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Supply Chain Today

June 2012



Supply Chain Today

June 2012

June 2012

Contents Featured on the cover: Bartrans Tel: (011) 552-8245


Cover Story

31 Customer-centricity Wave 35 Rebooting Enterprise Software

5 An Authentic Face-lift

Security 7

Where There’s Smoke There’s Security Market Forum — Supply 38 Market Forum - Supply

Tyre Recycling

Endorsing Bodies

11 Waste Tyres Get New Life


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

29 Top Speakers

Also mailed to RFA members

Barcoding, Labelling, Scanning & RFID 15 Tag and Trace

Market Forum — Unit 19 Market Forum - Unit

Cold Chain 25 New Endorsement

“Supply Chain Today” is delighted to announce that (SAAFF) The South African Association of Freight Forwarders is endorsing us. We will be telling readers all about their mission and vision next month and in the months ahead. Welcome Aboard!

Susan Custers with Clarence (left) and Susan Custers Cilla, office security Managing Editor

The monthly circulation is 4 025


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

Proprietor and Publisher: PROMECH PUBLISHING Tel: (011) 781-1401, Fax: (011) 781-1403 E-mail:, Managing Editor: Susan Custers Business Manager: Louise Taylor Advertising Sales: Lelanie Diamond Production Manager: Zinobia Docrat/ Donovan Vadivalu Administration and Circulation Manager: Catherine Macdiva

Subscriptions: Please email us at if you wish to subscribe to “Supply Chain Today” at R405,00 (incl postage and VAT) per year; R1 020,00 per year for Africa/Overseas. Printed by: Typo Colour Printing, Tel: (011) 402-3468 FSC (Forestry Stewardship Accreditation)

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June 2012


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June 2012


An Authentic Face-lift Unlocking the encrypted information in a driver’s licence barcode could benefit sectors such as car and trailer rental, financial services, security and events management, equipment hire and many others where proof of identification and age is mandated.


enerally, names and photos are replaced on the front of fraudulent licences, while the barcode remains unchanged. However, many institutions seem satisfied to just photocopy a driver’s licence for identity confirmation, despite the prevalence of fraudulent licences. Now there’s a way to unlock this encrypted information.

supplying just the hardware and codecs required for decryption of the licences. Alternatively, a complete system can be delivered.

Automatic identification solutions company Bartrans recently acquired the rights to distribute the decryption algorithm South African driver’s licences. Director Luke Dunstan says there are three devices available including a small deskbound scanner that connects to a computer via USB, for PC-based applications such as administration tasks and booking out of vehicles etc; a standard mobile device for activities such as vehicle inspection or returns; and a rugged mobile device used for industrial applications.

“Further, facilities to add digitally-captured signatures, photographs and GPS co-ordinates can be embedded in the solutions. By combining the scanning of the driver’s licence with the vehicle licence disk, information can be gathered such as the registration number and vehicle make, model, year, colour, etc, thus allowing us to offer a composite solution.”

Tracking data

The system comprises a software licence, also called a codec, which enables either the industrial portable data terminal, tablet PC or desktop PC to decrypt the barcode. Currently the codec supports the Microsoft Windows platforms, including the Windows Mobile and CE operating systems.

Decrypt the data and send it back to the client on a payas-you-go basis Data collected can be stored on the mobile device or transmitted either live to a back-end system via Wi-Fi or 3G, or in batch mode using an Ethernet cradle or connection to a PC on the network. Data integrity can thus be controlled according to an organisation's IT guidelines.

Motion detection

Bartrans offers companies the technical ability to develop and integrate their own solutions, by

“The latest Honeywell Dolphin 9700 mobile device also has an accelerometer, which allows the screen to flip without having to turn the device around, or hand it to another person. Motion detection also allows the device to turn itself off if flipped upside down, or switch password protection on when it has been motionless for a certain period,” adds Luke.

Endless uses

The device can be used anywhere from banks, to security and access control points to warehouses. One application is fines redistribution in terms of the new Aarto Act, for companies with fleets or staff vehicles. The hardware scans and links the driver’s licence to the particular vehicle they’re driving, allowing for a database of fleet drivers to be set up. In the same way, car rental companies and automotive dealerships can verify and record a driver’s identification, before cars are rented or taken for a test dive.


Another potential function is automatic form population. As the barcode contains relevant information such as the holder’s names, photograph, national identification number, date of birth, gender etc, it can be used to speed up data capture in the completion of forms at point of sale. Clients can also swipe a credit card if they require a debit order. This allows them to potentially get their new product in minutes. “Some clients have even expressed interest in linking it to their customer relationship management software.” Luke explains. Increased efficiency, accuracy and productivity are all additional benefits of the system, which ranges from R3 000 to R20 000 per user, depending on the solution. Supply Chain Today

June 2012



Target market

Bartrans is particularly targeting the security market. “Clients can either buy the complete solution or just the hardware and add their own software. Some logistics companies and car manufacturers have started looking at this solution, especially for assigning their drivers to vehicles. We have also been marketing it to express freight companies. However, our biggest client base at the moment is rental car companies,” he reveals. Luke says the company is launching a serverbased application in the next few months, where clients could use an iPad or iPhone for example, to take a photo of a driver’s licence and send it through to Bartrans. They will then decrypt the data and send it back to the client on a pay-asyou-go basis. “Clients would just need a device with Internet connectivity that can communicate with our server, and not need to develop software,” he explains.

Tasks are completed faster, more accurately and required less often Other highlights

Bartrans business analyst Jane Matthews says the company has also had much success in its new asset tracking application. The Honeywell 6 100 with Homebase (USB), a barcode-based scanner, is suitable for all organisations needing to keep track of fixed and offsite assets and capital equipment. This includes single or multiple site corporate entities, manufacturing companies, small- to medium-sized businesses, central and local government, educational institutions or field-service providers.


Supply Chain Today

June 2012

“It’s a simple, user-friendly solution and, while it requires installation, no customisation is needed. Sectors such as hotels, television companies and government departments are already using it,” explains Jane. She adds that the company is now in a position to offer a full suite of warehouse management software and applications for anything from small companies to multi-nationals.Ranging from entrylevel batch-based systems to fully automated warehouse and inventory management solutions, users are now able to manage and track movement of inventory from receipt to despatch. Cutting warehouse costs by eliminating paper work and ineffiecient processes leads to fewer errors thus saving customer’s money. “The beauty of using a warehouse management system is that jobs are completed in the sequence they were tasked to and everything is traceable. Tasks are completed faster, more accurately and required less often,” says Jane. Job-costing and labour-tracking are included. Luke Dunstan, Bartrans, Tel: (011) 552-8245 Email:,

Be seen at Electra Mining Africa 2012 Contact Lelanie Diamond on Tel: (011) 781-1401, Fax: (011) 781-1403 or E-mail: to book your advertising space


Where There’s Smoke There’s Security Picture the scene: a thief deftly outwits all external security systems and breaks into a dark Rustenburg warehouse late at night. Within seconds the warehouse is filled with smoke and the thief cannot see his hand in front of his face, or the way out. He’s trapped and forced to await discovery.


hat actually happened, Concept Smoke Screen SA’s Shirley Hanson tells ‘Supply Chain Today.’ Essentially, strategically placed generators deploy a thick white smoke that prevents would-be intruders from seeing what to steal, or how to escape.

Could make an entire warehouse invisible in 45 seconds A number of these generators installed together could make an entire warehouse invisible in 45 seconds. As such, the company ‘pay-off line’: ‘Can’t see it; Can’t steal it!’ is apt and the product is fast gaining ground. “January and February are usually our quiet times, but this year, it’s been insanity, because people are realising that their security is compromised,” adds Shirley.

Smoke Screen can be used in cash-in-transit trucks, containers and goods trucks to massive warehouses, server rooms, cash offices, even domestic applications, given the budget. The seven generators are adapted to customer specifications and include the 12V unit, the 24V unit, the Rapid ELM, the Rapid HP, the E-Series E400, E900 and the E1500.

How it works

She explains that the generators works almost like a kettle. “Inside, a fluid composed of glycol, glycerin and water, comes into contact with a heater block and is pushed through a coil, building

Supply Chain Today

June 2012



up pressure and then released at a tremendous force, forming a dense, white cloud.” The generators use either a canister or an IV-like bladder containing the fluid. All generators are equipped with a LED light that indicates when the fluid is running low, and can be programmed to send a notification SMS to the relevant person.

No clean-up operation necessary after deployment Each generator is installed with an external UPS to guard against power-outages as it is crucial for optimal operation to keep the heater block warm. The operating temperature is about 240ºC and a UPS will maintain the temperature for about five hours. The generators are also tamper-proof. “Our biggest generator deploys 1500m 3/60 secs and is the only one that has two nozzles – all the others have one,” adds Shirley. The entry level (Rapid ELM) generator deploys 300m 3/60 secs.

Can’t see it, can’t steal it


Supply Chain Today

June 2012


4 seconds into the activation and the initial area surrounding the risk is barricaded

In 30-45 seconds bursts, high-level generators allow for eight minutes continuous smoke (if continually activated), while entry-level generators allow for six-minutes of continuous smoke. The generators can be installed overtly or covertly with significant planning involved for each client. “The generators have to be installed in the correct position; because they work on a mushroom effect they generally need to be installed high. The smoke fills the bottom of the space first, so intruders can’t crawl on their hands and knees to see,” she explains. The time it takes for the smoke to clear depends entirely on ventilation as the smoke drops at a rate of 13mm an hour. A small, well-ventilated room will take about five minutes to clear, which means there is minimal business interruption and because the generators are certified residue-free, there is no clean-up operation necessary after deployment.

In the cabin as an anti-hijacking system, or in the trailer with the goods Triggering the smoke

In trucks for example, the generator can be installed in the cabin as an anti-hijacking system, or in the trailer with the goods. “Because of litigation, the cabin’s generator is only activated when the truck is stationery. However the generator in the trailer will be activated with or without passengers.” The Smoke Screen is installed with a PIR (passive infra-red detector) which will act as a trigger if movement is detected from the trailer being broken into, or one of the panels smashed. The smoke generator in the cabin could be activated by a tracking device, or a driver’s hidden panic button or pendant remote. The system can also be triggered via a cellphone. In a jewellery store, for example, each staff member on the floor can be issued with a pendant

remote, each counter fitted with an under-counter panic button and kick-plates installed at the base of the cabinets to trigger the generators unobtrusively. An SMS communicator can also be linked to the Smoke Screen and programmed to send various SMS notifications to designated keyholders. The keyholder then logs into a store or warehouse’s online video system (provided they have CCTV cameras and the appropriate software installed) via their phones, to investigate the scene and trigger the Smoke Screen generator if necessary.

