ST Supply Chain Management 2021

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2021

www.businessmediamags.co.za

Management

THE BIGGEST TECHNOLOGICAL DRIVERS WAREHOUSING

Handling reverse logistics

SUSTAINABLE SUPPLY CHAINS

Reducing costs and boosting productivity

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DRIVEN TO INNOVATE Unitrans remains committed to innovation, excellence and transformation

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and Kundani Nethavhani and Nokukhanya Mthembu who have been accepted for the TETA International Leadership Development Programme. The programmes are sponsored by TETA with GIBS as the training provider and aim to equip current and future leaders with skills and knowledge for strategic and operational sustainability.

REFRESHING CHANGES

Hayley Langdon is Unitrans’ litigation legal executive. Her attention to detail and the ability to analyse and interpret situations bring added value to her role. With 15 years of experience behind her, she says: “It’s refreshing to see the changes in the industry, although there is still a lot of hard work to be done. I am extremely proud FROM BACKROOM TO BOARDROOM of Unitrans’ contribution to “The type of roles women Kundani Nethavhani this transformation and their fulfil at Unitrans has moved targeted efforts in this regard.” from the backroom to the “The Unitrans Group actively seeks and, more boardroom,” says Tanet Nienaber, risk and importantly, values the input of all employees compliance executive, who has been with the regardless of their role, level or area of expertise,” company for 18 months. These roles include says commercial legal executive René Pienaar, marketing, legal, risk management, compliance who has been with the company for more than and human capital. With 24 years of work seven years. “This creates a sense of belonging experience, Nienaber adds her own attributes and working towards a common goal.” of fairness, discipline and commitment to the Lee-Anne Saunders, who manages a team company values. Her role is to influence and of 40 people and has been a key member of improve business practices and internal control the operational excellence team for the past processes to manage risk, governance five years, agrees with Pienaar, adding that and compliance. without the company’s commitment to its “Although there are still gaps and challenges, employees growth, she would not have moved women in supply chain have a newfound up the organisational hierarchy from a controller voice and increasing representation in our to her current position as head of centralised market,” says Carli Venter, marketplace operational control. strategic executive. “As an organisation, we For people development executive Melanie are committed to investing in and growing the women in our business.” Naidoo-Padayachee, the fleet industry is in her

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upply chains have been under extreme pressure since the Suez Canal blockade and recent events closer to home, such as the Transnet declaration of force majeure. Despite these challenges, Unitrans continues to be a leader in the logistics industry with a clear focus on innovation, sustainability and transformation, with a particular spotlight on diversity and empowering women. From the ground up where practical skills are in great demand, to the upper echelons where the executive leads the organisation, the women featured here have taken great strides in reshaping a previously male-dominated industry. In addition to the Unitrans’ Women in Transport Professional Driving learnership that includes 15 female and five male trainee truck drivers in a mixed class, the company welcomed Nokukhanya Mdletshe onboard after she completed a three-year learnership as a diesel mechanic. Enjoying the benefit Lee-Anne Saunders of global exposure are Lee-Anne Saunders who has been accepted for the Transport Education Training Authority (TETA) International Executive Development Programme for Women,

Nokukhanya Mthembu

Tanet Nienaber Carli Venter

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René Pienaar Melanie Naidoo-Padayachee

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UNI T R A NS A DV ER T ORI A L

blood. “My dad is a trucking business owner, so I have first-hand understanding of how the turning of wheels impacts lives and livelihoods.” This understanding, coupled with her passion for helping others to reach their potential, means she has a vision for development opportunities that benefit the learner and the business.

RESPONSIBILITY, INNOVATION AND SUSTAINABILITY One of the values the company lives by is respect for others, yourself and the environment so being responsible and sustainable is close to the heart of the Unitrans philosophy. Promoting excellent safety, health, environment, risk and quality practices forms part of the standard SHERQ excellence that the company subscribes to. Unitrans Supply Chain Solutions is committed to continuously improving their sustainability efforts and recognise the importance of all the pillars, supporting a greener, more sustainable future. The Retail Business Unit is driven to innovate and support green initiatives, demonstrated by the use of solar-powered tail lifts, refrigerated box bodies with 30 per cent more insulation and new standardised roller doors. This next-generation technology has reduced fuel consumption and improved vehicle uptime, ensuring a more streamlined operation and lower carbon footprint. To maintain this 99.9 per cent vehicle uptime, preventative maintenance inspections are conducted on a 24/7 basis. The Mining Business Unit has been operating road trains in Africa for more than 35 years, having continuously developed safer high-payload combinations using performance-based systems. Road trains reduce the cost per ton and, by carrying more payload, also reduce the number of trips required to move the vast volumes, thereby reducing carbon emissions, on-road traffic and the associated risks. This unit strives to be the safest and most innovative operator in the industry and has a proud track record.

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Unitrans’ Consumer Business Unit optimises the fleet required through analysis and improvement of current transportation networks. This reduces the total number of vehicles in operation, which improves

“The Unitrans Group actively seeks and, more importantly, values the input of all employees regardless of their role, level or area of expertise.” – René Pienaar

Unitrans Supply Chain Solutions is committed to continuously improving their sustainability efforts and recognise the importance of all the pillars, supporting a greener, more sustainable future.

5 pillars SUSTAINABILITY

Carbon emissions

Water

Energy

efficiencies and cuts costs while offering a reliable service. The team has implemented various sustainable “green” initiatives such as increased payload capacity on its specialised vehicles. This means fewer trips are required, resulting in an environmentally friendly and more sustainable approach. The Petroleum Business Unit applies sustainable thinking across all the aspects of developing a supply chain solution that includes optimised vehicle routing and scheduling, energy optimisation and centre of gravity simulations. Unitrans has made it a standard to purchase only the safest and most fuel-efficient vehicles available in South Africa. The group is investing in the full suite of safety interventions on these vehicles and trailing equipment. Unitrans is continuously investigating new technologies that make vehicles safer and more fuel-efficient, enable it to carry larger loads safely, offload faster to improve turnaround times, and improve vehicle utilisation. The group is continuously working with its landlords and clients to implement sustainable and cost-saving initiatives. It aims to overcome the increased utility prices and the challenges presented by the reliability and supply of electricity. It is also implementing off-the-grid solar installations and LED lighting throughout its facilities as well as drilling boreholes for greywater recycling. In addition to more cost-efficient solutions for its clients, Unitrans is increasing efforts to be an environmentally responsible organisation and to become ‘green’ within its facilities. Unitrans is driven to constantly innovate – whether it be through design, systems or leadership. The group’s strategy is to revolutionise the transport and logistics industry through delivering service, innovation and expertise.

Waste

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People

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F ROM T HE EDI T OR

DIGITISATION IS THE WAY FORWARD

PUBLISHED BY

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acing the challenges of not only a global pandemic, but also disruptive riots and a depressed economy, South African supply chain managers need more than just technical and core skills to navigate their way through current difficulties. This is where technology comes into play, as local supply-chain leaders begin leveraging a new wave of opportunities created by digital transformation. Technology is certainly transforming all end-to-end steps in production – something known as Logistics 4.0 – through cutting-edge solutions and the digitalisation of business processes. At the same time, the need for effective reverse logistics is growing. We take a look at both of these key areas. Of major import to the supply chain is fleet management, since nothing can be delivered without a fleet of trucks. Advanced technology solutions are enabling safer driving, reduced maintenance and a more proactive approach to servicing vehicles. Material handling plays a huge role in improving both the supply chain and customer service. It makes products easy to find, move and ship, but there is no doubt that the COVID-19 pandemic has impacted this part of the supply chain significantly. Fortunately, innovations are being implemented within this space to help solve these issues. Lastly, going green has never been more critical. We look at how organisations should go about designing and implementing sustainable supply chains with some practical examples that determine how to obtain the maximum benefits. Clearly, the modern supply chain is evolving rapidly, and if you want to stay on top of the developments and remain informed, it’s time to start reading!

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Rodney Weidemann Editor

Contents 8

TECHNOLOGY

35 FLEET MANAGEMENT

Modern technologies enable not only proactive maintenance and reduced wear-and-tear on vehicles, but also improve driver safety. We look at the broader impact these are having on the supply chain

Faced with a wave of unprecedented technological opportunities created by digital transformation, how do supply chain businesses choose the right solution?

11 CONSULTING AND INFRASTRUCTURE

An industry expert weighs in on the design and implementation of a sustainable supply chain, which will help reduce costs, improve efficiency and boost productivity

24 MATERIAL HANDLING AND EQUIPMENT

Material handling makes products easy to find, move and ship and reduces product damage caused by careless transport. But how has COVID-19 impacted this sector?

