sct: jan 2011

Supply Chain Today Jan 2011 1

www.mitsubishiforklifts.co.za

2 Supply Chain Today Jan 2011

Scania Southern AfricaAngola, Botswana, Malawi, Mozambique, NamibiaSouth Africa, Tanzania, Zambia, Zimbabwe

Scania. Destined to Lead.

Just add Diesel.

Scania is the leading supplier in South Africa of Euro 4 products, with EGR technology.

For more information contact your nearest Dealer. Details available

on www.scania.co.za

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Euro 4 - EGR Ad.pdf 7/9/2010 9:58:47 AM

www.scania.co.za

Supply Chain Today Jan 2011 �

January 2011

Contents

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

Advertising Sales:Lelanie Lane

DTP: Zinobia Docrat and Sean Bacher

Printed 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 reproduction, the editor, authors, publish-ers and their employees or agents shall not be responsible or in any way liable for any errors, omissions or inaccuracies in the publication, whether arising from negligence or otherwise or for any consequences arising therefrom. The inclusion or exclusion of any product does not mean that the publisher or editorial board advocates or rejects its use either generally or in any particular field or fields.

Cover Story4 Mass Movement

Racking & Shelving5 Off the Shelf7 Preserving History

Cold Storage9 No False Alarms11 Remote Reefer Monitoring

Trucking13 Heaven and Earth

Learning Curve15 Crocodile Rock

Market Forum — Unit18 Market Forum

Oursourcing23 New Logistics Service

Emerging Markets24 Reshuffling the Cards

Sapics25 Tissue Samples and Corpses

Pharmaceutical27 In the Nick of Time

Procurement31 Buying Power

Railways and Ports34 Lüderitz Set for Major Expansion

Market Forum — Supply35 Market Forum

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

Featured on the cover:

Masslift

Tel: 011 786 8524Fax: 011 887 1253

Email. [email protected] or [email protected]


Scania Southern AfricaAngola, Botswana, Malawi, Mozambique, NamibiaSouth Africa, Tanzania, Zambia, Zimbabwe

Scania. Destined to Lead.

Just add Diesel.

Scania is the leading supplier in South Africa of Euro 4 products, with EGR technology.

For more information contact your nearest Dealer. Details available

on www.scania.co.za

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Y

CM

MY

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Euro 4 - EGR Ad.pdf 7/9/2010 9:58:47 AM


� Supply Chain Today Jan 2011

W e’ve focused mainly on infrastructure upgrading which consisted of moving to new premises in both Cape Town and Durban, implementing major

administrative / system upgrades and a complete overhaul of our fleet. With our vision for 2011 being the continued strengthening of customer relationships, we want to make sure that we have the infrastructure to keep our promises,” he smiles.

Warehouse rangeOf interest to warehouse specialists is the company’s range of warehouse equipment, which, until now, has been a somewhat unknown offering from Mit-subishi Forklifts. “Not a lot of people know that our range caters to a large variety of applications and we offer comprehensive solutions to almost every material handling requirement, this includes some top quality warehouse equipment,” Marco advises. Mitsubishi’s electric counterbalanced trucks and standard warehousing equipment are now complimented by a ‘stand-on’ reach truck, which is quite a rarity in the industry.

“Our warehouse range is manufactured in Finland with a design specification that is aimed at rival-ling the best Europe has to offer,” he explains. “However, in spite of being sophisticated enough to compete with top quality products, the equip-ment is easy to maintain. This is important for local users because South African conditions can be harsh, while the right technicians are not always readily available.”

Mitsubishi have not only come into the market with a warehouse range to meet the top compe-

Masslift Africa or Mitsubishi Forklifts as it is better known initiated a new order of things in 2010 with much success.

They recently came under the wing of industry stalwart Geoff Tucker. “2010 has been a year of massive change for us,” says

Marco Caverni, Sales Director of Masslift Africa.

MassMovement

tition but in some cases have gone even better, for example offering a 10m platform height order picker, which is a first in the Warehouse Market. The Mitsubishi reach truck also offers height selectors and indicators as a standard and can lift a 1000kg capacity at 11,5m.

Mitsubishi’s Japanese reliability with European technology is not only a competitor in an aggres-sive market but is quickly becoming the brand of choice for clients in the know.

Cold caseThe range is seeing growing local support, with a number of vehicles being assigned to some fairly specialised applications. For instance, well-known South African company Eskort, recently ordered five of Mitsubishi trucks, namely a sit-down 1400kg reach truck, a stand-on 1300kg reach truck and three 1800kg three wheel forklifts.

All units are electrically powered and protected from temperatures as low as -35°C for cold store operations. The high capacity stand-on electric reach truck is capable of working in very narrow drive-in racking. Mitsubishi’s standard offer of a 3 year – 5000 hour extended warranty coupled with a service plan gave Eskort additional peace of mind.

“This year we’ve gone to great lengths to rebuild partnerships with our clients and explore new partnerships. Implementing this fresh approach is a young and dynamic sales and service team focussing on customer requirements rather than growing market share. This, we believe, is the key to ensuring sustainable growth and delivering service excellence,” says Marco Caverni.

Marco Caverni, Masslift, Tel: 011 786 8524, Fax: 011 887 1253, Email. [email protected] or [email protected], Website. www.mitsubishiforklifts.co.za

Electrically powered and protected from temperatures as low as -35°C

COVER STORY


RACKING & SHELVING

Off the Shelf

Companies are trying to save wherever possible

M eanwhile those who take the step to buy new equipment are being very cautious with their available funds. Mark Veldon Sales Manager at Linvar

spoke to “Supply Chain Today” about overcom-ing this obstacle. “Last we’ve had to sell more effectively due to companies being more frugal in their buying ways,” he tells us.

Catalogue system“There are stricter criteria that they work to-wards, trying to save wherever possible. We have an advantage because we offer a larger range of material handling equipment through our catalogue ‘Storage Direct’.” The wider choice of products gives clients more alternatives to fit within their spec, without having to shop around. “Linvar also works in conjunction with Siabeka Industries, a black empowerment company which has opened up more markets to us. We can offer our complete range to a variety of different types of customers.”

In a time when ‘niche’ marketing can drive a sales team into a corner, the vast variety offered in the Storage Direct catalogue means that Linvar’s target market is pretty much anybody who needs any form of storage or material handling equipment. “Our new catalogue is launching this year, and

will be out on the 1st of May,” Mark adds. “This will be the 18th issue and we’re very proud of it. No one else in SA offers a catalogue like this.”

DiversityThe approach seems to have paid off, because the company appears to be thriving and a number of noteworthy projects have graced the books. “Mining, pharmaceuticals and motor industries are on the up again,” he continues. “This year we completed projects for Avocent Mining in Burkina Faso; Boss Mining in the DRC; and Rio Tinto (QIT) in Madagascar.”

Installations have ranged from basic bolted shelv-ing to fully operational turnkey projects. “Pallet racking was our biggest seller, although we had a lot of interest in Linspace, our boltless shelving system.” Linspace has earned market approval for its incredibly flexible nature. The four way upright allows bays to be added in any direction - sideways - backwards or even on top of each other using common components.

Strong and modular, the system allows easy ex-pansion of storage areas by joining panels on the end of bay runs. A range of accessories such as dividers, tool holders, security doors, trays and Linbins mean that the installation can easily be customised to almost any storage application. “We’ve helped store everything from chemicals to general mine stores, from fresh produce to cold

Budget cutting

can make it difficult for a supplier

to make a profit when times are tough. Many companies will make

do with existing infrastructure rather than invest capital in non-productive equipment

which may be deemed unnecessary by those who hold the purse strings.


RACKING & SHELVING

storage. It was a varied year,” he smiles.

Mining projectHaving said this, he admits that one job that stood out was the Madagascar Mining project. “It’s a huge mine owned by one of the biggest mining houses in the world,” he tells us. “The warehouse is approximately 1500m² and Linvar stocked it with everything from shelving and racking straight through to warehouse accessories such as signage, trolleys, baskets, plastic bins and lifting trucks.

