chamber bulletin
DESCRIPTION
Chamber Bulletin - May EditionTRANSCRIPT
May 2014
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CHAMBERLINK - PROUD SERVICE PROVIDER TO ERCOC
May 2014
Why being an
ERCOC Member is
the smart move
6 Modifying your home & garden
Sa’s economic wellbeing closely linked to China’s
Sa’s economic wellbeing closely linked to China’s
8
Follow us now, read interesting articles such as:
Ÿ A training needs analysis will be a learning curve for allŸ Why amended BBBEE Codes of Good Practice are causing quite a stirŸ What is constructive dismissal?Ÿ Why First Aid training should be top priority in the workplaceŸ Skills development is a constant point of concern in SAŸ Labour law in South Africa is an ever-changing beastŸ DTI BEE: Not an affair with a tall dark strangerŸ How to roll out an occupational health and safety strategyŸ
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I N D E XChamber Bulletin
We want to encourage members of the East Rand Chamber of Commerce & Industry to submit any and all material we can publish within our next Chamber Bulletin.
The purpose of the Chamber Bulletin is to give you the opportunity to put your company, your products and or services into a well compiled document, being sent out to all our members and newsletter subscribers.
We also want to encourage members to make sure that their websites are up to date.
you have new information, or photos,
se
n d t h e m t o [email protected] or arrange for a company representative to come visit you. He will also be able to take some photographs we can use
both the Chamber Bulletin and as updates within your website.
Make use of the services
you
have at your disposal.
If you are unsure what exactly the extent of the services are you qualify for as an ERCOC member, please let us know and we will get you up to date.
As we are nearing the end of 2013, make sure that you have covered all the necessary angles of your company. Make sure everything is up to date so that 2014 can start at full speed.
Business News
Page 4 -
Sa’s economic well being closely linked to China’s
Page 15 -
Page 31 - Members Area
Eskom cash injection ‘will lift SA’s credit rating’
Page 5 -
Page 6 - Why being an ERCOC Member is the smart move
Your B-BBEE Solution
Page 16 - South African labour law, watch this space -
yet another ministry may be born.
Page 19 - Why amended BBBEE Codes of Good Practice
are causing quite a stir
Page 27 - THE CUSTOMER MAY BE KING OR QUEEN...
BUT NOT ALL CUSTOMERS ARE CREATED EQUAL
15 6
TH YRE T SCH UDAM NI B DE NR A O EF CCO REMM
BASIC MEMBERSHIP
Business News
Join the
East Rand Chamber
of Commerce & Industry now and make use of all the
services provided by Chamberlink - Proud service provider to
the East Rand Chamber of Commerce.
Visit www.chamberlink.co.za for more or phone
us on 011 814 7110 / 1
TH YRE T SCH UDAM NI B DE NR AO F E CCO RMME
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Eskom cash injection ‘will lift SA’s credit rating’
SOUTH Africa can afford a R50bn equity injection for Eskom as its debt levels are still relatively low and manageable when compared with many of its trading partners.It would also help improve the company’s standalone credit rating, said analysts. Public Enterprises Minister Malusi Gigaba is more cautious about the government’s ability to
meet the needs of the utility.
Fitch Ratings London analyst Roelof Steenkamp said the government "can certainly afford it, it’s just a matter of how urgently Eskom needs the money". With South Africa’s debt below 50% of gross domestic product (GDP), the government still had some borrowing capacity left, Mr Steenkamp said. "That’s a healthy state to be in." Eskom told Business Day this week it needed an equity injection of "at least R50bn" to continue funding its build programme
and for working capital to alleviate its cash flow problems.
The struggling power utility is also considering asking the National Energy Regulator of South Africa to review its decision to raise electricity prices by 8% a year over the current five-year period, instead of the 16% Eskom had requested. The new tariff, implemented last year, has left Eskom with a revenue shortfall of R225bn over the five years to 2018. Mr Steenkamp said an equity injection would also support Fitch’s rating approach to Eskom, which aligns it to the sovereign debt rating.
South Africa’s sovereign debt as a percentage of gross domestic product stands at 41%, rating agency Standard & Poor’s (S&P) said in its December update. The agency puts the sovereign debt at BBB with a negative outlook, said director for sub-Saharan Africa Konrad Reuss. The sovereign debt will possibly grow to 44% of GDP by 2016, said the agency. It was "very difficult" to see where the government would get that much money in the short term, particularly given the slow economic growth, said Rand Merchant Bank credit analyst Elena Ilkova. "It’s (the equity injection) possibly not going to happen in the next few months" she said.
"It can possibly be looked at around the medium-term expenditure in October, when the finance minister outlines the government’s expenditure priorities for the next few years." While S&P had "factored in a lot more significant government support for Eskom", Ms Ilkova felt that the money could be found if the government changed its expenditure priorities. "But that does not just happen in the short term, it’s a medium-term exercise. You don’t just switch expenditure to another area. It’s a policy that takes about five years to implement."
Asked if she was concerned that a 41% debt-to-GDP level was high, Ms Ilkova said "that is manageable for now, particularly as the country’s peer countries and trading partners are carrying far higher debt levels". Mr Gigaba said on Thursday that the power utility would have to wait to hear if it would be able to access the funds. "We’re still considering ways to help Eskom with its funding issues, and we still haven’t made a decision," he said. "The government doesn’t have R50bn lying around unused waiting to be given to anybody. The money must first be found somewhere, and we’re working on that."
The decision on Eskom’s request, and one on a similar application for an unspecified equity injection by South African Airways, will be made "at the right time", said Mr Gigaba.
Asked what the right time would be, he said it would be a time "when a decision has been made", adding that "we’re working on it".
Business News
We want to encourage members of the East Rand Chamber of Commerce & Industry to submit any and all material we can publish within our next Chamber Bulletin.
The purpose of the Chamber Bulletin is to give you the opportunity to put your company, your products and or services into a well compiled document, being sent out to all our members and newsletter subscribers.