26 LOGISTICS

Logistics 4.0 relies on cutting-edge technologies and the digitalisation of business processes to improve the supply chain. We also take a look at warehousing and handling reverse logistics

COPYRIGHT: Picasso Headline. No portion of this magazine may be reproduced in any form without written consent of the publisher. The publisher is not responsible for unsolicited material. Supply Chain Management is published by Picasso Headline. The opinions expressed are not necessarily those of Picasso Headline. All advertisements/ advertorials have been paid for and therefore do not carry any endorsement by the publisher.

28 EDUCATION

While technical skills are a given in the supply chain sector, core skills are also required. An expert discusses the important core skill sets and how these are being included in educational programmes

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PA R T NER CON T EN T S A PIC S

Professionalism, networking, training, career advancement and advocacy are among the benefits of belonging to a professional organisation like SAPICS

Attending events enables SAPICS members to grow their networks.

THE VALUE IN BELONGING TO A

PROFESSIONAL ASSOCIATION

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APICS (The Professional Body for Supply Chain Management) offers members a platform to connect, discuss challenges and share knowledge and learnings, as well as crucial support, stability and a sense of community that has provided a lifeline for many through the uncertainty of the COVID-19 crisis, says business development executive Tonya Lamb. SAPICS builds supply chain management excellence and develops individuals and enterprises through education, training and events, comprehensive resources, and networking opportunities with a community of accomplished industry professionals. For young professionals Tonya Lamb starting their careers, it is especially important to be a member of a professional organisation, Lamb notes. “When you are first starting in the field, belonging to a professional organisation helps to establish legitimacy,” she advises graduates and young professionals. “While you may not yet be part of a well-known company, being a member of SAPICS adds to your professional brand and credibility when applying for jobs. It gives you access to a network of seasoned industry professionals from diverse backgrounds, including potential mentors. Their experience, expertise and guidance will help you to expand your knowledge and advance in your career.” The networking and skills development opportunities provided by membership of a professional body are important for businesses and individuals at every stage of their career. “This is especially true in a dynamic, ever-changing field like supply chain management where cutting-edge technologies – including artificial intelligence, blockchain, robots and drones – are increasingly being leveraged to optimise

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supply chains and logistics. The training and education provided by SAPICS is geared towards addressing the specific needs of members and advancing the profession. “Attending events enables SAPICS members to grow their networks beyond their organisation and their colleagues. They have opportunities to build relationships across a diverse range of industries and discuss trends and innovations. Connecting with like-minded members of a professional organisation can open doors to new career opportunities,” says Lamb. The annual SAPICS conference is one such event. Established 43 years ago, it is the leading education, knowledge-sharing and networking event in Africa for supply chain professionals. It features powerful presentations from local and global specialists and industry leaders.

THE POWER OF PARTNERSHIPS SAPICS’s collaborative partnerships with associates across Africa and around the globe deliver enormous value for members, connecting them with the global supply community. “As a coalition member of the People that Deliver global initiative, SAPICS strives to improve health outcomes by promoting sustainable workforce excellence in health supply chain management,” Lamb explains. SAPICS represents the international Association for Supply Chain Management (ASCM) as its premier elite channel partner in sub-Saharan Africa. “This collaboration with ASCM, which has existed for over 50 years, supports our drive to build a vital community of educated supply chain professionals in Africa and beyond,” she states. The partnership between SAPICS and the International Association of Public Health Logisticians (IAPHL) was established to promote professionalism and community in South African public health supply chains with the objective of improving the availability of healthcare supplies and lifesaving medicines, including the COVID-19 vaccine.

PROFESSIONAL DEVELOPMENT Advocacy is another important function of a professional organisation. SAPICS is at the forefront of the drive to professionalise the supply chain management profession in Africa, says Lamb. “By professionally designating individuals, SAPICS will increase supply chain management competence, knowledge and skills, and industry professionals will have prescribed values and ethics to uphold. The ongoing professional development required to maintain designations will ensure that African supply chain management keeps pace with global best practice so that optimised supply chains can drive the competitiveness and growth of African businesses and economies,” she states. She adds that, up until now, the supply chain profession has been unregulated in terms of standards for competence and ethical accountability. COVID-19 saw SAPICS pivot and adapt to ensure that members could enjoy the same support and benefits throughout the crisis. “In response to the pandemic and associated challenges, SAPICS launched several special initiatives, including a supply chain management helpline, a tool kit and a COVID-19 collaboration platform for the profession. SAPICS’s role in facilitating knowledge- and resource-sharing, offering support and guidance and disseminating information and education to supply chain professionals was vital during the challenging months. SAPICS will continue to shape the African supply chain profession beyond the COVID-19 crisis, as it has done since SAPICS was founded in 1966,” Lamb concludes. This is sponsored content.

➔ Scan this QR code to go directly to the SAPICS website.

For more information: +27 11 023 6701 Info@sapics.org.za www.sapics.org.za

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PA R T NER CON T EN T S A PIC S

THE BUSINESS CASE FOR CLOUD INTEGRATION Adopting cloud-based services makes business sense as it helps to build supply chain resilience

Companies have started to accelerate their adoption of cloud-based services.

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his year has delivered numerous disruptions to supply chains globally – from COVID-19 to the blockage of the Suez Canal and the ransomware attack on the US East Coast Colonial Pipeline. Companies are having to rethink their supply chain operations to ensure the uninterrupted supply of goods, and many are accelerating their investments in new digital transformation initiatives, says JP Hansen, field marketing manager: Africa at OpenText – a proud sponsor of the 2021 SAPICS Conference. “Recognising that strong and robust supply chains can potentially make or break a company, OpenText was pleased to support Africa’s leading education and knowledge-sharing event for supply chain professionals,” Hansen comments. “The disruptions impacting companies this year alone are a stark reminder that unless organisations adapt their business processes and build resilience around their supply chain operations, they are unlikely to survive. “Companies must improve their ‘digital resilience’,” says Hansen. “This means ensuring

that their IT infrastructure is fit for purpose and can withstand any form of disruption. To this end, companies have started to accelerate their adoption of cloud-based services and these are helping to underpin digital transformation strategies around the world. For a supply chain, it is important to be able to seamlessly integrate with the external supply chain and internal business systems, something that OpenText refers to as ‘Business to Anything Integration’. “Cloud-based integration can essentially help companies introduce a digital backbone that can connect an external community of trading partners to internal business systems such as ERP and transport management systems,” explains Hansen.

FOUR KEY CHARACTERISTICS “Cloud integration offers four key characteristics that can help companies build increased resilience around their business ecosystem. “Firstly, it offers flexibility. Cloud-based business environments allow employees and external stakeholders access to enterprise information anytime, anyplace or anywhere. This allows

“Cloud-based integration can essentially help companies introduce a digital backbone that can connect an external community of trading partners to internal business systems such as ERP and transport management systems.” – JP Hansen 6

companies to adapt their business to a ‘source anywhere, manufacture anywhere’ strategy. “Secondly, it offers collaboration. Having all stakeholders using the same cloud-based environment means improved collaboration and business continuity. For example, it means an organisation can see which trading partners have been impacted by a disaster and potentially implement a dual sourcing strategy. Improved collaboration also helps to accelerate post-disruption recovery, which can provide a significant competitive advantage. As trading partner contact details are held in a central repository, it helps to conduct a post-disruption assessment of a supply chain, this can lead to improved risk assessment and greater resilience to future business disruptions. “Cloud integration offers visibility, enabling companies to see exactly what is going on in their supply chain. Where is my shipment? When will my container arrive? What is the condition of the goods being transported? All these questions need to be answered efficiently. If companies are to improve supply chain visibility, then they need to digitise information flows to each and every trading partner. New disruptive technology such as the internet of things should be deployed to provide real-time updates of what is happening to shipments as they move across supply chains,” Hansen advises, noting that a control tower can ingest this information and effectively present it to different stakeholders across the business via role-based dashboards. Insight is the fourth feature offered by cloud integration. “With so much information being exchanged across today’s supply chains, it is important to be able to mine this data, derive insights and then use these to make decisions and optimise business processes,” he says. “Companies have a decision to make. Do they invest and accelerate their adoption of cloud integration services or do they wait until the next major disruption takes place and do something then? It may well be too late by then, so it is important that they rethink their digital ecosystem now, before the next major disruption hits,” concludes Hansen. Hansen can be contacted for more information at hansenj@opentext.com. This is sponsored content.

➔ Scan this QR code to go directly to the SAPICS website.

For more information: +27 11 023 6701 Info@sapics.org.za www.sapics.org.za

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724535 OSFF

Copyright © 2021 SYSPRO (Pty) Ltd. All rights reserved. All brand and product names are trademarks or registered trademarks of their respective holders.


T ECHNOL OGY

“IF YOU HAVE AI BUILT INTO YOUR SOFTWARE, IT LOOKS FOR PATTERNS IN ALL THAT DATA AND, WITH MACHINE LEARNING, LEARNS TO FIND THESE QUICKLY.” – DOUG HUNTER, SYSPRO adequate security in the cloud environment to protect client data. “There are a lot of technological enhancements in terms of encryption, backups, access to data and so forth,” he states.