“The facility is designed for general storage – it accom-modates anything from safety clothing to motors even to the coffee and tea used in the canteen. Because of this diversity, organisation is key. All the shelving is arranged in tidy, manageable rows with signage so that what needs to be found can be located easily.”

While some might have seen economic belt-tightening as a hindrance to profitable operations, for others, it has been an opportunity to capitalise on their strong points. “Offering something for everyone is our forté,” concludes Mark.

Mark Veldon, Linvar, Tel: 011 608 0250, Fax: 011 608 0380, Email: [email protected], Website: www.linvar.co.za

The wider choice of products gives clients more alternatives

Effective warehousing in Madagascar

Anything and everything was stored in the Madagascar ware-house

www.interroll.com


O nce the decision had been made in 2008 to install Storax mobiles, the curator of the Helmsley store, Susan Harrison, had to decide the

maximum weight of each pallet, a standard pallet size and where in the store each pallet should be placed.

In order to prevent the creation of dust, and to strengthen the existing floor, an overlay slab was laid which included ramps to allow forklift access and a wide moving aisle was created so as to allow the existing counterbalanced forklift sufficient space to do a 90 degree turn.

Preserving HistoryTwo years ago, English Heritage, which looks after England’s historic monuments and associated artefacts,

had run out of storage space. 200 pallets holding stone work from Hadrian’s Wall were lying in an un-manned, unsuitable facility in Matfen and 15 pallets from Tynmouth Priory were being stored in a WW2 gun emplacement on the North Sea coast. As English Heritage had a 1993 custom built storage facility in Helms-

ley, Yorkshire, it was decided to increase the storage capacity there as cost effectively as possible.

As the store holds Roman, early Saxon and medievalartefacts, each pallet holds an invaluable history of these periods

Humidity and pestsIn the end, pallets were assigned different coloured markers depending on weight and stored accord-ingly. Some items including metalwork needed to be stored in a low humidity micro climate which was achieved by using airtight boxes and silica gel. As the relative humidity could vary rapidly near the ceiling of the store, items which could be negatively affected, including those made of wood, were stored on the lower levels. Tests are still ongoing regarding humidity levels, and on the possible movement of the wooden pallets while the mobiles are in motion.

As insects can cause damage, traps have been put down to detect them early. Being able to clean the entire floor easily assists the housekeeping regime and helps to prevent insect pests. Under the current risk assessment, the Storax base motors

are left uncovered so to be accessible in case of a motor failure. Susan has also implemented a stock location system in the store.

Still plenty space“With over 1 000 pallets stored, there is still capacity to take in more collections, and it is now much easier to retrieve any pallet quickly whenever it is required for study” says Susan. Previously, it was necessary to move other pallets first, which made the retrieval process slower and increased the risk of damage.

As the store holds Roman, early Saxon and medieval artefacts, each pallet holds an invalu-able history of these periods. Between Roman memorial stones, Susan pointed out an effigy of Henry Percy, the first lord of Alnwick, who lived in the 13th Century and pointed out how some masonry, from the nearby Rievaulx priory, still showed remnants of the medieval paint.

One arch head from this priory, popularly known as “ET” seemed to show the head of a baboon. Investigations suggested that the image would have been taken from a bestiary or book of beasts, some real and some imagined, which would have been one of the prized possessions of any religious house.

http://www.storaxsystems.com/

Storax mobiles full of antiquities in the Helmsley store

RACKING & SHELVING


www.afzelia.co.za


COLD STORAGE

T he Cirrus Pro is an aspirating fire detector that uses Cloud Chamber Technology to detect a fire in its true incipient stage

before smoke even begins to be emit-ted,” Grant explains. Most aspirating detection systems are laser-based, ana-lysing air samples for smoke particles, but this can be problematic. “Smoke and dust particles are similar in size so a filter system needs to be used to differentiate between the two. This needs to be maintained to minimise nuisance false alarms.”

False alarms in large facilities such as warehouses are more than just an inconvenience. They contribute to costly downtime and dips in produc-tivity, not to mention the nuisance

value of calling management to site at 2am for no good reason. With dust being unavoidable in such areas, laser systems can be hard-pressed to function optimally.

No smoke and mirrorsGrant explains that the Cirrus Pro detects com-bustion from the incipient stage through to full ignition. “The incipient stage of a fire is when an object begins to overheat, where there is no smoke, just invisible combustion particles,” he tells us. Combustion particles are produced at a

No False AlarmsMankind has always drawn inspiration from nature, particularly when finding solutions to problems; let’s face it, most of the obstacles we encounter have already been solved by some smart squirrel or inventive insect. Supply Chain Today recently spoke to Grant Wilkinson, Engineering and Marketing Manager at AST, about a fire-detection system that is simply fool-proof – and the beauty of the device is that it’s based on the actions

of the weather.

rate of a billion per second, are far more energetic than smoke particles, providing ample material for the system to work from.

“These particles are drawn into the pipe network which channels them into a Cloud Chamber. Here, the tiny invisible particles are exposed to humidity, which causes them to form visible water droplets and collectively creates a cloud. At this point, high powered optics detects the cloud and triggers an alarm.”

Being far smaller than dust particles, the system is able to differentiate between them and dust, resulting in a more accurate detection process. “Cloud chambers have been around for over a hundred years for a range of applications,” says Grant. “Protec, UK applied the technology to fire detection and AST simply focused it on African conditions.”

In an impromptu demonstration, Grant sets up a detector in a few simple connection steps and then shows us how the system quickly identifies overheating from a faulty cable long before it starts to emit smoke. With electrical malfunction being high on the list of fire hazards, this is an impres-sive display of the product’s capabilities.

Dirty appsSince the device is not sensitive to dust it can also be used in a number of ‘dirty’ operations, such as substations in mines, and power sta-tions, as well as cable trenches. It can also be used in food stores and cold storage facilities. “Extremely cold conditions are often an issue because the pipes freeze up,” he says. “We en-gineer the system to eliminate the requirement of inline heating systems used by other systems to overcome the problem.”

High atriums in offices and shopping malls are also well within the scope of the Cirrus Pro. “We’ve shown that a small paper fire can be detected by the Cirrus Pro in a 45 metre high atrium in 3 minutes and 40 seconds,” smiles Grant, adding

Since the device is not sensitive to dust it can also be used in a number of ‘dirty’ operations

Grant Wilkinson


COLD STORAGE

Detectors can be incorporated into afibre optic network

No false alarms will be heard within your warehouse

Factory dusty production area

that the system has been installed in the impres-sive Tapei 101 building, until recently, the tallest building in the world.

Cloud Chambers have even taken to the stage, with a recent installation debuting in Grahamstown. “We’ve just replaced a laser-based smoke detec-tion system in a Grahamstown Theatre which had never operated accurately due to smoke effects on stage. Our system bypasses this obstacle,” Grant says with understandable pride.

NetworkingFire safety can be further enhanced by integrating Cirrus Pro Detectors on a network. “The Cirrus Pro can be incorporated into a fibre optic network to allow us to interrogate all detectors remotely via the world-wide-web. We’re able to log his-tory, examine recent events and adjust sensitiv-ity settings off site.” The Cirrus Pro can also be networked via an RS485 cable system.

Additional benefits come in the form of ease of installation and low-maintenance requirements. “This system makes for an easy drop-in replace-ment for other systems,” Grant adds. “Maintenance is also significantly reduced. While it still needs periodic checking to adhere to safety codes, in general, the only requirement is the replacement of the water in the chamber every six months or so.” Merely a matter of refilling the container with distilled water – available at most pharma-cies for under R10 – this is certainly not going to break the bank.

Along with easy maintenance and installation, the Cirrus Pro has earned full approval from all relevant bodies including FM and UL. “It’s a far more cost effective option than the alternatives,” Grant assures us. “And while it’s based on some fairly sophisticated thinking, it’s as simple as the weather.”