30 seconds and the ground level is already completely obscured, and the smoke is over 10 metres high

The difference

“The unique thing about Smoke Screen is that it doesn’t leave a residue and it’s non-toxic, so it can be used in a trailer carrying vegetables for example,” explains Shirley. As long as sensitive products such as paintings and computer software are boxed in, they should be unaffected by the smoke.

15 seconds later and the whole warehouse is shrouded in smoke total protection

The mass median diameter of the smoke particle is much smaller than others on the market, which means no residue is created, as the particles evaporate before they hit a surface. “We’ve got generators positioned in jewellery stores, one metre above Rolex watches – proof that there is no residue,” she smiles. We’re very impressed, but she explains that years worth of R&D has gone into the product. Shirley adds that the product has been around for 40 years and Concept Smoke Screen UK now has about 80 distributors worldwide. Concept Smoke Screen SA first imported stock 14 years ago and is the sole agency for sub-Saharan Africa and the biggest distributor worldwide. Supply Chain Today

June 2012



wrong with it, visibly or otherwise. “So it’s even bomb-proof,” Shirley smiles.

Brand focus

Auxiliary products include a disorientating Xenon flashing strobe light and a S3B Sound Barrier emitting unbearable sound frequencies, which, used in conjunction with Smoke Screen, magnify its properties immensely and bridge the gap while the smoke fills the room to capaciity.

An SMS communicator can also be linked to the Smoke Screen

In the boardroom, the company has the generators displayed on the walls, one of which has survived an ATM bombing – and there’s nothing


Supply Chain Today

June 2012

Concept Smoke Screen SA has changed the focus of its business; phasing out the inhouse technical department to concentrate on trade, consultation, training, supply and promoting awareness of the product. Specific security companies will now be installing the product for end users. Concept Smoke Screen SA, Shirley Hanson Tel: 011 782 2550,


Waste Tyres Get New Life

Minister of Water and Environmental Affairs, Edna Molewa reports on the approved Integrated Industry Waste Tyre Management Plan (IIWTMP) prepared and submitted by Recycling and Economic Development Initiative of South Africa (REDISA)


aste tyres are bulky, designed to be tough and durable and once they are no good as tyres, they are difficult to cut up, hard to store or transport, and difficult to recycle in an economically viable manner. Their nature doesn’t allow for compression or folding in order to reduce the space they occupy during disposal at landfills and they take too long to degrade.

Funded through a per-kilogram levy on tyres manufactured in or imported into South Africa Over 200 000 tonnes of tyres become waste tyres in South Africa annually. About 11 million used tyres are dumped illegally or burnt to retrieve the steel wire in the tyre. With this figure estimated to increase by around 9.5 % annually, the country has a serious waste tyre problem. Presently, waste tyres are piling up in illegal storage sites all over the country presenting health and fire hazards. Government has responded to the challenge by introducing legislation which is centred around the need to provide, at the start

of the product lifecycle, for the cost of proper management of waste to the environment.

Regulations in effect

The department-promulgated Waste Tyre regulations took effect on 30 June 2009, compelling tyre producers to register with the Minister and prepare and submit an Integrated Industry Waste Tyre Management Plan (IIWTMP). The Waste Tyre Regulations specify the minimum requirements of the contents of an IIWTMP. Incorporation of the Waste hierarchy, identification of waste tyre processors, storage sites, processors, social responsibility efforts and costs are among the minimum requirements.

Redisa in focus

Redisa’s mandate is the collection, transportation and management of waste tyres in line with government’s objective to deal with industrial waste. The plan integrates government’s mandate to create sustainable jobs through small, micro and medium enterprises. It aims to remove 200 000 tonnes of waste tyres annually that are polluting Supply Chain Today

June 2012


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June 2012

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our country and creating a health hazard. This is done by subsidising the collection and management of waste tyres and, in the process, giving entrepreneurs and individuals an incentive to find and remove waste tyres from their communities and deliver them to a collection point. A network of collection depots and recyclers are being established. The Redisa plan aims to create approximately 15 000 job opportunities, of which 5 000 are currently involved in the informal sector. This plan will be funded through a per-kilogram levy on tyres manufactured in or imported into South Africa. The rand per-kilogram cost is determined on the basis of all operational and capital costs required to make the plan work and is currently estimated at R2.30/kg. Some funds will be devoted to training and support of the Informal and small, micro and medium enterprises while another component will be allocated to research and development to advance and ensure the sustainability of the recycling processes.


The implementation of the plan must maintain confidentiality of market sensitive data and ensure that no competitive advantage is given to any one industry player. Present regulations oblige tyre producers to register with the DEA; producers will use this registration number to subscribe to the Redisa plan. Redisa will appoint external auditors for a period of five years; all subscribers will on a monthly basis

No competitive advantage is given to any one industry player provide the external accounting company with a declaration of their tyre production including rejects, imports and exports. Furthermore, all subscribers will provide annual audit certificates reflecting the monthly declarations. In order to manage waste tyres effectively, a national centralised computer system will be established and used to capture data on the tyres collected and treated, money collected and spent, jobs created, businesses established and the impact on the national carbon footprint of tyres.


The Redisa plan took effect on 1 December 2011 and applies uniformly in all provinces of the Republic of South Africa binding upon producers, transporters, dealers and processors of tyres. All relevant stakeholders in accordance with the Waste Tyre Regulations of 2009 (producers, transporters, dealers and processors of tyres) must align themselves and ensure compliance with the approved plan. Importers should take note that failure to comply with the approved plan will result in the inability to import tyres into South Africa. Furthermore, the Regulations provide additional penalties that will be administered to all who do not comply. Department of Environmental Affairs, Albi Modise, Tel: (012) 310-3123, Email:,

Supply Chain Today

June 2012


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The SmartTag system utilises Radio Frequency Identification (RFID) tags and detectors to track ores as they flow from the blast to the downstream processes and beyond. The insertion point of each SmartTag is registered using a PDA.

Tag and Trace SmartTag is an RFID (Radio Frequency Identification) based technology designed to allow tracking of ore from its source through blasting, run of mine (ROM) pads, crushers, intermediate stockpiles and finally into the concentrator. Here we look at current developments and the future direction of the SmartTag ore tracking system.


etso’s Process Technology and Innovation group is a world leader in mineral processing consulting. A significant amount of this consulting work involves process integration and optimisation (PIO) studies, which includes investigating the effects of drill and blast design and implementation on downstream processing. Critical to these studies is the ability to track specific ore into and through the plant.

Drastically reducing the size of the tags from a diameter of 60 mm to 20 mm Extending its reach

To increase the accuracy of this ore tracking, Metso Process Technology and Innovation (PTI) developed a system to track ore using RFID transponders called SmartTag. Since its commercialisation in 2007, SmartTag has been used in the majority of PTI’s consulting projects and

several permanent systems have been installed worldwide. The benefits of using this tag include: linking spatial mine data to time-based processing data; increased confidence in ore blending; proactive process changes for known ore types; and accurate measurement of residence times in stockpiles and bins. Since 2007 there have been significant advancements in RFID technology that have allowed PTI to extend the reach of SmartTag beyond secondary crushing to tertiary crushing and beyond. This has been achieved by drastically reducing the size of the tags from a diameter of 60 mm to 20 mm. The new smaller RFID tags have been successfully used in several studies.

How it works

A SmartTag RFID tag travels through a mine and mineral processing plant in a series of simple Supply Chain Today

June 2012



for this frequency of RFID system.

Maximum distance

An RFID reader then decodes the signal from the antenna and determines the ID of the RFID tag passing the antenna. Later versions of the readers also have auto-tuning capabilities which ensure that the maximum possible read distance is achieved at all times. In the SmartTag system the reader then transmits the ID using serial communications.

Figure 1: Normal and mini-SmartTags

steps. Initially, the tag and insertion location is logged using a hand-held computer or PDA, then it is inserted into the ore (eg, into a blast hole). The tag travels with the ore through digging, transport and processing, before being detected at detection locations (on conveyor belts), when the time and specific tag is recorded. The RFID tag data is then loaded into a database and analysed as required. To achieve this, the SmartTag system requires five main components. The first component is a PDA, which allows the initial RFID tag insertion process to become more efficient and accurate.

The database, located on a dedicated server, stores all the information about the detection points, detected RFID tags and original locations Each RFID tag is added to the database using one of three options; it is associated with a GPS coordinate; it is associated with a predefined point (such as a blast hole); or it is associated with a new point, which can be accurately located later.

Nearest point

At present the system does not allow for high precision GPS but it can locate the nearest point in a series of predefined points, such as blast holes, and allow the user to associate RFID tags with these points. The next component in the system, the antenna, is located at the conveyor belts. The antenna both induces a charge on the tag and also receives a transmitted signal back from the tag. The design of the antenna is decided by two parameters, which are its size and its robustness. The size of the antenna dictates the size and the strength of the field it radiates. For this application the area of field strong enough to charge the tag should be as large as possible; therefore, the antenna used for the SmartTag system is the largest available


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June 2012

A data logging or buffer stage improves the reliability of the systems and also makes movable systems possible. The data logger receives data directly from the RFID reader, stores the IDs with the time they were detected and monitors vital system parameters, such as the tuning state of the antenna. The data logging stage also makes SmartTag less reliant on communication links (such as wireless) as the data is stored at the detection point until a link is established to the software applications. The critical communications links, like the one between the antenna and the reader, are all wired and very reliable. The core of the software is an SQL (Structured Query Language) database. The database, located on a dedicated server, stores all the information about the detection points, detected RFID tags and original locations. There are several software applications which either input data into the database or use the data to output information. These include the SmartTagServer, which reads data from the data loggers, the SmartTagPDA, which exchanges data with the PDAs and translates site blast hole layout diagrams, and the SmartTagRes, which calculates the residence time between two detection points.

