packer and distributor based in Johannesburg, has installed a state-of-the-art Apex Smart Reset roll-up door in its dispatch area. The door, supplied and installed by Apex Strip Curtains, controls the exit through which all manufactured goods leave the factory. Technikon Laboratories’ Terry Henning says the new Apex Smart Reset door offers faster speed and better regulation of the climate controlled interior than the roller shutter door previously in place. “The new Apex Smart Reset door came in at a very com-

The Apex Smart Reset door installed at Technikon Laboratories controls the exit through which all manufactured goods leave the factory

petitive price and we have noticed a significant reduction in dust levels since it was installed,” he says. “This is a result of the door’s rapid opening and closing speeds. We are really impressed with the way it has been working and we would certainly look at Apex again if another door is needed at our facility.” Apex Strip Curtains in Modderfontein introduced this innovative heavy duty rapid roll-up door to the South African The Apex Smart Reset door offers faster speed and better regulation market just over two years ago. The primary advantage of the climate controlled interior at Technikon Laboratories of this robust high speed door is that if it is accidently dislodged, it automatically recovers its alignment during the next opening and closing action. This is made possible by an ingenious design incorporating side hinges that slide along special guides, together with flexible curtain ends. If the curtain is accidentally hit by an object passing through, the hinges come off the guides to prevent damage. The Apex Smart Reset door also incorporates a DSC electronic safety device which automatically reverses the motion if an obstacle is encountered while the door is closing. Apex Strip Curtains, Wim Dessing, Tel :+27 011 452 8723, Web: www.apexstrip.co.za

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SCANIA EVENT SABO TEST & A D

Automechanika

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TS & ACTIVITIES e v i Dr

Nampo Scania Southern Africa Angola, Botswana, Malawi, Mozambique, Namibia South Africa, Tanzania, Zambia, Zimbabwe

www.scania.co.za Supply Chain Today

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SAPICS REPORT-BACK

Memorable Indeed Yet again a new record was set for the number of attendees at the SAPICS annual conference at Sun City in what was certainly a calmer time period than last year, when everything in the country seemed to be interrupted and disrupted by the World Cup. “Supply Chain Today” was told by the conference speaker organisers that a lot of effort was made to maximise the number of practitioners giving presentations, and there were certainly quite a number of detailed case studies.

T

he conference got off to a flying start with Professor Nick Binedell of the Gordon Institute of Business Science nominating his three choices for icons with big ideas: Sol Kerzner (appropriately), Henry Ford and Steve Jobs. The professor’s theme was “Learn from everyone, and copy no-one” and, wherever we went over the next three days, delegates kept referring to his talk – memorable indeed.

Too big a gap in general between the mathematicians and the practitioners The Supply Chain Council again participated with a team of international speakers, concentrating on implementations of the Supply Chain Operations Reference (SCOR) model. This covered a wide range of organisations, including hi-tech, retail, defence and service industry.

A big gap

A novel case study was about a project called “Keeping the Fridges Full”. Obvi-

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SAPICS REPORT-BACK

ously SAB Miller has a complex network of plants and products in this country. Advanced Planning & Scheduling software has been touted for many years as a silver bullet, but perhaps there has been too big a gap in general between the mathematicians and the practitioners. Certainly, detailed case studies have been few and far between- although companies often prefer to be coy about a competitive advantage. In this tale, it took quite some time and experimentation to decide on the right level of complexity for the model. At a lower level of intricacy, Sonae Novobord, a particle board manufacturer, had to adjust some three years ago from selling all they could make, to discovering the world of planning systems. Their solution was spreadsheet- based, after studying all the theory from SCOR to Theory of Constraints.

Slickest and most entertaining show in the supply chain arena It was no surprise that the topic of Walmart cropped up at regular intervals throughout the conference. In fact, they and Massmart surprised a lot of commentators with aggressive advertising on the Sunday of the conference, when most thought that there might be a lull after all the regulatory and competitions debates. The common view seems to be emerging that Walmart is actually a logistics company that happens be in the retail sector.