Grant Wilkinson, AST, Tel. 011 949 1157, Fax. 011 949 1110, email. [email protected], website. www.astafrica.com

www.barprostorage.co.za


COLD STORAGE

P reviously reefers were manually checked by operators at intervals of four hours. In addition, shipping lines carried out their own “shadow monitoring” twice daily.

Faults and breakdowns were only identifiable during the monitoring times.

SynchronisationThe recent commissioning of Navis, the main operating system which plans and records all con-tainer and equipment moves, has been successfully integrated with Refcon. This allows for automatic synchronisation of information between the two systems, which improves operations immensely. Refcon feeds reefer temperature information into Navis at intervals of 30 minutes.

Remote ReeferMonitoring

In a first for Sub-Saharan Africa ports, South African port operator Transnet Port Terminals (TPT) has implemented the world class Refcon system at its Cape Town terminal to re-

motely carry out temperature checks on refrigerated shipping containers, known as reefers.

Hector Danisa, TPT’s assistant terminal executive of the Western Province terminals, says, “A major benefit of integrating Refcon into the Navis system is that faulty and out-of-protocol reefers can be identified easier and quicker, which reduces the terminal’s risk profile and saves costs. Shipping lines are now able to access Refcon on Navis.”

Operators have undergone intensive training on remote monitoring of reefers. Refcon’s remote monitoring server gives operators electronic mes-sages highlighting exceptions. The operator then reports relevant alarms to the shipping lines for rectification.

In the event of Refcon or Navis shutting down, a manual procedure has been created to protect the cargo’s integrity.

Further improvementsReefers that are not Refcon compliant will con-tinue to be monitored manually. However, 80% of the terminal’s customers are already Refcon compliant, and initiatives are being implemented to improve this further. Shipping line Maersk leads with 95% compliance.

Future plans currently being considered for Refcon include automatic e-mail and text message alerts

to customers and stakeholders. TPT also hopes to extend Refcon to more reefer areas within the terminal.

Meanwhile the Navis SPARCS N4 terminal operating system - which was first installed at Pier 1 in Durban, Port Elizabeth Container Terminal and East London Multipurpose Terminal - has maintained an average of 99% uptime during the six months from April to October 2010.

Hector says the inevitable teeth-ing problems, experienced when Navis was first introduced at the terminal, are a thing of the past thanks to training and up-grades to rectify challenges in its stability.

Transnet Port terminals, Ayanda Man-tshongo, Cell: 083 301 2975, email: [email protected]

Pictured among the reefers which can now be temperature controlled remotely are left to right: Hector Danisa, TPT’s Assistant Terminal Executive: Western Province; Dakalo Mboyi, General Manager for Maersk: Western Province and Nomaphelo Thyaliti, Operations Co-ordinator: Landside.

Faulty and out-of-protocol reefers can be identifiedeasier and quicker


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Are You Doing Your Bit?

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Supply Chain Today Jan 2011 1�

G raham begins by telling us a bit about their fleet. “Our company moves a major portion of the earthmoving equipment going local or into Africa. Our fleet

consists of smaller type equipment designed to handle light, but volumetric loads going right up to the existing multi-axle combination with a capacity of 135 tons that has been in such demand that a second combination is in the process of being commissioned.

“Obviously there are a lot of regulations that have to be adhered to when you transport these kind of loads. The trips have to be planned because the trucks are only allowed to be on the roads from six in the morning until five in the afternoon.”

No de-railingAlthough strong in mining and earthmoving, Transcor has recently been involved with trans-porting a number of different components for the Gautrain project. This includes the movement

of precast viaduct sections, precast beams for bridge construction, and the ancillary items such as platforms, parapets and acoustic barriers, on specially-designed trailers.

“Although most of our equipment is busy, we have been impacted by the shrinking economy. Because we operate in a niche market that be-came overtraded towards the latter part of 2008, coupled with a shrinking market, the rates have come under severe pressure and a number of operators in this niche are taking “strain”.

EscortingThe company has its own service vans to comple-ment their fleet and all the combinations are equipped with cellphones, two-way radios, and satellite tracking. “We arrange all the permits that are required from the relevant authorities and then provide our own escort vehicles.

“Safety and security is an aspect we really take very seriously,” he adds. “Hijacking is always a threat, especially as disposal of many of our loads by the criminals would be very difficult, but the actual trucks are under threat. The safety

Heaven and EarthWe’ve all seen them. Those huge abnormal trucks which are always worth a second look. They make us mere mortals feel small and insignificant. Graham Leith, managing director

of Transcor, talks to “Supply Chain Today” about handling loads of this size.

The rates have come under severe pressure and a number of operators in this niche are taking “strain”

TRUCKING

1� Supply Chain Today Jan 2011

of other road users is our main concern. They have to be warned about the truck and the load, particularly where the combination is travelling slowly, or where the loads protrudes into the oncoming lane. When necessary the police escort us through cities and towns, or when the dimen-sions of the load requires it. This can be time consuming,” says Graham. “As the traffic police have other functions and escorting of abnormal loads is not always a priority, which can lead to delays in delivery.

Taking care of important things“As we’re essentially in the rental game, it’s imperative that we look after our vehicles. Ev-ery aspect of the move is meticulously planned beforehand, as we can’t afford a breakdown. Our in-house workshop’s efficient maintenance programme ensures the reliability of the vehicles as both our vehicles and our staff need to be top-notch.

“Our drivers are trained at regular intervals to make sure that we only have the best of the best. Part of the job is understanding the complexities of permits and as each load has its challenges, we have to make sure that the drivers are able to cope.

Transporting Africa“It’s one thing to have a problem on local soil, but these guys need to think on their feet as we regularly successfully deliver loads to cross-border countries including Lesotho, Swaziland, Namibia, Botswana, Mozambique, Malawi, Zambia, DRC and Zimbabwe,” he adds.

If passion is any indication, we believe Graham when he says that they really feel they are one of the leaders in the field of abnormal load trans-porters locally. “We try our best to have a very low turnaround time with fast on-site delivery. All of our trips are planned and monitored with computerised tracking systems and with the fleet that we have, we can literally take anything anywhere,” he concludes.

Graham Leith, managing director, Transcor, Tel: (011) 310-1671, E-mail: [email protected]

Every aspect of the move is meticulously planned beforehand, so we can’t afford a breakdown

TRUCKING


LEARNING CURVE

W e were approached by a farmer who wanted to move 900 crocodiles from Brits to a farm near Pietermaritzburg,” she tells us. “The obvious solution

arose in the form of our collapsible, re-usable containers.”

Container appealRe-usable containers have found favour for their affordability and efficient use of space on return journeys. “Our products are extensively used in a wide variety of industries as for example also in the automotive industry where we provide reus-

able containers for auto parts for companies such as Toyota, GM, Nissan, Ford and VW.

“The containers are far more cost-effective than purchasing conventional wooden crates, which are expensive and not re-usable, especially after moving this sort of cargo. Also, the fact that our containers are collapsible means they don’t take up valuable space on the trip back,” explains Dawn. “Although in this instance, they were simply sent back to our Durban depot to await their next assignment.”

The client turned to Trenstar after his previ-ous experience with a competitive product had proved unsatisfactory. “He’d utilised re-usable containers in the past but they weren’t easy to use, requiring multiple cable ties to hold them

Crocodile RockTransporting items is tricky enough without these goods having teeth attached. For most, the prospect of

shipping large, dangerous reptiles across the country is daunting; for others, it’s all in a day’s work. “Supply Chain Today” recently chatted to Dawn Dodds at Trenstar about an unusual project the company had handled.

A farmer wanted to move 900 crocodiles from Brits to a farm near Pietermaritzburg


REBUILDYOUR THINKING

March 22–26LaS VEGaS, USa

Register now for CONEXPO-CON/AGG 2011, the most information-packed show in construction. Get close and compare the newest equipment, technologies and strategies for profitability. See how the construction industry has become environmentally friendly, safer and more efficient. Be there to experience the latest innovations and enjoy the attractions of Las Vegas!