Adding mini RFID tags

To expand the applications of SmartTag through and beyond secondary crushing, a mini RFID tag was required. To incorporate the mini RFID tags into the system, PTI faced two significant challenges; firstly, the reduced read distance, and secondly, making the mini tags robust. By reducing the size of the RFID tag, the size of the antenna in the tag is also reduced. The size of the antenna in the tag is directly proportional to the amount of charge that is induced, for a given field strength. Therefore, the read range of a tag will be reduced as the size of the tag is reduced. Through investigation, the 20 mm tags were found to have an insufficient read range for the standard SmartTag installation. PTI trialed two methods for fixing this issue; one method was to use two antennas while the second method was to place the antenna closer to the RFID tags. Both systems were tested at an iron ore mine. Both approaches, dual antennas or closer antenna distance, were found to have similar detection


capability. However, based purely on the ease of installation, a single antenna located under the belt, was chosen as the new standard installation method.

points were set up at three locations around the circuit. The three locations were primary crusher product, secondary crusher feed and secondary crusher product.

Protecting the tags

A total of 384 mini RFID tags were placed on eight polygons (a polygon is defined as different ore zones within the mine block model) after the blast, the ROM pad and trucks as they tipped ore into the primary crusher. Of the 384 tags placed onto either the muck pile or on the ROM pad 45 percent were detected. However, if this is compared with the percentage of each polygon that had been excavated by the end of the trial, it is a fair conclusion that many of the RFID tags that weren’t detected were also not excavated during the trial.

The second challenge faced when incorporating the mini RFID tags into the system was how to protect them sufficiently to survive a blast. A method previously used by PTI to achieve this was to encase the tags in a two-part epoxy. The method works well for protecting the tags, and although it is time-consuming and expensive it is currently the preferred method for protecting the tags. Different encasing materials, such as reinforced nylon, are still being investigated. After encasing in epoxy, the mini-tags have a diameter of 20 mm and are shown, with a standard SmartTag as reference, in Figure 1. The size of the mini RFID tags allows them to pass easily through screens with apertures down to 25 mm.


Metso PTI has successfully incorporated a smaller, or mini, RFID tag into their system. The changes to the system installation are minor and increase the reliability of the system as a whole. In several examples the mini RFID tags have proven to be, on average, more robust than normal sized RFID tags. The PTI team envisage that with the successful incorporation of the mini RFID tags into the system, it will allow applications to be expanded. These new applications could include a wider use in the iron ore industry where size is the critical material quality. PTI is now working on proving

Case Studies the reliability of the next size of RFID tags, the even -smaller micro RFID tag, which can pass through a 10 mm mesh screen. With the decreasing size of RFID tags and the development of SmartTag into a truly distributed system, it can be extended past the mine to cover the whole minerals supply chain. Detection points can now be located in the plant, the port and even at the location of the customer, such as a blast furnace. The two case studies presented here demonstrate applications where it is advantageous to use the mini RFID tags rather than the normal size RFID tags.

Case Study 1 - Secondary Crushing Circuit

As part of a wider PIO study, a secondary crushing circuit was surveyed while being fed with a particular ore type. To determine the origin of the ore at any particular time and, most importantly, during the surveys, SmartTag detection

To determine the survival rate of the tags during secondary crushing, the number of tags detected before and after the secondary crusher were compared. Of the 128 tags detected before the secondary crusher, 97 were also detected after secondary crushing. However, as there were 52 tags that were detected after the secondary crusher but weren’t detected before the secondary crusher, the real survival rate is difficult to determine. By just comparing RFID tags detected at both detection points, it can be concluded that at least 76 percent of the mini tags survived secondary crushing, although this number is likely to be much higher.

A total of 384 mini RFID tags were placed on eight polygons (a polygon is defined as different ore zones within the mine block model) The screen immediately following the secondary crusher uses panels with 55 mm apertures and, as expected, none of the tags were recycled back through the secondary crusher. The primary application for SmartTag was to determine the origin of the ore being processed during the plant surveys. In this application, where the plant feed included ore from ROM mixing and stockpiles, the tags were essential for determining which materials were processed in the plant at the time of the surveys. Mini tags were required to enable the ore source to be tracked all the way through secondary crushing, and proved to be robust enough to survive both blasting and secondary crushing.

Case Study 2 - HPGR Circuit

PTI was contracted to assess the performance of a circuit at a mine located in South America. The SmartTag system was used in this application to allow the PTI engineers to know exactly when a surveyed blast was being processed. For this reason, detection points were located on conveyor belts carrying the product of the primary crusher, the output of the stockpile and Supply Chain Today

June 2012



the HPGR (High Pressure Grinding Roll) feed. As the blast was being audited RFID tags were deposited into 68 blast holes, using an even split of 34 normal tags and 34 mini tags. A further 50 tags were later added into the trays of 25 trucks at the primary crusher, using one of each of the two different types of tags in each truck. A total of 68 tags were identified at the primary crusher product detection point, 23 at the stockpile output detection point and 41 at the HPGR feed detection point.

The survival of the mini tags in the circuit is higher than the normal tags The blast occurred on the 22nd of January and the excavation of the muck pile took place between the 15th and 17th of March (two months later). The system monitored the material passing through the process over a period of 30 hours. During this period, a total of 67 different tags were detected; 33 were of normal size and 34 were mini tags. For the stockpile and HPGR feed detection points, the recovery was calculated with reference to the 64 distinct RFID tags detected at the primary crusher. Of the normal tags detected at the


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primary crusher detection point, 42.4 percent were then detected at the HPGR feed detection point; whereas for the mini tags 67.6 percent of tags detected at the primary crusher were also detected at the HPGR feed. This shows that the survival of the mini tags in the circuit is higher than the normal tags. In a hypothetical situation, where the secondary screening mesh is smaller than 50 x 50 mm, normal tags certainly would not reach the HPGR. The detection of tags at the primary crusher was also affected by the removal of the SmartTag system before the entire blast was processed (for logistical reasons). The tags were used to track the material during an optimisation campaign at the plant. During the plant survey, the material that fed the plant, originated from the central portion of the blast. An unexpected result was that three of the mini tags were twice detected at the HPGR feed detection point. An explanation for this is that they survived the HPGRs and returned with the circulating ore (screened to +5 mm). Darryl Moss, Metso Mining and Construction Technology, Southern Africa, Tell (011) 961-4000, Fax: (011) 397-5084,

MARKET FORUM (Linde Durban), “The main reason for Lee Trans choosing Linde was service and parts back-up. Ongoing training for Linde technical staff remains a key focus. We therefore have fully-trained technicians dedicated to container handlers as well as other heavy trucks. The new Mk5 series is fitted with the latest software technology which makes trouble shooting a simple exercise.� The Linde reach stacker is designed and built by engineers who understand the specialised demands of container handling. These superb trucks bring a new dimension to the efficient handling of ISO containers. The reach stacker utilises either a toplift telescopic handler or a combination handler for up to five-high stacking, three-deep in container storage applications.

Lee Trans recently took delivery of a brand new Linde reach stacker for their container operations in Durban. Director, Ivan Chetty who started transport company Lee Trans some 20 years ago currently operates a fleet

of 55 trucks and over 100 trailers. Understanding the needs of his customers, Ivan decided to diversify into container handling in order to provide a total solution package. Says Chappy Moodley, branch manager

For the tough and demanding environment of the container handling industry, the Linde reach stacker more than measures up to the challenge, delivering consistent high performance, reliability and durability while keeping operational costs to a minimum. Linde Material Handling, Tel: (011) 723-7000,

Smart Reset roll-up doors from Apex Strip Curtains are attracting attention across a spectrum of industrial sectors as an affordable, effective and hi-tech solution to separating and insulating critical areas in production plants, warehouses and shipment areas — even where space is at a premium. The self-repairing characteristics of the Apex Smart Reset door are setting a new industry standard. If the door accidently becomes 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. And if the curtain is accidentally hit by an object passing through, the hinges come off the guides to prevent damage. A sturdy and compact structure and welldesigned electric motors and components are key features which make the Apex Smart Reset door safe, unobtrusive, quick and easy to install and practical to maintain, inspect and check. Wim Dessing, Apex Strip Curtains, Tel: (011) 452-8723,

The Apex Smart Reset door is a heavy duty rapid roll-up door that repairs itself

Supply Chain Today

June 2012



SCA Packaging has a product portfolio that includes transit packaging, consumer packaging, displays and promotional packaging, customised protective packaging, industrial and heavy duty packaging. The company is Europe’s second largest producer of containerboard paper used for the manufacture of corrugated board, which boasts annual revenues of 11.4 billion Euros. SCA Packaging’s 19 locations in Denmark were running a different system and platform, with some locations still operating largely with paper and pencil instead of a modern computer system. This initiated the opportunity to standardise and modernise operations. Psion worked in collaboration with SAP consulting firm, Aicomp, to design a mobile computing solution that would

work with SCA’s SAP system. Mobile handheld computers and vehicle mount computers were provided by Psion. The solution covered the entire operation from receipt of materials, production, storage, warehouse logistics and outbound shipments to delivery. The individual applications use SAP programming language on Psion middleware for the mobile computers. Instructions can be downloaded from the SAP system directly to the handheld or vehicle mount computer. The mobile computers are used to scan a product or pallet and the information is uploaded to the central server via secure WiFi networks. Michelle Hollis, Psion Africa, Tel: (011) 805-7440, Email:,

Green Supply Chain Awards Enter your product or project now! Deadline: 29 June 2012 The prestigious Green Supply Chain Awards recognises people, projects and products that have gone above and beyond the call of duty to enhance the environment in which they operate. The inaugural awards in 2009, followed by those in 2010 and 2011, enjoyed a wonderful response from the supply chain community and everything is on track to make the 2012 event one of the industry’s most prestigious accolades. Entry forms are available from: Louise Taylor on Tel: (011) 781-1401 or Email:

The increasing demands of modern logistics operations on warehouse floor slabs are causing building owners to be increasingly aware of maintenance and efficiency problems associated with traditionally designed and installed floors, particularly deterioration of saw-cut joints (planned cracks). As a result, ‘jointless’ industrial flooring systems designed and installed by specialist contractors such as Twintec are becoming more frequently specified and have proven to be a successful solution. A SFRC ‘jointless’ slab is designed to eliminate the need for sawn induced contraction joints. Adopting a SFRC ‘jointless’ system will not only minimise maintenance requirements, but also improve the flexibility of the building in terms of ‘future-proofing’ it. There is a downside to this interesting innovation; the construction of SFRC ‘jointless’ slabs is technically and practically very demanding. When building owners, consulting engineers, architects and general contractors have decided


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June 2012

to opt for a ‘jointless’ SFRC slab, they must take precautions in choosing the right flooring specialist for the job.