Various strands

Perhaps bringing the various strands together was American guru Dan Gilmore’s thoughts on megatrends in supply chain management. It was a lot to put into one session, but particularly interesting were his thoughts that managers were going to need to be more financially savvy; and that On Demand software would be dominant by 2015, but could and should be sooner if it were not for the software vendors themselves trying to halt the tide in order to protect the old business model. Despite having 30 years of the annual Sapics conference under its belt, what we most admire about Sapics and its committee is that it continues to add new twists and turns as it chooses speak-

ers, networking sessions etc to reflect the times and the wishes of the delegates, while continuing to run the slickest and most entertaining show in the supply chain arena. Upavon, Tel: (011) 023-6701/2/3

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GOSCOR

LIFT TRUCK COMPANY

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GREEN SUPPLY CHAIN WORKSHOP REPORT-BACK

Oversubscribed Pictured at last year’s Green Supply Chain Awards ceremony are: Left to right Andrea Agostini of Foschini, Winston Muir of Scania South Africa,Louise Lindeque of Chemical and Allied Industries, Barlow Manilal of C I LT S A , M a p u l e Ncanywa of CGCSA, Francois van Rensburg of Barloworld Logistics, Pieter Jacobs of Magnet, Cobus Barnard of Pick ‘n Pay, Susan Custers of Promech Publishing and Carey-Anne Garbutt of Unitrans

Four companies made presentations at the Green Supply Chain workshop held Sunday 26 June, before the SAPICS Conference proper kicked off that night. The Awards are a joint initiative of the Chartered Institute of Logistics & Transport in South Africa (CILTSA), the Consumer Goods Council of South Africa (CGCSA) and “Supply Chain Today”.

K

ate Stubbs heads up the Marketing team for Barloworld Logistics, and has run the supplychainforesight research study since its inception in 2003. She said that transport accounts for 13% of greenhouse gas emissions in South Africa. Euro III, IV and V fuels are gradually being introduced, but many in the truck population are still at the I and II stages. Their Green Trailer is a new sustainable transportation initiative, and also focuses on profitability and operational excellence. This new aerodynamic tautliner was designed in conjunction with the CSIR and a saving in fuel consumption of nearly 11% was achieved on the Toyota contract trips between Gauteng and Durban, compared with the rest of the fleet.

Joining in with gusto

Dawn Dodds of TrenStar emphasised that the quest for profitability will ultimately drive sustainability projects. For instance, General Motors saved $12 million with a reusable container programme, initiated as a cost-saving effort. She engaged the attendees by asking each to name a possible green supply chain intervention in their company. The attendees who hailed from Transnet, Exxaro, Unisa, Metro Minerals, Office of the Director of Public Procurement, TFD Network Africa, DHC, Salter Supply Chain Consultancy ans Sasol joined in with gusto. Martin Bailey of Industrial Logistic Systems took us through the many aspects contributing to a green warehouse. There’s lighting, ventilation, space planning, correct staging, redundant han-

dling, forklift battery charging etc. He showed us power points of the 26 metre rigs being used in Europe, versus the maximum 26 metres here. He also gave a brief overview of the trailer on a flatcar system used in the US which has not gained wide acceptance due purportedly to the height of our bridges and other obstructions. In conclusion, Roberto Virgili described how Scania South Africa is the first company here to have developed buses running on ethanol. This reduces CO 2 emission by 90%, compared with Euro II diesel buses.

Import substitution

Ethanol has been a proven technology for decades, and has the virtue of import substitution. Scania has teamed up with a company which is bringing employment to local farmers who are coached on the in’s and out’s of farming sugar beets on previously unfarmed land. The fifty Scania buses in service with Rea Vaya are equipped with Euro IV engines running on 50 ppm diesel and some Scania trucks are also using the new fuel. The workshop was oversubscribed to as more and more attendees arrived to find out more about the nitty gritty of instituting a green supply chain – judging by the response, they left more knowledgeable and more energized to tackle the big task ahead. Any enquiries about entering the awards should be directed to Zinobia Docrat at 011 781-1401 or email: supplychain@ promech.co.za. For sponsorship opportunities, contact Lelanie Lane on 011 781-1401, cell 084 598 1222 or email supplychain@promech.co.za

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taking you to new heights

Toyota Forklift is the global market leader in materials handling equipment with a reputation for safety & efficiency, innovative research & development and quality products‌ AND helping you reach new heights