Go to www.conexpoconagg.com/intl for details on how to register.

CONEXPO-CON/AGG 2011 is co-located with:

www.conexpoconagg.com/intl


together. Our interlocking 1A containers needed just one fastening to close the top, which meant that the packing process was a lot quicker and safer for the crocodiles,” she says. “Additionally, the containers can safely stack six high, allowing optimum use of vehicle space.

Croc potThe crocodile trade appears to be booming and the breeder of the animals currently houses about 35 000 of the scaly beasts, all strictly according to EU standards. At four years of age, the crocs’ genders are identified, at which point they’re put into family groups of six, with one male to five females.

Although the reptiles have a reputation for being indestructible, stress can be fatal, so the team worked quickly to minimise any undue trauma. “The containers were collected in the morning and handlers spent the day preparing the crocodiles by taping their jaws shut before packing them five to a container,” Dawn explains.

Weighing in at 45-50 kgs with gnashers to match, these animals can inflict a nasty bite, making the taping an essential precaution. Night-time travel further reduced stress by ensuring that the trip was cool and calm. “It really was a painless

process,” she assures us. “The containers were loaded onto a conventional

16-wheeler using a forklift

and covered with a tarp before heading off to the coast to arrive the next morning.”

Cool customersThe need for ventilation made this a better option for the wellbeing of the cargo than an enclosed vehicle, and the tarpaulin provided protection from wind and the elements. “Fortunately it was overcast, which was even better for the animals’ welfare,” she smiles. While the mesh containers provided ample breathing room, their solid bases protected the occupants from injury by preventing their feet from slipping through the floor.

“It was certainly a learning curve – we’ve never handled a project quite like this before,” Dawn admits. In spite of this, the process ran like clock-work and the result was a delighted client and 900 healthy passengers. “Every crocodile arrived safely at their destination,” she assures us. “We’re proud to consider ourselves an environmentally aware company, but I think that this is about as green as you get,” she chuckles.

Dawn Dodds, Trenstar, Tel. 012 676 3300, Fax. 012 676 3300. Email. [email protected], Website. www.trenstar.co.za

Weighing in at 45-50 kgs with gnashers to match, these animals can inflict a nasty bite

LEARNING CURVE

REBUILDYOUR THINKING

March 22–26LaS VEGaS, USa

Register now for CONEXPO-CON/AGG 2011, the most information-packed show in construction. Get close and compare the newest equipment, technologies and strategies for profitability. See how the construction industry has become environmentally friendly, safer and more efficient. Be there to experience the latest innovations and enjoy the attractions of Las Vegas!

Go to www.conexpoconagg.com/intl for details on how to register.

CONEXPO-CON/AGG 2011 is co-located with:


Market ForumTo the next levelProScan Mobility is introducing the new Intermec CS40 - the first rugged mobile computer with the size and styling of a smart phone.

Andrew Fosbrook, group managing director of Pro-Scan Mobil ity, comments “The latest innovation from Intermec, the CS40 brings a new category of mobile computing to mar-ket, providing an enterprise mobile solution for work-ers that require high performance bar code scanning coupled with mobile business applications.”

Unlike consumer smart phones that yield low performance and high failure rates when adopted into business applica-tions, the CS40 is built on Windows Embedded Handheld technologies, including the Windows Mobile 6.5 platform and is designed for mobile professionals who need versa-tile and reliable access and acquisition of information in real-time, at the point of work.

The CS40 enables an all-encompassing business pro-cess transformation for mobile workforces in pre-sales, merchandising, field service, long haul and truck load transportation. “The new solution empowers workers with uncompromised efficiency, productivity, and uptime necessary to improve business processes and deliver a positive customer experience,” adds Andrew.

Differentiating features of the CS40 include the ability to with-stand multiple 1.2 metre drops to concrete on all corners and sides; protection against dust and liquid intrusion from any angle with IP54 rated sealing; high performance 1D/2D barcode scanning through a true 2D barcode imager; advanced 3.75G voice and data communi-cations; and a three mega-pixel colour camera.

The CS40 is also compatible with the full line of Intermec mobile printers, SmartSystemsTM, acces-sories and peripherals, providing

Maximum uptimeClose co-operation with Hyster dealer Barloworld Han-dling has elevated forklift availability at the PPC Cement manufacturing plant at Dwaalboom in Limpopo Province to 99%, which is world class, says PPC Dwaalboom GM Hardie de Beer.

“The levels of on-site backup provided by Barloworld Handling, combined with advanced fleet management technology incorporated into our Hyster units, have been central in reducing customer turnaround times in our warehouse.

An average of 2 600 bags or 130 000 kg of palletised dry cement has to be loaded per hour, making this a high-pressure operation, says Packaging and Logistics Manager Steyn Brand. “The required turnaround time for trucks from the time they stop at the gate is 30 minutes, and our forklifts work three eight hour shifts per day during the week and one shift per day over weekends to keep up with demand.”

The diesel-powered Fortens fleet comprises three 3.5-ton units, fitted with push-off attachments, and two 7-ton units. The 7-ton machines are able to handle two 2-ton pallets at a time, which reduces the time required to load a 40-ton truck to about ten minutes. The bigger forklifts are also used to load trains arriving to transport cement further afield.

To help ensure maximum uptime, all units are fitted with special air filters as well as engine and transmission protection.

Barloworld Handling, Rudolph Briedenhann, Tel: 011 898 0480, E.Mail: [email protected]

Loading cement in the PPC Dwaalboom warehouse

a total mobile solution for workers on the go.

ProScan Mobility, Andrew Fosbrook, ProScan, Tel: (011) 615 3103, Email: [email protected], Website: www.proscanmobil-ity.co.za

SAPICS

The Intermec CS40 from ProScan Mobility, brings a new category of mobile computers


Market ForumKeeping it simple

FAW South Afr ica (FAW) has announced that

it will specifically target the courier industry with its newly-

arrived FAW16.240 vehicle.

“This is one of our best vehicles ever in terms of power and durability,” says

FAW national sales and marketing manager Eugene van der Berg, “and we are going to

add significant value to the package by pricing it as competitively as ever.”

He adds that in the East and Europe the 16.240FL has become one of the most popular trucks in the tough courier

market. “Couriers need reliability and versatility from their fleets which have to cope with the stop-start of short hauls while

delivering the power and efficiency requirements of the long haul. This vehicle is perfect for them.”

FAW is in a unique position to offer competitive pricing without compro-mising quality in any way because of its policy of simplifying the mechanics

of its vehicles. “Our vehicles are not encumbered with complicated electronic systems,” says van der Berg. “We have concentrated on simple and reliable mechani-

cal systems as we are aware that many FAW owners are technically very proficient and like to do their own basic repairs when the need arises. Vehicles that rely too heavily on

computer-based technology can be very frustrating, especially when it’s something relatively small and the breakdown is in a remote area,” he concludes.

FAW Vehicle Manufacturers SA, Eugene van der Berg, Tel: (011) 392.1530, Fax: (011) 974.3933, Email: [email protected], Website; www.faw.co.za

Dual cycle operationTransnet Port Terminals is aiming to further improve pro-ductivity and efficiency at its Cape Town Terminal with the implementation of Dual Cycle operations, where containers are discharged and loaded simultaneously from a vessel using ship-to-shore cranes.

Says Hector Danisa, TPT’s assistant terminal executive of the Western Province terminals, “This methodology in-volves planning the discharging and loading of containers on the same bay of the vessel. So, instead of finishing a discharge across the vessel before doing a load operation, this is done simultaneously.”

This internationally recognised practise lends itself to faster operation and savings by minimising empty trips for both haulers and cranes. Shipping lines also enjoy the benefits of increased productivity, vessel turnaround time and efficiency.