We also want to encourage members to make sure that their websites are up to date. If you have new information, or photos, s e n d t h e m t o [email protected] or arrange for a company representative to come visit you. He will also be able to take some photographs we can use in both the Chamber Bulletin and as updates within your website.
Make use of the services you have at your disposal.
If you are unsure what exactly the extent of the services are you qualify for as an ERCOC member, please let us know and we will get you up to date.
As we are nearing the end of 2013, make sure that you have covered all the necessary angles of your company. Make sure everything is up to date so that 2014 can start at full speed.
P5
Sa’s economic well being closely linked to China’s
DEPENDING who you ask, it would seem as though the latest HSBC flashpurchasing managers’ index (PMI) figures either reinforced the idea that the Chinese economy is stalling or that it is looking healthier than many perceived it to be.
Although the PMI edged higher on the output and new order index, exportorders fell below 50. The headline flash manufacturing PMI posted a very modest uptick to 48.3, from the final reading of 48 last month. This is in line with the consensus expectations but lower than our forecast of 49.
It was much the same with the most recent growth figures. While the first-quarter gross domestic product (GDP) growth figure of 7.4% was slightly higher than the consensus expectation of 7.3%, many analysts are predicting lower growth for the rest of the year. Industrial production, investment, and retail sales all stumbled in the first two months and the latest PMI seems to back that up.
Sub-Saharan Africa, and South Africa in particular, are particularly exposed to the economic health of the Chinese economy and it goes without saying that any slowdown in China poses a pronounced risk to our current account because the bulk of our commodity exports go to China. As the world’s principal commodity consumer, weaker demand translates into softer demand and lower prices. Bad news if you generate a chunk of your export revenue from resources.
Last year, Chinese imports accounted for 14.3% of South Africa’s total exports, and of South Africa’s export earnings in January more than half came from minerals. This trade is crucial to foreign currency generation, especially given our worryingly wide trade deficits. A wider current account puts pressure on the currency, which in turn makes borrowing more expensive and puts pressure on the budget deficit. Ongoing labour tensions at home only add to our potential woes.
At the time of writing this column, the strike in the platinum sector was entering its 14th week and there was little hope that a resolution would be reached soon. Recent mining production figures show that production of platinum group metals has all but collapsed, and inventories are beginning to run low. There was even talk by some miners of importing the metal in order to meet their contracts.
ETM Analytics market analyst Gareth Brickman told me last week that while there is not a direct supply problem yet, he feels that the effect of the platinum strike on the current account is a risk the market has not yet fully appreciated.
The long-term risks to the current account and our fragile currency are especially pronounced if we take into account concerns that the price of bullion is also expected to fall. Lower key resource prices added to lower export figures equal a potential time bomb for the South African Reserve Bank to sort out.
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TH YRE T SCH UDAM NI B DE NR A O EF CCO REMM
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BASIC MEMBERSHIPThe East Rand Chamber of Commerce proud itself in the fact that it is first and foremost a service providing chamber. Inevitably any member of any organisation based on membership will ask the same question, a question an astute businessman should always ask of himself
What’s In It For Me?A negative answer to this question will result in negative growth for the organization. It is for this reason that ERCOC (the acronym for the East Rand Chamber of Commerce) decided to employ Chamberlink right from the chamber’s inception in 2005. Chamberlink has provided expertise and service to all 560 member companies employing +-160000 employees for the past 9 years. Amongst others in the following ways
A ‘positive introduction’ business report on the member company.This report introduce the member’s entity to customers, suppliers, financial institutions and the business community as a whole in such a way that it provides credibility and prestigeThis report is renewable annually, should it be required by the member
A business award ranking from bronze to platinum based on the report done on the member company. To qualify for the highest reward, namely platinum ERCOC will require financial statements and the adjudication will be done in cooperation with ‘Business Partners’. If the member so wishes they may enter the Chamber’s Business of the Year Awards.
Website hosting, design and developmentIncluded in the basic ERCOC membership is a 5 page A4 website (or larger if it is required) specifically designed for the member. Chamberlink employ full-time web designers that designs and hosts these personalised websites utilizing also the ERCOC business report as well as the awarded ranking to amplify the members stance in his/her field. Up to ten email addresses can be created for the company.
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Six OHS annual training sessions is included in the membershipThe courses are: OHS act for management OHS act for supervisors
Health and safety representative courseAccident and Incident investigation courseBasic Fire fighting First aid Level 1
Since 9/11, South Africa legally requested that every organisation from a School, Churches, Clubs, any form of Business must register its personal “Access of Information Manual” with the Commissioner of Human Rights. Included in the membership, every member will be provided with a manual explaining exactly how and what information may be obtained from the entity and at what cost, if any.
Chamberlink ensure that this manual is registered at the required authority.
To summarize the basic ERCOC membership:The Chamber through the service provider Chamberlink ensures that your HR Department complies with all the legal requirements regarding OHS. Secondly, is it possible to reclaim all your basic membership payments from your Industry SETA, as well as improving your BEE scorecard?
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A monthly fee of R450 for the total 1st year value of R23250.00
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MonthlyMembershipBulletin AdvertisingWebsite development & Hosting
Non-Member MemberPriceR2250R1500R900R6000R450R11100PriceR5200R1450R5500R12150
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TH YRE T SCH UDAM NI B DE NR A O EF CCO REMM ChamberlinkA service division of
Tel: 011 814 7110/1 - Fax: 086 773 8022 - www.chamberlink.co.za
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In addition to Chamberlink……Chamlabour was established as a division dealing with labour issues. Chamlabour is one of the most comprehensive labour consultancy services certified to appear at the CCMA on behalf of ERCOC members. Chamlabour and its associate Attorneys and Advocates ,depending on each case are available at special rates for ERCOC members.
Chamlabour ‘s exclusively designed member services includes:Ÿ CCMA Representation.Ÿ On-site conducting and chairing of disciplinary hearings.Ÿ Necessary documentation, including legally required Notices and Posters Ÿ Employment contracts and Job descriptionsŸ Retrenchment assistanceŸ Yearly submissions of your skills development plan.Ÿ Assistance with the Employment Equity plan and the implementation thereof.To name a few of the main.