Martin Kerrigan, Twintec South Africa, Email:, Traditional type of floor 2,500 m² with 800 m of saw-cut joints to maintain

SFRC Jointless floor 2,500 m² with NO saw-cut joints




When one of South Africa’s largest logistics companies, Value Logistics, decided to overhaul its storage facilities around the country to accommodate expansion, APC Storage Solutions SA provided a service that transformed a series of warehouses into highly optimised and efficient facilities. The first installation was completed in Pinetown, at Value Logistics’ Freightpak’s 3 200 square metre facility. “We re-designed the racking layout to accommodate higher throughputs and a total storage capacity of around 5 200 pallet positions. This solution helps to ensure that material handlers can operate efficiently, and that racking units can accommodate the specified weights and load sizes of 2,5 tonnes,” says Ettienne Meyburgh, general manager – Projects, APC Storage Solutions SA. APC Storage Solutions SA also dismantled racking at the company’s Alrode facility for redistribution to Value Logistics’ new 37 000m² Clayville warehouse, and for additional storage in Rosslyn. In Tunney, at the 100 000m² Value Logistics distribution centre, APC completed numerous projects ranging from breaking down and reinstalling racking, to moving mezzanine levels

With mobile Motorola Mobile devices from Westcon SA, customers can ensure that their people on the ground can facilitate and take advantage of speedy checkouts, better inventory control, increased productivity and improved supply chain management – no matter where they are. Wired or wireless, networked or standalone, the Motorola range of Mobile device will help staff capture the data they need when they need it most. The devices now also boast a range of unique and innovative features, enabling users to capture data from barcodes in the field, RFID and GPS. The operators can then either wirelessly update business systems with in-field information, or download it later.

APC Storage Solutions SA has revamped some of Value Logistics’ warehouses, turning them into high-efficiency storage facilities that are set to boost the freight company’s performance.

and designing new racking layouts. “In the general warehouse, we adjusted the existing racking’s levels to create around 3 000 pallet positions that are now highly accessible,” says Ettienne. For the Clayville and Tunney warehouses, APC supplied designs for lighting

and fireproofing systems, including designs for in-line sprinklers to be installed by fire engineers. Fred Albrecht, APC Storage Solutions SA, Tel: 0861 61-61-61, (011) 974-9060, Email:,

Versatile, rugged and purposebuilt, the full range of Motorola Devices will ensure complete accuracy whether it entails scanning at a retail POS on the manufacturing production line, in the aisles of the warehouse or at the harbour docks themselves. Melandi du Plooy, Westcon SA, Tel: (011) 233-3333, Email: melandij@,

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June 2012



Eqstra Industrial Equipment (EIE) recently honoured one of its co-founders, Don Bailiff, by renaming its head office after this EIE great. The newly renovated Don Bailiff building, which is situated in the east of Johannesburg, was unveiled in November 2011. Before he became involved with Saficon Industrial Equipment (Toyota Forklift), Don was a director of Clark Forklift Distributors. He and another director, Rob Dutton, were offered the opportunity to partner with Toyota. Accepting the offer with open arms, Don and Rob established the Toyota Material Handling business (Saficon Industrial Equipment) in South Africa in 1984. This alliance led to the creation of the first locally-manufactured forklift in 1984, and gave Don and SIE a taste of the success that they would achieve later. As a direct result of Don’s unprecedented commitment, SIE was awarded International Excellence Status by the Toyota Industries Corporation in 2003, topped 10 000 unit market coverage

From left to right: Don Bailiff, Toshifumi Onishi and Gary Neubert

in 2007, and reached the R 1.5 billion revenue mark in 2011, to name but a few of the company’s successes.

Karen van Diggelen, Eqstra Industrial Equipment, Cell: 084 370-3685, Email: karenv@,

DHL Supply Chain has launched their first carbon emission saving superlink teardrop trailer in South Africa. Expected to save amply in fuel usage with its aerodynamic design, the trailer was launched at the DHL Supply Chain offices in Rosslyn, Pretoria.

11m each, and this pioneering design is already in operation between the Netherlands and Germany, and in the United Kingdom, but only in the form of a single 15m trailer.

new innovation is key to driving positive environmental change. In mainland Europe the trailers are expected to save up to 10% in fuel usage and up to 25 tonnes of CO 2,” Rob concludes.

“As businesses come under increasing pressure to reduce carbon emissions,

Rob Williams, DHL, Cell: 083 634-6286,

“Considering the effect of continuously increasing fuel prices on the South African economy, the superlink teardrop trailer will be able to contribute in more ways than just environmental conservation,” says Rob Williams, Director, Automotive Business Unit, DHL Supply Chain, South Africa. “The superlink trailers will go into operation immediately utilising various combinations of skirting and aero foils, in order to determine the full impact of each key element of the trailer on the reduction of carbon emissions and increased fuel efficiency under South African conditions,” highlights Rob. The superlink teardrop consists of a combination of two trailers of 7m and


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June 2012


The Value materials handling division is the sole distributor of Komatsu forklifts in South Africa, supplying industry with innovative packages. The materials handling division has secured formidable business through mutually beneficial partnerships across the regions. Nationwide distribution and servicing is carried out through wholly-owned branches, while the Value Group’s national footprint ensures that service back-up is available across the entire country. A spectrum of Komatsu product service offerings includes outright purchase, all-inclusive long-term and short-term rental options, cost-effective financing, maintenance packages, parts supply and 24-hour back-up service capability. Training is an integral part of each handover. As 80% of the business is full maintenance lease (FML), Value owns the asset throughout its life and it is in its interest to ensure that

the operator is fully trained and the vehicle is optimally maintained, to the customer’s benefit as well. The division is upbeat about current and future growth. Two significant deals were concluded recently: a major building materials supplier finalised a supply of 150 forklifts to its 30 branches countrywide, indicating its confidence in the Value Group’s national footprint and its back-up ability; and an international motor corporation took delivery of 102 forklifts, with an on-site workshop and team of technicians to maintain the fleet 24/7 to guarantee productivity and uptime. New business across the country is generally very active. The Group acquired much larger premises in Port Elizabeth in 2009 and further expansions in Boksburg in June

2011 to accommodate stockholding, workshops, parts and admin, all under one roof, solidifies its confidence in future growth. Value Material Handling, Tel: 0861 999-777,

Robust Mining Equipment for Mine Application Criterion Equipment, exclusive distributors in Southern Africa for TCM forklifts and reach trucks, supplied Palabora Mining Company (PMC) with a range of robust equipment, designed to cope with demanding materials handling tasks on the mines.

Diesel-powered pneumatic tyre trucks - the FD30T3Z, FD50T9 and FD70Z8 series - are used by PMC because of the high power ratings and efficient fuel consumption of these machines. These environmentally-friendly tyre trucks ensure black smoke savings of

30% and noxious substance savings of 50%. Another important feature is low noise levels - 85dB (A) at the operator’s ear, according to ISO specifications. Brenton Kemp, Criterion Equipment, Tel: (011) 966-9700, Email:,

“These forklift trucks, which are used by PMC to lift, carry and position raw materials and end products, have been modified by Criterion Equipment to meet exact handling requirements at the mine,” says Brenton Kemp, MD of Criterion Equipment, a wholly owned subsidiary of Invicta Holdings Limited. “These special modifications include TCM’s AMS 2000 management system – with a driver identification tag and bump sensor alert.” A lock out switch cuts off all power supplies, which is an important safety feature if people are working on the machine. Other modifications include a jump-start receptacle and anti-corrosion paint for enhanced protection in arduous conditions. Special features include an epoxy seal on electrical connections for greater protection, belly plates, safety doors and light emitting diode (LED) lights.

TCM forklift trucks used at Palabora Mining Company

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June 2012



Eazi Sales & Service recently delivered a JLG 4069LE electric scissor lift to Indigo Brands, manufacturer and distributor of Yardley cosmetics and other brands. The scissor lift will be used for inventory management, such as stock counts and light stock picking, as well as general maintenance, at its Cape Town warehouse facility. “Electric scissor lifts are ideal for tasks such as maintenance, stock picking and stock control, as they are compact enough to manoeuvre and fit narrow spaces, such as the aisles found in Indigo Brands’ warehouses,” says Larry Smith, who heads up Eazi Sales & Service. The JLG 4069LE electric scissor lift is the ideal solution as it is able to lift over 360kg to a maximum height of 14m, has a deck extension of 91cm and overall width of 1.75m. Rugged terrain tyres allow Indigo Brands to

move over rough surfaces between its various warehouses, without difficulty. The company has already reported an increase in productivity. Where it was only able to achieve 50% of its stocktaking objectives previously, it now achieves 25% more than the initial objective. “Productivity is no longer affected by the availability of forklifts and the lack of additional operators, thanks to the easy operation of the JLG 4069LE,” says Ricardo Cyster, Demand Manager, Indigo Brands. In addition, the company has saved on rental costs, as they periodically had to rent a scissor lift for maintenance purposes in the past. Larry Smith, Eazi Sales & Service, Tel: 086 100-5540, Email:,

The JLG 4069LE Electric Scissor Lift from Eazi Sales & Service

Air Products has made important strides in food safety technology in the last four to five years.This is true particularly in the area of modified atmosphere packaging (MAP), where Air Products’ Freshline offering brings a complete packaging solution to food manufacturers and suppliers, as well as new standards of safety for the consumer. Arthi Govender, specialty gas sales manager at Air Products says, “Goodlooking, fresh, convenient food has become something the consumer demands from the food industry. In the past, MAP was primarily used to prolong the shelf life of foodstuffs such as processed meat under refrigeration. These days, it’s used to package anything from fresh salads and meat portions, to sandwiches and snacks.