Hector said the challenges associated with Dual Cycle included identifying suitable vessels with an even split of exports and imports and ensuring they are planned properly to facilitate this type of work. In addition, resourcing the terminal appropriately for quicker productivity and smarter planning of the stack could become a challenge.

Dual Cycle was piloted at the Cape Town Terminal in early October last year as a collaborative initiative between TPT

At the end of the phoneTNT Express has taken the first step within the South African courier industry to adopt the world’s first Enhanced Mobile Communications Network (EMC Network).The platform, known as Qkey, offers consumers the convenience of interacting with the brand at anytime from anywhere via mobile phone technology.

Qkey is an innovative and interactive communications gateway designed specifically for mobile phones. TNT’s Q-channel, Q-868, is an information tool that will make the brand accessible to anyone with a mobile phone, be it a traditional voice handset or a more modern mobile internet enabled device.

“The Qkey platform places TNT at the forefront of a new era in communications,” says Tim Steel, Country General Manager of TNT Express. “With Qkey, our clients can choose to interact with us at anytime from anywhere,” he explains. “So whether it’s to book a collection, track a package, or to obtain a quotation, clients now have a new and user-friendly method to access TNT.”

TNT Express, Tel: +27 (0)860 122441, www.tnt.com


Market Forumand shipping line Maersk. The terminal achieved ex-cellent performance on this vessel by reaching a GCH (container moves per gross crane hour) of 34 GCH and ship working hour (SWH) rate of 82 moves.

This represented a 41% improvement on the terminal’s average GCH of 24. SWH is the number of con-tainers moved by the cranes working on a vessel in one hour, which is a key performance indicator for shipping lines to measure productivity.

Transnet Port terminals, Ayanda Mantshongo, Tel: 083 301 2975, Email: [email protected]

A big challengeThe conversion of Hino 700-Series truck-tractors to log-car-rying rigids is a challenge that was willingly taken up by Hino Pietermaritzburg sales execu-tive Peter Foxon when a local customer, Tekwani Sawmills, expressed interest in buying some the trucks to transport logs to the sawmill.

Peter came up with a proposal that found favour with the Tekwani management team after a very thorough evalua-tion process.

The 1.3m chassis extension within the wheelbase and 600mm rear overhang ex-tension were carried out by Pretoria Engineering and the body building is the work of Rapid Truck Bodies, situated in the Mkondeni industrial area outside Pietermaritzburg. Besides alterations to the chas-sis, other changes included relocating the air tanks inside the chassis rails, fitting stack exhausts and “belly plates” under the power train.

The main reason for starting with a Hino truck-tractor is that it has a standard intarder, which is virtually essential for operating in hilly forest terrain. Another benefit for this opera-tion is seen as the fitment of a Jake Brake instead of an exhaust brake.

The Tekwani fleet consists of 21 truck tractors and rigids

www.universal-storage.co.za


to haul logs from the forests and to deliver the finished products to customers, as well as including a number of light commercial and passenger vehicles.

The latest additions to the fleet are eight Hino trucks, which are replacing other makes in the fleet. The first Hino, a 4-ton 300 Series 8-14 with a Tautliner body, was purchased in January and clocked up more than 60 000km in the first six months of operation, mainly deliv-ering laminated boards countrywide.

The seven other Hinos are 700 Series 28-45s – five truck-tractors and two truck-tractors that have been converted to rigids to transport 6.6-metre logs from the forests to the mill, pulling tag and drawbar trailers, with a total payload of 37 tons. The truck-tractors pull a variety of trailers to transport the wat-tle bark as well as 30-ton loads of wood chips to paper mills and to deliver finished products to cus-tomers, including a weekly trip to Namibia.

Hino, Ignatius Muth-ien, Tel: (011) 809-2064

Market Forummon rail turbo-charged intercooled engines that are quieter and cleaner burning than the previous mechanically fuel injected range.

When run on the same road with the same payload at the same speed, improvements in fuel economy of between 3 and 5% can be expected on some models,” says Duncan Prince, Product Manager, Freightliner/Fuso division.

“Other exciting development in the new model range is that for the first time Fuso in Southern Africa will be offering the FK10-240, a 10 400 kg GVM double cab model with seating for a driver plus six passengers. With 240hp on tap, it is an-ticipated that this model will prove very popular with rollback operators who will carry a broken down passenger car on the back of the truck and the vehicle’s passengers safely in the cab of the

Fuso FK,” adds Prince.

Furthermore the new range offers longer wheelbases as standard, making it much easier for operators to ensure correct weight distribution and avoid axle overloading fines when employing industry standard 6.4 and 7.2m truck bodies on trucks in the 6, to 8 ton payload class.

The Fuso FP/FV range of extra heavy commercials has also undergone an upgrade in the engine department, and is now offered with 350 and 420hp engines. Airconditioning is now standard fitment on these models.

Mercedes Benz, Shirle Greig, Tel: (012) 677 1904, Fax: (012) 677 1682, E-mail: [email protected]

The HCV range employs engines rated at 240 and 270hp

Upgrades“Our HCV range employs engines rated at 240 and 270hp, depending on model deriva-tive, are new com-

The main reason for starting with a Hino truck-tractor is that it has a standard intarder, which is virtually essential for operating in hilly forest terrain


www.ils.co.za


OUTSOURCING

New Logistics Service

A cost engineering specialist company will be offering its clients a more in-depth and com-prehensive range of services with the introduction of a new logistics division – aimed at op-

timising strategies involving cargo management.

T he Johannesburg-based company, known for its market-leading expertise in estimat-ing and controlling the cost, schedule and performance aspects of capital projects,

decided to make the move into logistics after identifying the need for this specialized service in the market.

Same packagePaCE Logistics Director Designate Mike Barnes explains, “Logistics and planning are part-and-parcel of the same package, and we believe that the time is right to offer this service to both existing and future clients. In the planning and cost engineering scenario, we know what the customers’ needs are, and the added value of making sure that their logistics and supply chain fits in to their performance models is critical to project success.”

Mike points out that business is off to a good start, with major contracts already signed and implemented. “PaCE logistics has contracts with two separate mining companies - one is a 20-year deal which will last until 2030, while the other is going through until 2014. This good start proves that we are certainly going to be around for a long time, constantly striving to provide the value-adding service that clients require,” he explains.

Despite signs of early success for the logistics division to date, Mike admits that PaCE still has to overcome a number of challenges. “The big-gest challenge facing the logistics division is to convince clients that we can offer a service that

is of additional benefit and value to our clients operations, in a market flooded with service providers. Another challenge has been dealing with the delays of customs registrations, as there had been a number of procedures to deal with before we could get registered.”

Main focusLooking to the future, Mike notes that PaCE Lo-gistics will target all industries in South Africa; however, mining will be the company’s main focus for the short-term. “If we were to become a general freight forwarder, we would have to compete with hundreds of similar companies that are already out there in the market. In order to succeed, we will need to remain focused on industries that we know and, at this point in time, mining is our core focus,” he explains.

Mike says that although the mining industry was hit hard by global economic crisis, he believes that things are starting to pick up, and that investors have already started looking more seriously at pumping money into Sub Saharan African mines.

First step“We have cargoes coming in from China that are going to give us that first step to take us through to the end of this year, and I forecast continued growth through 2011,” he concludes.

PaCE provides clients with project control ser-vices, using the best available tools to ensure that their projects are successful by meeting set goals and targets. This can be achieved through direct involvement in projects on a day-to-day basis, by training client personnel in project control disciplines or by providing the relevant computer software and support services.

PaCE Services, Tel: (011) 805 1349

If we were to become a general freight forwarder, we would have to compete with hundreds of similar companies


EMERGING MARKETS

B oth global trade hubs and routes will shift to emerging markets within the next 20 years,” says Akhter Moosa, South African Transport and Logistics Leader for PwC,

which recently published its third Transportation & Logistics 2030 Report. “Trade volumes will move towards emerging markets such as Africa or Asia and competition for future large transport contracts will be determined within the next few years.