TOYOTA

TEL : +27 (0) 11 395 0600

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Supply Chain Today

EMAIL : toyota@eiegroup.co.za

July 2011

WEB : www.eiegroup.co.za


TRANSPORT AND LOGISTICS

Just Another Tax? At June’s meeting and panel discussion hosted by the Transport Forum Special Interest Group at the University of Johannesburg, Rose Luke of UJ set the scene in her introduction by quoting Deloitte’s analysis that the proposed new carbon tax would bring in an extra R82 billion to SARS. While Eskom and Sasol together would account for well over half of this, the effect would nevertheless be significant for the freight transport industry. One caveat- all sorts of forecast ranges and prices adjusted for inflation got thrown around in this whole debate, so this article will deal only with indicative figures, in what is an economists’ playground.

command-and-control measures. This means the use of legislative or administrative regulations that prescribe certain outcomes. These are usually target outputs or quantity, eg, minimum ambient air quality standards, within which business must operate. An alternative is market-based instruments, including environmentally-based taxes and tradable pollution permits. This means punishment, rather than adherence incentives, said one member of the audience.

Mike Schussler

A

s Trevor Manuel said, “In the future, the energy-intensive coal-based nature of our economy is likely to be penalised as the world seeks to mitigate climate change by reducing emissions of carbon dioxide.” But what to do?

Carbon taxes are extremely controversial around the world. The largest opposition comes from countries which rely on coal as a major generator of low cost power, and which are among the biggest emitters of CO 2, such as the US, China and Russia. In Australia, Prime Minister Julia Gillard and Greens Senator Bob Brown plan to legislate a carbon tax during the next few months. But polls show strong public opposition to the minority government’s policy of increasing the price of energy to combat climate change. Recently, the Energy Commission of the Swiss lower parliament has rejected plans for a CO2 tax on fuel.

It is straightforward to argue that environmental problems cannot just be resolved by the market, and that government intervention is necessary –for instance by regulations, standards and taxes.

The total South African transport bill would increase by some 4% if diesel were to go up by a mooted 70c per litre. An average interlink generates approximately 6 million ton/km per year which would mean CO 2 tax per truck of some R180 000 per year The “polluter pays principle” started by covering public costs incurred in administration and control measures, and was then extended to pollution prevention programmes. In general, the value of environmental damage is very hard to quantify, but few would argue with the concept.

Entice or punish

What we are probably most familiar with is

Rose Luke

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TRANSPORT AND LOGISTICS

Competitive odds

Depressed margins

The tax would also tilt the competitive odds towards rail rather than road as CO 2 emissions per ton/km are three times higher by road. The tax would thus encourage intermodal freight. It is generally assumed that the increase in transport cost will be passed down to the consumer by the LSP’s.

Consolidation has not only been fuelled by the providers of logistics services. The users of such services have also integrated vertically into the transport sector by taking control of distribution centres.

Back in Johannesburg, when it comes to the transport sector, the total South African transport bill would increase by some 4% if diesel were to go up by a mooted 70c per litre. An average interlink generates approximately 6 million ton/ km per year which would mean CO 2 tax per truck of some R180 000 per year.

In terms of potential actions in response, familiar solutions were recited, such as more efficient vehicles, better quality fuel, R24 billion ‘waste’ currently included in logistics costs, but of course these operational improvements can be addressed anyway without the pressure of additional taxes. Back in March, the Energy Minister announced that Government hopes to have cleaner fuels made available from 2013, in terms of the Clean Fuels Two (CF2) draft specifications and standards, which is the equivalent of the current European Emissions Standard Five (Euro V).

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A PwC report was quoted, which emphasised the already increasing competition in the road haulage and warehousing sector. The largest operators have grown through a process of acquiring their competitors. The barriers to entry in the container road haulage business are quite low leading to depressed margins, in a spot market where the lowest-cost provider typically secures the business.

Mike Schussler of “The Economists.co.za” view was that this was likely to be just another tax generation initiative calculated to bring in R6 billion extra from road freight on top of the current R12 billion they already pay. Not good news especially at a time when infrastructure capital investment is declining compared with public sector expenditure. For the full presentations from this forum, go to www. transportsig.com The PwC report can be found at http://www.logisticsinwallonia.be/files/gallery/okpwctl2030_vol31297671142.pdf


TRUCKING

Triton’s new Euro 5 Euro 5 Volvo FH500 Globetrotter 6x4 truck tractors are the first of their kind in the country

Going the Extra Green Mile Eric Corbishley, Joint CEO of Triton

Green miles are big news on the global front and transport companies are under increasing pressure to upgrade their vehicles and operations to run more efficiently.