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Tel: 011 814 7110/1 - Fax: 086 773 8022 - www.chamberlink.co.za
2 Station Road, Nigel
South African Courts, both Magisterial and Supreme is operating beyond capacity and unscrupulous companies are using this fact to their own advantage by purposefully defaulting on their business and contractual obligations.
With this reality in mind, The East Rand Chamber Of Commerce established an arbitration forum for medium commercial disputes for their members.
Not only do they provide participating members with assistance in preparation to become complaint with arbitration requirements, (Both disputing parties must agree to arbitration therefor sales order and quotation will have to be changed) but they also accept and deliver all the required documentation (Filling of the Statement of claim) as well as paying all fees due by the claimant prior to arbitration for each and every case presented for arbitration with out limit.
Should the respondent fail to pay their portion of the pre-arbitration fees the Chamber will provide the funds to allow the dispute to be properly presented for arbitration.
Only in the event of both parties failing to reach an agreement and the arbitrator is asked to adjudicate the dispute, will the member become liable for costs of the arbitrator at a daily rate.The following advantages are evident;
1. Disputes are settled within 30 days or less.2. All administrative costs are covered even if the respondent fails to pay.3. The arbitrators decision can be made a court judgement.4. Due to the speedy process all evidence are relevant and fresh.5. The process is affordable and precise.
This service is specifically tailored for Business to Business disputes and is unable to accommodate any other events. Should you need more information please don’t hesitate to contact the Chamber for further details, rules and costs.
Debtors valueR1000 < R50 000R50001<R100000R100001<R500000R500001<R1000000>R1000000
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From page 5
Sa’s economic wellbeing closely linked to China’sWhile the public slowdown in the Chinese economy is enough of a cause for concern, it is what happens behind closed doors that worries me even more.
Asian markets are already exhibiting anxiety over news that the Chinese banking sector could be in dire straits and the more I read about what isn’t known, the more I worry. Last month, the country’s banking industry reported that bad loans rose for the ninth consecutive month. While in itself this is a worrying indicator, the formal banking sector is far less of a concern than the "shadow banking" sector.
For some time now there have been rumblings that China’s credit-fuelled and investment-heavy growth model has reached the end of its useful life and potentially even paved the way for a real-estate bubble such as we saw in Ireland and Spain. A widespread property market crash would be devastating for Chinese investment, which accounts for an unprecedented high level of about half of GDP.
The trouble stems from the fact that government spending was accompanied by a huge increase in credit, as state-owned firms and local government departments borrowed heavily to build real-estate developments and other projects.
Now, while the formal Chinese credit sector may be considered safe by many analysts, the shadow world of credit extension was taken up by minor and regional government departments and aspiring property "moguls" outside of the ever-watchful eye of the Chinese government. By law, China’s local government is not allowed to borrow, but when the going is as good as it has been in the Chinese property market, there is a huge incentive to make other plans.
There seems to be consensus that the formal banking sector is sufficiently collaterised but as for the shadow sector, no one can be sure. If it is the case that so-called "safe as houses" property itself was offered up as collateral in this shadow sector, a property bust would have serious consequences.
Busa News
Join
the
East Rand Chamber
of Commerce & Industry now and make use of all the
services provided by Chamberlink - Proud
service provider to the East Rand Chamber of
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South African labour law, watch this space - yet another ministry may be born. Written by Koot van der Walt
Gwede Mantashe, provincial secretary-general of the African National Congress has hinted that a new small business ministry will be created shortly after the upcoming elections.
The ANC has hinted at the possible implementation of a new small business ministry after the elections. Financial commentators feel that this could just serve to create more red tape resulting in less people creating small and medium business enterprises (SME’s). The comments say that this would only increase unemployment. Not to mention that South African labour law will have to move swiftly along with the implementation setting out laws in alignment with the governments new
legislations in accordance with the new ministry. When the African National Congress (ANC) secretary-general Gwede Mantashe mentioned the creation of this ministry it was supported by the South African Institute of Tax Professionals. However there are conflicting views by the likes of the Free Market Foundation and others that the possible establishment of this ministry could set out to increase bureaucracy in this country.
Small business enterprises have been pinpointed as the optimal solution to curbing unemployment in South Africa.
Small businesses are considered to be a solution to the unemployment crises we find ourselves facing in South Africa. Changes in South African labour law, more red-tape and bureaucracy could hamper SMEs instead of help this sector of our economy. This year research company SBP compiled the 2014 SME growth index and it showed that 71% of companies who participated in this survey stated that it was becoming more and more difficult to operate a business in South Africa. There was a noted marginal improvement over 2012 however the statistics still remain negative. Our potential innovators and entrepreneurs are demotivated to investigate the possible starting up of their own company.
South African labour laws could be accountable for the lack of growth in the SME sector.
South African labour law is a challenge for SME’s out there. A number of laws in the Labour Relations Act are contrary to SMEs success in today’s business landscape. Free Market Foundation chairman Herman Mashaba said laws such as the South African Labour Relations Act that were "unfriendly" to SMEs were largely responsible for the country’s unemployment situation. It can be said that these laws are accountable for the fact that 7.8-million people are unemployed in South Africa today. SME’s cannot afford to enter into negotiations nor can they afford the conditions of employment and minimum wages that large employers and trade unions agree too.
If the laws and regulations were streamlined there would be a reduced level of regulation and we may be able to see positive developments in the future.
We need fewer and clearer statutes and regulations to be met. No single ministry has reduced the level of regulation in order to facilitate SME growth. In the case of setting up this new ministry the South African labour law would have to remove all laws that are specific to jurisdiction of range of different ministries. A complete review of the South African labour law would highlight where the SME’s are struggling and where they find it impossible to meet set out regulations.
ERCOC Blog
Join the
East Rand Chamber
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services provided by Chamberlink - Proud service provider to
the East Rand Chamber of Commerce.