“Nearly 100 industry experts from all over the world participated in the survey, which covered seven specific emerging markets: Brazil, China, India, Mexico, Russia, South Africa and Turkey,” contin-ues Moosa.

New corridorsAs the importance of emerging mar-kets increases, a major proportion of global trade will be carried out through these emerging markets by 2030. New trade corridors between Asia and Africa, Asia and South America, including trade within Asia, will re-chart global supply chains.

Privatisation has already bolstered China’s economic growth and countries like Turkey are looking to benefit from increased efficiency and better access to capital. Trade between Asia and the former Soviet states is growing 42% annually. Trading volumes on the South-South route between South America and Africa is also showing considerable double digit growth.

Christopher Siewierski, Associate Director in Corporate Finance, PwC, adds, “China already owns seven of the world’s twenty largest ports. India, Russia and South Africa are also expected to play a significant role as logistics giants.”

South Africa will become the starting point of a

Reshuffling the CardsThe dynamic economic development of emerging markets will

fundamentally change world trade by 2030, leading to the emergence of new logistics service providers to challenge the

market share of established companies.

Akhter Moosa

Chris Siewierski

new transport corridor to Asia. Significant invest-ments in transport infrastructure and the logistics industry in Africa are required to develop new transport routes and expand existing ones.

This development will relocate global trade flows and new transport corridors will emerge. The African continent, including South Africa, is already experiencing this shift. Emerging markets such as China and South Africa fared relatively well during the recent economic downturn. As a result, freight flows between these emerging market countries continue to strengthen.

Pivotal roleAsia’s heavy industry will continue to play a pivotal role in the global demand for iron ore and coal. South Africa is expected to remain an important source of these commodities, especially in light of weakening demand from Europe.

Christopher says, “The emergence of China as one of South Africa’s main trading partners will continue to have a tremendous impact on the economic feasibility of certain hub and spoke initiatives. The demand for South African resources will result in substantial investment being made in multi-modal corridors to satisfy the hunger of Chinese heavy industry.”

South African logistics companies are not only competing with each other, but also with their clients. Fierce competition is expected to continue between logistics service providers which will put downward pressure on margins.

Simultaneously, increased competition will also lead to a wave of industry consolidation and the number of logistics providers is expected to fall sharply. PwC analysis shows that 69% of companies that have been taken over during the second quarter of 2010 were located in Asia and Oceania.

NeighboursEmerging markets provide outstanding opportunities for logistics providers in terms of overall growth and in response to rapidly changing market trends. Medium-sized companies are also capitalising on this change for further growth.

Respondents to the Transportation & Logistics 2030 report believe it is unlikely that companies from emerging countries will seek further growth in the developed European and North American markets. Instead, they will concentrate on domes-tic markets and the strong growing neighbouring countries.

PwC, Chris Siewierski, Tel: (011) 797 4000, E-mail: [email protected]

Freight flows between these emerging market countries continue to strengthen


SAPICS

T om Morrison and Anthea Booker were among the students invited to create “poster presentations” at last year ’s Sapics Conference for supply chain and

operations professionals.

Lessen the traumaRoodepoort mortuary was the inspiration for industrial engineering student Tom’s presenta-tion. He’s a third-year undergraduate student at the University of the Witwatersrand. “The opti-misation of the Roodepoort mortuary is of great significance due to the number of autopsies that have to performed there, as well as the stressful nature of the working environment,” he says.

Tissue Samples and Corpses

Students apply their skills to optimise the supply chain processes in a mortuary and histology laboratory, blood, organs and autopsies. You may be thinking we’re a little late for Halloween, and these are not your

typical supply chain-related topics. For two bright, young supply chain students, however, a mortuary and a histology laboratory presented the ideal environments in which to conduct a supply chain optimisation project.

Tom undertook an initial overview of the processes, followed by a series of interviews and time stud-ies. “This allowed significant issues to be isolated using Pareto as well as statistical analysis, and thus be addressed,” he explains.

“These problems were predominantly associated with working environment, as well as ergonomics within process. By introducing hydraulic scissor-lifting trolleys, as well as the adaptation of PPE (Personal Protective Equipment), the working en-vironment could be significantly improved, hence helping to stem the current rise in absenteeism of employees. This is vital in an organisation that is already significantly short-staffed, or one operating within strict procedural guidelines,” he stresses.

The introduction of a barcoding system currently used in hospitals was also outlined by Tom.

Students from various universities around the country were invited to display “poster presentations” at the 2010 Sapics Annual Conference

Putting members of the public through the trauma ofactually viewing multiple bodies



“This would decrease administration as well as prevent mishandling and misrepresentation of information.”

Another significant issue that he discussed in his presentation is the formation of a digital identification database. “This would eliminate the necessity of putting members of the public

through the trauma of actually viewing multiple bodies in order to determine if a loved one had been found. It would also allow for the storage of images within a database after an unclaimed body had been buried, facilitating later identifi-cation,” he adds.

Tom says that he chose this rather unusual topic because he believes that the health care sector is a critical area of development within South Africa, as well as throughout Africa. “Often simple industrial engineering techniques can make a marked improvement in the service provided to the public, as well as ensuring that employees are retained due to a good working environment,” he notes. “This is especially important within South Africa, where government healthcare expenditure is often less than what is required, and optimisa-tion is crucial in order to function.”

Waiting timeAnthea Booker ’s project on the histology de-partment of Lancet Laboratories was aimed at decreasing the lead time in processing a sample. She elaborates: “Histology is the microscopic examination of tissue and deals with cases such as biopsy samples from any organ suspected of disease. The lead time in processing samples is important since the faster the sample is processed, the faster the patient can be treated. Ultimately, improving processing times will improve Lancet’s relationship with their customers as they will be able to provide test results that are accurate and available soon after samples are given.”

Anthea analysed the process of handling a sample in the laboratory by means of current state map-ping, sample flow and layout diagrams and time motion analysis. “The methods used showed that a sample spends, on average, 60% of its time waiting in the laboratory,” she reports. “I found that the constraints within the laboratory were the machines used to process the samples and the consequent processing schedule that has been designed to work around the machines. By re-evaluating the times at which the machines are run it was found that the lead time in processing samples that enter the laboratory could be reduced by 80%. This was considered an excellent result as patients would be able to receive test results timeously without compromising on the quality of the test results,” she states.

Anthea is also a third-year Industrial Engineering student at the University of the Witwatersrand. She chose her presentation topic because she feels that service is important in any industry - from manufacturing and banking to processing tissue samples. “In order for South Africa to be elevated to first world status, more emphasis must be placed on the importance of service in all industries,” she concludes.

Sapics, Jenny Froome, Tel: 011 805-5677, [email protected], www.sapics.org.za

The lead time in processing samples that enter the labo-ratory could be reduced by 80%

SAPICS

Forthcoming Features 2011

March 2011 : * Supply Chain Software incl. ERP, MRP, Scheduling, Forecasting etc* Trucking * Focus on the mining and manufacturing industry April 2011 * Focus on food & beverage* Warehouse Management Systems and Inventory Control * Focus on greening the supply chain

May 2011* Procurement (including government initiatives)* Truck Review * Focus on security including fuel theft June 2011* Supply Chain Software incl. ERP, MRP, Scheduling, Forecasting etc* Focus on greening the supply chain* SAPICS 2011 July 2011* Transport and Logistics Management* Trucking* Focus on railways and ports August 2011* Warehouse Management Systems and Inventory control* Outsourcing (3PL/4PL)* Focus on greening the supply chain

SEP 2011* Express freight industry* Transport management incorporating routing and scheduling* Focus on supply chain in retail / FMCG / pharmaceuticals

OCT 2011* Warehouse Management Systems and Inventory control * Security including fuel theft* Green Supply Chain Awards Winner Announcement

Contact Lelanie Lane on Tel ( 011) 781-1401,Fax: (011) 781-1403,

E-mail: [email protected] to book your space



S upply Chain Today” speaks to UTi Pharma, a giant in the field of drug distribution,

about its supply chain.

