sct: feb 2010

Supply Chain Today February 2010 1

Endorsed by:CILTSA CGCSA CSCMP SAEPA SAPICS SMART X FEB 2010

* EXPRESS FREIGHT * FORKLIFTS * WAREHOUSING ** TRANSPORT MANAGEMENT *

SUPPLY CHAINTODAY

Trackingtrends

Saepa seesthe light

2 Supply Chain Today February 2010

Improving Efficiency

Reducing CO2 EmissionsReducing Kilometres Travelled

GreenFleet

Powered by DigiCore

Green FleetT h e o n l y a l T e r n a T i v e !With C-track you can improve the efficiency of your fleet, reduce your

kilometres travelled and achieve reduced CO2 emissions.

6738

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Supply Chain Today February 2010 �

Feb 2010

ContentsWarehousing4 SensorsinHighBayWarehousing7 WeightyIssue

Sapics6 NominationsInvited

Forklifts9 OnlyOneTurnedUp11 NarrowerandHigher13 GettingaHandleonThings

MarketForum—Unit17 MarketForum

Saepa22TheLightisThere

ExpressFreight25UpatDawn

TransportManagement-Routing&Scheduling27IsYourTrackeraTracker?

Featured on the cover

Linde Material Handling

Tel: (011) 723-7000Fax: (011) 574-1988

Website: www.linde-mh.co.za

31 StayingonTop

MarketForum—Supply35MarketForum

EndorsingBodiesAfritag (divofSmartCardSociety)CGCSA (ConsumerGoodsCouncilof SA)CILTSA (CharteredInstituteof Logistics&Transport:SA)SAEPA (SAExpressParcel Association)SAPICS (TheAssociationfor OperationsManagement ofSouthernAfrica) alsomailedto:CSCMP (CouncilofSupplyChain ManagementProfessionals)

Proprietor and Publisher:PROMECH PUBLISHINGTel: (011) 781-1401Fax: (011) 781-1403E-mail: [email protected]@promech.co.za Website: www.promech.co.zaManaging Editor:Susan Custers

Advertising Sales:Please contact Surita Marx while Tarina Kriel is on maternity leaveDTP: Zinobia Docrat and Sanette LehaniePrinted by:Typo Colour PrintingTel: (011) 402-3468

The monthly circulation is 4 025 CopyrightAll rights reserved. No editorial matter published in Supply Chain Today may be reproduced in any form or language without written permission of the publishers. While every effort is made to ensure accurate reproduc-tion, the editor, authors, publishers and their employees or agents shall not be responsible or in any way liable for any errors, omissions or inaccuracies in the publication, whether arising from negligence or otherwise or for any consequences arising therefrom. The inclusion or exclu-sion of any product does not mean that the publisher or editorial board advocates or rejects its use either generally or in any particular field or fields.

Improving Efficiency

Reducing CO2 EmissionsReducing Kilometres Travelled

GreenFleet

Powered by DigiCore

Green FleetT h e o n l y a l T e r n a T i v e !With C-track you can improve the efficiency of your fleet, reduce your

kilometres travelled and achieve reduced CO2 emissions.

6738

NU

THO

USE

MA

RKET

ING

� Supply Chain Today February 2010

A barcode positioning system ensures optical position determination

T his modern facility incorporates the world’s most modern coating system for adhesive materials with the only intralo-gistics solution of its kind in the industry.

This solution includes both the high bay roll warehouse in the production hall as well as the conveyor connection at the cutting machines and packaging systems.

Leuze electronics equipped the entire system with sensors that fulfill all the stipulated requirements without compromising on reliability, performance or quality.

Protected field heightIn the goods receiving area, the paper and foil rolls are unloaded from trucks and placed on the lifting table by a clamping truck. In this ap-plication, Leuze Solid-2E safety light curtains have been installed to provide a protected field height of over two metres. A barcode positioning system ensures optical position determination with absolute precision without mechanical wear or slippage, and does so independent of reference points.

A vertical conveyor transports the roller to the interior of the production hall where a gripper automatically places it on a system pallet. Safety light curtains are again used in this area to fa-cilitate best practice safe working conditions for all personnel.

Exact positionAs the roll is transported to the warehouse, 46B Series retro-reflective photoelectric sensors are used to detect the presence of the roll and its exact position. These sensors also control the signals

Sensors in High Bay Warehousing

Sensors are being used to monitor all aspects of a new high bay warehouse for Herma in Germany.

The Rotoscan RS4 safety light scanner safeguards the area near the storage aisle

WAREHOUSING


for the fire door control system giving peace of mind to all.

The roll is then trans-ported to the storage section of the facility, where it is accepted by one of the two high bay storage devices. A DDLS 200 data trans-mission photoelectric sensor continuously transmits the position data of the high bay storage device directly to the system PLC.

“No-go” areaThe Rotoscan RS4 safety laser scanner is also used in the high bay storage area and ensures that should personnel enter the pre-determined “no-go” area a shutdown signal is sent imme-diately to the control. The Rotoscan RS4 is located near ground level to allow reliable detec-tion while still allowing both high bay storage devices to operate unhindered.

These raw materials are retrieved from the high bay storage device with the channel car and de-livered to the roll-out conveyor when needed for an order. The roll is then unpacked and taken to the fully automatic transport portal. This portal stores the rolls in a buffer or transports them directly to the roll

Still allowing both high bay storage devices to operate unhindered

46B Series retro-reflective photoelectric sensors ensure reliable positioning of the rolls at all transport paths

The DDLS 200 data transmission photoelectric sensor transmits the position data of the high-bay storage device directly to the system PLC

unwinding/winding machine using a distribution car.

At the transport portal/distribution car interface, multiple Leuze safety light curtains are used

WAREHOUSING


to safeguard the access points to the danger areas.

Transfer stationNumerous PRK 96 retro-reflective photoelectric sensors control the start/stop function at the transfer station where reflective foils do not pose a problem for this hi-tech sensor. The grippers for the rollers are also fitted with retro-reflective photoelectric sensors and barcode positioning systems.

Leuze sensors have been engineered to provide reliable sensing in difficult applications without compromising on production processes or qual-ity. These quality sensors are available from Countapulse Controls who is the leading south-ern African supplier of sensing, measurement, counting, switching, monitoring and positioning instrumentation.

The company offers a complete technical advisory service for the most effective use of its products in automotive and other branches of engineering.

Gerry Bryant, Countapulse Controls (Pty) Ltd, Tel: (011) 615-7556, www.countapulse.edx.co.za

Reflective foils do not pose a problem for this hi-tech sensor

WAREHOUSING

The annual Supply Chain Education Excellence Awards will take place on 11 March, hosted by Sapics (The As-sociation for Operations Management of Southern Af-

rica), with the participation of the Federation of Supply Chain Management Associations.

This prestigious event - now in its 4th successful year - is aimed at recognising and rewarding excellence in supply chain management education and raising awareness of individuals, organisations and educators

who are going the extra mile to address the skills deficit in the supply chain and operations management profession.

Nominations are invited in a number of categories, and will be adjudicated based on performance, sustainability, success and innovation.

Extra mile“We are looking for the Operations Management Education Programme of the Year, Student of the Year, Higher Education Institution Student of the Year and Corporate Educator of the Year,” explains Sapics president Reuben Badana. “The Sapics categories include the Sapics Authorised Education Provider of the Year and the Sapics Lecturer of the Year.”

For more information on the awards, or to nominate an outstanding student, educator or organisation, contact Tonya Parker at Sapics on Tel: (011) 805-6616, Fax: (011) 315-3311 or Email [email protected].

Nominations Invited

SAPICS


WAREHOUSING

A long with this new awareness has come renewed interest in methodologies such as Kaizen and the related Kanban sys-tems, with their emphasis on maintaining

optimum levels of inventory to meet demands without overstocking warehouses. In fact, the optimisation of the warehouse has turned into a fine art as everyone aspires to be Just In Time.

Lean machineResearch indicates that high per-formance supply chains can reduce inventory by 15% and are 60% faster to market. Figures like this can mean the difference between survival or failure in a market that takes no prisoners.

Software has been a principle player in the war on wasteful practices, with warehouse man-

agement systems, ERP solutions and other electronic devices keep-ing processes as lean as possible.

However, having fantastic internal systems means little when the show

is let down at the handover point for delivery fulfillment. Operations that

rely on manual packaging while running traditional weight-based cost calculations

cannot optimise their packaging operations in line with the express sector ’s volumetric

method for consignment costing.

Filled with airBoxes that are too large, fragile items wrapped

in too much protective packaging, and other inefficient practices result in outer cartons that are literally filled with air. By factoring in the physical volume, as well as the weight of

the consignment, the cost of sending a parcel using an express carrier can be three times

higher than one calculated on weight alone.