Visit www.chamberlink.co.za for more or phone
us on 011 814 7110 / 1
TH YRE T SCH UDAM NI B DE NR AO F E CCO RMME
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Why amended BBBEE Codes of Good Practice are causing quite a stir - Written by Lindie van der Walt
There has been a huge amount of interest generated by the DTI with the Amended BBBEE Codes of Good Practice. In October 2013 it is estimated that as many as three thousand people attended the presentations and we were graced with the presence of President Jacob Zuma and two other ministers who were honourary speakers at the event.
BBBEE has become the standard way in which we do business in South Africa. It has been noted that the Amended BBBEE Codes of Good Practice have many mistakes and that there are aspects where interpretation is very unclear however the same concerns were raised when the first codes were implemented in 2007.
The transitional period has been extended.
The transitional period, allowing for the new amended BBBEE Codes of Good Practice to be implemented, has now been extended to April 2015. This means that any entity that undergoes verification after April 2015, irrespective of financial year end, will apply the Amended BBBEE Codes of Good Practice. Any verification between now and April 2015 will have the option of choosing to be rated on the 2007 Codes of Good Practice or the new codes. It is suggested that the Amended BBBEE Codes of Good Practice be implemented now or as quickly as possible so that you can get a head start on your competitors. BEE has always been closely linked to the amount of business a company is awarded and the implementation of the new codes present an opportunity to win business from competitors who have not yet made the change.
There are ways for companies to earn points with the new system.
Using Black Owned Suppliers is one aspect that a company needs to implement to earn points. See the following:
• 9 points are available on Procurement for 51% or more Black Owned Businesses with a target of 40% of total spend• 4 points are available on Procurement for 30% or more Black Female Owned Business with a target of 12% of total spend
Procurement is also top priority as unless you achieve at least 10 points (40% of 25 points) you will drop down one level. It will be harder to earn points from suppliers based on their recognition level because it is now much harder to achieve a higher level. 40% is a fair amount of the total procurement to spend on black owned suppliers particularly if previously you had not bought much from black owned businesses.
You must identify your procurement and calculate it using the amended codes procurement scorecard. It is suggested that you halve your total procurement spend from compliant suppliers to take into account a good estimate of the potential scorecards you will receive from those suppliers.Once you know how much you need to spend start looking through your supplier list for suppliers that are hurting your BEE status. Common examples are suppliers who have achieved a bad level and then of course the suppliers who do not have any black ownership.
List the different types of products/services that the suppliers who are hurting your score supply you with. Through that list identify the types of products/services that you can purchase from alternative suppliers. Follow with a list of all the suppliers who have black ownership and see to procuring services or products from these suppliers.
Remember that a black owned supplier can also be used for supplier development which allows you to help them so that they supply exactly what you need. It is a true win-win because you gain a supplier who could be potentially very loyal to you and you gain BEE points in a set of codes where earning points is much more difficult.
ERCOC Blog
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helps businesses better manage customers, track sales
opportunities and monitor billable time and costs.
Company ProfileLevtrade International (Pty) Ltd was founded in 1990 with the primary idea of providing an effective and efficient method of treating burns in
the acute (emergency) phase.
®A burn is a unique injury - one of the most severe and painful injuries imaginable. Emergency burn care products provide
for the immediate primary care of burn injuries.
®Introduction of burn dressings focused on the emergency treatment of Burns. Trials conducted in Hospitals and the
Emergency Medical Services soon provided the endorsements and acceptance of the Medical profession.
These endorsements, coupled with internationally accepted independent laboratory tests, research and acceptance in key Hospital & EMS
protocol, paved the way for the development to all sectors of the market and led to the introduction of training & educational items to
compliment the range.
As Burns happen anywhere and at any time, the product is used and sold to the Consumer, Industrial, Military, Police\Traffic, Correctional
Services, First Aid Kit Manufacturers, Hospital & EMS\Fire departments.
The Fire Trauma Blanket developed and designed with the Wool Board and the Council for Scientific Research (CSIR) found a ready
market in the Emergency Services field where it is used as entry\escape to\from fire areas, to extinguish flames on a burning victim and to
act as a large dressing providing instant pain relief.
The range is made up of the following:
· Blankets
· Dressings
· Hydrogels
· Burn Kits Contour Body Dressings
®The production of is carried out in our sophisticated factory, Burnshield (Pty) Ltd, under the supervision of Managing Director Max Di Domenico. Here clinical areas and controlled air environment ensured the award of ISO 9001, ISO 13485 and CE (European) mark registration, the guarantee of quality production to the highest European Standards. Burnshield has FDA (USA) and TGA (Australia) approvals to market.
The product range expanded yet again to include SOLACE ® SunCare products endorsed by CANSA South Africa for Aftersun and SPF protection.
As the company grew and opened up new markets, the demand for a quality First Aid & Surgical Range became a priority and a perfect adjunct to the ® range, Levtrade designed and produced an extensive range of First Aid & Trauma Kits to cover every purpose extending to Factories, Hotels, Sport, Retail , Medical Professionals and Corporate own branding.
Our belief in providing quality at all times afforded us the opportunity to distribute our own brand of Sport Strapping, Tapes and Kits ®under the PROSTRAP brand. This has been well received by Sports Doctors, Sports Teams, Physio's, Clubs and Schools.
It is due to the continued support of our many loyal customers and the TEAM effort required in-house that allows us to enjoy the success we do both locally and internationally.
Thank you for taking the time to read through this information. Please contact us for any further information via email
or visit our website on [email protected] www.burnshield.com
The Optimal Compressed Air & Purification Solution
At Brutes Air Solutions we believe in taking a different approach to the design, manufacture and servicing of compressed air distribution equipment. It's an approach that has served us well and allowed us to become a major South African company serving the local and international market. The difference is inherent in everything we do: In research and technical expertise, design and manufacturing systems, quality assurance, our product range, our customer s e r v i c e a n d ultimately in our products performance. It's a difference that gives our customers total confidence in the ability of our products and service, to meet and often surpass the requirements of their compressed air systems.