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June 2012

“In MAP, in simple terms, the composition of the atmosphere surrounding food is modified, according to the type of product, in order to extend the shelf life of the food,” she says. Apart from a longer shelf-life, its benefits include a better, more appetising appearance of food. “It is crucial to having a proper Arthi Govender food safety management system “However, it doesn’t end with MAP in place,” says Aubrey Parsons, a food scientist and lecturer on food there are still risks if factory staff are safety. In this, the World Health Organ- not trained properly. Dirty hands, for isation plays a crucial role. “There is example, can be lethal weapons,” he no alternative to food safety,” he says, says. This is where the ISO 22 000 “but the onus is on food companies and standard in food safety plays an immanufacturers to put in place safety portant role. systems, enhanced by MAP. A good Arthi Govender, Air Products, food management system can reduce Tel: (011) 977-6459, problems by 99%.


New Endorsement The “Supply Chain Today” is delighted to confirm that the Cold Chain Forum (CCF) has officially endorsed the publication. We kick off this issue with an overview of the CCF and we look forward to further news and information on this invaluable topic in the months and years ahead. Welcome aboard! Susan Custers Managing Editor

Collaboration and Integration in the Management of Pharmaceutical Cold Chain Cold Chain Management is critical in ensuring patient benefit and safety by maintaining product quality and integrity. Cold Chain Management has developed into a complex science that affects all stakeholders across the pharmaceutical value chain that have a responsibility in ensuring that the cold chain is maintained up until the medicine reaches the patient. The importance of these issues as well as the complexities posed by both the developing science, standards and the infrastructure and transport variables have led to industry representatives mobilizing themselves to collaborate to improve the standards of Cold Chain Management in South Africa. This has resulted in the formation of the ‘Cold Chain Forum, South Africa.


he goals of the Cold Chain Forum South Africa are to:

• Have a platform to share professional and technical information as it pertains to the Cold Chain and temperature control of pharmaceutical and related products. • To identify and prioritise challenges in the pharmaceutical industry throughout the supply chain • To facilitate cost effective, compliant, total supply chain solutions including the control of last mile distribution of all pharmaceutical and related products. • To educate all role players in order to continue to provide safe, effective and quality pharmaceutical products.

When a cold chain container arrives in a distribution hub and the label says “keep refrigerated,” what is meant? The need for Collaboration across Supply Chains will enable cost saving by sharing knowledge and collaborating to improve our response to the challenges faced. Having worked in the CCFSA for the past 8 months with very different supply

chain models and supply chains, we are pooling knowledge, questions and challenges, which will ultimately allow us to reduce the steep learning curve and the costs associated with embarking on the journey of ensuring and assuring the quality within the supply chain as this is our obligation.


We need to start at grass roots level and embrace anyone who is prepared to make a contribution or to listen to the importance of the cold chain. We will ensure that the approach to the cold chain is simplified so that we all understand terminology and risks to the same degree. We need to apply Good Distribution Practice while at the same time understanding and implementing cost-effective supply chain solutions. The conflicting objectives of Cost and Quality drive the need for sharing knowledge. Validation/Qualification is costly but it reduces the need for temperature monitoring and therefore ongoing cost.


Integration within the Supply Chain is an imperative which will be addressed through better understanding of the requirements and terminology, by working with each other. All too often the task of controlling the temperature is seen Supply Chain Today

June 2012



Supply Chain Today

June 2012


11 Logger Standard WHO Standard Prequalified Containers Industry Players Position Number

Figure 1: Various probe position configurations

to be that of the supply chain partner ( and it is if they are wanting to be in this industry) but there is no clear interpretation of what all of the guidelines mean. The terminology and labels used can also be confusing and when a cold chain container arrives in a distribution hub and the label says “keep refrigerated,” what is meant? Is it that the distribution hub needs to place it in the fridge or does it mean that the product needs to be refrigerated at its final destination. We will work to clarify these aspects.

Increase understanding

How can we assist the pharmacies and hospitals to meet the requirements? What can we do to assist South Africa and the rest of the African continent to implement effective cold and temperaturecontrolled solutions that ultimately assure the quality of the product and minimise patient risk?

of the cold chain forum have established specific objectives and tasks to work towards developing a standard for the “Cold Chain Pharma” industry, practical and consistent operational solutions, engaging with the Department of Health and other public sector partners, while increasing the understanding of the Cold Chain Requirements among all partners in the supply chain.

No clear interpretation of what all of the guidelines mean We look forward to communicating with you periodically through “Supply Chain Today” and sharing our learning with you. Theano Kosmas Chairperson: Cold Chain Forum South Africa Email:

To this end all the members and the working groups Supply Chain Today

June 2012


Enter your product or project now! Deadline: 29 June 2012 The prestigious Green Supply Chain Awards recognises people, projects and products that have gone above and beyond the call of duty to enhance the environment in which they operate.

The inaugural awards in 2009, followed by those in 2010 and 2011, enjoyed a wonderful response from the supply chain community and everything is on track to make the 2012 event one of the industry’s most prestigious accolades.

Sponsors: Entry forms are available from: Louise Taylor on Tel: (011) 781-1401 or Email:

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June May2012 2012


Top Speakers For close on four decades the annual SAPICS (The Association for Operations Management of Southern Africa) conference and exhibition has provided the supply chain community with an unrivalled opportunity for focused skills development. The programme of the 34th conference, which will be held at Sun City from 3-5 June 2012, does not disappoint and once again includes a list of topical presentations with broad appeal and relevance.


Making Demand Driven Supply Chain Networks a Reality David Allen, Industry Supply chain and Operations Executive, One Network Enterprises in the USA. David is a highly innovative supply chain leader from North America and will open the conference with a keynote presentation. David Allen is a deeply experienced supply chain professional with experience gained from top leadership roles at organisations such as Del Monte Foods, The American Pasta Company, Frito-Lay, US Foodservice, and WorldChain. David Allen

A noted dynamic speaker, David will share with the audience how he has transformed legacy ERP-based supply chains into demand driven supply chains. David’s presentation will provide best practices and specific examples of how to become more demand driven and achieve the highest possible service levels at lowest possible costs. Achieving Operational Excellence across Global Supply Chains Gary Kilponen, Vice President – Operations, Cameron Valves & Measurement Board of Directors, Global Chair 2012 of the Supply Chain Council

Gary Kilponen

Gary Kilponen is representing the Supply Chain Council at this year’s SAPICS conference. Cameron is a leading supplier of flow equipment, systems and services to the energy industry. Gary will cover Cameron’s integrated approach to achieving operational excellence in the global energy industry. He will specifically address the challenges of sourcing in low cost countries from an organisational and process perspective.

Nigeria – the Good, the Bad and the Ugly Alastair Gore, Customer Service & Logistics Director, Kraft Foods, South Africa This renowned speaker has over 25 years of experience enhancing supply chain and business performance through organisational transformations, business process improvement, such as Lean Alastair Gore principles and six sigma and systems implementation in the energy and manufacturing industries. The presentation will provide conference goers with an overview and an opportunity to reflect on their appetite for doing business in this country where 70% of the population lives below the poverty line. It will give an open and honest perspective on living and working in what is geographically and politically the largest, but also potentially one of the most important countries in Sub-Saharan Africa. The Next Factory of the World? What Africa can learn from Asia in Manufacturing Dr. Christopher Holmes is the Head- International, IDC Manufacturing Insights, based in Singapore Christopher is a well-respected analyst with over 20 years of experience in helping manufacturers to improve their processes, ranging from running shop floor improvement programmes to managing product development.

Chris Holmes

Supply Chain Today

His presentation will draw on the development June 2012



of Asian manufacturing compared with the progression of African manufacturers. As African manufacturing develops and competes on a global scale, the lessons learned by Asian manufacturers during their development can indeed provide manufacturers in Africa with interesting learning points. Driving Innovation with Sustainabile Supply Chain Management Peter Murray CIRM, Programme leader Sustainable Supply Chain Management, E.I. DuPont & Nemours, USA Representing APICS, the Association for Operations Management in the USA as well as E.I. DuPont & Nemours, Peter W. Murray CIRM will discuss the potential of Africa illustrated through DuPont’s achievements and new developments, while sharing APICS’ new direction as the thought and knowledge leader for Sustainable & Resilient Supply Chain and Operations Management. Much of DuPont’s supply chain success is based on APICS knowledge and the Supply Chain Council’s SCOR framework.

Peter Murray

Nigeria – the Good, the Bad and the Ugly Exceptional value

“The educational content of the 34th Annual SAPICS Conference and Exhibition is of exceptional value to those looking to empower themselves in this vital profession,” says Liezl Smith, President of SAPICS. “Together with local and international supply chain experts, such as these listed on the 2012 programme, we will continue our journey towards releasing the potential of Africa!” SAPICS - The Association for Operations Manage-


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June 2012

Liezl Smith

ment of Southern Africa - comprises professional members from across the spectrum of South African industry. Since its foundation in 1966, SAPICS has become a leading provider of knowledge in supply chain management, production and operations in South Africa. The association is closely affiliated to APICS -The Association for Operations Management and the Institute of Business Forecasting in the United States. SAPICS is the South African custodian of two internationally accredited certification programmes from APICS - Certified in Production and Inventory Management (CPIM) and Certified Supply Chain Professional (CSCP). The association’s education offerings are aimed at advancing industry’s ability to succeed in a changing and increasingly competitive market place. Jenny Froome, SAPICS Tel: (011) 023-6707 Email:


Customer-centricity Wave The retail industry is undergoing a major transformation, driven by macro-economic factors as well as a newly-empowered local and global consumer profile. This was the key outcome from JDA’s Innovation Forum, held in Cape Town this year.


large industr y mix attended the forum, the majority of whom were retailers and manufacturing organisations. The three key messages for the year from JDA, centre around consumerconnected retail, consumerconnected supply chains and JDA’s cloud services.