TECHNOLOGY WAVE There’s a burgeoning wealth of technology available to supply chain managers these days, but how do they figure out which to choose and implement? ANTHONY SHARPE finds out

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ompanies are constantly pursuing technological solutions for their supply-chain challenges. These days, a staggering number of such solutions exist, and the number only seems to be growing exponentially. “The evolution of technology is happening at such a rapid pace that, unless you’re focused on your industry segment or sector, it’s easy to be engulfed by the tsunami of the fourth industrial revolution,” says Michael Henning, sales manager at Easy Clear, suppliers of holistic software solutions to the customs clearing, freight forwarding and logistics industry. Henning believes the biggest technological drivers currently are blockchain, the massive growth of last-mile logistics, elastic logistics, and the internet of things (IoT). “IoT is set to transform the sector, with operators able to collect data from various access points to feed into the network, providing real-time data across modalities.” He acknowledges that it’s difficult to match business needs to the available technology, but you can simplify it by focusing on what matters. “The lifeblood of any business is revenue, so how do you increase it? You can cut overheads

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– the largest of which is staff – but we don’t want to do that in South Africa. Instead, you can look to technology to streamline the business, add additional revenue streams and grow the business by repurposing your human resources and upskilling them to adopt this new technology,” he notes. “Another way to cut overheads is through adoption of software as a service (SaaS) and infrastructure as a service (IaaS) solutions. If companies can migrate from a legacy Windows or similar service to SaaS or IaaS, they can get rid of costly infrastructure like servers,” says Henning. This also enables companies to secure what is increasingly becoming one of their most valuable commodities: data. “As we move into the era of SaaS and IaaS, there’s a much greater emphasis on the protection of data,” explains Henning. “That has been brought sharply into focus by the Protection of Personal Information Act.” Companies must ensure that they have

Data is key to managing supply chains successfully. It’s essential to have full visibility of the supply chain, this requires collecting and analysing data from multiple sources, explains Doug Hunter, customer and ecosystem enablement manager at enterprise resource planning (ERP) software company SYSPRO. “To get visibility, you need data. You can get data from your existing systems, like broadcasts, supply information and so forth.” Outside of that, he adds, IoT sensors enable logistics managers to collect data about what’s happening to shipments. However, you have to feed the artificial intelligence (AI) the right information, stresses Hunter. “If you’re a supply chain manager and you only look at what you can see, you won’t make the right decisions. You’ve got to expand the source of your data, so your vision is broader.” He adds that analysis through social media is also becoming useful. “You can see what people are saying, gaining insights about the supply chain that you might otherwise miss.” But this raw information needs processing. “The amount of information generated by these sensors, smart devices and systems is too vast for any person to process and make a decision,” says Hunter. That’s where AI comes in. “If you have AI built into your software, it looks for patterns in all that data and, with machine learning, learns to find these quickly.” “This needs to be robustly integrated with your ERP software, so that the system not only tells you there’s a problem, but also quantifies the depth of the issue. That’s what we’re looking for in supply chains: this predictive, end-to-end visibility.” Hunter says that whatever information technologies you choose to embrace, they’ve got to mitigate risk. “Ultimately, you want to reduce the risk of producing, storing or distributing the wrong items because your end consumer has unexpectedly changed their behaviour.”

“THE BIGGEST TECHNOLOGICAL DRIVERS CURRENTLY ARE BLOCKCHAIN, THE MASSIVE GROWTH OF LAST-MILE LOGISTICS, ELASTIC LOGISTICS, AND THE INTERNET OF THINGS.” – MICHAEL HENNING, EASY CLEAR

IMAGE: ISTOCKPHOTO.COM

RIDING THE SUPPLY CHAIN

SMARTER END-TO-END VISIBILITY

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CONSULT ING A ND INF R A S T RUC T URE

THE KEY TO A SUCCESSFUL, GREEN SUPPLY CHAIN IMPLEMENTATION LIES IN LONG-TERM MASTER PLANNING, AS THIS WILL ENSURE THAT ANY DEVELOPMENT WILL BE FUTURE-PROOFED. Such a design also allows significant economies of scale and reduction in duplication of services and other activities. For example, having a single battery charging and workshop area or the ability to easily move equipment, staff and assets between areas leads to better productivity and utilisation, as well as a reduction in security and easier management with less travel and better communication. All of which helps to reduce costs, making the overall supply chain more effective. Design for a site like this must also take into account physical layout as this, when done properly, allows for efficient movement of vehicles with the lowest travel distance and minimal recirculation or wasted travel, further In today’s world, going green is about more than caring for the improving the operations. environment. It is a way to make your supply chain more efficient, Remember too, that efficiencies gained cost-effective and sustainable. By GARY BENATAR, CEO at Relog in the operations and layouts will reduce the amount of staff and equipment needed, thereby reducing total consumption of energy orally, it is the right thing to do to make producer and the consumer is more effective, and resources. responsible environmental practices cheaper, faster and more sustainable. Moreover, it is a given that any new DC’s part of supply chain management. A key part of a green supply chain lies in operations will use the latest methodologies But, more than this, it is simply good designing a distribution centre (DC) that is and techniques. This will gain significant business practice. A more sustainable sustainable. A good example here is a large efficiencies and productivity, leading to lower supply chain is less wasteful – thanks to better project we are working on currently that costs and better service to stores. resource utilisation – leading directly to improved will result in a DC that will be an integrated Optimising storage space is not only efficiencies and cost savings. composite building of over 165 000m2. The cost-effective, but also means the DC is more As supply chains move towards a more goal is to meet the best standards of efficiency, easily able to support throughput and storage connected and digital world, businesses in this green and environmentally focused approaches. volumes while making the best possible use space need to consider artificial intelligence For example, the roof will have solar panels of the building cube. Chilled areas can also (AI) and analytical solutions that link the digital to generate its electricity. In a similar vein, the be implemented to store and pick products with the physical supply chain. This will enable refrigeration plant is adjacent to the refrigerated at the correct temperature and maintain the them to develop efficient and productive area to reduce losses, while at the same time it cold chain. Finally, the incorporation of return solutions while ensuring that everything they is close to the returns centre, offering the ability logistics and reclamation into the flow ensures do is sustainable and consistent with the drive to recover waste heat as a source of warmth for a complete balance to the supply chain. for reduced impact on our planet. Improving the crate washers. In a world buckling productivity and efficiency effectively creates a under the pressures of sustainable solution as less equipment, energy, DATA ANALYSIS PICKING, STORAGE MODELING AND climate change, going people and effort are required. INFRASTRUCTURE DESIGN AND AUTOMATION green is no longer merely a “nice-to-have” – efficient DESIGNING AND DEVELOPING GREEN FACILITIES SYSTEMS and sustainable solutions Developing green facilities helps to give are genuinely our best customers a competitive edge by making sure answer to such challenges. that the link between a supplier, grower or The key to a successful, green supply chain implementation lies in long-term master planning, as this will ensure that any development will Relog’s approach be future-proofed, and to distribution centre design. thus able to deliver true sustainability over the STRATEGY, long term. SITE DEVELOPMENT

THINKING GREEN

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DEVELOPING GREEN FACILITIES HELPS TO GIVE CUSTOMERS A COMPETITIVE EDGE, BY MAKING SURE THAT THE LINK BETWEEN A SUPPLIER, GROWER OR PRODUCER AND THE CONSUMER IS MORE EFFECTIVE, CHEAPER, FASTER AND MORE SUSTAINABLE.

AND SUSTAINABILITY

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Leaders in accredited and SAPICS endorsed supply chain training

Warehouse Warehouse and Operations and Operations Management Management Courses Courses

Supply Chain and Materials Management A foundational understanding of the internal and external operations in supply chain is essential for people wanting to grow into the next phase of their supply chain career. This course will enable you to take the next step.

Inventory Team Leader The movement of raw material and products in and out of the warehouse varies depending on supply and demand. The management of stock flow is important to keep a business at optimal functioning. This course is for anyone who is involved in the stock control process looking to advance their career.

e-Learning, blended learning, and facilitator led

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Effective leaders are also motivators. This course provides deeper understanding of how to build a motivated and productive team while also providing the fundamentals of warehousing and stock control.

Operational Planning The day to day running of a business in a fast-paced industry requires a solid plan to ensure a smooth workflow. In this course you will learn about strategies to maximize your output.

Manufacturing & Resources Just-in-Time (JIT) Manufacturing seeks to generate maximum efficacy in the workplace with high customer satisfaction in mind. This course teaches the principles of Lean Manufacturing.

Sophisticated LMS provides excellent support to students

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To register or enquire contact: hello@bizzco.co.za www.bizzco.co.za 010 001 0283


S A PIC S PA R T NER CON T EN T

SUPPLY CHAIN SUPPORT FOR

SMALL BUSINESSES SAPICS is supporting small businesses through its training and support programme on supply chain management

Chanti Wilson

ACCREDITED TRAINING

The SAPICS community offers an abundance of networking opportunities.