Apart from the financial outlay, there are also im-plications in terms of waste

disposal; excess packing material and its associated recycling require-ments can become a logistics process in itself, particularly given the current

collective green consciousness. As the price of transport rises steadily, impacting the price

Automatic dimensioning and data capturing systems significantly improve warehouse and shipment processes

Weighty IssueIn the past, charges for transporting goods have been cal-culated by weight. However it has become apparent that while a vehicle may be fully loaded in terms of volume, it may be well below its maximum weight. In response, companies have switched to calculating costs as a func-tion of both volume and weight, with new technologies

developing in response to the trend.

Between survival or failure in a market that takes no prisoners


of manufactured goods and com-modities, it is crucial for supply chains to be run as efficiently as possible.

No doom and gloomFortunately, it is not impossible to take control of the volumetric issue. Developers of dimensioning technology have been working on solutions for over two decades, while integration specialists have focused on solving various prob-lems along the chain for at least ten years.

The result is a plethora of low-risk systems, from compact stand-alone units for smaller operations, to fully integrated multi-point systems for the most complex distribution hub. Solu-tions can be tailored for almost every need.

Fundamental dataAmong these are Microsep’s various Mettler Toledo Cargoscan weighing, dimensioning and scan-ning systems. Ideally suited to the warehouse, transport and logistics industries, they’re designed to meet fundamental data require-ments such as weight, dimensions and identification of items.

“By investing in automatic dimen-sioning and data capturing sys-tems, companies can significantly improve their warehouse and shipment processes and increase revenue,” says Peter Anderson of Microsep.

These systems have the additional advantage of overcoming the inaccuracies that are typical of manual processes, for instance, hand measuring, calculating and inputting. “Using the Cargoscan dimensioning equipment allows for a quick return on investment as it reduces human error, ensures correct and accurate billing, and there is no need for data capturers,” Peter adds.

Better yet, these tasks are performed in seconds, integrating discretely into existing package handling systems. This data is automatically captured and exported into WMS and ERP systems.

One shiftReturn on investment is almost as speedy as the systems being managed. Distribution and transport

WAREHOUSING

The Cargoscan™ range includes low-cost static systems and high-end, in-motion solutions

costs, efficient use of space, optimised package sizes along with oversight of returns and inven-tory all add up to substantial savings. In some instances, companies are able to condense all of these processes into one shift, streamlining staff overheads substantially.

According to Peter, Mettler Toledo Cargoscan systems are versatile and can be customised to specific needs. “The range includes low-cost static systems and high-end, in-motion solutions as well as equipment that can handle large, ir-regular and other difficult-to-measure items,” he concludes.

Peter Anderson, Microsep, Tel. 011 553 2300, Fax. 011 553 2400, Email. [email protected], Website. www.microsep.co.za

Companies are able to condense all of these processes into one shift, streamlining staff overheads substantially


G oscor Lift Truck Company’s (GLTC) KZN branch manager, Michael Keats and his team took the time and trouble to analyse what we needed and delivered

us a solution that we are happy with,” says Ko-bus. So bullish is the KZN-based leading paper bag manufacturer about the quality of product and service, it has made Goscor its preferred lift truck supplier.

“We are genuinely delighted about this,” says Michael. “Taurus is one of the leaders in its industry in South Africa and to be made a pre-ferred supplier is a compliment of the highest order,” he says.

Management systemGLTC supplied to Taurus seven Doosan diesel forklifts – two with clamps and five with forks - all fitted with the FMX Forklift Fleet Manage-ment System. “FMX captures real-time informa-

tion via a GPRS data retrieval unit, which can then be viewed using a variety of informative reports,” says Michael. “It ensures optimum fleet productivity, professional operator control and continuous equipment monitoring resulting in significantly higher productivity and improved equipment performance.”

Kobus adds that all involved with the forklifts are satisfied. “While still early days, everyone involved with the machines is happy with the performance of the machines and Goscor ’s service.”

The long-termMichael adds that GLTC will be supporting Taurus Paper from its Isithebe workshop for quick response times and maximum up-time. “The robustness of the Doosan lift trucks will provide Taurus with extended, cost-effective product life while the FMX system will enable us to assist Taurus Paper manage its fleet ensuring lowest cost of owner-ship over the long-term,” says Keats.

Taurus supplies all segments of the paper pack-

Only One Turned UpTaurus Packaging MD, Kobus van Eeden, says, “We had been using a well-known brand of forklifts for some years and went out to tender on a new contract,” he says. “We made it clear that we wanted the companies, which included every big name in the forklift business, to come to our site and assess properly what our re-

quirements were. We wanted a total solution and not just ‘a product off the shelf’ response. Only Goscor came to the site.

Taurus Packaging’s MD Kobus van Eeden (middle) and operator Nathi Nxumalo with GLTC branch manager KZN, Mike Keats

FORKLIFTS

To be made a preferred supplier is a compliment of the highest order


L to R - Abdool Moosa (Materials Manager Taurus Packaging) Stan Bines (Maintenance Manager Taurus Packaging) Jenna Brathwaite (North Coast Area Sales Manager Goscor Lift Truck Co.) Kobus van Eeden (Managing Director Taurus Packaging) and Mike Keats (Branch Manager KZN Goscor Lift Truck Co)

FORKLIFTS

high quality bags. In 2008 Taurus supplied in excess of 220 million units to customers all over southern Africa.

Darryl Shafto, Goscor Lift Truck Company, Tel: (011) 393.1413, Email: [email protected], www.goscor.co.za

FMX Forklift Fleet Management System. “FMX captures real-time information via a GPRS data retrieval unit, which can then be viewed using a variety of informative reports

aging market in South Africa converting over 180 000 tons of raw paper annually into printed,


To ensure storage optimisation at its Luipaardsvlei water plant, where it manufactures decorative paints, Plascon decided to build up not out, with a warehouse model that sets new standards for high-reach materials handling in very narrow aisles.

The new facility stores raw materials and empty packaging, housing just under 2 500 pallet locations, with pallets weighing 600 to 1 000 kg each.

Turret tecnologyCentral to the design was the ability to use the latest Hyster turret truck technology from Bar-loworld Handling. Plascon acquired two Hyster C Series man-up turret trucks that enable pallet retrieval up to 16.97 m high – compared with the industry average of 14 m – while working in 1 800 mm wide aisles. The trucks have a load capacity of 780 kg at maximum height.

This allowed Plascon to limit the footprint of its new raw materials store to 980 m2 while ef-fectively using land 12 times over, says project engineer Murray Chamier. “Though a considerable investment, we believe this model should create significant cost efficiencies.“

Perfect solutionDarryl Hancock, warehousing specialist at Bar-loworld Handling, says the Hyster C Series is the

FORKLIFTS

The facility combines 17m high r a c k i n g

with aisles that are only 1 800mm wide, and features the highest man-up turret trucks in their class ever seen in South Af-rica.

Narrower and Higher

Darryl Hancock of Barloworld Handling (left) and Plascon project engineer Murray Chamier with one of the two technologically advanced Hyster turret trucks acquired by Plascon

To limit the footprint of its new raw ma-terials store to 980 m2 while effectively using land 12 times over

Paint manufacturer, Plascon, is scaling new heights in very nar-

row aisle (VNA) warehousing with its newly-built raw materials store

in Luipaardsvlei, Krugersdorp.


FORKLIFTS

perfect solution where space is limited and goods are stored at high levels, in very narrow aisles. “The man-up design means the operator is always working at the height adjacent to the load, forks and racking, which is ideal for load handling and order picking. The C Series is also able to handle loads on either side of the aisle, without the need to exit to re-orientate the forks.”

Key to the C Series’ performance is Hyster ’s Quad Form mast, the only four-point mast in the indus-try. “It increases stability and torsional strength, minimising mast deflection and eliminating the need for additional support,” says Darryl.

An integrated pantograph or scissor attachment automatically opens with the traverse function, enabling the truck to work in the smallest of aisles with maximum side clearance. High load handling is facilitated using in-aisle rail guidance options and state-of-the-art ergonomics further enhances productivity.

An advantage of VNA racking is that, as only the turret trucks operate in these aisles, there is no danger of collision with other trucks that operate outside the racking.

Enabling the truck to work in the smallest of aisles with maximum side clearance

Response timePlascon bought the two trucks with reassurance of a five-year total maintenance contract with Barloworld Handling. The contract includes battery maintenance. Maintenance was a key consideration, Murray says. “Plascon operates a fleet of Hyster machines in the remainder of the Luipaardsvlei plant and we know from experience that Barloworld Handling delivers an excellent response time, which maximises our uptime.

“With regard to the design of the turret trucks, we were particularly impressed by the support-iveness of the four-point mast and the service-ability of the machines,” says Murray. “If there is a breakdown in the middle of an aisle, a truck can be accessed from the back, in contrast to other VNA turret trucks.