Customer relations are a top priority at Brutes Air Solutions; we strive to maintain and improve our excellent standards that have helped the company successfully grow. Our sales and service team have years of experience within the compressed air and filtration industry and are here to help with any queries, be it technical specifications, pricing or delivery. We can provide the support you need, to choose the exact product and service for the precise application. We have obtained the rights to supply all Atlas Copco O.E.M parts, and have access to technical assistance through them.
With over 30 years experience in the compressed air "oil-free" and "oil-injection" market, and 15 years in the filtration market, Brutes Air Solutions can now offer the ultimate service back up by only using genuine parts and "air-ends" from the O.E.M. We are also a fully appointed distributor of Walker Filtration, and can thus offer complete Filtration and Purification Solutions to the Compressed Air Industry Analysis, experience and knowledge of market demands have resulted in a flexible service and distribution programme. By maintaining optimum stock levels, we are able to supply 24hr service and products for instant despatch wherever you are located.
011 817 3600 | 011 817 5623 | www.brutesair.co.za
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THE CUSTOMER MAY BE KING OR QUEEN...BUT NOT ALL CUSTOMERS ARE CREATED EQUAL
Do you treat all customers the same or do you treat them differently? Do you know which
clients generate substantial sales and more importantly, which customers generate
substantial profits and cash flow?
In order to determine the relative importance of your customers, rank each customer in
terms of the following criteria:
1) Sales
2) Profitability
3) Payment history
1) Sales
How much and how regularly does the customer spend money with you? Is sales revenue
stable, increasing or declining? What is the sales revenue per month over 12 months or
more? To calculate sales revenue, we first identify the products sold and then the number
of units of a product sold x selling price per unit, we then deduct any discounts granted.
2) Profitability
Look at profitability by product purchased and then adjust/ reduce for discounts, delivery
and returns. When we talk about client profitability we are referring to gross profit. Gross
profit is equal to sales less the cost of buying or manufacturing stock.
The calculation of the cost of sales for a wholesale or retail business is very different to that
of a manufacturing business.
Wholesale or retail business
In the case of a wholesale or retail business, the actual cost of a product is the purchase
price less any discounts received plus all costs incurred in getting the product to your
warehouse or store (transport, insurance, import duty, equipment hired or purchased to
unload, the cost of labour used to unload stock etc).
Manufacturing business
In the case of a manufacturing business, the calculation of the cost of sales is much more
complex as one has to take into account direct material, direct labour and other
manufacturing overheads.
Direct material – forms part of the final manufactured product, eg. wood used in a
table, and the quantity used varies with production volumes (you use twice as
much wood for two tables as you would for one).
Direct labour – is the labour physically applied to manufacturing the product.
Manufacturing overheads – include all manufacturing costs except direct
material and labour.
Ø Indirect material – does not form part of the final manufactured product eg.
cleaning materials or materials whose cost is so small that it is not worth calculating
Steven DelportSteven is the founder of Integer Consulting Solutions.
He is a facilitator on a number of the leadership development programmes and coaches current MBA students at Wits Business Schoo l , lec tu res MBA finance at Mancosa and writes for Entrepreneur magazine.
For more informat ion, p l e a s e v i s i t www.integerconsultingsolutions.com
eg cotton for sewing a suit.
Ø Indirect labour – cannot be directly linked to the final product eg the factory
supervisor or people who maintain and service the machinery.
Ø Factory rental
Ø Rates and taxes
Ø Water
Ø Electricity
Ø Insurance of the factory and stock
Ø Leasing of machinery and equipment
Ø Depreciation of machinery and equipment
1) Payment history
How do the credit payment terms compare to other customers? Look at the frequency and
ease with which you are paid for your products and services. If you are paid late and have to
follow up frequently with regards to payment, this adds to your costs and should be used to
adjust the customer profitability mentioned above. The key question here is: “Are the credit
terms reasonable for that customer and are you paid on time in terms of the agreed credit
terms?”
You have already identified your key customers who generate the majority of your sales and
profits. How many of these are your late or bad payers?
From your categorisation you now have customers which roughly fall into the following
categories:
· premium
· intermediate
· marginal
Is there over reliance on any of your premium customers? Would the livelihood of your
business be threatened if one of these customers closed down or moved their business
elsewhere? If the answer is “Yes”, then you firstly need to ensure that these customers are
exceptionally well looked after and secondly that you actively identify and target potential
new premium customers so that your reliance on your current key customers is reduced.
Now assess those customers in the intermediate and marginal categories with a view to
determining their potential future revenue and profit potential for your business. Do they buy
exclusively from you or occasionally from you? Are their businesses well managed?
How many of the intermediate and especially marginal customers have substantial future
revenue potential?
You should now have the following clients:
1. premium – in terms of existing revenue spend
2. intermediate – with good opportunity for future revenue and profit growth
3. intermediate – with little opportunity of future sales and profit growth
Steven DelportSteven is the founder of Integer Consulting Solutions.
He is a facilitator on a number of the leadership development programmes and coaches current MBA students at Wits Business Schoo l , lec tu res MBA finance at Mancosa and writes for Entrepreneur magazine.
For more informat ion, p l e a s e v i s i t www.integerconsultingsolutions.com
4. marginal – with good opportunity for future growth
5. marginal – with little opportunity for future growth
In categories 1, 2 and 4 you need to ensure that the relationship and service levels are
maintained or improved still further. You should develop the relationship at multiple levels
within the customer.
In category 3 the relationship and service levels should be maintained or possibly reduced.
In category 5 you need to exit or improve profitability. Since sales volumes cannot be
increased, then the way to increase profitability is to:
1. increase prices and/ or reduce discounts
2. reassess the credit terms
3. strictly enforce payment terms
4. do not accept returns
5. establish a minimum value for goods to be delivered or charge for delivery reduce
the number of client calls made or limit customer contact to phone calls
Steven Delport
TH YRE T SCH UDAM NI B DE NR AO F E CCO RMME
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JCP STEEL SUPPLIES opened it's doors for business in 1992. It soon became clear that there was a need for a devoted chromadek supplier who was able to offer good service in the South African market. JCP have become just that.