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APICS has reinforced its commitment to the development of small, medium and micro enterprises SMMEs with a training and support programme that is geared towards boosting SMMEs by building their skills in the important area of supply chain management. When it comes to reaping the benefits of supply chain optimisation – including efficiency enhancements and cost savings – SMMEs are being left behind because they lack the necessary skills and resources. “SMMEs have a crucial role to play in the national economy as major sources of employment and drivers of inclusive economic growth. However, they are not adequately supported and their growth is hampered by a lack of capital and limited access to skills development. A major contributor to the growth and development of SMMEs is an understanding of operations and supply chain management best practices,”

comments Chanti Wilson, SAPICS director and chairperson of the SMME task group. “Small businesses have so many responsibilities and so many things to consider, that the critical supply chain function is often overlooked. But, it can make or break the business and is increasingly important in today’s complex and volatile business environment,” she explains.

CREATING OPPORTUNITIES A dedicated SAPICS team works with SMMEs and the large corporates they supply, while a network of authorised education providers offers accredited skills development opportunities that will deliver mutual benefits and enable job creation. In addition to contributing to the growth, success and sustainability of small businesses by providing education and training, SAPICS aims to be the conduit for big corporates to support SMMEs and participate in the development of their suppliers.

“A major contributor to the growth and development of SMMEs is an understanding of operations and supply chain management best practices.” – Chanti Wilson

SAPICS’s SMME programme includes accredited training for entrepreneurs covering all aspects of business management with a strong focus on operations management. Warehouse control; inventory replenishment principles; operational planning and scheduling; lean manufacturing principles; and supply chain and materials management are among the certifications offered. The programme also includes webinars covering supply chain management, demand planning and sales and operations planning. Case studies and success stories are shared, and the programme offers insights from business leaders and supply chain experts. A SAPICS SMME Support Line enables small business owners to get advice and assistance. This is sponsored content.

➔ Scan this QR code to go directly to the SAPICS website.

For more information: +27 11 023 6701 Info@sapics.org.za www.sapics.org.za

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YOUTH DEVELOPMENT IN THE SPOTLIGHT SAPICS is tackling youth unemployment and growing young talent for the skills-strapped profession

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expertise and insights that have not only helped he SAPICS Youth Development me to expand my knowledge, but also to map Programme aims to address youth out my potential career path. I also got involved unemployment in South Africa, the in the SAPICS Youth Development Programme skills deficit in the supply chain field because I saw it as a unique opportunity to and ensure that young professionals connect and network with other like-minded are industry-ready for job opportunities in the university students pursuing a career in the field.” dynamic and increasingly critical supply chain Despite all the media coverage and attention management field. focused on the supply chain profession as a The COVID-19 crisis highlighted the result of the COVID-19 crisis, Mabila asserts that importance of supply chain management and it is still not getting the interest the need to build a pipeline of it deserves from school leavers talent in this skills-strapped and graduates. “This is one of field. Many graduates lack the the main reasons for the SAPICS skills, resources and experience, Youth Development Programme: however, to capitalise on to ignite interest in the profession opportunities in the profession. among the youth,” he states. “South Africa is currently “The programme aims facing a youth unemployment to connect with university crisis, while at the same time students, graduates and young experiencing a deepening supply professionals by inviting them to chain skills shortage across Kholofelo Mabila join a community that will help many sectors,” comments shape and align their career values Kholofelo Mabila, who heads the with what the industry expects from supply SAPICS Young Professional Committee, which is chain professionals. Our goal is to establish a driving the programme. flourishing community of accomplished young Mabila is a third-year student at UNISA. He professionals who will hopefully become the next accepted the challenge of chairing the committee generation of seasoned industry professionals, to “give back and make a meaningful contribution leaders and mentors at SAPICS. to the SAPICS supply chain community”. “I think the programme is important He says: “Since I joined SAPICS last year, I because it affords university students the rare have gained access to local and international

ung . the SAPICS Yo Delegates atl and Student Conference na sio Profes

opportunity to be a part of the profession before even graduating and officially entering the workplace. It offers them valuable exposure to a community of experts and professionals in the industry working in diverse areas and different levels of the supply chain profession.” Mabila says that he would recommend supply chain management as a career for other young people because it offers a diverse career path with many specialisations, catering to most people’s interests, desires and goals. “As someone with a lifelong learning mindset, it is a perfect fit for me because it offers many options and directions that a practitioner can pursue, even as one’s interests and goals change over time,” he explains. Through the SAPICS Youth Development Programme, scholars, graduates and young professionals can join the association for just R250 for 12 months. They will regularly receive articles and information pertinent to them and enjoy other membership benefits, including free attendance of SAPICS webinars and the annual SAPICS Young Professional and Student Conference. They can attend SAPICS partner events at a discounted rate. They also have access to the SAPICS career portal, where they can upload their CVs and pursue advertised job opportunities at no cost to them. Mentoring is an important element of the SAPICS Youth Development Programme. This is sponsored content.

➔ Scan this QR code to go directly to the SAPICS website.

For more information: Supply chain management offers young people a diverse career path with many specialisations.

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+27 11 023 6701 Info@sapics.org.za www.sapics.org.za

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PA R T NER CON T EN T S A PIC S

The annual SAPICS Conference is the leading event in Africa for supply chain professionals.

EXCEPTIONAL PROGRAMME AT 2021

SAPICS CONFERENCE T he 2021 SAPICS Conference featured a compelling array of presentations – from artificial intelligence, blockchain, diversity, demand-driven planning and lean and green to healthcare and retail, leadership and risk management. Reflecting on the challenges faced and overcome by the supply chain profession as a result of the COVID-19 crisis, the theme for this year’s 43rd SAPICS conference was “Refine, Rebuild, Reconnect”. “Supply chains around the world have been challenged exponentially. Some need to be completely rebuilt. Others survived better, but the wise and determined know that supply chains need to keep being refined. Supply chain professionals from South Africa and around the world seized the chance to reconnect at the 2021 SAPICS Conference in August, sharing knowledge and experience and learning from each other to ensure that global supply chains are perpetually resilient and able to keep the world turning,” comments SAPICS president MJ Schoemaker. Due to the COVID-19 pandemic, SAPICS 2021 was a virtual event. “It was disappointing that the SAPICS supply chain community was unable to meet face to face at an in-person

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The annual SAPICS conference is Africa’s leading event for supply chain professionals. The 2021 edition was run under the theme of “Refine, Rebuild, Reconnect” event, as we have done at more than 40 previous SAPICS conferences. However, a virtual conference ensured that our delegates still had access to the exceptional international presenters that they have come to expect at SAPICS, as well as compelling local speakers and presentations. There was also some fun networking and even a caricaturist on hand! We hope to meet again in person in Cape Town for the 2022 SAPICS Conference,” states Schoemaker. The renowned international and South African speakers on the programme for the virtual, three-day 2021 conference shared inspirational and educational success stories and enlightening case studies and presentations focused on new concepts and technologies.

PARALYSED INTO INACTION? A keynote presentation by popular broadcast journalist and writer Bruce Whitfield showed delegates just how important it is to have

a growth mindset in a deeply complex environment where we are often paralysed into inaction through fear and indecision. “You cannot make good long-term decisions if you are overwhelmed by fear,” Whitfield said. In his keynote presentation, Lloyd Keays, global senior director strategy-solutions engineering at SAP in the Netherlands, looked at how blockchain is a game-changer for Daniel Stanton corporates and their supply chains. SAPICS 2021 keynote speaker Daniel Stanton is the well-known author of Supply Chain Management For Dummies. He is a supply chain executive, entrepreneur and educator, popularly known as “Mr. Supply Chain”. Stanton contended that there has

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never been a time in history when supply chain management was more important for society than right now.

The event included a wide variety of exhibitors demonstrating products and services. Delegates were able to spend time with the exhibitors and make the most of the networking opportunities that the virtual platform provided.

STOP LEAKING MONEY THROUGH THE SUPPLY CHAIN How to stop money leaking through the supply chain and draining the bottom line was the subject of a SAPICS 2021 keynote presentation by supply chain risk specialist Jane Tierney, founder and CEO of Purple Link in the USA. She noted that many organisations struggle with poor supplier performance or strained supplier relationships. Her session offered a model for supplier management. “Best Business Partners – How Supply Chain Leaders Can Play the Game” was the title of the presentation by Temitope Ogunfayo, senior director, supply network operations, Babycare (IMEA) at Procter and Gamble in the United Arab Emirates. “A business partner sits at the table with all other functions and equally contributes to any business decision, providing solutions to business challenges,” Temitope Ogunfayo Ogunfayo stated. “They feel accountable for the overall business results and not only for their functional scorecards. Their primary objective is to maximise total shareholder returns. Becoming best business partners requires knowledge, skill and attitude. These attributes make up the success triangle of business partners.” A perpetual favourite of SAPICS audiences, Ogunfayo shared his insights and vast experience in an informative and practical session designed to equip SAPICS delegates with the knowledge, skills and attitude to be best business partners. Supply chain transparency, traceability and equity were in the spotlight in the keynote presentation by Ashish Gadnis, co-founder and CEO of BanQu Inc. Global supply chains source

billions of dollars of raw materials and finished goods in Africa every day. Yet the poorest recyclers, waste reclaimers, smallholder farmers and workers, especially women who work in these supply chains, are invisible, unbanked, discriminated against and marginalised. BanQu, with global partners like Coca-Cola and AB InBev, has shown that there is a better way to manage supply chains; a way that is driven by both purpose and profit. Gadnis shared the BanQu success story with SAPICS delegates.