I

n a move which mirrors this trend, Triton Express has added two Euro 5 Volvo FH500 Globetrotter 6x4 truck tractors to its fleet. The trucks will be the first of their kind in the country. “Supply Chain Today” speaks to Triton’s Joint CEO, Eric Corbishley, about the new vehicles.

In Europe, Euro 4 has been mandated since 2006 Raising the bar

“The purchase is part of our move to reduce our carbon footprint and go green,” he tells us. “It’s a step towards converting our entire fleet to energy efficient vehicles.” The company sets out a bold plan to buy only Euro 3 or higher in future. Current South African legislation will only require Euro 2 until 2014, while in Europe, Euro 4 has been mandated since 2006. “Euro 5 shows significant improvements over Euro 2,” Eric emphasises. “Particle mass emissions are cut from 0.15 grams per kilowatt hour to 0.02 grams per kilowatt hour. Furthermore,

nitrous oxide (NOx) is decreased from 7 grams per kilowatt hour to 2 grams per kilowatt hour and fuel efficiency is improved by around 3%.”

AdBlue

In keeping with Volvo’s focus on advanced fuel mechanisms, the new trucks are designed to run on cleaner fuel, using 50ppm diesel instead of the 500ppm that presently dominates the market. This will provide the additional advantage of increased engine longevity, as well as longer service intervals. Eric explains that Volvo utilises Selective Catalytic Reduction (SCR) technology to reduce harmful emissions with an exhaust gas treatment called AdBlue. Safe and easy to store, AdBlue is made up of 67.5% demineralised water and 32.5% urea, which reacts with and neutralises nitrogen oxide. According to the manufacturers, of all the fluids used in a truck – including diesel, engine oil, battery acid, clutch fluid and even windscreen washer fluid – the organic compound is the least hazardous to the environment. Supply Chain Today

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TRUCKING

Performance will be further enhanced by the use of two customised interlink combinations, designed and built by Afrit

Many transport specialists are deterred from switching to cleaner fuel systems due to accessibility issues

AdBlue is injected into exhaust gases before they pass through the SCR catalytic converter, where NOx is turned into harmless nitrogen acid and water vapour. Extensive testing reveals that

AdBlue not only minimises emissions, but also results in significant increases in fuel economy. Volvo is currently working with leading oil and chemical manufacturers to establish an extensive distribution network for the product. “Availability is a primary concern,” Eric advises. “Many transport specialists are deterred from switching to cleaner systems due to limited access to fuel.” Volvo’s rollout plan includes suppliers offering complete tank systems that are already available for delivery.

Specialised composites that are not only lighter, but also able to attain 13% better payloads In tow

Performance will be further enhanced by the use of two customised interlink combinations, designed and built by Afrit. “We’ve specified specialised composites that are not only lighter, but also able to attain 13% better payloads,” Eric adds.“ The unit is chassis-less which lightens the trailer considerably, as do alloy wheels.” Safety enhancements are incorporated in the form of sophisticated disc brakes and a weight system designed to prevent overloading. “We realise that it’s not necessary for us to be taking this step right now,” Eric acknowledges. “However, it’s only a matter of time before South African companies feel more pressure to conform to international standards. Already we’re seeing a demand from multinational clients for their suppliers to embrace the green movement. “By ensuring that our fleet exceeds the requirements set out by law, we not only give ourselves a competitive advantage when new regulations come into place, but we’ll also have spent additional years being kind to our environment,” he smiles. Eric Corbishley, Triton Express, Tel. 011 579 6700, Fax. 086 537 4902, Email. eric@tritonexpress.co.za, Website. www.tritonexpress.co.za

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TRUCKING

1 000 000 km Clocked A Mercedes-Benz Vito 115 CDI panel van has clocked more than 1-million kilometres without any major engine or gearbox repairs or replacement. And that’s thanks also to sticking to regular maintenance, says the Johannesburgbased owner who uses the panel van for transporting human remains from hospitals and mortuaries to funeral parlours all over Southern Africa.

Z

ac Letsoalo, a 37-year old Johannesburg entrepreneur, who was born in the Limpopo Province, operates from Braamfontein, a precinct of central Johannesburg, where several of South Africa’s biggest funeral services groups have their headquarters.