“Barloworld Handling’s approach to the deal was professional and knowledgeable right from the start, and delivery was on time. We assessed the offerings from five different materials handling companies before choosing Hyster and Barloworld Handling, and based on this experience we’ll do so again.”

Heidi Gouws, Barloworld Handling, Tel: (011) 898-0100, Fax: (011) 898-0054, Email: [email protected]

Supply Chain Today February 2010 1�

W hen “Supply Chain Today” speaks to Stan Contat, MD of Micron Engineer-ing and Bolzoni Auramo SA, it’s clear that he’s a man who likes to keep

a handle on what’s happening in the industry. Started in the early ‘80s by Stan’s father, Dave Contat, Micron Engineering quickly found a niche as a manufacturer of products that were no longer available in South Africa due to sanctions.

Company evolution“At that stage we worked closely with Cascade, producing specialised attachments for forklifts such as side shifters, masts and carriages,” says Stan. At the beginning of the ‘90s, when Dave proposed that Cascade buy out Micron, the com-pany turned him down. “It was a stroke of luck, because Dave was then offered the agency for the Finnish Auramo brand, which supplies products for the paper industry. This put us in direct com-petition with Cascade. Frankly, I imagine that if they had it to do over again, they’d have bought out Micron for peanuts, rather than turning us into a competitor,” he laughs.

The next decade saw the family-run business grow from strength to strength as it opened up Auramo SA, which then evolved into Bolzoni-Auramo SA when the Italian forklift specialist bought Auramo Finland, combining the best of both companies to form a multinational force in the market. This translated into local success.

“At this point, Micron was almost exclusively focused on materials handling rather than project engineering,” adds Stan.

Vested interestStan joined the business in 2005 and became an equity partner in 2006. This gave him a vested interest in facilitating some big changes prompting him to diversify in order to protect the company from the impact of currency fluctuations, by focusing on sourcing products from different markets as well as focusing on local manufacture.Diversification provided a hedge for currency risk and unearthed a wealth of new technology in the foreign markets.

“We began looking for other agencies to be mar-keted by Micron,” he explains. “These included a wide variety of innovative equipment from all over the world.” Europe and the States turned up numerous prospects, and Stan even visited Shanghai to see what was available there.

Meeting challenges“This is a difficult industry to enter into,” he advises. “It’s very competitive and technical expertise is essential. It’s also capital intensive because stock is costly and you need to keep a large enough range to meet client requirements.

“Our core competency has been our after sales support. We have 23 technicians countrywide and can offer our clients a full maintenance contract to support the equipment over its contract term. None of our other competitors have this facility. We also have a large stock of used equipment, which is available for rental, demo and loan – especially useful to keep a customer produc-

Getting a Handle on ThingsIt’s easy to think of materials handling as merely a matter of moving items around as needed by whatever means available. Perhaps it’s for this reason that South

Africa lags behind when it comes to the sophistication of our equipment.

Stan and the team at Micron Engineering

FORKLIFTS

I imagine that if they had it to do over again, they’d have bought out Micron for peanuts, rather than turning us into a competitor

1� Supply Chain Today February 2010

tive in the event of their own equipment needing repair.

“The forklift market in sub-Saharan Africa has remained relatively unsophisticated. We’ll use a forklift combined with manual labour to do the work that is being done with an attachment overseas. One of our primary objectives is therefore to inform the market of what products are available to meet their needs. A good example is the single-double pallet handler, which allows the driver to pick up either one or two pallets depend-ing on the order which has become almost standard in the beverage industry.”

Handling goodsOther products include the MSE range of roller forks, which handle slipsheets. “We anticipate a growing

Micron has been sourcing innovative forklift products from around the world

Staying on top of upcoming trends ensures the best range of product choices for clients

Use a forklift combined with manual labour to do the work that is being done with an attachment overseas


demand for products of this nature because of the prohibitive cost of pallets,” says Stan. “In 2010, new regulations in the EU will prohibit the use of wooden pallets from many foreign sources. This will have a big impact on countries such as Kenya, for instance, which exports large quantities of tea to the country. Plastic pallets are very expensive, so slipsheets will probably become the best option.

“We also sourced a range of reach forks from Kooi, which allow drivers to reach across an entire truck to lift pallets on the other side, as well as to ease the process of double-deep stacking in warehouses,” he continues. “In Chicago we made contact with Long Reach and have recently also contacted Tigard Claw for even more specialised products. The latter allows the driver to pick up individual layers of product by item, shrinkwrap them, apply a barcode and load the whole order onto a pallet. It’s quicker, involves less breakage and pilferage is minimised,” Stan elaborates.

Mining industryAlways on the lookout for new avenues to explore, the Micron team have also seen a gap in the mining industry, which is a departure from the paper and pulp and FMCG sectors they previously worked within. “We located a mining attachment with massive rotators which can lift and rotate tyres hydraulically. With weight capacities between one and 16 tons, the products have the ability to change tyres on the massive dump trucks used on the mines,” he tells us.

“We’re looking into this industry because we often get enquiries for products of this nature – our reputation for being able to handle almost any forklift requirement precedes us.”

Conti agencyIt’s clear that it’s no exaggeration when Stan adds that the company has also taken on the agency for Continental Tyre’s forklift range. “Micron was awarded this agency in conjunction with Loadmax in Durban,” Stan explains. “We were very fortunate, since we’re not tyre specialists, but John Allers at Loadmax has good technical experience with tyres, and Conti liked Micron’s solid service background. We’ve met our target for volumes in our first year and anticipate that we’ll meet our second year ’s target with ease,” he smiles.

Stan admits that, as with most other businesses, the economic climate has taken its toll, however his proactive approach to diversification appears to have buffered the company against serious harm. “While capital sales remain our principle source of revenue, the increase in our service and rental contracts has picked up any slack we may have otherwise experienced.

High expectations“Selling forklift attachments is not like selling

FORKLIFTS

Stan believes that forging and maintaining good client relationships is the key to success

commodity products where the sale thereof is the end of the line. It’s a complex field that is fairly labour intensive and requires various income streams to see you through the fluctuations in the market. I believe that we’re getting it right though – we’ve managed to build up a client base that includes companies like Toyota, Linde, Barlow, Nissan, Criterion, Goscor and Masslift.

“They, in turn, supply end-users such as Mondi, Sappi, ABI, SAB and many other companies whose expectations are understandably high.

“Fostering good relations with our suppliers as well as our clients is vital, as is staying on top of technological trends while ensuring consistent service levels for existing ranges. No easy task when our yo-yoing economy also requires nerves of steel for any business owner. “Stan chuckles when he says that adversity can be a strong mo-tivator. “If I was just working for the money, I’d probably have lost interest by now. The fact that I’m working towards the security of the company and the team keeps me driven.”

He stresses that the development of Micron’s great team has been integral in surviving the economic adversity.

Stan Contat, Micron Engineering, Tel: (011) 421-0738, Fax: (011) 086-635-4197, Email. [email protected], Website. www.bolzoni-auramo.co.za

Plastic pallets are very expensive, so slipsheets will probably become the best option


Truseal customised bags which can be manufactured to any size or configuration

Market Forum

Customised attachmentManitou Southern Africa, has supplied seven rough ter-rain forklifts to Mini Loaders / Lang Arm Rentals for use on Sanral’s Gauteng Freeway Improvement Project. The contract involves the supply of five MC 30 rough terrain forklifts and two M30.2 rough terrain forklifts.

The contract also includes the manufacture of a custom load spreader beam attachment to enable the handling of New Jersey concrete barriers, as well as the application of custom paint finishes to the machines.

According to David Shelley, company owner, Mini Loaders / Lang Arm Rent-als. Prior to the introduction of Manitou machines, contractors were using utility trucks fitted with hydraulic cranes to position the barriers. This method of placement is decidedly slow, as the trucks are too large to manoeuvre ef-fectively around the job site. As a result, the placing of the barriers started to slip behind schedule – to the point where a rapid positioning solution became an urgent necessity.”

The custom attachment comprises four chains attached to a load spreader beam. Two chains are positioned on each end of the beam. To lift a barrier an iron bar is threaded through preformed holes in the concrete barrier, the iron bar is then attached to the custom attachment using shackles. Each component on the attachment needs to be safety certified before being allowed on site. As a result

The Manitou machine’s superior manoeuvrability and precise lift, tilt and side shift controls enables operators to lay New Jersey barriers quickly and efficiently and in an aesthetically pleasing manner

Clean residue“We have recently been involved in the develop-ment of air-drop cash bags to be used in remote and war-torn areas. The bags are manufactured from high grade PVC reinforced nylon which is both strong and water resistant. Our

bags have a built in metal seal and feature specially de-signed handles to facilitate easy release from an aircraft,” reports Tony Cramer, Truseal, Managing Director.