JCP STEEL has serviced the steel industry with flatsteel products for more than 16 years. JCP STEEL SUPPLIES is a distributor of C o l o r l u m e , C h r o m a d e k , Galvanised and Zincalume to the rainwater,refrigeration, signage and various other industries
CONTACT UST: +27 11 814-1898F: +27 11 814-2166
PHYSICAL ADDRESSCnr Fourth Ave & 3rd StreetVorsterkroonNigel 1490
We are known for our Vehicle Branding - where no job is too big or too small. Banners & Digital printing is our speciality
Street Address: 28b Central Avenue, Eastleigh, Edenvale Landline: 011 452 5553 Fax: 011 4525554 Cell: 082 579 7021 Cell: 082 461 3462 Email: [email protected]
Wieland SA is a local supplier of high-quality semi-finished products in copper and copper based alloys. We specialise in high performance low-and-high-finned mono- and bi-metal tubes.We are also an approved slitting centre for aluminium strip
56 Plantation RoadEastleighEdenvaleJohannesburg, 2008
OfficePhone: +27 (0)10 248-5000Fax: +27 (0)11 [email protected]@wielandsa.comCONTACT US :
TEL: 011 908 0620
Tel: 011 867-5419Tel: 011 867-3794Fax: 011 867-6681email: web: http://procamcctv.co.za/
As the East Rand Chamber of Commerce & Industry we want to welcome all our
new members.
New Members
WE BELIEVE OUR SERVICES WILL ASSIST YOU GRATELY
Profurn Plastic is a company based in Germiston on the East Rand and focuses mainly in Plastic Injection Moulding and Tool/Die making.
In addition to the plastic moulding and tool/die making, we also specialize in the following fields:Ÿ Industrial Supply.Ÿ Procurement, (sourcing and
supplying of any product for companies) for export to African countries such as the DRC and other neighbouring countries.
Unit 25, Stani Property Sharland Street Driehoek, Germiston
Tel: 011 873 4167 Fax: 011 873 4177 Fax2Email: 088 011 873 4177
Email: [email protected] Email: [email protected] Email: web: http://profurnsa.co.za
Our company was established in June 1989. Our policy is to become a major role player in the stud welding industry on the African continent, to supply qual i ty products, efficient service and economical solutions to suit our individual customer’s requirements. We have our own manufacturing plant and design solutions to specific needs, provide technical support, sales of studs and stud we ld ing equ ipment , h i r i ng , contracting, service & repair of stud welding equipment and onsite training. All demonstrations, consultation and samples are free of charge. Our proposals are cost effective. You do not have to be an existing customer to get our best service at all times. We have systems for an occasional or high production application.
TEL: +27 (11) 914 - 5103/4/5FAX: +27 (11) 914 - 5106
ADRIAAN FOURIE ( Contract Work )+27(0)83 226 5763
LEON FOURIE ( Technical / Projects )+27(0)82 551 [email protected]
spierings
The crane radius is utilized to the fullest, and may be set up directly next to the hoisting object...
all terrain
A mobile crane with the necessary equipment to travel at speed on public roads, and on rough terrain at the job...
44 High Road,Brentwood Park,Benoni, 1459Tel: +27 (11) 963 0146Fax: +27 (11) 963 1294
General Queries: Mike Ralston 083 680 [email protected]
Sales Queries: William Rathbone 083 426 [email protected]
Help Desk Queries: Louise Waring 082 824 [email protected]
Our AgentsJohannesburg South & Surrounding Suburbs:
Pieter 074 582 8076 (Jhb South) [email protected], Brakpan & Surrounding suburbs:
Mike 082 899 4468 [email protected]
Nicky 083 374 3715 [email protected]
TM Trucking is a well established repairer, seller, servicer and rebuilder of all MAN Truck Models based in Gauteng, South Africa.
Physical address:101 Meerkat RoadZesfonteinBenoniWeb: http://www.tm-trucking.co.zaEmail: [email protected]: (010) 593-5105 / (011) 968-9911Fax: (011) 968-9912
Superb Trailer Sales has the biggest stock of used and refurbished trailers and tankers, which we can offer to any customer, corporate or small. We also selling a big variety of used trucks.
164B Oosthuizen StreetBardeneBoksburg1501
Tel / Mobile : 071 141 3695Fax : 086 692 3555E-mail : [email protected] : www.superbtrailers.co.za
Botanichem‘s vision is to provide quality services and wide range of effective and safe plant derived ingredients to the Cosmetic Industry. See our Services
Botanichem has chosen to focus on plant derived ingredients in support of Sustainable Product, Fair-trade and the Global trend towards organic and safe products.
Botanichem has secured agencies in some of the top chemical companies globally. Click on Agencies to Check out our Agencies.
Robyn BrownGeneral Managercell- 084 599 0063email - [email protected]
Lina SimoesLaboratory Managertel - (011) 397 4455 ext 218email - [email protected]
Fusion Guarantees was established in 2006. The company is an Authorized National Credit Provider NCRCP 4426.
The guarantee industry in South Africa has been evolving into an extremely specialized industry and Fusion G u a r a n t e e s h a s b e e n a m a j o r c o n t r i b u t o r w i t h i n t h e construction sector of the South African economy. Fusion Guarantees have been supporting small to med ium s izecon t rac to rs and businesses over the last 3 years, establishing itself as a niche guarantor over the last couple of years.
18 Hennie Alberts StreetBrackenhurst Ext1Alberton1447
Office Number: (011) 867-7500Fax Number: (011) 867-2745
Web: E-mail:[email protected]
www.fusionguarantees.co.za
Maneol Engineering providing quality general engineering services since 1976.
What We DoTurningMilling
MachiningWelding
CNCHydraulic Repairs
Service Breakdowns
Telephone: +27 (0)11 827-4107 or + 27 (0)11 824-1960Fax: +27 (0)11 824-4890Email: [email protected]: http://www.maneol.co.za
Address: 55 Ilana Street Delville Ext1, Germiston 1401 and 6 Theodore Street
Catercity Catering Equipment cc was established in Johannesburg in 2006 and boasts a range of some 200+ products.