More dignifying service while also raising the corporate image of the business at the same time “Many people, while working away from home, die from natural causes, or in accidents, natural disasters or as a result of crime. My company, Let’s Management & Transport Services CC ensures they are brought home in a dignified and decent manner. We also repatriate remains to outlying areas and regions,” he says.

End-to-end process

Human remains repatriation is a specialised service dictated by procedures prescribed by international standards. It is an end-to-end process that needs a speedy, reliable response. Part of Zac’s service offering is to fetch remains from homes, hospitals,

police mortuaries, etc. and store them in the company morgue until repatriation. This, from the Johannesburg end, often involves the cleansing and embalming side of the process, especially if there are long distances to be travelled. In terms of logistics, Zac has been providing a transportation service from his own mortuary to funeral parlours in Southern Africa since 2003. He started with two pickups fitted with canopies. In 2006, he decided to provide a more fitting mode of transportation and chose the Vito 115 CDI. The deal was made through the Mercedes-Benz Commercial Vehicles dealership in Centurion, who arranged the necessary finance.

Over the border

Transport to cross-border, as well as other sub-Saharan or overseas countries, requires the preparation of relevant documentation and authorisations, including forensic medicine, embalming and infection control certification. These documents must also be issued in the different languages spoken in various country destinations. Apart from English, this could require Portuguese, French or Arabic translations and the need for foreign government approvals via local consulates or embassies. Zac gained valuable experience in this field while employed by the well-known Medical Rescue International organisation in Johannesburg, which provides worldwide ambulance, repatriation and financial services to insurance companies and travellers. Before that, he spent three years with First National Bank while studying for a Diploma Supply Chain Today

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TRUCKING

in Business Administration and Marketing from Damelin College.

Demand

Looking at local requirements and seeing a business opportunity, Letsoalo decided to take his Vito and market an efficient repatriation service to funeral undertakers around the country. People appreciated the service and over the past five years, he has had to purchase six more Vitos and a Sprinter panel van. He has also employed additional drivers and administrative staff to help him cope with the demand.

30 000 km service intervals, is clearly shown in the instrument cluster While Zac now employs a staff of 12 people to handle the entire process, he also uses a clearing and forwarding agency to take care of the more intricate aspects, especially when remains are flown into or out of the country over long distances. The regions he serves now have reached as far north as Eritrea, Nigeria, the DRC, Tanzania and Kenya. While most of the road distances travelled are on tarred road, the vehicles have also gone off-road

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and braved “the sandy roads of Mozambique, the hot dry, climate of Botswana, the high altitude of mountainous Lesotho and the rugged roads of Zimbabwe”. “I believe our success is all due to my first Vito, which provided a more dignifying service while also raising the corporate image of the business at the same time. I am still paying off that first Vito but was able to pay cash for the others, some of which were demo models. Unfortunately two have been in accidents and have been written off. I will not sell the first Vito because it has made my business grow,” he says.

Regular service

Zac also attributes his success to the low fuel consumption of the vehicles, their reliability and the excellent back-up service he gets from the Centurion and other Mercedes-Benz dealerships on the West Rand and the East Rand. “I get about 740, up to 750 kilometers on a full tank, which is important when you travel long distances. Servicing the vehicles regularly at the right intervals prolongs the lifespan of the vehicles and prevents breakdowns, which I cannot afford to happen in this business. Obviously, parts like


TRUCKING

shocks need to be replaced and only once was there a hiccup – I waited for more than a day for a spare part which had to be obtained from another dealership.”

Wait for it….

Zac loves marketing and when the first Vito reached 999 964 km during April this year (2011), he did not hesitate to notify the Mercedes-Benz head office of an important event to happen. A photographer was sent out for the ride that would see the odometer tick over, but..... “We took it on the N1 towards the Grasmere offramp but when it got to 999 999km, it stopped at that. But that’s fine with me,” he said, proudly. The Vito 115 CDI, is powered by a 4-cylinder in-line diesel turbo engine and offers 110 kW of power and 330 Nm of torque. This model has since been replaced by the Vito 116 CDI offering increased power of 120 kW and 360 Nm of torque. The ergonomic loading facility of the panel van;

56 cm load height from ground, together with the twin sliding doors and large rear tailgate, makes for easy access in and out of the Vito. In addition, the spacious and secure loading area of 2,7 m length of load floor with secure floor anchors (lugs), makes the panel van ideal.