It has been a longstanding problem that void labels left unsightly markings on the containers that they were meant to protect,” says Tony.

“The challenge we faced in developing a better solution was that, even though you did not want to leave hard-to-

remove markings on containers or envelopes, you still needed to

only the highest qual-ity materials have been used in the attachments construction.

Lindsay Shankland, CEO, Manitou Southern Africa, Tel: 080-626-4868, Fax: (011) 975- 4646, Email: [email protected]


Market Forumprotect them from being tampered with. The product we have developed is still just as sensitive as a traditional void label, with the added advantage of an easy to clean residue.”

Truseal void labels are ideal for applications in the hospitality industry, for use on hotel room bar fridges where an easy to check easy to clean security solution has been in demand for years. The seals have found favour in police forensics for the protection of evidence, in casinos for sealing doors and gambling machines, and in large corporations to seal computers and prevent hardware theft. The Truseal void label is made from a polyester face material, with high tack adhesive containing a covert message. The void label reads FRAUD in the event of tampering.

Tony Cramer, Managing Director, TruSeal (Pty) Ltd, Tel: (011) 762-5291, Fax: (011) 762-3506, Email: [email protected]

Air delivery record Atlas Copco’s recently improved 11-30 kW GA+/GA VSD (Variable Speed Drive) compressor range is regarded as among the most efficient, silent and compact in the world and ultimately suited to operating on the shop floor.

Philip Herselman of Atlas Copco Compressor Technique, comments on some of the groundbreaking features offered

by this new range of small compressors: “With enhanced energy efficiency and air quality, our re-engineered small compressor range is ideally suited to comprehensively address all critical areas including superior FAD (free air delivery), excellent Specific Energy Requirement (SER) readings and features the lowest noise levels ever achieved by us”.

Atlas Copco redesigned and upgraded the popular fixed speed GA 11+ -30 compressor range as well as the GA 15-30 VSD version. In order to improve and meet customer requirements for effective air delivery and to eliminate the need to oversize, a 26kW Atlas Copco compressor is also available with the newly launched, new generation VSD.

“Energy consumption is further reduced by the new in-tegrated dryer unit available in our full feature version”. Philip explains, “The integrated dryer simultaneously enhances energy efficiency and air quality. Small wonder these compressors are regarded as amongst the most energy efficient on the market”.

The new generation VSD technology increases perfor-mance, is less dust sensitive, achieves very low harmonic distortion and energy savings of up to 35%, resulting in faster return on investment. In addition, up to 80% of the compressor ’s energy consumption can be recuperated (e.g. for water and air heating in industrial processes or for direct use on site) with the now standard option to connect an energy recovery system.

Atlas Copco South Africa Pty Ltd, Tel: (011) 821-9000, Telefax: (011) 821-9106, Website: www.atlascopco.com, www.atlascopco.co.za

Quicker visibilityDHL, selected Psion Teklogix’s tech-nology to improve tracking visibility and delivery.

According to DHL spokesperson, Fatima Sullivan, the decision was made to replace scanners with Psion Teklogix Workabout Pro units.

The system, installed early 2008, includes G1 and G2 units, 1 and 4 slot cradles, car chargers and back up batteries. “Thirteen DHL Depots have successfully adopted the Psion Teklogix mobile solution”, says Fatima and lists the depots: Isando, Parktown, Midrand, Pretoria, Sandton, Cape Town, Cape Town Gateway, HeavyWeights Johannesburg, Port Elizabeth, Durban, Pietermartitzburg, Richards Bay and East London.

Fatima explains that the computing


devices are used to allocate daily tasks to drivers, both for collections and deliveries. “The G1 and G2 units are integrated with our software making easier, quicker visibility of DHL packages possible for all our departments.”

Psion Teklogix G1 and G2 multi-modal hand held comput-ing devices are equipped with patented Vocollect Voice Technology and Integrated Speech Module (ISM) making them ideal for picking and putting away by voice, scan a barcode or image and read an RFID transponder. The extreme flexibility of this rug-ged, reliable and ergonomi-cally designed unit enables it to function with complete ease and excellence in diverse applications.

Michelle Hollis, Psion Teklogix, Tel: (011) 805-7440 / Fax: (011) 805-7444, Email: [email protected]

Market Forumimages. It is a new standard feature of the company’s track and trace facility within its online and PC-based shipping tools myTNT, ExpressShipper, ExpressManager and ExpressConnect. Images are available from over 85 countries worldwide, including all mature express markets, emerging markets such as China, India and Brazil, as well as many other destinations.

A PoD signature image is a digital copy of the receiver ’s signature or company stamp, plus the date and time of delivery. Images will typically be available the morn-ing after the day of delivery. Easy access will benefit senders by giving more control over their shipments. It also facilitates their administrative process and helps them get invoices paid. TNT Express makes the service available to its customers without the need to request it. The service does not carry any additional charges.

“We have created the most extensive PoD signature image retrieval service in the industry with outstanding geographical coverage, high content quality and easy online access for all our customers,” says Jan Willem Breen, Marketing & Sales Director of TNT Express. “This is by no means a new service among express integrators, but we are setting new standards for how it is done within our industry.”

TNT’s solution covers many types of signature images, ranging from on-screen signatures captured with mo-bile devices to scanned delivery run sheets containing signature images and often company stamps. This approach allows TNT to accommodate for different local and cultural practices for confirming receipt. It

also enables the wide geographic coverage, as any type of operation – whether TNT’s own, partner, or associate organisation – can provide the service.

For more information visit TNT online, Website: http://group.tnt.com/press/index.aspx

Online PoD signature TNT Express will now provide its customers with online access to PoD signature


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Eqstra Industrial Power

Centre spread ZA.qxd 04.02.2010 15:24 Seite 1


SAEPA

I s there light at the end of the tunnel?The light is there - it’s just a question of the length of the tunnel. The oncoming train - among others - is the Gautrain. Our industry

has already felt the pre-event benefit of bringing in equipment, materials and spares for this major investment as well as other infrastructural devel-opments such as the new soccer stadiums.

Now members can start gearing up for the FIFA World Cup 2010 event itself. Express services are vital in supporting fever-pitch global sport-ing events. Our members handle international consignments ranging from urgently needed com-munications equipment to medical items, training equipment and kit, souvenirs and merchandise, special dietary requirements for players and masses of paperwork such as contracts, licences, travel documents and press.

There are also massive volumes of domestic

The South African Express Parcel Association (SAEPA) is cautiously optimistic about an upturn in volumes in 2010. At its year-end Annual General Meeting, Executive Director, Garry Marshall expressed his views on eco-

nomic and strategic issues in the industry.

movements, catering for more than half a mil-lion spectators, administrators and teams. And when the event closes, there is the task of reverse logistics.

How bad have times been for the industry?In November and December we saw the annual peak in retail imports for the festive season, though not at the same levels as pre-recession. Our trading partners are starting to come out of recession. A further encouragement lies in the International Monetary Fund’s forecast that South

Africa’s economy will recover in 2010.

Airfreight and express freight have been heavily hit globally by the recession. Air-lines have mothballed aircraf t and some companies have had to reduce their staff complement. Figures from IATA (Interna-tional Air Transport Association) show that airfreight to and from Africa is down as much as 30%.

Domest ica l l y, ex -press airfreight has to compete with road transport, meaning enhanced competition for shrinking loads. The result is cost and cash flow pressure on members.

The regulatory framework?Our sector has had

to cope with the weight of global cargo security measures imposed by the International Civil Avia-tion Organisation (ICAO) to which South Africa’s Civil Aviation Authority (CAA) is a signatory. The objective is to prevent interference with air cargo whether caused by unlawful interference or ignorance.

The central concept revolves around regulated agents and “known” cargo. Cargo is “known” when checked by a regulated and accredited agent who has strictly observed the stringent security controls. It must then be kept separate

The Light is There

The SA Express Parcel Association and Imperial Air Cargo signed a sponsorship agreement at the recent AGM of the Association held at the Piston Ring Club, Modderfontein. Garry Marshall (Chief Executive SAEPA) and Muriel Sahd (Chief Operating Officer of Imperial Air Cargo), at the signing ceremony with various SAEPA stakeholders.(Standing L-R): Mike Fanucchi (Dawn Wing), Paul Volck (IAC), John Fletcher (Fast & Furious), Johann Joubert (United Express), Brian Hingley (Transit), Paul Horsfall (UPS), and Geoff Davis (BEX). Both parties expressed the wish for a long and mutually beneficial accociation where Imperial Air Cargo will benefit through regular networking with members.

Mis-declaration of contents not for commercial advantage but to misdirect organised crime


in a designated area under a security seal. No airline may load “unknown cargo”.

The introduction of these measures required substantial changes to procedures, investments in new safeguard and equipment and extensive re-training. If there is a silver lining, it is that the lower volumes enabled our members to accom-modate this change a little more easily.