SHARED EXPERIENCE Two of the biggest names in the global supply chain community, Carol Ptak and Richard (Dick) Ling, who is widely regarded as the “father” of sales and operations planning, shared their deep experience with South African supply chain professionals in a keynote presentation at the conference. Ling is recognised as the creator of sales and operations planning and is a world-renowned educator, speaker and consultant. Carol Ptak is a partner with the Demand Driven Institute, a global organisation that was founded in 2011 to advance and proliferate demand-driven strategies and practices. SAPICS 2021 keynote speaker Kristen Cox is the world’s leading authority on how to apply the theory of constraints to governments Kristen Cox and nonprofit organisations. In her work as the executive director of the Governor’s Office of Management and Budget for the State of Utah, she achieved a 35 per cent improvement across Utah’s USD20-billion executive branch. Most US supply chain professionals know the names Scott Luton and Greg White. SAPICS was proud to have this dynamic duo on the

speaker line-up this year. Luton and White are the informative and entertaining hosts of “Supply Chain Now”, a powerful digital platform connecting supply chain professionals around the world through live streams, vlogs, virtual events and articles. In their presentation, they shared their insights on what the future holds for supply chain management.

EXHIBITION AND NETWORKING The 2021 SAPICS Conference was not just another webinar. In addition to an outstanding line-up of speakers, the event included a wide variety of exhibitors demonstrating products and services. Delegates were able to spend time with the exhibitors and make the most of the networking opportunities that the virtual platform provided. It even allowed for delegates to enjoy face to face meetings. Panel discussions are an integral part of every SAPICS conference, and this year was no different. Cobus Rossouw, executive vice president: digital and information technology at Imperial, South Africa, facilitated a panel discussion on the digital transformation of supply chains. Rossouw’s special guest panellist was Sean Culey – a globally recognised business transformation expert and author. SAPICS business development executive Tonya Lamb facilitated a panel discussion on the development of small, medium and micro enterprises (SMMEs), including the enormous value of the exciting new training and support programme launched by SAPICS specifically to boost SMMEs by building their skills in the important area of supply chain management. The 2022 SAPICS Conference is planned for 12 to 15 June, at Century City, Cape Town. This is sponsored content.

➔ Scan this QR code to go directly to the SAPICS website.

For more information:

Ashish Gadnis

+27 11 023 6701 Info@sapics.org.za www.sapics.org.za

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“To achieve effective demand planning on a client level, we need to collaborate between marketing, sales, supply chain and finance.” – RONALD BREEDVELD

Modern supply chains of the future will be digitalised, data-driven and look to harness the power of machine learning and artificial intelligence to optimise processes and operate at previously unthinkable levels of precision.

GIVING SAS A BOOST The importance and value of SAS was unpacked during a knowledge exchange at the 2021 SAPICS Conference

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f the COVID-19 pandemic has shown the world anything, it is that old ways of operating businesses will not succeed into the future. Consumer buying patterns, supply chain planning and logistics are all subject to significant and rapid changes in a highly connected world. Without a market-driven approach to supply chain management and an ability to respond to sudden changes in demand patterns, many businesses will face unnecessary losses. With this in mind, the 43rd annual SAPICS conference brought together like-minded organisations to share new thinking and innovative takeaways for conference delegates facing sweeping change and disruption in modern supply chains. “That this year’s conference was held via a virtual platform said everything about the accelerated digital revolution we have experienced last year,” says Ronald Breedveld, senior retail and CPG director – Business Advisor, SAS Institute, France, and the company’s expert speaker at the recent SAPICS conference. “Modern supply chains are really networks of incumbent and potential service providers, all of whom produce a range of data that is both incredibly complex and – if harnessed correctly – can form the basis for quick and simple decisions to ensure the sustainability of a business,” continues Breedveld. “Nowadays,

this internal data should be completed by external data sources like syndicated or macroeconomic data.”

UNLOCKING VALUE Drawing on his 25 years of experience in the retail and consumer packaged goods industry, Breedveld presented on what SAS has learnt about process optimisation, harnessing the power of machine learning and artificial intelligence at what was a technologically advanced SAPICS discussion. Breedveld is part of the SAS Business Advisory team helping clients to unlock the value of their data using analytics. “SAPICS is extremely beneficial to all South African supply chain professionals. The sharing of knowledge through presentations and panel discussions is invaluable as complexity in the industry increases so quickly,” said Breedveld. “Even within our business, to achieve effective demand planning on a client level, we need to collaborate between marketing, sales, supply chain and finance, just as client organisations require to do so,” he added. What transforms this complex information into meaningful and powerful patterns is artificial intelligence and machine learning. On a daily basis, demand sensing, trend analysis and pattern recognition can be leveraged to make decisions about how, when and where to send

goods to optimise replenishment, improve inventory levels and optimise availability on shelf. Pattern and trend analysis allows for quick decision-making in responding rapidly to changing consumer buying patterns. SAS simplifies data created in the supply chain network, delivering dependable and trustworthy analytics to help clients organise their logistics on a global scale. An integrated, market-driven approach to supply chain management allows clients’ organisations to negotiate the best terms with a single parent company rather than subordinate entities, forecast accurately and even detect cover pricing and fraud in sourcing service providers. Breedveld highlighted that the age of total predictive analytics throughout supply chains is here, “but without a trusted partner in analysing and interpreting the complex data created by demand streams, organisations will struggle to gain complete visibility into their supply chain networks to gain a competitive advantage.” An ability to arrange information views by corporate entity, client, customer type, product family or end item is invaluable to the modern organisation’s enterprise planning solution. With a partner like SAS in a fifth-party logistics framework, supply chains can be transformed into best-in-class, flexible networks that operate at previously unthinkable levels of precision. “Traditional time-series and seasonal forecasting techniques are limited to estimates based on historical demand patterns. The last 12 months have demonstrated the negative impact of operating without complete visibility. SAS provides the statistical engine to drive demand forecasting to deliver short-term insights from POS information, future firm open orders, promotional events, trade inventory and other features that collectively determine supply and demand signals and can be interpreted and analysed accurately by machine learning and AI,” Breedveld concluded. This is sponsored content.

➔ Scan this QR code to go directly to the SAPICS website.

For more information: +27 11 023 6701 Info@sapics.org.za www.sapics.org.za

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SUPPLY TURNING Using the right machine for the job contributes to supply chain optimisation

Scissor lifts and work-at-height machines have replaced dangerous push ladders and cumbersome scaffolding.

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upply chains are a complex network of organisations, people, processes and technology. While state-of-the-art technology solutions often make headlines, the robust, hardworking machines used in manufacturing, warehousing, distribution and transport are equally important to keep supply chains moving. Using the right machine for the job – whether on a production line, in a warehouse, at a port

or distribution centre – will deliver efficiency enhancements, safety benefits, time savings and cost reductions. At this year’s annual SAPICS conference, materials handling equipment leader Eazi Access, a proud sponsor of the event, showcased its latest solutions. Eazi Access’s journey to becoming Africa’s market leader in the rental, sales, servicing and training of work-at-height and material handling solutions has seen the company partner with

The robust, hardworking machines used in manufacturing, warehousing, distribution and transport are equally important to keep supply chains moving. 20

world-leading equipment manufacturers. The proudly South African company was founded in 2003. “Safety is always a priority in everything that we do. We offer our customers a quality one-stop solution that gives them access to all our major OEM brands,” states Louis Fourie, business development manager: Heavy Industry at Eazi Access. He notes that scissor lifts and work-at-height machines have replaced dangerous push ladders and cumbersome scaffolding. Eazi Access is South Africa’s sole distributor of renowned JLG manufacturing lifting equipment, which includes boom lifts, scissor lifts, telescopic material handlers and low-level access lifts. Fourie reveals that Eazi Access has added new premium models to its JLG Electric Scissor Lift Range, and was proud to present these to supply chain professionals at this year’s virtual SAPICS conference. “We have added eight new models to our range. While the standard features of our Electric Scissor Lifts have always included a hydraulic drive offering value, serviceability and durability, the new models offer an electric drive with premium productivity and reliability. “The new machines include two outstanding lightweight scissor lifts: the JLG ES1530L – a one-person unit with a 230kg capacity – and the JLG ES1330L – a two-person machine with a 230kg capacity. These units have an electric drive and are CE-compliant. At 900kg, they are lightweight, compact and offer a zero turning radius, which is an industry exclusive for JLG,” expands Fourie. “Another excellent feature of these models is their superior service of greaseless components and simple PHP with fewer components. We look forward to our customers in the light industrial sector enjoying these convenient and cost-efficient machines.” This is sponsored content.