We believe we have a definite winner “The Vito model range comes standard with a 2-year warranty/unlimited mileage, and is fitted standard with the onboard ASSYST system. This best-in-class offering with 30 000 km service intervals, is clearly shown in the instrument cluster. Taking into consideration the high mileage the Vito 115 CDI has travelled, much of which has been on rugged terrain, and the general wear and tear encountered since purchase in 2006, we believe we have a definite winner,” concludes Mpumelele Zulu, product manager, Mercedes Benz Vans. Mercedes Benz SA, Shirle Greig, Tel: 012 677 1904, Fax: 012 677 1682, Email: shirle.greig@daimler.com, Website: www.mercedes-benzsa.co.za

Zac Letsoalo

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Green Supply Chain Awards 2011 Two lucky attendees will win a MasterDrive Defensive Driving Course worth R2 000 each.

INVITATION Date: Thursday 25 August 2011 Venue: Offices of the Consumer Goods Council of SA Block D, Hurlingham Office Park, Woodlands Avenue, Randburg Time: 16h30 for 17h00 to 18h30

Going green is no longer a choice, it’s a business imperative! RSVP: By Friday 17 August to Zinobia at Promech Publishing on Email: supplychain@promech.co.za or Tel: (011) 781-1401 PS: Drinks will be served from 16h00 - you are welcome to arrive early. Previous Winners include: Gautrain, CT Utility Services, TNT, Scania, Unitrans/Pick n Pay,

Foschini, Chemical & Allied Industries, Magnet Engineering and Barloworld Logistics Platinum Sponsor:

Silver Sponsors:

Zinobia Docrat Tel: (011) 781-1401 / 074 164 7974 Email: supplychain@promech.co.za

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Catherine Larkin Tel: (011) 789-7327 / 787-9127 / 083 300 0331 Email: cvlarkin@ciltsa.org.za

Support Sponsor:

0861 CGC 000 (0861 242 000) 0866 749 929 www.cgcsa.co.za


TEAM PLAYERS

Breakfast with Gary Kirsten RAM Hand-to-Hand Couriers is the official courier and broadcast sponsor of Cricket South Africa. The company collects and delivers the players’ kit and equipment in South Africa and internationally with overseas partners.

G

one are the days of players carrying those bags out of their cars full of bats, pads and boxes.

It was appropriate then that RAM recently sponsored a breakfast at which new Proteas coach, Gary Kirsten, was interviewed by former head of the United Cricket Board, Ali Bacher. You would have thought it would be about batting averages, line-ups etc, in fact Gary emphasised managing the team and getting players in the right frame of mind. There was some discussion about how dominant a captain should be, with the plaudits pointed back towards Kepler Wessels. The breakfast was not a marketing spiel for RAM, more of an opportunity for their customers to bring along their own clients. Just a pity that RAM’s security chief, Gary Beeke, a former Cape druglord, was inconveniently gunned down by motorbike assassins recently. But as they say, the game must go on. RAM Hand-to-Hand Couriers, Tel: 0861 726 726, Website: www.ramgroup.co.za

Promech Publishing has a BEE rating of

168.75% Supply Chain Today

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Market Forum transporting mining equipment, pipes and fertilizer into Zambia.

A boon to importers

Conventional inventory management systems are used to fulfill the sole objective of maintaining reorder levels for stock, resulting in a gap between targeted investment in and targeted availability of the stock. “Fundamentally, Barloworld’s Optimiza identifies, plans for, and reduces inventory risks often associated with non-availability, over stocking, obsolescence and forecast Christopher Comodikes errors in demand planning. As a result Optimiza bridges the gap between strategic planning and operational execution of the organisation,” says Christopher Comodikes, head of Barloworld Supply Chain Software in South Africa. “Traditionally, freight forwarders take instruction from procurement divisions to manage the freight movement as per their predefined lead times and inventory purchasing policies. By identifying synergies between these two disciplines, our team analyses the freight patterns and using the data obtained, identifies opportunities to change the existing procedures. Barloworld Logistics is now able to offer this value added solution specifically to importers, in order to address the various inventory challenges of international freight. These include the characteristics of different global markets, lead times, transport options and constraints (for example, of sea versus air freight), and many other factors, such as measuring inventory holding cost versus freight transportation costs, which need to be built into the planning of a global stockholding system and supply chain. Optimiza has enabled over 600 companies to reduce their inventories by 15-30% and increase stock availability by as much 5-15% around the world. Most importantly the results are sustainable. Barloworld Logistics, Tel: 011 445 1600, Fax: 011 445 1630, Email: info@ barloworld-logistics.com, Website: www.barloworld-logistics.com