Our factory situated in Benrose Johannesburg is equipped with modern machinery and staffed by people with decades of experience in the industry.
Our AEROGAS range of gas grillers and boiling tables is ruggedly designed to provide long lasting service to the user, is certified by the LPGSASA and carries the safe appliance guarantee of quality.
Included in our product range are fryers, bains marie, tables and sinks
Phone: +27 (011) 614-1652Email: [email protected]: www.fogonovo.co.za
Transoil Services (Transoil) specialises in all aspects of Transformer Oil Regeneration and Purification.
Services offered by Transoil include:
Ÿ Manufacture and supply of Transformer Oil Regeneration and Purification Plants in stationary and mobile configurations.
Ÿ On Site Transformer Oil Regeneration and Purification with their new state of the art Mobile Transformer Oil Regeneration Plant (MRP);
Ÿ Personalized Service, Technical Advice, Electrical Spares, Mechanical Spares, Filters, Coalecers, Scada Packages, PLC’s and software for all types of Regeneration and P u r i f i c a t i o n P l a n t s ;
Ÿ Maintenance and Management of all types of Regeneration and Purification Plants;
Based in Johannesburg South Africa, Transoil’s four directors have over 55 years experience in the design, manufacture, sales and commissioning of Regeneration and Purification Plants and they have commissioned machines on every continent in over 70 countries.
CONTACT DETAILS:
ADDRESS:8 GARSON STREETDELVILLE EXT. 1GERMISTON
E – MAIL: [email protected]
TELEPHONE:
OFFICE: +27 (0)11 824 1806/6250FAX: +27 (0)11 824 1968CELL PHONE: +27 (0)79 508 6941 +27 (0)82 560 7046 +27 (0)82 331 7121
Power Quality Company (Pty) Ltd operates in the earthing, lightning, surge and cathodic protection disciplines of the industrial electrical construction sector
We offers an end-to-end service – from engineering and design through to component supply, installation, testing and commissioning of earthing and lightning protection systems. In addition, we offer seminar and training service aimed at familiarizing professionals and operatives with the principles and codes-of-practice applicable to its business. With extensive experience in both brown and greenfields projects as well as new installations and rehabilitative projects. Power Quality Company has a long and extensive track record in mining, heavy industry, utilities provision and transportation infrastructure as well as in the communications and electronic environment. Power Quality Company deploys cutting-edge technology and the most up-to-date data and technological developments and adheres to quality and safety standards that match those of the strictest of its customers.
Our client base includes all major mining houses, blue chip industries, utility and transport providers at state, provincial and municipal level and our target markets embraces major economies in Sub-Saharan Africa.
ContactNeels Janse van Rensburg +27 71 175 8652 Lydia Moreselwane+27 73 441 2988 Geoffrey Powell+27 84 561 0108 Elva Visser +27 84 558 0307 Mike Visser +27 84 586 8688 [email protected]
Members Area
P31
I N T R O D U C T I O N
S.A. Tube & Honing is a service orientated precision engineering company that specializes in the
manufacture, repair and supply of hydraulic cylinders, pumps, motors and control valves.
SA Tube & Honing also have the technical ability and expertise to design and manufacture other hydraulic
installations such as tyre manipulators, power packs, hydraulic presses, pallet jacks (from 5 tons to 100
ton) etc.
SA Tube & Honing also specialize in general and precision machining.
C O M P A N Y H I S T O R Y
The company and business concept was originally started in 1969 by Mr Chris van Rensburg senior. It
has gone from strength to strength and has developed into a reputable market leader by preserving its
technical culture, ethical standards and best business practices.
August 2004 saw the company expand its operations with the addition of a 5000 square meter fully
equipped facility. This expansion created the opport unity to implement a medium to long term capital
reinvestment program, which to date has been responsible for the acquiring of 11 new CNC type
machines as well as other ancillary pieces.
As an industry pioneer it is our aim to continue with this reinvestment program which affords us the
opportunity to invest in our clients best served interests.
P R O D U C T S & S E R V I C E S
S A Tube & Honing uses two custom built workshops totaling in 7000 m² with an experienced staff
compliment of more than 85 that specialize in the manufacture, for the mining, transport and industrial
sectors. Other than strictly adhering to all OEM specifications and standards, our strengths lie in our ability
to effect quick turnaround times, capability to place dedicated consignment stock and the availability of
various service exchange units.
CYLINDERS
Manufacture, repair and supply all makes and designs of single double acting and multi stage hydraulic
cylinders with:
Strokes up to 12 m
Barrel diameters up to 500 mm
Honing facilities on our premises
P R O D U C T S & S E R V I C E S
PUMPS & MOTORS
Repair and supply of most makes and designs of gear,
vane, piston, gerotor type single and multi stage pumps
and motors.
VALVES
Repair and supply of most makes of valves, including
directional control valves, orbital steering valves and brake -
accumulator valves
PRECISION ENGINEERING
We also specialize in various types of precision machining
services from turning to boring to milling whether it is
horizontal or vertical, low or high volumes we can provide
you with the necessary engineering service using CNC
equipment incorporating software from SolidWorks &
MasterCam.
FIELD SERVICE
Qualified personnel and fully equipped vehicles for onsite assistance at your convenience.
We offer a 24/7 field service to our customers.
ON-SITE LINE BORING
Qualified personnel and fully equipped vehicle for on-site Line Boring.
T E S T I N G & O T H E R F E A T U R E S
TESTING FACILITIES
All cylinders, pumps and motors are tested on fully computerized test benches that are programmed to test
each unit according to OEM standards. Using pre-heated oil, components are tested under varying loads,
speeds and pressures with visual efficiency graphs.