Robin Botha, Chief Operat-ing Officer for the distribu-tor explains, “UTi Pharma doesn’t make medicine but its systems, technology, a global and local web of Pharma grade warehouse facilities, fleet of vehicles, and passionate people make sure that patients always get the original quality medicine they need, when and where they need it.

“We’re the leading distribu-tor of pharmaceuticals in South Africa, and are owned by a partnership between UTi Worldwide and Kagiso Ventures Limited, our black empowerment partner,” Robin explains.

In the Nick of Time

A transport capacity extending over 2 500 vehicles delivering throughout the region

PHARMACEUTICAL

If you consider the sums of money involved in developing certain

specialised drugs, it is readily apparent that only

the very large, financially-robust drug

manufacturers are capable of their

development. And yet the end-user remains the individual. The challenge is to ensure that these myriad drug types from various manufacturers

reach millions of assigned patients when needed, at

an affordable price.


RationalisationThe company had its beginnings in 1993 when four manufacturers, Bayer, Boehringer, Ciba-Geigy and Roche, formed International Healthcare Distributors. This organisation was acquired by UTi in 2004. Today, it distributes under the UTi Pharma brand for most of the leading Pharma companies including Abbott, Bayer, Boehringer, BMS, Lilly, MSD, Novartis, Pfizer, Roche, Sanofi-aventis, Schering-Plough, Wyeth and many more including diagnostic and veterinary companies or divisions.

Directly involvedFor 2009, the total distributed value that UTi Pharma shipped in Southern Africa on behalf of its clients amounted to R15.3 billion. This was for a total 131 million units picked, packed and delivered. This was executed with a total staff of 1 100 (inclusive of administrative, operational and distribution people) 800 of whom are directly involved in the supply chain.

“Currently, we distribute over 14 000 stock keeping units (SKUs), split between traditional Pharma, FMCG and Diagnostics. The Diagnos-tic business alone accounts for 9 000 SKU’s,” continues Rob.

The geographical challengeThe challenge is to physically distribute these products throughout South Africa as well as Botswana, Lesotho, Namibia and Swaziland. Then there is the regular distribution on behalf of manufacturers into other countries in the sub-Saharan Africa region which accounts for 10% of total turnover.

“We distribute on a next day delivery promise to approximately 10 500 delivery points with an average of 6 800 being touched by UTi Pharma per day,” explains Rob.

To move tons of medical supplies to numerous destinations every day, UTi Pharma has distribution centres in all the major centres – Gauteng, Cape Town, Durban and Port Elizabeth. It is responsible for the distribution requirements planning of all its manufacturers’ products, ensuring that each region has the right amount of product to service its customers effectively. Over and above the distribution centres, the company also operates six hubs in outlying areas to facilitate their reach through South Africa.

2 500 vehicle capacityThe company’s specialised fleet does over 80% of deliveries direct to customers. The UTi Pharma fleet is dedicated to pharmaceutical and healthcare related products only. The fleet comprises 150 dedicated UTi Pharma vehicles but the company

Distributes on a next day delivery promise to approximately 10 500 delivery points

To move tons of medical supplies to numerous destinations every day, UTi Pharma has distribution centres in all the major centres

PHARMACEUTICAL


has access to the total UTi Africa distribution network with a transport capacity extending over 2 500 vehicles delivering throughout the re-gion.

Specialised storage environmentsUTi Pharma’s five custom-built facilities in South Africa are all licensed pharmaceutical facilities, with temperature-controlled and, in some cases, humidity controlled environments. The company’s cold chain capability continues to receive the utmost attention. UTi Pharma has only fully-validated cold chain distribution processes in place.

The reverse side of the coin is that pharmaceuticals generally have three to five year expiry dates. To reduce the risk of product expiry, the company operates on a First Expiry, First Out (FEFO) basis. However, in the diagnostic arena, expiry dates are dramatically shorter, often only spanning a couple of days or weeks. It is therefore critical that these products are monitored closely and on time and precise delivery is essential.

UTi Pharma is also responsible for the reverse logistics needed for expired product. This is in line with the manufacturers’ product. Expired product is then disposed of using an outsourced, environmentally-approved incinerator company.

Pharmaceutical quality assuranceTied in with UTi Pharma’s supply chain manage-ment, there has to be a strong element of safety and quality assurance.

“Quality assurance is the biggest element within a pharmaceutical warehousing and distribution environment,” says Rob. “We have a dedicated SHEQ – Safety, Health, Environment and Quality department consisting of over 30 people. This department is responsible for ensuring that we comply with all local regulatory requirements, as well as any other requirements that may be relevant to our manufacturers. The quality of the product leaving our warehouses needs to be the same as that of the product that leaves the original manufacturer. This is managed through an elec-tronic Standard Operating Procedure application which houses our over 2 500 processes.

Rigorous requirements“The number of temperature sensitive products in the market is increasing and certain product categories, particularly diagnostics, have a very large proportion of these types of products. We currently have products that need to be stored and transported at either 2-8 degrees or below -20 degrees.” This is a very challenging environ-ment, but one that we pride ourselves on having mastered. Adds Robin, “We have numerous ship-ping solutions to accommodate these rigorous requirements, including our own internally-de-veloped and validated cold chain packaging that ensures over 72 hours at 2-8 degrees.

Replace its ageing Gauteng facilities and consolidate operations from nine to two sites by the end of 2012

“Over and above the actual delivery of the product, the storage conditions are validated and perma-nently monitored to ensure that they are operating at the required level. This is critical to the safety, efficacy and quality of the products entrusted to us. In order to achieve this it is imperative that redundancy is built into all systems.”

Asked what the future holds for this distribution giant, Rob concludes, “We need to be able meet the challenging environment ahead with confi-dence in the future. An immediate goal for UTi Pharma is to replace its ageing Gauteng facilities and consolidate operations from nine to two sites by the end of 2012.”

Robin Botha, UTi Pharma, Tel: (011) 458-2222, Fax: (011) 458-2364, Email: [email protected]

We distribute on a next day delivery promise to approxi-mately 10 500 deliv-ery points

PHARMACEUTICAL

�0 Supply Chain Today Jan 2011 Advanced Materials Today September 2007 39

www.animalsindistress.org.za

Supply Chain Today Jan 2011 �1

According to standard definitions, procure-ment is the acquisition of goods or services at the best cost, for the right quality and

quantity, at the right time, in the right place and from the right source for the best ben-

efit of an organisation.

E asier said than done when the variables involved in this complicated set of negotiations could result in a breakdown at any step

of the process. When “Supply Chain Today” took a look at the intricate art of balancing supply and demand, it became clear that the procedure can be-come as complex as politics. And it appears to require a skill set that includes similar talents.

Get negotiatingPrimary among this is the ability to negotiate. Without this talent, even the most organised procurement professional will find it difficult to succeed. According to professionals, however, there are a couple of stumbling blocks to suc-cessful negotiations. Firstly, how certain are you that the other person is being honest? Are they actually able to provide what they say they

can, and is their ‘best price’ actually the best price they can offer?

Another consideration is related to our human urge to make people like us, which can result in the negotiator capitulating too easily. On the opposite extreme are those who are so hard-nosed that they end up developing poor relationships with their suppliers. While many may not recognise the detrimental effect of this on business, it is becoming increasingly accepted that in these instances, many professionals adopt the ‘Mutual Concession Close’, whereby for every concession one party asks, the other party has the right to ask for one too. Without a mutually satisfactory conclusion, it’s unlikely that all parties will feel that the outcome is a balanced one.

Underutilised skillWhile some organisations recognise the value of procurement, in many instances these skills are underutilised. Until recently, even some edu-cated managers didn’t understand the strategic importance of the process to a company. At best, it was viewed as a means of ensuring that com-modities were purchased at the cheapest price, thereby cutting costs. However, the process is a fundamental part of the overall operations plan of a company.