Cargo Carriers has also become a strong supplier of logistics management and optimisation software into the region. Our suite of software products is designed with African conditions in mind, and we have consultants who are active and comfortable working throughout the SADC region.” Throughout the SADC, most trading routes are by road rather than rail. The Federation of East and Southern African Transport Associations is improving the flow of goods in the region, and Cargo Carriers is in the vanguard of these developments. With its growing reputation as an ‘African’ supply chain and logistics services provider, the company is well positioned to lead their client’s expansion into the region. The management is confident that, barring significant shocks to the economy, the 2011/12 year will continue to yield growth in their African business, and that their clients will increasingly see expansion into the continent as a priority. www.cargocarriers.co.za

Tailored property solutions

Has your company outgrown its existing warehousing and office space and are you looking for new premises? Improvon Properties will help you find the best property solution for your business.

Improvon has three main projects it is currently working on namely, N1 Business Park, Montague Park and Tunney. The 32 Ha N1 Business Park, midway between Johannesburg and Pretoria in Gauteng, provides the ideal opportunity for businesses looking to position their warehousing, cross-docking and distribution facilities in a secure and easily accessible environment.

Cross border trade

In a year that for the logistics industry in general was relatively quiet, Cargo Carriers has posted an impressive 21% increase in its turnover. Some of this success is attributable to the successful inroads the company has made into the SADC region. The bulk of Cargo Carriers’ Cross-Border business involves transporting fuel to Zimbabwe and Zambia, and supplies and fertilizer into the mining and farming sectors of the SADC region. “Zimbabwe is now in a position where it can, and needs, to buy fuel and we expect to reap the reward of additional transport as the economy recovers,” says Murray Bolton, joint CEO of Cargo Carriers. “The Zambian economy is also strengthening. The mining sector is growing due to the surge in the price of copper, and the agricultural sector is booming. We are currently

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Montague Park in Milnerton is Improvon’s flagship property in the Western Cape and is the largest project of its kind to be undertaken in the area in many years. Launched to the market on 2 June, 2011, the new 62 Ha mixed-use business park currently under development is fast attracting several national ‘big box’ retail chains and modern distribution centres, due to its prime location, eco-friendly focus, security and overall aesthetic appeal. A much smaller development is Tunney, an established industrial node on the East Rand in Gauteng, which will offer 20 000 m² of industrial space to either one large client or several smaller clients by the time construction is completed at the end of September this year. Improvon, Susan Waugh, Tel: 011 409 9308, Email: sue@improvon. co.za, Web: www.improvon.co.za.


Market Forum Key business content to SMEs

Local SAP Business All-in-One Partner, SCT Services, has announced the release of the first user experience package for SAP Business All-in-One solutions. The package provides users access to key business content through a rich, unified and personalised environment for faster access to critical information and improved productivity.

Auto sector revs up volumes

The positive outlook in the new vehicles market and automotive contracts won by local original equipment manufacturers (OEM’s) have seen impressive volumes of fully-built units handled at the Port Elizabeth car terminal operated by Transnet Port Terminals, such that a R4 million expansion of parking facilities has been necessary. An additional 1 500 parking bays and a new staging area were created between October 2010 and March 2011. The facilities are already in use and have contributed in providing additional capacity and improved productivity. The Port Elizabeth car terminal can now house up to 5 000 fully built units with an option of using 1 500 more during certain periods of the year. Volumes have already grown significantly as the vehicle market becomes more bullish. Year to date statistics show the terminal handled 151 218 units from April 2010 to March 2011, a greater than 100% improvement on the 68 829 units handled in the same period for 2009/2010. The figures follow similar growth at East London’s terminal, where the import of automotive parts and the export of fully built units have boosted volumes and also necessitated a capacity creation project in Port Elizabeth. Chief Executive of Transnet Port Terminals Karl Socikwa says, “The auto sector has shown confidence in partnering with us to drive their growth and that of the country’s economy. We are committed to creating capacity ahead of demand because of the importance of this sector to the regional economy, and the strategic importance of the region to Transnet.” Transnet Port Terminals, Sindie Ndwalaza, Email: Sindie.Ndwalaza@ transnet.net, Web: www.transnetportterminals.net