One problem in South Africa is mis-declaration of contents not for commercial advantage but to misdirect organised crime. While understandable, this cannot be allowed to continue. SAEPA has played a key role in encouraging member com-panies to cease this practice, giving help with documentation where necessary.

Competing with impunityThe new regulations applied post 9/11, gave com-panies no option worldwide. SAEPA has been less happy with the local regulatory burden imposed by ICASA, the Independent Communications Author-ity of South Africa. Its authority over the industry derives from the days when courier services and postal services were seen as competitors. The Postal Services Act was changed in Feb 2009 and the regulations no longer refer to couriers as a postal service provider.

ICASA required all ex-press freight companies to register as “opera-tors”, submit strategic documentation and pay an annual fee. In return the Authority promised its inspectors would tackle unregistered operators. This has not happened and they continue to compete with impunity. SAEPA members have gained no advantage and the registration fees envisaged from September 2010 of R10 000 p.a. (international), R5 000 p.a. (regional) and R1 000 p.a. (intra-city) are little more than a tax on the compliant.

How has the wellness initiative developed?Our Wellness Express primary health care clinic at Jet Park - the heart of the express freight indus-try in Gauteng - has broken even and is steadily growing. Industry employees have recognised the benefits for themselves and their families. Testing and treatment for AIDS and other chronic diseases have added to the patient base.

Employees in the transport industry are a high-risk category and we are committed to subsidising healthier lifestyles for their personal wellbeing as

well as industry sustainability.

What impact are wage determinations hav-ing on the industry?Employees in our sector are represented by the National Bargaining Council of the Road Freight Association. In general, they are paid above the minimum levels for road transport employees. Consequently, percentage increases across the board, intended to assist the lowest paid, fall disproportionately on express operators. The Ex-press industry employs about 20 000 people and wages are a large component of overall cost.

Our ability to express concern has been thwarted by the lack of an express industry vote on the Council, which comprises Union and employer representatives. The Council has now offered us a seat to give our industry a voice in measures affecting its viability.

What new challenges lie ahead?There are two major items on the horizon. Broad Based Black Economic Empowerment in the road freight sector will have a major impact on all operators. The Department of Trade and In-dustry has issued details on how regulation will address the issue.

We are also keeping a close watch on the road traffic validations project whereby Intelligent Number Plates are being implemented in Gauteng to deter hijackers. The Provincial Department of Transport was late coming forward with costs and security features but is expected to stick to its deadline for completion during the year.

The authorities promised that for SAEPA members,

Intelligent Number Plates are being implemented in Gauteng to deter hijackers

SAEPA


the process will be made as user-friendly as possible. The vehicle clearance unit will visit members’ prem-ises for trouble-free implementation for fleets of 50 or more. Smaller operators can gain the same benefit by nominating a site and pooling their vehicles.

How important is sponsorship to SAEPA?The Association is a non-profit organisation. Our two sources of revenue are member contributions and sponsorships.

We were concerned that we might have to suspend educational and wellness initiatives during the reces-sion. Fortunately, Imperial Air Cargo (IAC), stepped in with a substantial sponsorship. This is a welcome contribution at a time when funds are tight. It will assist SAEPA in continuing its roll-out of educational and wellness activities while waiting for the upturn. IAC’s chief operating officer, Muriël Sahd says her organisation views this as a contribution towards the sustainability of the industry. Her company serves many SAEPA members and the relationship is seen to be mutually beneficial.

UTi is sponsoring the full-time post on the bargain-ing council which we would not otherwise have been able to afford.

Garry Marshall, Tel: 0861 106 402, Fax: (011) 252-5394, E-mail: [email protected], www.saepa.org.za

CLF

SAEPA


EXPRESS FREIGHT

W hen “Supply Chain Today” chats to Mike Fanucchi, CEO of Dawn Wing within the Laser Group, he echoes this optimism, as well as giving

some insight into how many express couriers have evolved to cope with lean times.

“People have become more careful about how they spend. Many of our customers have opted for cheaper products but are also prepared to accept a little less in terms of service. For example, they’ll wait for a two or three day delivery instead of choosing a more expensive overnight service.

“While the downside is that we’re generally han-dling the same volumes for less income with the same overheads, we have the advantage of being able to consolidate loads to run more efficiently. We’ve learned to work smarter.”

The shift in customer spending has also seen

retailers switching to smaller batches of items such as clothing being couriered to branches where necessary, rather than opting for heavy freight to handle bulk loads. While the trend hasn’t been ideal for the trucking sector, it’s meant a much-needed increase in volume for the express freight industry.

Finding a nicheAccording to Mike, courier companies have also started focusing on niche markets to access new client bases. Dawn Wing’s fine wine express caters for wine lovers who may have bought a case while on holiday and need it delivered home. Alternatively, they can order from their chosen estate and have it sent up.

“There’s no great time pressure here either,” adds Mike, “so we’re able to plan our trips bet-ter. We’ve also used the opportunity to create synergies within our system.”

Service is kingThese have taken the form of utilising the skills of sister companies within the Group, including Time Freight, Laser Logistics and GAC Laser For-warding and Clearing, among others. “We like to offer clients a complete package, but don’t want to get caught in the trap of promising more than

Up at DawnIt’s been a hard year but with the promise of a highly profit-

able influx of foreign soccer fans in June, spirits are beginning to rise.

Many of our customers have opted for cheaper products but are also prepared to accept a little less in terms of service

Mike Fanucchi, CEO, Dawn Wing


we can deliver. Too many companies will try to offer services out of their realm of expertise and end up alienating clients because of it. In this industry, service is king, and if you don’t get it right, you’re in trouble,” he warns.

“We’re in the fortunate position of having access to the specialised services of other members of the Laser Group, so we can confidently provide clients with a complete solution incorporating transport, warehousing and a wide range of related services.”

Going abroadBack in the holiday spirit, Mike says that the tourism boom anticipated in the coming months will offer tremendous opportunities for the cou-rier industry. “We’re planning numerous services around the increase in visitors to the country,” he explains. “We’ll deal with transporting of excess baggage, along with sending gifts and curios home. In many instances, these will need to be treated in order to comply with health regulations.

We also expect to be moving some unusual items for enthusiastic shoppers,” he laughs, as we sug-gest that life-size giraffe sculptures will probably not fit in overhead storage compartments.

Death knellThe international market has experienced some other trends and Mike highlights an interesting development. While many have seen the advent of internet purchases as the death knell of the local market, for the courier industry, it’s been a boon. “If you order a product from overseas, inevitably you’ll have it couriered home,” he says.

“South Africa is still fairly immature in terms of e-commerce, but it’s gaining momentum. A lot of

EXPRESS FREIGHT

Too many companies will try to offer services out of their realm of expertise and end up alienating clients

people don’t feel confident with internet security yet, and most of us still like to touch an object before we buy it. But the advantages are becoming more and more apparent,” he explains.

Pricing and rangesItems such as books and sporting equipment can be purchased online for far less than the same products in local stores, while the incred-ible volume of choices available makes this an increasingly popular option. “Some complain that internet shopping has had a negative impact on local suppliers offering some of these products, however many also feel that it has compelled these stores to get their pricing and ranges in line.”

Dawn Wing’s international courier service makes the process attractively simple for shoppers, handling the somewhat daunting issues of import duties and taxes on clients’ behalf. With some websites (principally those based in China) of-fering everything from Christmas decorations to handbags, arrangements can become complex.

Keeping trackComplexity is not something that perturbs Mike and his team, however. “We keep a tight hold on operations. Our track and trace systems scan every item through each check point allowing us to determine exactly where a package is, and where it may have gone astray if something goes wrong. Human error is unavoidable,” he admits, “so it’s essential to include means of minimising problems. We move millions of parcels a year and if we have a problem with 500, it’s a lot.

“When dealing with high volumes you have to use technology to streamline processes. For example, handhelds allow us to track PODs to the exact time of delivery. It also helps when drivers are out in the field; we’re able to send messages to update their routes while they’re on the road. This has had significant benefits, both to efficiency as well as from a financial perspective through reduced telecoms spending.

Sub-optimal clients“We don’t claim to be the least expensive cou-rier out there, but our service makes up for it,” says Mike, in closing. “I think that choosing the cheapest option is false economising. You have to look at a company’s track record, along with their network. Can they get your package where you need it to go, or will they have to outsource to another courier to get it to Upington or New York?

Consider also, that in these times some companies are actually phasing out sub-optimal clients. It has to be a mutually beneficial relationship in order to work.”