Retailers and manufacturers are challenged with how to maintain operating margins and drive revenue growth, while facing inflationary pressure on operating and sourcing costs and deflationary pressure brought on by consumer

expectations. "The result is an economic climate that is providing the impetus for shareholders and executive boards to drive supply chain transformations within their organisations,” says Razat Gaurav, JDA Software senior vice president, for Europe, Middle East and Africa.

Today’s consumer

“Consumers are now more knowledgeable and connected through multi-channels like online, mobiles devices and social media, through which they make buying decisions. There has been a shift to online/mobile sales, with 8% of total retail sales currently from these channels; higher growth is expected,” Razat tells ‘Supply Chain Today.’ Success for retailers in the next decade will be defined by their ability to: migrate from productto customer-centricity, create a tailored shopping experience for the customer, utilise a consistent view of the customer across channels to drive loyalty and customer service programs, optimise profitability in a real-time cross channel shopping environment, and operate with continuous planning and execution cycles.

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which offers continuous supply chain cloud capacity and capability, rapid deployment and faster time to value, improved cost structure, timely software upgrades, risk mitigation, and supply chain expertise, advice, analytics and optimisation.

Supply and demand visibility

“It is a challenging macroeconomic time and companies are trying to drive efficiencies in their own operations. They need a consumercentric view in managing retail operations. More empowered consumers are driving change across supply chains; an integrated and shelf-connected approach to managing the supply chain is needed to create ways to realise this. “It’s a great time for retailers and manufacturers to come together and compete as a value chain,” says Razat. A consumer-connected supply chain integrates the retail and manufacturing supply chains.

A solution

Designed to deliver a customer experience where profitably builds loyalty, JDA’s Customer Engagement solution suite helps optimally manage how retailers deliver goods to their customers. The solutions deliver visibility into real-time supply processes and provide the supply chain alignment required to effectively supply goods in a complex omni-channel environment. This is a foundational component of the consumer-connected retail business model, designed to be implemented on top of the existing ERP infrastructure.

Retailers and their supplier bases need to be knitted together like never before It features real-time, multi-echelon inventory management, a JDA-patented profitable promising algorithm, a universal shopping cart and mobile empowerment of store associates. The solution is delivered by JDA Cloud Services,


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June 2012

Retailers and their supplier bases need to be knitted together like never before, each having visibility from source to channel, in both stock and sales. Demand and replenishment planning across distribution networks/stores ensures shelfconnected-supply chains, reports JDA. Manufacturers are hence looking at operational styling. “They tend to have operational silos across different functions, when they actually need functions across the organisation to synchronise and be aligned to the business plan, matching demand and supply,” Razat explains. Retailers and manufacturers are rethinking the whole supply chain design, trying to better align manufacturing operations, locations, distribution networks and social strategies to demand.

Local case study

Leading retailer Woolworths South Africa selected a number of JDA software solutions in the fourth quarter of 2011, to optimise its retail supply chain. Woolworths intends to use the JDA solutions across its food business to improve inventory


international players in the country is high,” he adds.

The conquering cloud

Of course, the IT infrastructure enabling visible, effective supply chains is increasingly important too. “Long, drawn-out IT projects are over,” states Razat, adding that cloud technology is now a key deployment. JDA started developing its Cloud Services platform in 2009. Three years later, the quality is higher, costs are lower and speed to value is faster. Also, there are now over one million users connected from over 200 countries and 2 000 application deployments supported.

allocation and replenishment across its supply chain, tailor merchandise assortments to meet individual customer demand, monitor supply chain performance across multiple channels and networks and achieve more competitive pricing for its customers.

The company will be offering new offerings and solution pricing options specifically for the cloud this year. It will also start to deliver solutions only available on the cloud, such as JDA Customer Engagement; and offer preferential pricing for cloud services over ‘behind-the-firewall deployments.’

“Retailers like Woolworths understand the customer-centric nature of their business and the precision, speed and coordination needed to address customer needs all the way down to the store and shelf level,” says Razat.

Razat says that this is one of the fastest growing segments of JDA’s business and it has dedicated global operations teams and significant infrastructure for the cloud environment.

“Retailers must prepare for the next wave of operational efficiency. The competition from

JDA Software Email:

Supply Chain Today

June 2012


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June 2012


Rebooting Enterprise Software

User experience in technology has undergone major advancements and, as a result, the way consumers interact with digital devices has changed significantly. Unfortunately, the same cannot be said for enterprise business applications.


ponsored by Infor, the IDC Manufacturing Insights’ latest white paper, ‘In Pursuit of Operational Excellence: Accelerating Business Change Through Next Generation ERP,’ shows that innovation-led business strategies are currently challenged by inadequate business processes and IT systems, crucial to facilitating working practices and communications necessary to develop new offerings quickly, collaboratively and cost effectively.

Tim Szabronski

Mike Hibbert

Manufacturers want social networking-style features within ERP to facilitate timely, accurate, informed decisions. However, most enterprise work is still done using forms-based, task-oriented screens that were designed decades ago. Business software and services provider, Infor, is changing that, with its Infor10 suite of software - a new vision of how business software is used, purchases, deployed, and upgraded. Breaking away from the busy Infor10 roadshow, ‘Supply Chain Today’ caught up with Infor MEA channel manager, Mike Hibbert and MEA regional vice president, Tim Szabronski to find out about their new offering.

Unifying and modernising

Infor10 unifies transaction processing, business intelligence, and the social enterprise into one common relevant experience for the user, providing critical information at the point of decision. Users can access their enterprise solutions from their desktop computers, tablet devices, and smart phones - much like they do with Google, Facebook, and Twitter, ultimately making them more productive.

A lot of seemingly unrelated industries really are The goal with Infor10 is zero modifications. “We complete the application by designing, developing, testing, and delivering the full industry suite. However, given that no industry is generic, the software is purpose-built to meet the exact needs of a range of industries, out of the box, without modification,” reports the company.

“A key element of our growth in South Africa and Sub Saharan Africa will be Infor10, which importantly offers industry-specific software applications that require minimal modifications and meet the needs of our customers in their specific industries,” says Tim. “While many other organisations are offering software that requires time-consuming configuration that leads to costly and risky implementations, Infor10 addresses industry customisations right out of the box.”


“Infor10 is a suite of different applications. Originally people used independent applications such as an ERP, which would pass orders onto a WMS, which would then send an order onto a transportation management system as to where to deliver goods. Infor10 puts them together,” says Tim. “We have two sides to supply chain: we have a suite of applications called Supply Chain Execution, which is all about getting goods to a warehouse and the best possible way of getting it to the user. The other side is Supply Chain Planning, which is more about how many goods must be made to fill the customer’s requirements; planning and execution. “These are not new applications, but we’ve brought them together and picked functionality. Tim explains that a lot of seemingly unrelated industries really are. Dairies and brewers for example have the same problem: they have products that have very short shelf-lives. At the same time, the manufacturing processes are both natural processes to it so you can’t accelerate the time it takes to make beer and cheese for example. Then once it’s made it has to be delivered within a certain time. So if the forecasting of how much is needed and when it’s needed can be improved, it immediately drops the bottom line.” In each industry there’s a collection of components and some might be the same as for other industries. Mike explains, “We’re providing an application that is effectively a bag of spanners and clients have to make it work. Our solution is a package that clients just customise around the edges.” Until now the issue was that, code had to be written to make changes, whereas the behavior Supply Chain Today

June 2012




of social networking platforms like Facebook can be changed by the touch a button. That’s what we’re looking at – just clicking on buttons – it’s got to be easy. Some of our applications are at that stage already, where customers can set up a new business unit themselves,” says Tim.

New approach to connecting and integrating multiple applications Seamless architecture

Infor10 solutions integrate with core systems to address daily business challenges, including enterprise asset management (EAM), customer relationship management, human capital management, financials and performance management. It is designed for change and speed, built on open standards and lightweight technologies. In addition to making the software quicker and more agile, Infor has included value-added capabilities, including automatic integrations and analytics with built-in alerts and workflow. A lightweight, unbreakable middleware layer called Infor10 ION Suite presents an entirely new approach to connecting and integrating multiple applications. It helps information flow smoothly


Supply Chain Today

June 2012

between applications, analytics, social media, and a powerful business vault with master data that empowers staff with all of the company’s disparate applications, to work together as a whole.

Return on investment

When we ask about IT investment during unstable economic periods, Tim says companies are investing in IT software because they demonstrate a return on investment, which for Infor10 is typically less than 12 months. “Because you can better track what’s going on in your supply chain, you can reduce the number of goods in the supply chain,” he adds. “In a downturn economy people companies have to be more efficient and are willing to invest in such measures. Whereas in a growth mode, efficiency is less important and they grow their way out of trouble,” he adds.

To the cloud

For clients who want simple “IT on demand,” they can run their entire solution on Infor10 CloudSuite, which offers flexibility, speed, and simplicity. It offers a solution for organisations that want the help of enterprise software without the headache.


Part of the idea is that it’s not everything or nothing. “Clients can choose what goes on the cloud, move applications back and forth or to leave one functionality on the cloud and the rest on the server,” explains Tim. For example, clients with concerns about insecure data can keep their financial systems inhouse but allow managers to approve invoices on the cloud, enabling them to access this data from a mobile device. Those who would rather keep their core enterprise systems on-premises, while running their business intelligence as a service, application integration as a service, or a platform for building application extensions as a service, can do just that. Alternatively, the solution allows them to have a disaster recovery system in the cloud.

investigating the possibility of having a local data centre, as plugging into those in Europe and the US is too slow.

Southern African market

Infor’s growth plans for Sub Saharan Africa include increasing the number of channel partners across Africa by 30% in 2012. These partners will sell Infor’s enterprise resource planning and EAM solutions across the region to manufacturing and other asset intensive industries.

Efficiency is less important and they grow their way out of trouble

Clients are also able to install, test and familiarise themselves with new or concept software in the cloud, before installing it inhouse.

“The supply chain is very interesting here, more so than in Europe where companies have an established way of working and are not willing to change. Here there is a lot of construction of supply chain, so yes there is a lot of activity here,” says Tim.