➔ Scan this QR code to go directly to the SAPICS website.

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KEEPING THE WHEELS OF

For more information: +27 11 023 6701 Info@sapics.org.za www.sapics.org.za

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Your Supply Chain Partner

Affordable productivity. Maximum performance.

MANITOU SOUTHERN AFRICA Tel: +27 10 601 3000 Address: Proton Industrial Park, Proton Street, Chloorkop Email: info.msa@manitou-group.com | www.manitou.co.za Represented throughout the African continent through our network of dealers.


GOODs in mo on

driven by brain power


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The diverse, dynamic and exciting supply chain profession is attracting more women.

SAPICS LEADS THE WAY FOR WOMEN SAPICS is committed to improving diversity and inclusion in the once male-dominated supply chain management profession

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ith four female presidents over the years, and a growing number of women supply chain experts on the programme each year at the annual SAPICS Conference, SAPICS is leading the way for women to be equally represented in the profession. At the 1996 SAPICS conference, there was just one female speaker out of 33 in the line-up. Reflecting how far SAPICS and the supply chain profession have come, the 2021 SAPICS Conference featured 22 women supply chain experts who shared their insights and experience with African supply chain professionals. When current president MJ Schoemaker took the helm of SAPICS earlier this year, she succeeded Keabetswe Mpane, who had served as a director of SAPICS for eight years and had a two-year tenure as president. Tracy Cheetham has the honour of being the first woman

president of SAPICS. She served in this role for five years then handed over to Liezl Smith, who was a director of SAPICS for nine years.

STILL MORE TO BE DONE Schoemaker says that SAPICS can be proud of the strides it has made in gender diversity and inclusion. While there are certainly more women in the supply chain management profession today than there were 10 years ago, Schoemaker says that there is still a long way to go. “Women are predominantly working in support functions and there is little movement to the upper levels. South Africa is lagging in innovative solutions such as flexible working hours for parents and working from home, which would allow for career advancement and opportunities.” SAPICS director Chanti Wilson echoes this. “In all my executive-level engagements, it is

rare to find women sitting at the table. Often, I am the only woman in the room as the consultant. More focus on gender diversity is needed – there are too few women cracking the glass ceiling to reach executive level in the supply chain profession.” Her advice to women striving to advance in the industry is to network with women who have similar interests and aspirations. “Identify a mentor who will guide you in your career. The introduction of hybrid working options post-COVID-19 may help to make supply chain careers more attractive to women.” Schoemaker also emphasises the value of a mentor. “Women will benefit from a mentor to support them in navigating their way to the upper levels. Additionally, our male colleagues need to be on board and recognise talent across all genders,” she states. Schoemaker believes that organisations must have a clear diversity and inclusion policy that promotes equal opportunities for all employees. “Action must start at the top and be cascaded through the organisation to ensure that all leaders recognise the importance of diversity and move away from the traditional unconscious bias that supply chain is a male career.”

A PROFESSION FILLED WITH POSSIBILITIES Both Schoemaker and Wilson are enthusiastic about the opportunities for women in supply chain management. “Supply chain is highly diverse, exciting and here to stay! There are more women studying subjects such as engineering and IT today, which are sought after in the supply chain profession,” says Schoemaker. “I would not hesitate to recommend this as a profession for women. There are huge opportunities for personal growth and development. Supply chain looks at the whole business, not just a siloed function, therefore it is a great stepping stone to more senior roles in an organisation if this is your aspiration,” says Wilson. This year’s SAPICS conference, which took place in August, included special Women’s Month workshops open to all delegates. This is sponsored content.

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➔ Scan this QR code to go directly to the SAPICS website.

For more information:

MJ Schoemaker

Liezl Smith

Keabetswe Mpane

+27 11 023 6701 Info@sapics.org.za www.sapics.org.za

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MODERNISING THE SECTOR POST-COVID-19 As it rebounds, the material handling and equipment sector has more reason to digitise, writes JAMES FRANCIS

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Mishen Naidoo, engineering and solutions manager, Manitou

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vital part of the logistics world, the material handling and equipment (MHE) sector defines the machinery and operations for the movement, control and storage of goods and materials. According to Grand View Research, the global MHE market was valued at $26.3-billion in 2020, with prospects to grow over seven per cent for the next few years. But it adds that over half of factory owners have delayed new projects due to the pandemic, putting original equipment manufacturers (OEMs) under pressure to digitise their operations. In some cases, OEMs had shuttered operations, while others vastly reduced output. According to Mishen Naidoo, engineering and solutions manager at Manitou, the market has rebounded considerably since last year. “For material handling in general, the trend in the first half of 2021 showed a leap from the stagnant market in 2020. It saw an incredible spike in heavy telehandlers across the mining industry, which links to the current mining supercycle, with some construction companies on a buying cycle for reach telehandlers. The demand for backhoe loaders has also increased in the plant hire, construction and agricultural sectors,” he says.

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M AT ERI A L H A NDL ING A ND EQUIPMEN T

THE PANDEMIC’S LOCKDOWNS WERE FELT ACROSS THE BOARD FOR MHE COMPANIES. IN PARTICULAR, THEY IMPACTED THE DELIVERY OF NEW EQUIPMENT AND PARTS.

Digitisation within the material handling space could help grow the industry.

FOR THE MHE SECTOR TO RETURN TO ITS PREDICTED GROWTH – 7 PER CENT GLOBALLY AND 3.5 PER CENT IN THE MIDDLE EAST AND AFRICA – THE SECTOR NEEDS TO DIGITISE MORE QUICKLY TO REALISE COSTS AND MEET THE DEMANDS OF A CHANGING MARKET. The pandemic’s lockdowns were felt across the board for MHE companies. In particular, they impacted the delivery of new equipment and parts. According to a column published by EIE Group, OEMs in China, Japan and Europe cut back significantly on their operations – largely due to staff not being able to reach their workplaces. Asian operations have since mostly rebounded, though some European manufacturers remain below their pre-pandemic output levels. Yet, the MHE sector could spring back further through pent-up demand from the market, particularly around consumer goods. Mordor Intelligence predicts that the retail sector will be responsible for almost 25 per cent of

revenue for MHE operators in the Middle East and Africa. Some of that rebound is already happening, claim Manitou and the EIE Group. But that is only half of the story. One thread that appears across different analyst reports is that for the MHE sector to return to its predicted growth – 7 per cent globally and 3.5 per cent in the Middle East and Africa – the sector needs to digitise more quickly to realise costs and meet the demands of a changing market.

DIGITAL TO THE RESCUE? The MHE sector is well-suited for digital fourth industrial revolution (4IR) technologies. According to an article published in a MDPI journal last year, “logistics, including material

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ASSESSING COVID-19’S IMPACT

handling and intralogistics, both as a science and an economic sector, not only does not lack behind, but rather drives the application and development of basic methods, algorithms and technologies”. But, it added that these findings mainly come from small implementations. That appears to be changing: the pandemic is driving and expanding MHE digitisation. Examples include more advanced warehouse control systems that integrate with smart devices on forklifts and RFID tags on goods to best co-ordinate warehouse operations. Equipment providers are also increasingly offering remote maintenance, driver behaviour, and safety monitoring services, says Naidoo. “Cost reductions have emerged in the form of fleet route analysis, operator behaviour analysis (erratic driving), forklift impact monitoring, which ultimately results in proactively reducing wear and tear, and downtime on machines. Injuries are also reduced by acting on poor operator behaviour (excess speed, harsh braking, overloading the machine), and choosing routes that are less likely to result in collisions.” Perhaps more interesting is the growth of subscription models, where companies rent equipment for limited periods. “This differs from the typical short-term rental and offers far more flexibility. The machines are not charged for on a daily rate, but customers subscribe to a contract over a set period, with a base monthly contract fee based on their estimated usage. This is ideal for businesses whose operations are cyclical or seasonal as they only pay for the hours that they use.” The above developments did not appear overnight – they speak to an industry that has been working on digital for a while; all COVID-19 did was shift its gears.

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REALISING LOGISTICS 4.0

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A decade later, shipping containers would become standardised, leading to enormous efficiencies across the entire logistics industry.