Mike Fanucchi, Dawn Wing, Tel. 011 961 4700, Fax. 011 974 5738, Email. [email protected], Website. www.dawnwing.co.za


TRANSPORT MANAGEMENT - ROUTING & SCHEDULING

T racker operates on two levels,” he begins. “There’s the stolen vehicle recovery side and then we also offer fleet management and monitoring systems.These systems

included Tracker SkyTrax, Tracker Fleet and Ex-ecu Fleet, a suite of fleet management tools with varying levels of complexity. SkyTrax allows the company and the user to track vehicles online, as well as monitor route history, speed and other information,” Gareth explains.

“Tracker Fleet offers these capabilities along with more intricate functions such as route optimisa-tion and ring fencing of no-go areas. ExecuFleet is all this and more. The system allows you to bolt on extras such as sensors on door handles and fuel caps. Other options include monitoring of cold freight and driver handling.

“While the actual management is handled by the companies involved, we obviously get involved if the vehicle in question is stolen or hijacked,” he tells us.

Getting on trackHere is where the company truly shines. “As the only tracking company in South Africa with a formal association with the SAPS, we have 1 300 vehicles and 50 aircraft at our disposal, as well as power of arrest,” says Gareth. This concession was hard-won; awarding of the 5-year SAPS contract inspires heated competition in the tracking industry, and Tracker has had it for the past three terms.

“I think that the SAPS/Tracker venture is the most successful Private-Public sector collaboration in South Africa to date,” he continues. “Since 1996, together with the SAPS, we’ve apprehended 8400 criminals, closed down 320 syndicates and chop shops, and have had 48 000 recoveries.” While these figures are impressive, Gareth puts things further into perspective by adding that the aver-age prison holds about 7 000 inmates. “We’ve filled an entire jail and more,” he says.

Behind the scenesTracker ’s technology base is two-pronged, relying on both Radio Frequency (RF) and GSM/GPS, and Gareth explains the reason for this. “Our Tracker Retrieve and Tracker Alert units use radio

Is Your Tracker a Tracker?

Energetic and consistently on the move, Gareth Crocker speaks with the speed of an automatic weapon, which is ap-

propriate, since he’s the Communications Manager at Tracker. When “Supply Chain Today” chats to him about vehicle recov-ery, along with some of the sophisticated management prod-ucts provided by the company, it’s all we can do to keep up

with his train of thought.

We’ve apprehended 8400 criminals, closed down 320 syndicates and chop shops, and have had 48 000 recoveries

Gareth Crocker, Tracker



frequency technology and are basic tracking ser-vices. Until the unit is activated, it lies dormant in the vehicle. The technology is not new, but it’s the most successful stolen vehicle recovery technology in the world.

“SkyTrax products use GSM/GPS technology which allows you to do all the ‘fun’ stuff on maps, etc that isn’t possible with RF. It’s a more sophisticated system, but is yet to prove itself

as successful in stolen vehicle recovery as the RF devices which have been around for years,” he elaborates.

Action stationsConsidering that lives often rely on the team’s ability to track a vehicle effectively, it’s hardly surprising that the company has opted for the most stable platform. A typical tracking scenario generally involves confirmation of a vehicle theft, followed by activation of the tracking device which allows identification of location and deployment of tracking vehicles.

“The Tracker team will have a device on board that directs them,” Gareth goes on. “They’ll be able to follow an arrow on a screen or a strength bar which gets bolder as the target gets closer. An alarm will sound once you’re on top of them. Tracking is also possible with the GPS system, which triangulates the location, and provides coordinates to the locale.”

Once at the site, Tracker ’s recovery units step back, allowing the police to get on with the job of apprehension and arrest. “We stay out of the frontline for the most part,” says Gareth. “It’s important for the SAPS to arrest the criminals because very often they’ve been involved in other crimes. We believe that there’s an underlying social responsibility that goes beyond getting the car back. Vehicles are central to many other criminal activities. Often the motive is to find a getaway car for an armed robbery or some other violent crime. Getting the criminal off the streets means that event won’t happen.

Police backgrounds“Many of our guys have police backgrounds so they’re familiar with the procedures, and are able to assist effectively from this perspective. However their principal role is to look after the vehicle. They try to ensure that it’s kept safe during the recovery and see that it’s returned to the owner.”

This doesn’t mean that they’re low-level employ-ees. “We hire the best people we can find and train them according to Tracker standards,” he

When lives are at stake, reliable tracking is vital

You can’t expect a guy earning R1 000 a month to face a hardened criminal with a machine gun


says. “You can’t expect a guy earning R1 000 a month to face a hardened criminal with a ma-chine gun.”

Criminal behaviourGareth gives us some insight into criminal be-haviour, saying: “We’re all worried about being victims of hijacking, and most of us are afraid that we’ll be injured or taken with the car, or worse yet, that our children will be taken. But in reality, this happens more rarely than people believe, because criminals know that if they’re caught, their sentence will immediately be doubled, with other charges such as assault and abduction being added.

“Often, a hijacker will stop some distance from the scene and pass the vehicle on to a driver. If this person is apprehended, it’s unlikely that the victim will be able to identify him in a line-up, meaning he’ll face a minimal sentence,” he explains.

“Alternatively, the hijacker will park the car some-where and wait nearby to watch it. If a Tracker team arrives, they’ll get away, and if not, they keep the car. However, we have our strategies and tactics to deal with this.”

Motor misperceptionsAccording to Gareth, the public has many misper-ceptions about the motives behind vehicle theft. “A lot of people think ‘Well, I drive a clapped out sedan; nobody wants that.’ But they’re wrong. Of the cars stolen in South Africa, about half are taken out of the country and sold to neighbour-ing countries, perhaps in response to a specific request. The rest are stolen for parts, largely to be sold to South Africans.”

This is part of a much larger sociological problem related to poor financial planning and overspending. “Consider the guy with a job who earns six grand a month and lives with his mother, yet drives a luxury vehicle. Half the time he can’t afford to put fuel in it. Then the alternator packs up and he’s quoted several thousand rand to replace it. So he finds a ‘spare’ for five hundred bucks from a friend who knows a friend. Usually, these ‘spares’

are stolen parts; he’s unwittingly become part of the chain that fuels much of our crime.”

Jewel in the crownAs a reminder that crime is not a purely South African issue, some of Tracker ’s technology is actually American. “Our RF system is used under licence from LoJack in the States, where it was developed,” advises Gareth. In spite of its origins, it is the third world countries which truly test the technology. Brazil, and Columbia, along with South Africa, are tough training grounds.

“We’re the jewel in the crown in terms of re-covery methods. The average car thief in the States or the UK would possibly be a lot easier to deal with,” he suggests. “Often vehicles in these countries are stolen for joyriding and not by expert and aggresive criminals who are often armed with automatic weapons, as is the case in South Africa.”

Where things are goingSuch is Tracker ’s success in dealing with these situations that they’ve actually been called upon to advise foreign affiliates on recovery practices. They don’t use this as an excuse to rest on their laurels, though, and a close eye is kept on in-dustry trends. “The technology has reached the point where you can track most things now,” Gareth says. “There’s interest in putting track-ers on individual items and even on people and livestock.

“Or applications could include public safety, by tracking buses to reduce accidents. Load tracking is also important, and has won the approval of the cash-in-transit guys. We prefer to focus on products to add value to our existing offering rather than going overboard with extras. As it stands, I think we tick almost every box on our clients’ wish-lists,” Gareth smiles in conclusion.

Gareth Crocker, Tracker, Tel. 011 380 0300, Fax. 011 215 8900, Email. [email protected], Website. www.tracker.co.za

Often the motive is to find a getaway car for an armed robbery or some other violent crime


South African roads require a vigilant eye

�0 Supply Chain Today February 2010

Supply Chain Today February 2010 �1

S upply Chain Today” had a word with Abrie de Swardt, Marketing Director of Imperial Logistics for an inside look at the workings of an international giant. “Imperial Logistics

has a diverse service offering encapsulating almost all areas of road transportation, from dedicated, single principal, bulk goods to multi-principal,

multi-drop goods movement, servicing road and air freight,” Abrie tells us. “Each customer has unique needs, but the fundamental principles of planning, routing and scheduling and order fulfilment management are prevalent.”

Heavyweight systemsClearly, this level of complexity requires some heavyweight routing and scheduling processes. “For complex multi-principal, multi-drop routing and scheduling, the effectiveness of route optimi-sation, whether producing daily dynamic routes or regular optimisation of fixed routes, requires the algorithmic optimisation engines prevalent in specialised transport software solutions,” he explains.

“To cater for bulk or primary goods movement, scenarios are modelled using the same software based engines, and reviewed when required.”

Number of challengesWhile this may sound relatively simple, it’s evident that there are a number of challenges that occur in the process. “The ability to modify planned routes in the execution phase efficiently and ef-fectively is often a concern,” Abrie elaborates. “Operators generally rely on ‘gut-feel’ and expe-rience to manage any anomalies arising during execution, instead of re-running scenarios using the software engine. At times, these decisions are not the most cost-effective ones, but the cost of waiting to re-run scenarios might far outweigh the potential benefit.