Mike says Infor is starting to push the cloud in the local market, although the country is still overcoming hurdles such as trust/safety perceptions and speed constraints. The company is

Softworx Tel: (011) 607-8299 Email:

Supply Chain Today

June 2012



Bridge Shipping Group has invested in a legacy IT system that has been customised to offer excellence in the tracking and timeous delivery of goods from one depot to another.

streamlined documentation; improved internal controls; structured reporting procedures and enhanced invoicing systems,” says Lucas Powane, Head of IT for Bridge Shipping Group. System development started in 2007 with the first implementation achieved in 2008 at the group’s Marine division, followed shortly thereafter by the Clearing and Forwarding division in 2009. “More recently, the Bridgeport Container Depots went live and on 1 November 2011, the system was implemented in the Bridgeport Warehouse Division. These installations will be followed by further rollout plans for the rest of the Group,” Lucas adds.

Known as the Bridge Operating System (BOS), this Windows interface-based software replaces the company’s previous bespoke system – KEA. Plans were instituted to investigate an IT system which would cater for the back-end operational needs of the group. At the same time it would be required to interface with both the company’s financial program and the SAP Business One program.

With the increased usage of barcode scanners to further enable tracking of containers, the BOS was required to readily interface with this technology. “We have seen huge improvements in the speed and precision with which our operations team are able to determine exactly where in the collection and delivery process any one item is at a specific point in time. In addition, the accuracy of invoicing is now so high that time-consuming checks and double checks have been obviated,” comments Colin Emanuel, Bridge Shipping Group CEO.

IQ Business Group was contracted to design and develop the BOS system. Their brief was to provide accurate, speedy and live, real-time information;

Taryn Stander, Bridge Shipping Group, Tel: (011) 625-3012, Email:,

Lucas Powane

Don’t Waste Services (DWS), the largest on-site waste management company in South Africa, has announced plans to open offices in African countries that include Zambia, Swaziland, Botswana, Mauritius and Kenya. This is according to CEO, Jeremy Droyman, who says DWS, established 18 years ago, will open offices “in conjunction with clients as they require waste management services into Africa”. He explains that the company has recently opened offices in Mauritius, where it has landed waste management contracts with two new shopping centres. “Mauritius is still a small market for us in terms of revenue,


Supply Chain Today

June 2012

but we do expect fairly rapid growth during the next twelve months. But right now, the contracts will not have a marked impact on revenue,” says Jeremy. “We have, over the years, continued to invest in technology and business processes and are now in a position to export this business process blueprint to countries in Africa, expanding on the back of clients who are looking at improving waste management outside of the country. Our existing clients want the same level of control that they have nationally with our operating system internationally at their remote sites. Our full mobile integration has made this possible,” he concludes.

Epicor Software Corporation, has announced the results of its first ever global carbon accounting survey, which offers insight into the fact that despite forthcoming legislation mandating carbon accounting, most companies are still lagging in their comprehension of carbon accounting as a whole, and in the execution of said carbon accounting initiatives. The survey was designed to investigate the ability and willingness of companies to identify their greenhouse gas emissions; to find out how they technically capture emissions; and to clarify the extent to which companies have to meet not only legal requirements for sustainability, but also what demands they meet from partners and customers. The survey compiled responses from nearly 1 000 companies worldwide and revealed that 58% of companies surveyed had not heard of the term “carbon accounting”, that less than a quarter could accurately describe what the term means, and that a full 80% of companies surveyed don’t monitor their company’s carbon footprint. “Carbon repor ting will happen irrespective of any personal opinions about global warming; those businesses that prepare now for the reporting that will be legally required of them in the near future will have a clear competitive advantage over laggards. Energy management is not a distraction to a company’s core business. Businesses can gain cost and energy savings from sustainability investments and the growth of emission trading schemes will only increase the need for companies to understand how carbon accounting will impact their bottom line,” says Epicor product marketing manager Chris Purcell. “Pursuing a green agenda and increasing operational cost savings are not mutually exclusive tasks,” he adds. “We urge all companies to move the green agenda higher up on their corporate social responsibility priorities.” Epicor Carbon Connect Lisa Preuss


Since March 2011, Crossroads has repositioned itself as a logistics solution provider, with its courier business, SkyNet, being central to its ability to deliver anywhere in South Africa within 24 hours. This level of reactivity, combined with a remarkable cost consciousness has seen Crossroads win some impressive business over the last six months.

to facilitate high-quality, rapid and cost-effective solutions – repositioning ourselves in the marketplace as a collaborative supply chain solutions provider, as well as being a first rate transport provider and an express parcel

courier,” says Gerhard van der Horst, Crossroads CEO. Crossroads Tel: 0860 99-9940 Email:

Gerhard van der Horst

The Company has also announced far-reaching changes to its structure to ensure that the organisation is enabled to deliver on its promises. “In an information age of consumerism and globalisation, product life cycles are getting shorter,” says new chief operating officer, Abe Uys. “Demand cycles are up and down, and goods need to go from research to the shelf in much shorter time spans. Inventories need to be managed at leaner levels, and will need to be distributed faster. The goal posts are continually shifting.” “Optimising the supply chain positively impacts cash-to-cash cycles, customer service, loyalty, and ultimately sales,” says new chief business development officer, Ken Light. “While cutting the cost of logistics is important, the ability to react quickly to demand is fast becoming the Holy Grail of logistics practice.” “We have combined our capabilities, qualities, skills and technology

The TNT team at the 2012 at the PMR Awards

TNT Express Worldwide South Africa received the Diamond Arrow Award and Golden Arrow Award at the 2012 Professional Management Review (PMR) Awards. TNT was awarded in two categories: Best foreign-owned company operating domestically and Best foreign-owned company operating internationally. “TNT is a truly global business and we are pleased to be acknowledged both in the South African market as well as internationally,” says Kobus Fourie, country general manager for TNT Express South Africa. The awards are based on extensive customer research that specifically measures service and customer satisfaction. 200 survey respondents rated companies across a range of 15 attributes namely: availability of on-demand-service; Black Economic

Empowerment (BEE); flexibility and “going the extra mile”; minimising damages and theft; online quotations, orders, track and trace; professional appearance of the company; provision of customs clearing facilities; reliability; speed of delivery; staff (knowledge, politeness, friendliness, helpfulness); sustainable development practices; track and trace; value for money and warehouse facilities. “This recognition is significant because it highlights the high work ethic and dedication by all the staff and employees of our company,” adds Kobus. TNT Express delivers close to 1 million consignments on a daily basis. Its South African operation was established in 1975. TNT Express Worldwide South Africa Tel: 086 012-2441,

Supply Chain Today

June 2012



This MAN backs you up

Package perfected for African conditions. Engineering the ideal truck for Africa takes time and the CLA range from MAN has undergone a three-year process of refinement to better suit local operating conditions and satisfy specific customer requirements. Powered by the world’s best diesel technology, the next-generation MAN CLA is equipped with a host of robust features to overcome the many challenges posed by Africa’s most gruelling trucking applications. Guts, reliability and good looks, the new CLA is your MAN.

• BLOEMFONTEIN (051) 503 2500 • BOTSWANA (+267) 395 2652 • CAPE TOWN (021) 980 2720 • CENTURION (012) 673 2700 • EAST LONDON (043) 736 3538 • ERMELO (017) 819 2838 • GEORGE (044) 878 0115 • JOHANNESBURG (011) 626 9620 • KIMBERLEY (053) 841 0635 • MIDDELBURG (013) 246 2356 • NAMIBIA (+264 61) 268 849 • NELSPRUIT (013) 741 1912 • PINETOWN (031) 792 7100 • POLOKWANE (015) 297 7275 • PORT ELIZABETH (041) 486-2122 • SWAZILAND (+268) 518 4335 • VEREENIGING (016) 422 5581/5


For your Finance and Insurance requirements, contact us on 011 387 1940. An Authorised Financial Services and Registered Credit Provider.

Supply Chain Today

June 2012


ERP and CRM Role in Africa Enterprise ERP and CRM solutions were historically designed for large corporations and typically come with the appropriate large price tag, says Jeremy Waterman, MD of Softline Accpac and Sage MMD Africa, part of the Sage Group plc. “Many ERP software vendors have adopted that same approach in the African market, not realising that they are entering a different playing field. Even the larger companies are globally no larger than upper mid-market in size. “Our Sage ERP X3 and Sage ERP Accpac solutions are specifically designed

Fortna has acquired a controlling interest in LGA Logistics Consultants. Founded in 1986 and based outside Johannesburg, LGA is a professional services firm that assists companies with material handling and distribution projects. “I am extremely proud of our accomplishments in the past 25 years. This is the next logical step as LGA’s business approach and experience dovetail well with “states Les Greening, LGA founder. Fortna’s client-centric philosophy. Iain Sherwood, MD at LGA, “We will be better positioned to help our clients with additional service offerings which will provide opportunities for our staff to gain more international experience.” “Fortna has grown domestically and internationally by providing great service to our clients for over 65 years. Our investment in LGA is a logical next step in our expansion beyond the US, Canada and Latin America,” states John White, President of Fortna. “We are excited about our opportunities for growth in the South African market and how our business case approach will benefit companies in that region,” says Marc Austin, VP of EMEA, Fortna. Carey-Anne Garbutt, LGA Fortna SSA, Email:,

to support the upper and mid market companies, this presents a big opportunity for us to dominate the space in Africa that has been falsely dominated by large enterprise ERP players.

provide ERP and CRM solutions that are able to adapt and address the needs of this growing market,” he concludes. Jeremy Waterman, Softline Accpac and Sage MMD Africa,

“We are particularly excited about the launch of our Sage ERP X3 Standard Edition that is targeted at the heart of the mid-market and is delivered with a set of implementation methodologies that guarantee an effective solution in a short period of time,” says Jeremy. The African market is hungry for technology and demands that new features are made available a lot faster than before. “We are moving into the age of intelligence and companies in Africa are well ahead of much of the world in embracing the mobile revolution. As a result, the average African firm is driving their business in the mobile direction and we need to be able to

Jeremy Waterman

A Continental Africa First The GS1 Global Data Synchronisation Network is now a reality in South Africa

business, business to government and business to consumer.

GS1 South Africa, a division of the Consumer Goods Council of South Africa (CGCSA), has entered into a partnership agreement with 1SYNC, the wholly owned subsidiary of GS1 US, to act as the data pool for the roll-out of the Global Data Synchronisation Network (GDSN) in Southern Africa.