This is also the latest solution improvement for customers and partners participating in the ramp-up of SAP enhancement package 5 for the enterprise resource planning (ERP) application SAP ERP 6.0, one of the key pillars of SAP Business All-in-One. It meets the rapidly growing demands of small businesses and midsize companies for improved working environments and greater customisation. According to SCT Services CEO, Victor van der Watt, SAP Business All-in-One solutions are the first to package preconfigured end-to-end business scenarios with business intelligence for better business process execution and higher user productivity. “With this new package, SAP delivers an intuitive, integrated and efficient user experience in which customers will have one single working environment for SAP and non-SAP applications, defined solely by the requirements of the employee and the specific operational role.” This package provides pre-defined user interface content, which is graphically attractive and easy to navigate, to establish a new, out-of-the-box user experience for various roles in sales, purchasing, accounting, manufacturing, financials, project management, human resources and management. SCT Services, Mike Hartman, Tel: (012) 345 5669, Email: mhartman@mySCT.com

Workers head to India

Ford Motor Company of SA (FMCSA) last month completed the last part of a year-long training programme aimed at teaching its factory workers ‘Kaizen’ - the lean manufacturing processes that have been credited with increasing efficiency and reducing costs in large manufacturing operations across the world. But instead of the approach coming from the top down, FMCSA’s management elected to go down a different route which involved putting theory into practice and sending over 200 factory workers – most of whom had never left the country, stepped inside an aeroplane, or seen the beach before – to the Indian coastal city of Chennai for an intensive two-week training course with the objective of improving processes, quality and speed of production in Ford’s South African plants ahead of the introduction of the new Ranger later this year. Supply Chain Today

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Market Forum The course was based on practice rather than theory, and the groups of South Africans had the opportunity to see, feel and touch the benefits that lean manufacturing delivered first hand. “Seeing how this new way of working could change the way my team and I operate made a huge difference in how I approached my work,” comments Simphiwe Mthombeni, one of the factory workers who participated in the course. The learnings are already yielding results, with those that have been on the training course motivating their teams to adopt a new, leaner and more efficient way of working. Every day starts a little earlier than it did in the past, with morning exercises that the trainees learned from their Indian colleagues. Regular team meetings are held every morning, with the majority of the Silverton assembly plant gathering for larger weekly meetings on Wednesday nights. “The turnaround has been almost instantaneous,” says Peter Lawson, Vice President of Operations at FMCSA. “Not only has the quality and speed of our daily processes improved, but worker morale has improved exponentially, with various teams on the factory floors now competing against each other to see who can better their processes first.”

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Managing warehouse operation

Kuehne + Nagel has taken over the management of the plant warehouse operation for Continental Tyre S.A. at their production premises in Port Elizabeth.

In the scope of the new contract, Kuehne + Nagel supports Continental Tyre’s original equipment and aftermarket dealer business in the South African market. The comprehensive service offering includes: receiving tyres from production, carrying out quality control checks, storage, inbound and outbound handling, picking and packing, inventory management as well as management of empty containers. In addition, Kuehne + Nagel will provide an external warehousing solution for overflow volumes in Port Elizabeth. “We are delighted that Continental Tyre has entrusted us with their warehousing operation in South Africa, due to the successful cooperation with Kuehne + Nagel in various other countries. This new project will also strengthen our position in the South African automotive sector,” says Graham Smit, general manager contract logistics, K + N, South Africa. www.kuehne-nagel.com

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Index to Advertisers Afzelia 14 Barpro 10 Bartrans 28 Chris Reay 30 Goscor 24 ILS 6 Johnson Taylor 12 Linde 19 Mercedes Benz Inside Front Cover Pioneer Plastics 35 Proscan Inside Back Cover Psion 32 Scania 20, 21 Toyota BT Outside Front Cover Toyota Forklifts 26 UD Trucks Outside Back Cover Universal 16


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Passionate, Professional, Dependable

www.udtrucks.co.za

As we are entering a new era in the history of our company by becoming known as UD Trucks, our DNA remains that of Ultimate Dependability. With more than four decades of specialised industry knowledge and over 50 dealers in southern Africa, the people at UD Trucks are committed to making your business a success. Numerous key fleet owners already depend on a UD Truck to get the job done, so make the right choice on the road to your success.

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Supply Chain July 11