“Issues relating to multi-principal integration, SLA adherence and optimisation also require atten-tion, along with agile planning and cost effective delivery, both our own and external capacity, in a volatile environment,” he adds.

Unique approachRouting and scheduling has been available in South Africa for many years, with some successful prod-uct offerings and many unsuccessful ones. Abrie explains how Imperial Logistics has approached the situation to ensure optimum return.

“For many of our operating companies, route studies and operational experience have proven successful in managing these processes,” he says. “But our current focus has turned to the implementation of locally developed and supported routing and scheduling packages coupled to order entry and execution management solutions, integrated with vehicle tracking, which will cater for our trans-portation management requirements.

Forging aheadThe key success factor lies in our ability to sustain a healthy balance of seasoned operational experi-ence and structured technology support.

“Imperial Logistics has in the past created these processes to suit specific operating company or customer requirements. Forging ahead, a more

Staying on TopStaying on top of processes can make or break a company.

When your organisation is so vast and complex that it spans continents and involves thousands of people, the management

of these processes can become a process in itself.

Abrie de Swardt, Imperial Logistics

Operators generally rely on ‘gut-feel’ and experience to manage any anomalies arising during execution



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Are You Doing Your Bit?

Supply Chain Today February 2010 ��

standardised approach to routing and scheduling will be seen from the perspective of technology, yet each operating company will retain its unique customisation of the technology and process.”

New developmentsIn a constantly evolving environment, it’s no sur-prise that new trends will regularly emerge; Abrie assures us that the company keeps its finger on the pulse. “Previous value-add of implementing a routing and scheduling package was often quite limited as operations struggled to adapt their previous behaviours and embrace new algorithmic optimisation engines. The implementations are tending further to a focus on change management to effectively introduce essentially, a new way of thinking, to an operation.”

“In terms of technology, I’d like to see a larger product offering in South Africa, bearing in mind that we are extremely limited in the choice of products which are customised and capable of handling South African transportation networks. This should be coupled with stronger and simpler integration capabilities as these technologies seldom operate in isolation. Greater use of Web-based platforms would offer broader deployment and commercial alternatives to the industry.”Targeting problemsIn Abrie’s opinion, Imperial Logistics’ strategy of combining the best available skills and supply chain management specialists with a large and modern resource base of vehicles for transporta-tion, warehousing facilities and IT systems means that it is able to provide customers with the most efficient and cost effective logistics and supply chain management solutions available.

“We believe technology is part of the answer, but not the answer,” he emphasises. “We are continuously developing partnerships with leading information technology provid-ers, ensuring that our customers have access to the best supply chain enablers. These include the likes of RedPrairie, Opsi Systems and i2 Technologies. We also invest in understanding the technology deployed by our customers, facilitating seamless systems integration.”

Collaboration is keyHe adds that collaboration within the logistics and supply chain industry sectors and close cooperation between logistics service providers and customers is critical. “Collaboration is a strategic imperative for Imperial Logistics. We are actively seeking the right partners, developing the right platforms for discussions

and the sharing of information and we engage continuously with our customers, industry bod-ies and decision-makers in the search for and development of optimised solutions.

“What is nice is that most of these relationships have become less transactional in nature over the years, which has allowed for more effective integration and synchronisation between the sup-ply chains. These relationships are grounded on principles such as trust, honesty and transpar-ency. The key to any successful partnership is trust, and the relationship you have with your supply chain is no different.”

Technological challengesAlthough technology is vital to the process, it comes with its own set of issues. “Technology integration is one of the biggest challenges faced by the supply chain industry,” Abrie acknowledges. “Imperial Logistics therefore leverages existing and new systems investments to support supply chain integration, achieving business benefits for its customers.

“Our reputation is founded on developing intelligent and tailor-made solutions for our diversified blue chip customers by making best use of processes, people, technology and infrastructure. We value the strength of our strategic partnerships and al-liances with leading technology partners in the process. Our track record is underpinned by our ability to determine the correct operating model, building the business case and implementing the agreed solutions effectively and timeously.”

Local climateFrom a local perspective, there are additional challenges to consider. “South Africa is heavily


Previous value-add of implementing a routing and scheduling package was often quite limited

Imperial Logistics has a diverse service offering encapsulating almost all areas of road transportation

�� Supply Chain Today February 2010

reliant on road transport,” says Abrie. “While it has distinct advantages, this mode is negatively impacted by traffic congestion, high fuel costs, poor infrastructure and small volumes per delivery. This is exacerbated by the fact that we’re far from the points we get our imports from, and being heavily reliant on road rather than rail, our trans-portation costs amount to 54% of total logistics costs; 14% higher than the world average.

“Countries overseas use waterways and rail to transport their goods, which reduces costs sig-nificantly. However, Imperial actively works to reduce logistics costs and contribute in different ways. The results of the 5th State of Logistics Survey, titled ‘Logistics value and cost drivers from a macro and micro-economic perspective’ are a very important consideration. The survey, compiled by the CSIR and the University of Stel-lenbosch in collaboration with Imperial Logistics, reveals that logistics costs in South Africa for 2007 were R317 billion, or 15,9% of GDP – up 1% from 2006.


This mode is negatively impacted by traffic congestions, high fuel costs, poor infrastructure and small volumes per delivery

Global upheavalApart from the lion’s share of funds being chan-neled towards transportation costs, additional figures indicate that inventory carrying costs stand at 16% of total logistics cost, management, administration and profit are at 16%, and storage and ports stand at 15%. “South Africa’s current logistics configuration leads to unacceptable risk exposure to global upheaval,” he continues.

“This is a critical challenge that we are faced with as a country, manufacturers, logistics service providers and government. It is imperative that we adopt a South Africa Inc. approach to drive down these costs to improve our competitiveness.”

Cutting crimeAs with many other local industries, crime is a huge factor in South Africa compared with countries abroad. “The intensity of crime affects logistics, making track & trace technology vital to the system.Our entire fleet is monitored by an advanced tracking system, which not only serves as an anti-hijacking security measure, but also as a communication tool.

“This is managed centrally through our anti-hi-jacking department, which is managed 365/24/7. It provides an early warning signal to alert the driver of any problems with the vehicle, ensuring a proactive approach that guarantees uninterrupted service and protects the customer’s brands.”

Going greenA trend that has impacted almost every aspect of our lives, the green movement is, thankfully, here to stay. “There is a growing interest, awareness and maturity around the business necessity for green logistics and we aim to place this environ-ment-friendly trend even higher on our business agenda,” Abrie says.

“Green logistics is calculated to be environmentally, and often socially, friendly in addition to being economically functional. However, it is not enough for companies to simply function on bio-diesels. Unless the inefficiencies are dealt with over time in the supply chain, the logistics solutions avail-able to businesses will not be sustainable.

“There is much waste in some of the supply chains that we work with. By implementing green logistics it would be possible to reduce both costs and carbon emissions with relative ease.

Until now, Imperial Logistics has been fairly quiet in the area of sustainability, and, more specifi-cally, green logistics, but we feel that it is time to take a stand and be seen as a leader in this area of the logistics industry.”

Abrie de Swardt, Imperial Logistics, Tel: (011) 821-5500, Fax: (011) 873-2016, Email. [email protected], Website. www.Imperiallogistics.co.za

Successful operation involves combining the best available skills and supply chain management specialists with a large and modern resource base of vehicles for transportation, warehousing facilities and IT systems


Market ForumCore demand-forecastingIn a new report assessing IT suppliers of retail demand intelligence (RDI) solutions, IDC Retail Insights gave Oracle the highest levels of assessment across four major categories and ranked the company as a leading provider of RDI software solutions.

Oracle is the only vendor to achieve the highest level of assessment (“very comprehensive”) in the evaluation’s four major categories: core demand-forecasting capabilities, breadth of functionality and customer-centric features, usability, and IT integration.

IDC Retail Insights, an advisory services and market research firm focused on the retail industry, defines RDI as “leveraging data/information for more efficient and ef-fective business decision making” and states that using RDI solutions “improves the precision of pricing, product assortments, channel/store placement, and promotion, all essential for sustainable revenue management per-formance.”

According to the report, Oracle achieved the highest level of assessment in core demand-forecasting capabilities due to its “strong retail-centric planning capabilities and its highly integrated – yet modular – retail software suite, which makes it easier to provide a range of process-spe-cific, demand-centric optimisation features.”

Oracle was also cited for its “solid forecasting science foundation” and was praised for its ability to “deliver a single demand-forecasting engine underpinning multiple business functions (eg, sourcing promotion, merchandis-ing, staffing decisions, etc).”

Website: http://www.oracle.com.