Geographically, the region has been expanded to include Lesotho, Botswana, Swaziland, Namibia, Zimbabwe, Mozambique, Zambia, Angola, Tanzania and the Democratic Republic of Congo.

Newly appointed CGCSA CEO, Gwarega Mangozhe, says that changes in the supply chain and the necessity for expanding the local system to incorporate additional industry sectors, including general merchandise, pharmaceuticals, medical devices and consumer electronics, were the main reasons for the partnership.

Gwarega adds: “Recognition must be given to the South African FMCG industry which, for the past two years, has had a major impact on the success of the new system’s roll-out. Suppliers, particularly Pick n Pay, a member of the GS1 Council and active participant on the GS1 working groups, has been actively involved in developing a dynamic system for supply chain efficiencies as well as meeting regulatory requirements.”

Through the network, GS1 South Africa provides a vehicle for clean, accurate and maintained data which is critical to the long-term sustainability of the supply chain, connecting business to

Fiona van der Linde The Consumer Goods Council of South Africa (CGCSA) Tel: 0861 242-000 Email:,

Supply Chain Today

June 2012



Supply Chain Today

June 2012


Simple, High Speed Cloud Migration Further driving this requirement is the imminent launch of Microsoft Office 365 in South Africa, a suite of collaboration and productivity tools delivered through the cloud.

Soarsoft Africa is further gearing itself for the business requirement to migrate to the cloud. The company has expanded its tool box of technology and services enabling organisations to migrate critical functions quickly to the cloud without disruptions to business, facilitating a smooth transition.

“Our technology partners have already geared themselves for this solution, which has been available in the US and Europe for some time, but only recently became available here. This is evident with many of our product principles such as Metalogix and Binary Tree announcing general availability of Microsoft Office 365 support in their migration solution offerings. This requires stringent security and design requirements to be met and a significant investment to enable Exchange and SharePoint ‘cloud” migration to the Microsoft data centres,” says director,

Chris Hathaway. “Local companies can soon leverage the benefits of Office 365 such as productivity, reliability and scalability and Soarsoft is further able to assist companies to migrate to these services from ‘non’ Microsoft platforms such as IBM Domino / Lotus Notes and major ECM platforms to a Microsoft based cloud service.” The core requirements during the transition are to analyse, co-exist and migrate, while also to reduce the time to migrate significantly, provide better forecasting and planning, not to mention cost savings. Soarsoft Africa Chris Hathaway Tel: (011) 781-2323 Email:

ERP in the Cloud Computing Era Where ERP differs from consumer cloud services such as Facebook, Google or YouTube, is that the consequences of any interruption to the service are serious. “System unavailability means lost income. This, together with security concerns, is perhaps the biggest inhibitor to market acceptance of enterprise cloud services,” notes HansaWorld South Africa country manager, Johani Marais. However, new models for ERP are arising where clients can opt for payper-use or application hosting services, switching capacity and functionality on and off as required. The runaway popularity of mobile

devices such as smartphones and now tablet computers is further driving a trend towards improved availability of enterprise information though web services. As this process takes hold, Johani says it is likely to fundamentally change the ERP landscape, both from a vendor and a user perspective. While these processes deliver even better software with improved delivery models, it is not all good news for ERP software users. “With merger or acquisition activity which seeks specific technology or skills, customers aligned with smaller vendors may find themselves with reduced and diminishing focus on the core products, which can even eventually get thrown

out; migration to ‘new’ solutions can be a major disruption,” says Johani. That said, progress means improvements in efficiency and performance. “The developments within the ERP vendor community are driven by robust competition and an acknowledgement of the validity of the cloud computing model. Ultimately, these developments have the client at the core: delivering software more effectively and helping clients to conduct their business more efficiently is where the competitive edge for the ERP vendor lies,” she concludes. HansaWorld SA Johani Marais Tel:021 671 3158 / 011 656 6113 Email:

Supply Chain Today

June 2012


“A better perspective of the Supply Chain function” - Caitlin Hilditch, Senior Manager: Service Parts Supply Chain Integration, Toyota -

LIMITLESS POSSIBILITIES Imagine discovering a supply chain resource with unending capabilities for growth. At SAPICS, a professional membership-based association, our aim is to advance individuals and organisations in the fields of supply chain and operations, through participation in our educational programmes, events and our annual conference. SAPICS’ wide range of courses also include the world renowned certifications from APICS, The Association for Operations Management in the USA. As an educational resource SAPICS caters for the full spectrum of experience levels in any organisation - from people who are just embarking on a career to seasoned professionals with years of experience. As a best practice resource, SAPICS exposes members to knowledge gained through experience, and processes that are proven and effective. As an organisation, SAPICS really does set the benchmark for Supply Chain, Operations and Logistics management in South Africa.


Visit for more information about what SAPICS can do for you.


Supply Chain Today

June 2012




Imperial Logistics acquired a majority stake in Kings Transport. This load consolidation business, with its 80 year track record, strengthens the ability of Imperial Logistics to service customers that move fewer than full truck loads from source to market. Moving loads that range in size from 500kg to 32 tons, Kings Transport services a diverse range of customers from blue-chip brands to home-based businesses. “Kings is a great fit for the Group,” says Marius Swanepoel, Chief Executive Officer of Imperial Logistics. “Their ethics are deeply rooted, they focus on people development and they are passionate about delivering value to customers.” The company also contributes in terms of Imperial Logistics’ intense focus on its green logistics evolution. Marius says, “King’s eco consciousness extends to its operations, which includes a fleet of vehicles that conform to the lowest possible emission standards.” This acquisition was followed by that

of a 70% stake in Le Grange Transport. This Tulbagh-based business has been operating since 1988, serving mainly the Western Cape fruit industry and operating between the Cape Town harbour and Ceres areas. With 51 vehicles capable of moving loads ranging in size from tri-axle to super-interlink, and a well-established client base in the region, this acquisition is in line with the group’s strategy to grow its business in the Western Cape container market, explains Imperial Cargo managing director, Christo Theron. “Le Grange Transport is an excellent fit for Imperial Logistics,” he adds. “We share the same values, including a commitment to quality service, people development and excellence, and a performance-driven culture pervades both companies. This new venture is set to become an important player in the Western Cape.”

unit comprising representatives from the client and from the logistics solutions specialist is first established. An optimised and integrated supply chain model is conceived, engineered and designed. This model is implemented in line with a cost-benefit proposal and within an agreed timeframe.

“We become consultative,” says Andre. “We can never fully know a client’s business as well as it does, but our advice is based on theory as well as practical considerations. Our experience obviously comes into play. And as the ‘insource’ partner we need to ”walk the talk”. But the true value we offer lies in our ethos of continually improving supply chain efficiencies for competitive advantage. The environment never stops evolving, so why should your solutions?” Andre Jansen van Vuuren, Cargo Carriers, Tel: (011) 485-8700, Email:, www.

Imperial Logistics, Tel: (011) 821-5500,

Three Easy Steps Over the last five to seven decades the argument for outsourcing has taken a firm hold on logistics experts. But research of the past five years shows a failure among organisations to fully integrate the logistics functions – both those that are outsourced and those that are managed directly or ‘internally’. The result is a high degree of ‘unhappiness’ with the outsourcing of the warehouse and transport functions.

While many organisations have incorporated outsourcing as part of their logistics strategy at decision level, they are frustrated by a perceived lack of control. It is with this problem in mind that Cargo Carriers has created new meaning for the term ‘insourcing’, through three simple steps. “Firstly, strategic relationships are key to success,” says Cargo Carriers marketing director, Andre Jansen van Vuuren. “Developing closer relationships with outsourced service providers gives them much more visibility and the flexibility that high service levels require. A glass pipeline is, after all, only as good as the information it conveys up and down stream.”

Cargo Carriers, in some instances, even establishes offices at their clients’ premises to adopt their culture and circumvent potential communication breakdowns. Says Andre, “With greater strategic alignment the costs can be reduced further for our clients. As their control increases so does their visibility, flexibility and responsiveness – all contributing to better service levels.” Secondly, to build sustainable success into the integrated ‘insourced’ model, collaboration from both sides is vital. It enables improved planning and forecasting, coping with increased volumes and, importantly, eradicating the organisation’s skills shortage. The only way to satisfy customer expectations is having the ability to respond quickly to changes in demand. Thus the third step requires this agility which is enabled through tight-knit teams (whether outsourced or not) collaborating for improved communication and higher levels of organisational control. Cargo Carriers’ approach towards ‘insourced’ relationships is simple. A

Andre Jansen van Vuuren

Supply Chain Today

June 2012



Joint Venture Barloworld Logistics has entered into a joint venture with Manline. The joint venture, trading as Barloworld Manline Logistics (BML), was formed to utilise the combined resources of both companies to deliver smart supply chain solutions to existing and new customers. “Our vision for the joint venture includes a fleet of owned vehicles, managed through our existing infrastructure, which leverages off both companies to provide our combined customer bases with innovative solutions,” says Steve Ford, CEO of Barloworld Logistics. “The partnership fits our business both strategically and culturally,” says Steve. “Manline is not only committed to providing excellent customer service but equally focuses on providing its employees with first-class training and

development, maintaining an impeccable safety record and uplifting the communities in which they operate.”

On the Move

Neil Henderson, CEO of Manline Group continues, “We now have the ability to offer new and existing clients an end-to-end supply chain solution that encompasses transport, distribution, warehouse management, inventory management and other optimisation tools. Barloworld Logistics is a leading supply chain solutions provider and we are proud to have partnered with them. This is the start to an exciting journey that I believe will see us building a great business together.” Manline Group Barloworld Logistics

Anthony Fouche has been appointed branch manager at Goscor Lift Truck Company Western Cape.

Clover Industries Limited announces the appointment of Elton Bosch to the Clover SA Pty Ltd executive committee.

Neil Henderson, CEO of Manline Group (left) and Steve Ford, CEO of Barloworld Logistics

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48 Supply Chain Today

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Supply Chain June 2012  

Outsourcing, Truck Review , Focus on security including fire prevention, fuel theft

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