THE FUTURE OF LOGISTICS? Supporters of Logistics 4.0 (L4.0) – applying fourth industrial revolution (4IR) technologies to the logistics sector – are hoping for a similar jump. But as with many digital ambitions, it’s tough to move from plans to reality. “The logistics industry varies substantially – typically making up close to 20 per cent of the

gross domestic product,” says Martin Bailey FCILT, vice president of the Chartered Institute of Logistics and Transport. “Some components have moved into the 4IR, but much of the industry and related processes are relatively unsophisticated.” According to flexis, a supply chain solution provider, L4.0 typically encounters three barriers: reducing shadow IT (unapproved software) and information silos; breaking free from past-oriented planning; and ditching the spreadsheet. This last point is perhaps

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he story of the shipping container is a microcosm of logistical evolution. In 1955, Malcom McLean sold the third-largest transportation business in the US and bought a steamship company with access to a port. He then created the first modern shipping container, designed to fit snugly on a specific type of truck. Stackable, he could fit 58 such containers on an oil tanker he acquired. This jump in efficiency enabled McLean to charge prices a quarter cheaper than his competitors.

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Are South African logistics companies adopting digital? JAMES FRANCIS finds out

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L OGIS T IC S

“THE INTEGRATION OF SILOS ACROSS BUSINESSES IS STILL THE MOST CHALLENGING PART OF OPTIMISING LOGISTIC OPERATIONS FOR MANY BUSINESSES.” – MARTIN BAILEY FCILT,

CHARTERED INSTITUTE OF LOGISTICS AND TRANSPORT

the most crucial, as it is symbolic of cultural resistance against the changes digital brings. “The integration of silos across businesses is still the most challenging part of optimising logistic operations for many businesses,” Bailey explains. “Changing this usually involves changing the entire culture of organisations – a difficult task.”

FAST FACT

New business models, such as Supply Chain as a Service increase the flexibility in the supply chain organisation. Rather than maintaining resources and capabilities in-house, companies can buy individual supply-chain functions as a service on a by-usage basis. Source: McKinsey

“RIGHT NOW IS A GREAT TIME FOR OTHER LOGISTICS COMPANIES TO DIGITISE.” – ARCHIE VERMEULEN, RAM SUPPLY CHAIN SERVICE

IMAGES: SUPPLIED

IMAGES: ISTOCKPHOTO.COM

TRANSFORMATION IN ACTION That is not an understatement. Only 22 per cent of digital transformation projects deliver business value, according to a 2018 survey from the Everest Group. But the pandemic has been catalytic, says Archie Vermeulen, managing director at RAM Supply Chain Service (SCS). “This pandemic just changed the whole ballgame because agility is where it’s at. Now, you’ve got to move quickly. “We’ve witnessed many incredible advances through the likes of Amazon, Walmart and Apple, essentially logistics companies that amplify different products through their value chains. But over time, their processes and systems have standardised, reducing agility. Thus, right now is a great time for other logistics companies to digitise.” In RAM’s case, the company embraced an ambitious vision to modernise its warehouse operations. RAM SCS is effectively a separate business, offering advanced warehousing to RAM couriers as well as other customers. Starting with a high-tech site in Isando, Johannesburg, RAM SCS leads a massive digital modernisation wave of warehousing in South Africa. To a degree, this new arm could start with a fresh culture and approach, which Vermeulen divides into three priorities: dock levellers, for

more streamlined on- and off-loading, providing services to a variety of customers (not just RAM couriers), and using a best-of-breed warehouse management system (WMS). This approach enables the three tiers of digitisation: process, people and technology. Notably, the bric-à-brac of L4.0 – internet of things gadgets, radio frequency identification tags, barcodes, data flow – could all emerge through the integrated WMS, which also enables concepts such as reverse logistics. “Reverse logistics is essentially the ability to return goods, and it’s growing more important,

especially because of e-commerce,” Vermeulen explains. But reverse logistics is a different animal to delivering goods, requiring closer support for finance and credit management. This is why a digitised warehouse backed by a modern WMS is crucial. The concept reveals how warehousing, and logistics in general, has to evolve and not just adapt. “It’s an infinite journey and there’s no end – we’ve started, we get better,” says Vermeulen. “We believe this journey will make us a serious competitor among the strong contenders out there. The guys that we compete against are no slouches. They’ve been at it for a long time, they know what’s going on. That’s great because they make everybody up their game. Everyone is trying harder. And I like it.”

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EDUCAT ION

FAST FACT

Nothing is more important than working on your people skills if you want to be a successful supply chain leader, but you will also need to be familiar with the use of enterprise software applications and analytics software, which is increasingly becoming a staple source of leadership decision support. Source: Logistics Bureau

FOR THE 21st CENTURY

In an evolving world beset by challenges on all sides, graduates today must have a range of core and technical skills in their professional supply chain toolkit. By ANGELA BRUWER, executive academic head at the IMM Graduate School

E

conomic distress, drought, floods, COVID-19 and, more recently, civil unrest and disruption to economic activity – South Africa has experienced all these recently. And, many other countries are grappling with severe events as well: floods, excessive temperatures, wildfires, and on a global scale, the looming spectre of successive waves of the pandemic. These events sound an alarm for managers in supply chains worldwide because they cause disruptions to the flow of goods and services that make up the global economy. Global economic activity is a network of complex and intricate value chains that enable countries to trade with each other and businesses to harness their supply chains to participate. There is general agreement on the characteristics that enable a supply chain to remain effective in the face of such disruptions. Agility is necessary to satisfy the savvy consumer’s escalating demands and retain a competitive advantage. Resilience is essential to enable the supply chain to flex, but not break in response to these shocks.

Supply chain managers learn to develop skills such as forecasting, scenario planning, negotiation, scheduling, and the analysis that is paramount to understanding the problem and its implications. These help them to swiftly find a short-term solution, as well as one that will, ultimately, strengthen the supply chain in the longer term. These are the technical skills the business needs to survive the immediate disruption and then flourish once the risk has been mitigated.

CORE SKILLS ARE A STRATEGIC IMPERATIVE What is often overlooked, however, is the battery of so-called core skills that managers must demonstrate to ensure sustainability. During these turbulent, challenging times, they must be prepared to stand steady, yet be fl exible and adaptable. They must demonstrate innovative leadership by confidently guiding their teams towards a common goal, show evidence of social and emotional intelligence in unfamiliar work environments and solve tough problems with conviction and confidence.

IT IS THE RESPONSIBILITY OF THE INSTITUTION OF HIGHER LEARNING TO ENSURE THAT GRADUATES ENTER THE WORKPLACE FULLY CAPABLE OF APPLYING KNOWLEDGE AND SKILLS INNOVATIVELY AND CONFIDENTLY. 28

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core SKILLS TRAINING These skills, often not considered by students during their studies, are incorporated in the design of every course in the form of critical cross-field outcomes. These aim to provide students with the core skills of leadership, social, emotional and spiritual intelligence, work ethic, flexibility and adaptability, creative and critical thinking and problem-solving ability. A high-performance supply chain is a network of partners that communicates effectively through the intricate mesh of professional relationships. To deliver this performance, both technical and core skills must be well-developed. The objective of training – apart from imparting knowledge and skills within the discipline – is to shape the student holistically to deal with the unpredictable demands of the 21st workplace, as well as the challenges of the uncharted workplace territory created by the ongoing pandemic. It is the responsibility of the institution of higher learning to ensure that graduates enter the workplace fully capable of applying knowledge and skills innovatively and confidently, with good grace and flexibility. Producing a well-rounded and grounded graduate is dependent on addressing the critical cross-field outcomes during their studies. This is done by providing students with opportunities to work collaboratively on projects, debate and solve problems, negotiate and evaluate ideas with students and lecturers, challenge the status quo and demonstrate critical thinking ability. All of this is done in the context of addressing the challenges they are likely to encounter in the supply chain industry. In this way, graduates emerge with the requisite range of soft and technical skills in their professional supply chain toolkit.

IMAGE: STOCKPHOTO.COM

SUPPLY CHAIN PROFESSIONALS

The unpredictability of the pandemic has acutely focused attention on the graduate’s ability to adapt, communicate effectively and apply extraordinary problem-solving skills. In managing supply chains, problem-solving is a daily necessity because disruptions are more frequent and complex. The ability to communicate, using a range of core skills to ensure the effective implementation of a solution, is a core competency and, for businesses, is fast becoming a strategic imperative.

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Qualifications in

Supply Chain Management - Higher Certificate in Supply Chain Management - Bachelor of Commerce (BCom) in International Supply Chain Management - Bachelor of Commerce (BCom) Honours in Supply Chain Management Internationally accredited by:

Visit imm.ac.za for more information

www.imm.ac.za The IMM Graduate School of Marketing is registered with the Department of Higher Education and Training as a Private Higher Education Institution under the Higher Education Act, 1997. Registration Certificate number 2000/HE07/013.