Fewer truck journeysManhattan Associates, Inc. has announced that Catering Engros, the Danish food distributor, has made annual cost savings of £200 000 through improved stock control, fewer truck journeys and a 30 percent productivity improvement in the warehouse following its phased roll-out of Manhattan Scale: Supply Chain Architected for Logistics Execution (formerly Manhattan ILS).

Catering Engros had identified a need for a new ware-house management system to handle the growth it was experiencing which had already resulted in the company expanding the size of each of its distribution centres (DCs) by 20 percent. The legacy paper-based system was caus-ing picking errors and reporting inaccurate data regarding stock volumes and location.

Manhattan Scale has been implemented at DCs in Co-penhagen and Middelfart, Denmark, each of which has a capacity of 120 000 sq ft. Both distribution centres are now fully automated and Manhattan’s software is fully integrated with Catering Engros’ legacy ERP system and Vocollect voice technology.

“We have been able to reduce waste significantly as we have a more stringent stock rotation process in place,” says Niels Habekost, chief financial officer of Catering Engros. “The food with the shortest use-by date can easily be located and despatched first. Manhattan Scale has had a further positive impact on our sustainability efforts. By eliminating the need to send replacement shipments to rectify picking errors, we have reduced our mileage by the equivalent of two vehicles on the road every day.”

“Catering Engros is reaping impressive rewards following its switch to a technology-driven system,” says Jan-Paul Boos, senior director at Manhattan Associates. ”It is not just a simple case of improved traceability of stock, but also having a better understanding of the tasks that staff members are performing. It is important for any business to be able to optimise its labour and redirect resource to areas that are experiencing spikes in activity levels.”

Supply Chain Navigators, Simon Dahlem, Tel: (011) 455-6543 / 083-258-6690, Email: [email protected]

In for a good rideWhen UAL (Universal Africa Lines) set up a South African office in June 2009, it came with decades of experience in the shipment of explosives and other hazardous cargo into Africa. This unique focus area positions local explo-sives manufacturers exceedingly well in the race to supply


Value


Market Forumthe evergreen African mining industries – a particularly opportune development as South Africa develops into an increasingly important trade hub into Africa.

UAL has supplied exploration and production projects from Namibia and Angola to Equatorial Guinea and Nigeria for 30 years, says MD of UAL SA, Haakon R stad. Before 2009, it did so exclusively from the US, UK and Europe, until an ever greater focus on indigenous African trade brought Cape Town within its sights. Haakon says UAL retains a commitment to Africa, with Cape Town merely the latest addition to an extensive portfolio of invest-ments in African skills, offices and even an oil centre in Equatorial Guinea.

He reports that UAL SA is currently bringing its South Afri-can export portfolio in line with its international activities, with a move to include explosives and other hazardous materials. A number of negotiations are underway, he says, with the early focus falling on Equatorial Guinea, Ghana, Gabon and Congo. “Various explosives are being used to extract minerals of all descriptions. The call is for detonators and explosives in a number of countries.” He says smaller manufacturers are in the running as well. As a small, privately-owned shipping line, UAL requires the least amount of inducement to enter smaller ports along the African coastline.

Given Africa’s indigenisation laws, Haakon says SA manu-facturers have a captive opportunity in the West African market. “It’s an opening one simply cannot pass up. Since South Africa is a preferred origin of supply into Africa, exporters almost don’t need to contend with the normal problems of the export market, such as a too-strong cur-rency, global competition and so forth. “Couple this with UAL’s extensive experience in serving a market that is perennially active on the continent, and South African exporters of explosives are in for a good ride.”

Haakon R stad, UAL SA (Universal Africa Lines) Ltd, Tel: (021) 422-3210, Email: [email protected], Website: www.ual-sa.co.za

AccoladeSavino Del Bene South Africa (Pty) Ltd, (SA-VINO), global specialist in third party logistics solutions, was nominated as one of the top 5 finalists in the category, Business Enterprise of the Year, awarded by the Italian-South African Chamber of Trade and Industries FNB Business Excellence Awards 2009.

“While we don’t wake up each morning thinking about winning awards, I must acknowledge a significant sense of pride when such a mo-ment arises. It is a huge affirmation then to be told we have been selected as one of the top 5 finalists in the Business Enterprise of

the Year category”, says Kobus Maree, Managing Director, Savino Del Bene (Savino) South Africa.

“I believe that we achieved this accolade not only be-cause of our strong business relationships with numerous Italian companies, but also because we identified and competently filled the gap in the market for a holistic ap-proach to logistics services – to move from transactions into partnerships.”

“This award milestone is of even greater significance due to the fact that we started the company only thirteen years ago under the name SLA (Strategic Logistical Alliance) and only a short nine months ago, the remaining 50% shareholding was purchased by the worldwide corporate network, Savino Del Bene”.

“When my wife Juanita and I established SLA in 1996, our first objective was to become the number one third-party logistics service provider. In order to reach this goal we aimed to work with the tyre industry to eventually work with the largest volume of imported tyres in South Africa. We achieved this and currently partner with all the leading imported tyre companies in South Africa.

Savino also achieved their objectives of offering customers an end-to-end third party logistics service and becoming a major player in the automotive industry, handling exports and clearing into South Africa for a number of major ve-hicle manufacturers”.

Kobus continues, “With all these objectives securely under our belt, I am confident we have proved our capabilities to the local market – we have the established infrastructure, expertise and knowledge to offer an all inclusive end to end logistics shop!”

Kobus Maree, Managing Director, SDB SA, Savino Del Bene South Africa (Pty) Ltd, Tel: (011) 437-3000, Email: [email protected], Website: www.sdbsa.co.za

Kobus Maree, Managing Director, Savino Del Bene SA, (centre) receiving the Italian Busi-ness Enterprise of the Year Award from Nicolina Di Santolo, Chairperson of the Italian –SA Chamber of Trade & Industry (left) with Mr. Jerry Vilakazi, Chief Executive Officer of Business Unity South Africa (BUSA) (right)


Three-year contractKuehne + Nagel has been awarded a contract to manage the BMW South Africa Parts and Accessories Distribution Centre in Midrand. From the facility, parts are distributed to the whole of South Africa as well as to five neighbour-ing countries.

At the end of 2008, Kuehne + Nagel was awarded a con-tract to manage part of the BMW-operated logistics facility in Midrand. After this successful transition, the decision to outsource the entire Midrand distribution operation was made by the Management Board of BMW South Africa. Following a rigorous tender process, Kuehne + Nagel was awarded a three-year contract to manage the centre.

The scope of services that Kuehne + Nagel will be pro-viding consists of receiving, inventory control, picking & packing, handling of dangerous goods and value-added services, such as pre-packaging and returns handling of BMW automotive parts and accessories.

The 16 500 sqm facility is owned by BMW and holds around 50,000 stockkeeping units. After the current implemen-tation phase, Kuehne + Nagel will cooperate with BMW on the continuous improvement of the car manufacturer ’s supply chain processes in order to increase productivity and improve cost efficiency, introducing new tools such as the Kuehne + Nagel Production System.

Further information can be found at www.kuehne-nagel.com

Maphum Nxumalo

On the moveSAS, leader in business analytics software and services, has appointed ICT stalwart Maphum Nxumalo as the new Managing Director of its South African office.

Maphum formally assumed his role as managing director of SAS SA this January 2010, and will report directly to Riad Gydien, Vice President Middle East and Africa.

“With more than 29 years of experience in the local ICT industry Maphum needs no introduction to the local mar-ket,” states Riad. “I believe that with his strong executive leadership background, local knowledge, technical and sales understanding he will be an asset to the local team. His

appointment comes at a time when SAS South Africa is looking to aggressively promote business analytics to a market that is fast beginning to understand its business worth.”

Michelle Chettoa, Marketing Manager, SAS Institute South Africa, Tel: (011) 713-3400, Email: [email protected], Website: www.sas.com and www.sas.com/sa

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The beat goes on

With the participation of: Principal sponsor:

25 - 28 July 2010 Sun City

Tel +27 11 805 6616 or [email protected] www.sapics.org.za

The 2010 Soccer World Cup will offer many challenges for the operations management profession. But what happens when it is all over? Supply Chain and Operations Management professionals must maintain a steady, reliable beat as we continue to move African industry forward to ensure our sustainable footprint.

Platinum sponsors:

32nd Annual Conference & Exhibition


The SAPICS Annual Conference is the Leading Event in Africa for Supply Chain and Operations

Management Professionals.

The beat goes on

With the participation of: Principal sponsor:

25 - 28 July 2010 Sun City

Tel +27 11 805 6616 or [email protected] www.sapics.org.za

The 2010 Soccer World Cup will offer many challenges for the operations management profession. But what happens when it is all over? Supply Chain and Operations Management professionals must maintain a steady, reliable beat as we continue to move African industry forward to ensure our sustainable footprint.

Platinum sponsors:

32nd Annual Conference & Exhibition

sct: feb 2010

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