On satisfactory completion the computer system automatically generates a test certificate. All valves are
manually tested on a separate custom built test bench that can accommodate both mechanical and
solenoid operated valves
TESTING RANGES
Cylinders up to 200L per min and 400 bar
Pumps and motors up to 300L per min and 400 bar
Valves up to 100L per min and 320 bar
OTHER FEATURES & SERVICES
Weekly on-site representation
Collection and delivery service
Breakdown service and backup 24 hours a day, 7 days a week, 52 weeks a year
Integrated computer management and job control system
In house draughtsman operating SolidWorks and Cosmos Express
Photographic failure analysis reporting
)XOO GLPHQVLRQDO UHSRUW
Complete stock of patterns for castings
The use of coded welders
The use of the nitrogen freeze fit process for all bushes and bearings
The use of Wear Check to monitor our test bench oil cleanliness
The use of an 800 m² store
B U S I N E S S S T R A T E G I E S
Establishing long term sound business relationships that are mutually beneficial
Consistently providing unparalleled service with the highest possible quality and competitive prices
by:
Employment of dedicated, disciplined and competent staff
Thorough implementation of proper systems and procedures
The use of a custom built facility with specialized testing equipment
Providing dedicated consignment stock as an option
Providing service and backup 24 hours 7 days 52 weeks a year
Assuring the shortest possible collection, repair and delivery turnaround times in the industry by:
Continued expansion and utilization of our service exchange program
Effectively utilizing a large fleet of delivery vehicles
Maintaining a spare parts and raw material stock holding policy which enables us to reduce
turnaround time after hours
Maintaining our ISO9001 - 2008 quality rating. Strictly adhering to all OEM specifications and
standards
Continued product improvement through process of our failure analysis reporting, which identifies
recurring failures and assists in providing solutions thereto
Continued utilization and development of a computer network with a fully integrated custom
designed job control and financial software
By providing a warranty cover of 6 months from date of installation against defective workmanship,
premature seal failure and material defect
Direct sourcing from international manufacturers enables us to offer our clients extremely competitive
prices
Creating sound long term business relationships with local suppliers affords us the cost benefit of
premium trade and quantity discounts
C U S T O M E R S / V E N D O R S
Vendor/Customer Name Vendor/
Account
Number
African Oxygen Ltd 2007233
Afrisam S.A. Pty Ltd 303545
Anglo Gold Ashanti 7125511
Anglo Coal 015188
Anglo Platinum 123554
Assmang 200177
Atlas Copco S.A. Pty Ltd (Preferred Supplier) 29033
B & E International Pty Ltd 6634
Barloworld Equipment (Preferred Supplier) 4005560
Bell Equipment S.A. 029129
BHP Billiton 4008228
Blue Ridge Mine SAT01
Bucyrus Africa Underground Pty Ltd (Preferred Supplier) 306918
Columbus Stainless Steel Pty Ltd 514773
De Beers 71263J
Eskom 11050194
Exxaro Coal (Contract) 229084
Foskor Pty Ltd 23397
Gold Fields Shared Services Pty Ltd TRS007
Graspan Colliery Pty Ltd SAT001
Harmony Gold Mining Co (Preferred Supplier) 6256
Hitachi Construction Machinery S.A. Pty Ltd (Preferred Supplier) 06S004
Joy Mining Machinery 213427
Kumba Iron Ore (Contract) 2230
Lafarge Industries S.A. Pty Ltd 141107
Macsteel Trading 263
Megacube Mining (Preferred Supplier) SCH001
Nkomati Mine SAT002
Palabora Mining Company Limited 10460
Rio-Tinto (PMC) (Contract)
Sandvik Mining & Construction (Approved Supplier) SAT01
Sasol Mining Pty Ltd 408870
Scaw Metals Group 16375
Southgold Exploration Pty Ltd (Contract Pending) 50001136
K E Y P E R S O NN E L D E T A I L S
DEPARTMENT
NAME
NUMBER
Administration
Managing Director James Janse van Rensburg +27 82 451 1955
Accountant Elmeree Horn +27 82 495 4632
SHEQ Manager Willie Lottering +27 82 906 0735
Personal Assistant Shirene Rogers +27 11 914 3893
Creditors Marietjie Kruger +27 11 914 3893
Debtors +DQQHOLH *HUEHU +27 11 914 3893
Sales
Representative Mias Potgieter (Steelpoort) +27 72 593 8204
Representative Johan Reyneke
(Local) +27 83 630 9422
Representative <RODQGLH .ULHO
(North-West, 5ustenburg
& Thabazimbi) +27 8
Representative Altus Stadler
(Vaal Triangle Mpumalanga )UHH 6WDWH)
+27 72 926 7801
Representative Jacques Nel
(Limpopo & Mpumalanga) +27 82 782 5935
Repair & Manufacturing Division
Workshop Manager Rui da Silva +27 83 262 0222
Foreman (Cylinders) Nardo Louwrens +27 82 316 9228
Foreman (Pumps) Mike Rossi
+27 82 453 3153
Contracts Manager Norman Hadden +27 82 490 4923
Draughtsman David Bowie +27 72 422 3590
Technical Buyer 0LNH 5RVVL +27
C O M P A N Y I N F O R MA T I O N
DETAILS
Company Name : S.A. Tube & Honing (Pty) Ltd
Company Reg. No : 1998/001297/07
Onset of Business : November 1969
Physical Address : 520 Commissioner Street
Boksburg Industrial Sites
Gauteng
1460
South Africa
Postal Address : P O Box 13399
Witfield
1467
South Africa
VAT No : 4880 101 722
Company Tax No : 9001/563/80/9
Telephone No : +27 (11) 914 3893
Fax No : +27 (11) 914 2052
E-mail addresses : [email protected]
Website address : www.satube.co.za
BANKING DETAILS
Name : Standard Bank of South Africa
Branch : Boksburg – 011 842
Account No : 271838523
Account name : SA Tube & Honing (Pty) Ltd
Type : Business - current
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Delivering services to membersbased in and around the
East Rand
For more information, pleasevisit
or give us a call on 011 814 7110 / 1www.chamberlink.co.za
TH YRE T SCH UDA NM I B DE NR A O EF CC RO EMM
ERCOC