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INNOVATION. EXPERTISE. DELIVERED. About Unitrans Supply Chain Solutions Unitrans is a diversified supply chain solutions company serving the South African market. Our highly successful business model incorporates innovative design, implementation expertise and the continuous delivery of world-class solutions for our customers. Creators of leading-edge supply chain solutions for almost 60 years, we focus on six key industries: Agriculture Fast-moving consumer goods Chemicals Petroleum General freight incorporating specialised warehousing Mining.

Our strong national footprint comprises a team of over 5 000 people across 86 depots countrywide and our fleet of approximately 2 000 vehicles travels more than 150 000 000km each year. Our people are central to our business success, which incorporates a strong learning culture. The quality and extent of driver training conducted as an integral part of our operations is testament to our commitment to our people and safety. We pride ourselves on establishing strategic alliances with all stakeholders by continuously striving to unlock value through operational and SHERQ excellence. Unitrans is a proudly South African company with level 3 B-BBEE empowerment credentials incorporating effective black ownership in excess of 60 per cent and black woman ownership over 30 per cent. We are driven to constantly innovate – whether it be through design, systems or leadership. Our strategy is to revolutionise the transport and logistics industry by delivering service, innovation and expertise.

www.unitrans.co.za

ABOUT MIX TELEMATICS MiX Telematics is a leading global provider of connected fleet and mobile asset management solutions delivered as Software-as-a-Service (SaaS) to nearly 750 000 global subscribers spanning more than 120 countries. Founded in South Africa 25 years ago, the company also has offices in the United Kingdom, the United States, Uganda, Brazil, Mexico, Australia, and the United Arab Emirates. It also has a network of over 130 fleet partners worldwide. MiX solutions embrace an integrated approach to telematics, delivering actionable intelligence to solve complex vehicle- and driver-related problems. The company is renowned for its innovative telematics technology and services for the consumer and commercial vehicle markets and has been

recognised as a top global leader in connected fleet telematics. The commercial fleet solutions are built around a web-based software platform and mobile applications, supported by in-vehicle hardware and peripheral accessories. On-demand software services enhance vehicle performance and improve driver safety, fleet security, efficiency, and compliance. The consumer offering comprises stolen vehicle recovery and tracking products and services sold under the Matrix and Beame brands in South Africa. These solutions include value-added personal services such as Crash Alert, Road-Side Assist, and other emergency assistance. FOR MORE INFORMATION: www.mixtelematics.co.za |

fleetsa@mixtelematics.com




The Road to Warehouse Modernization Zebra’s Warehousing Vision Study

As the volume and velocity of e-commerce continues to increase, warehouse operations are revamping their fulfillment strategies. See how you stack up against your peers.

A fast and furious on-demand economy Organizations plan to go large in the next five years

Facilities agree the need for speed is driving this expansion

87% 86%

46% 40%

will increase warehouse size will increase volume of items shipped

need to support faster delivery to the end customer see increased consumer response

The pressures of warehouse evolution Tech Implementation 61%

currently see IT/technology utilization as the top operational challenge

80%

believe tech implementation is the key to competing in our on-demand economy

Supply Chain Visibility 55%

plan to modernize with real-time locationing systems

54%

expect to be using a full-featured/best-of-breed warehouse management system (WMS)

Labor Pains 86%

plan to increase technical or supply chain training to retain labor

79%

agree technological transformation in warehousing will increase its appeal as a career

An incremental approach to modernizing

73% believe the most optimal operational balance in warehousing includes human interaction Optimizing labor through augmentation

Investing in warehouse mobility

Automation and data-powered environments

77%

62%

68%

augmenting labor with technology is the best way to introduce automation

rugged tablets and wearable computers by 2022

will shift priorities to increasing asset visibility, real-time decision guidance and data-driven performance by 2024

Dynamic Warehousing for a Dynamic Supply Chain

Find out what builds resilience amid supply chain disruption: https://connect.zebra.com/warehousehub_EMEA ZEBRA and the stylized Zebra head are trademarks of Zebra Technologies Corp., registered in many jurisdictions worldwide. All other trademarks are the property of their respective owners. ©2019 Zebra Technologies Corp. and/or its affiliates.


F L EE T M A N AGEMEN T

GREATER INSIGHT MEANS BETTER

SAFETY AND EFFICIENCY

Connected telematics plays a major role in modern fleet management, but the human touch remains essential, writes TREVOR CRIGHTON

IMAGES: ISTOCKPHOTO.COM, SUPPLIED

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iX Telematics sales director Henry Smith says that telematics has become an essential part of modern fleet management because operators can only manage what they can measure – meaning that data is crucial. Fleet telematics can provide meaningful insights by harnessing all the data and showing how it can be actionable. “Available data also allows us to focus on managing asset pools, which include both the vehicles and the drivers,” says Smith. “Managing driver behaviour has unintentional benefits in terms of reducing the risk of accidents and lowering maintenance costs. This is because the drivers are more aware of heavy braking and acceleration, and there’s less wear-and-tear on the vehicles – they all roll into each other.” “Fuel is the single biggest expense for an operator – and the easiest way to manage that is to focus on driver behaviour,” says Smith. By providing proactive notifications around service schedules, preventative and proactive maintenance and licence and professional driving permit renewals, telematics help to ensure that a fleet operator has a single view of

all the data needed to make informed decisions. Transport economist Herman Lemmer says that managing maintenance schedules of fleet vehicles is essential to keep them running optimally and ensure the safety of drivers, cargo and other road users. “When vehicles are taken out of service for maintenance work, the downtime must be managed and maintenance must be inspected before the vehicle returns to service,” he says. “Data gained from telematics is essential in helping manage this process, although the call rests with an operations manager or the like.” This makes driver buy-in essential, with linked drivers being able to access their dashboards to see how their driving behaviour affects the maintenance and efficiency of their vehicles. “We’ve found that if we empower drivers with data via our My MiX App, they behave differently because they’re more informed and can see how their behaviour impacts the many moving parts of the fleet,” says Smith. Many of MiX Telematics big clients use that data exclusively to determine their Driver of the Year competition, and have saved millions of rand due to the improvements in driving behaviour.

“WE’VE FOUND THAT IF WE EMPOWER DRIVERS WITH DATA VIA OUR MY MiX APP, THEY BEHAVE DIFFERENTLY BECAUSE THEY’RE MORE INFORMED AND CAN SEE HOW THEIR BEHAVIOUR IMPACTS THE MANY MOVING PARTS OF THE FLEET.” – HENRY SMITH, MiX TELEMATICS

MiX Insight Analyster Graph

FAST FACT

The introduction of video telematics has shown a 15 per cent fuel saving, 20 per cent reduction in maintenance across fleets, as much as 96 per cent reduction in accidents and an increase in productivity at 25 per cent, along with a 25 per cent reduction in insurance premiums. This, says MiX Telematics sales director Henry Smith, demonstrates that the future of telematics lies, at least partly, in video.

THE RISE OF VIDEO Smith says that one of the company’s corporate customers in Cape Town runs a fleet of 120 heavy commercial vehicles and reported a zero accident rate, last year. “You can monetise that immediately,” he says. “A minor bumper bashing can cost anywhere from R25 000 to R200 000 – multiply that by 12 trucks over 12 months and the value adds up quickly.” Lemmer says that as much as telematics can indicate impending problems, it’s also essential that operations teams listen to drivers when they report that something isn’t right with a vehicle. “Drivers know their vehicles best and, outside of pre- and post-trip inspections, they’re best-placed to highlight any potential issues that would require taking the vehicle out of service to investigate,” he says. “That human element is important. Then, the ops team decides whether it’s a safety-critical issue requiring immediate attention or if it can be noted for the next scheduled maintenance period.” Smith says that the latest telematics iteration, video telematics, can play a major role in incident reporting because psychologists say that, first, anyone who’s undergone trauma – like being in an accident – shouldn’t be debriefed within 72 hours because they can’t recall what happened accurately within that window period. Second, everyone remembers trauma differently, so three people will have three different experiences of an accident. “Video telematics means that an independent third party has immediate access to audio and video of an event, which helps resolve issues far more quickly,” says Smith. “Drivers feel safer because they’re more protected, and it removes many unknowns in the event of an incident.”

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THE INDUSTRY CORNERSTONE HAS REACHED A MILESTONE

The South African Association of Freight Forwarders T: +27 (0) 11 455 1726 W: www.saaff.org.za

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SAAFF celebrates its centenary this year, having been established in 1921 as the representative business organisation representing the Freight Forwarding and Logistics Industry in South Africa. A role that SAAFF has, over the past hundred years, fulfilled with distinction SAAFF today remains the voice of the Industry it represents and has over the years grown from strength to strength in terms of its membership, the influential role that the Association plays in dealing with matters of industry importance in its interface with government agencies, critical role players in the broader South African economy and at international level through the International Federation of Freight Forwarders Associations (FIATA), the Swiss-based global Industry representative body. The immediate past chairman, Mr Basil Pietersen, is the current FIATA president, proudly representing South Africa on this global platform.

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