Being in the unique position of seeing market trends on the one hand, along with having an understanding of company needs on the other, the procurement division has the ability to exploit opportunities that might not be immediately ap-

Buying Power

How certain are you that the other person is being honest?

PROCUREMENT

�2 Supply Chain Today Jan 2011

PROCUREMENT

parent to others in the organisation. Procurement staff are often able to access a network of contacts to provide useful information. These same contacts can provide bargaining opportunities not available to others.

The common managerial misconception that anything can be acquired whenever necessary may have a far-reaching detrimental effect on business. Ask any production manager with an order to fill dur-ing a shortage of the relevant materials and you’ll learn just how important the procurement process is. Changes in supply may be a result of military conflict, oil prices or agricultural shortages, which a skilled buyer will be able to foresee simply by realising in advance that these will have an impact on production.

Buyer’s roleThe term ‘buyer’ may be a little misleading, because in a large organisation, the buyer is not actually the true purchaser, but merely the common point of contact between buyer (the company) and the supplier. This is beneficial; since the procure-ment function does not have a vested interest in the acquisition of specific goods or services, the procurement function can be more objective. The process can remain fair and objective while still ensuring the best buy for the company.

The relationship between buyer and supplier can actually be a source of competitive advantage for a company. While it may require a long-term approach, putting the supplier ‘on the team’, so to speak, aligns their process with that of the purchasing organisation. In an ideal world, the procurement function is part of the engine that drives a company to success while others flounder due to mismanaged resources.

Just clauseHowever, even the best relation-ships need boundaries, and at times it may be beneficial to implement penalty clauses for defaulting against contractual agreements. While many may see this as a punitive mea-sure, in essence it’s more of a mechanism to ensure that contractors develop a healthy respect for the terms of their contracts.

Penalties for fraudulent behaviour – an issue that is all too familiar in many industries – have become regrettably important in

The temptation of a shiny luxury German vehicle has toppled more than one administrator

www.engineerplacements.com

Supply Chain Today Jan 2011 ��

Only once all necessary criteria of supply are met, can price be added to the mix and a ‘lowest cost’ supplier be chosen

PROCUREMENT

going to be a long, hot summer unless there’s a way of stabilising costs. Forward buying is not always an option as a means of buffering against future shortages.

Analyse thisInformation gathering remains a necessary part of the role and one which should never be over-looked. Procurement invariably involves decision making under some sort of pressure factor and applying economic analysis methods such as cost-benefit analysis or cost-utility analysis is useful to mitigate the risks.

As with any function within a company, evalu-ation of the system should not be neglected. Streamlining the system can provide a stronger negotiating position, lower costs and free up cash for investments. Additional evaluation should encompass the tendering process as well exist-ing vendors, focusing on price, quality, timely deliveries as well as effort spent on resolving problems. Only once all necessary criteria of supply are met, can price be added to the mix and a ‘lowest cost’ supplier be chosen.

Ideally, complex procurement should involve long-term suppliers who are prepared to com-mit to the process. The days of demanding the best product at the lowest price are long gone. A forward-thinking organisation will recognise the need for vendors to run successful businesses of their own so that the association can be mutually beneficial in the long-term.

The importance of a good supplier should never be underestimated. Neither should a good pro-curement team.

South Africa. Here, it may be the procurement officer who is under the spotlight; supplier influ-ence can make it difficult to remain objective in the face of huge contracts. The temptation of a shiny luxury German vehicle has toppled more than one administrator.

On the other hand, rewards are also a useful means of inspiring diligence. Often, simply undertaking to renew the contract at the end of the term is incentive enough. Some believe that relationship development requires a more proactive stance, however. Offering a contractor a ‘preferred supplier ’ status is not only beneficial to the primary purchaser/supplier interaction but can also serve as a source of additional business for the contractor. Being a preferred supplier to a blue-chip organisation is a source of pride to many companies.

What’s in stock?In some industries, it may also be possible to institute a buy-back clause in the event of over-stocking of materials, although this is an issue requiring careful negotiation. Wherever possible, just-in-time delivery can obviate this problem, however, the system brings with it its own set of logistical concerns.

But any type of bulk buying comes with chal-lenges. Companies buying large amounts of a specific item can be significantly affected by price fluctuations. If you’re producing ice-cream and the price of dairy shoots through the roof, it’s

�� Supply Chain Today Jan 2011

RAILWAYS AND PORTS

I n late 2009 Namport, Namibia’s Port Au-thority, commissioned Aurecon to conduct a feasibility study for the Port of Lüderitz to investigate the possibility of a port deepen-

ing/expansion project.

The outcome of this study will enable the creation of a Port Master Plan to guide Namport’s future developments for the Port of Lüderitz.

Namport is concurrently considering every avail-able opportunity to revive the Port of Lüderitz, within the context of the entire town’s devel-opment. To this effect, Namport has been in consultation with various key stakeholders, seeking support and co-operation to start an all-inclusive initiative that would lead to the establishment of a spatial development initiative for the area and using the Port of Lüderitz as the main link to the sea.

Lüderitz Set For Major ExpansionThe Port of Lüderitz in Namibia is poised to reposition itself as the “Gateway to Southern Namibia, the North-

ern Cape Province and South-West Botswana”.

Positive resultsThese consultations yielded positive results on 27 August 2010, when Namport signed three Memorandums of Understanding (MoU) with Karas Regional Council, Lüderitz Town Council and Lüderitz Waterfront Development Company (Pty) Ltd at an event witnessed by the Minister of Regional, Local Government, Housing and Rural Development, Jerry Ekandjo. The event also saw the MoU exchange in the spectrum of economic development between the Lüderitz Town Council and Namibia Chamber of Commerce and Industry (NCCI).

The salient features of the MoUs provides for a joint support and cooperation:

• on economic development for the region to open up corridor routes linking the port of Lüderitz to the SADC countries;

• on the establishment of a private public part-nership (PPP) to manage the operations of the planned corridors for the Karas region and the Port of Lüderitz;

• on a broader spectrum of economic develop-ment for the region to ensure optimum exploitation and utilization of the Port of Lüderitz;

• on matters of development and roles of the region and/or the port hinterland connection;

• on collaboration and mutual update on mat-ters of development for the Port of Lüderitz and the Lüderitz Spatial Development Corridor;

• on the marketing of the Lüderitz Spatial De-velopment Corridor and the Port of Lüderitz with specific focus on the Trans Oranje corridor.

Core focusThe important sectors identified as the core focus areas were port and rail development, economic development, mining, tourism and hospitality and various other industrial and commercial enterprises.

www.railwaysandharbours.com

Open up corridor routes linking the port of Lüderitz to the SADC countries


Market Forum

Growth ambitionsThe Dutch foodservice wholesaler Deli XL, which is owned by Bidvest has selected Manhattan Associates’ supply chain optimisation solutions to support its growth ambitions over the coming years. Deli XL will implement Manhattan’s Warehouse Management, Slotting Optimisation, Supply Chain Intelligence and Extended Enterprise Management solutions - all components of the Manhattan Scope solu-tion portfolio. In collaboration with Manhattan Associates, Deli XL is looking to optimise its distribution network of seventeen distribution centres (DCs) in the Netherlands and improve operational efficiency within the DCs.

“Our current solutions have reached the boundaries of their capabilities and are an obstacle to our further growth, whilst Manhattan’s solutions offer us all the functionality we will need to facilitate the business’s expansion,” says René van Gelderen, director IT & Programme Management at Deli XL. “Over the next few years, we will be implementing a completely new distribution environment. In addition to Manhattan Associates’ solutions, we will implement a new SAP ERP infrastructure and a new e-commerce platform from ATG Commerce. We believe there is a great fit across these very complementary applications.”

Foodservice wholesaler Deli XL offers a broad range of food and beverage products and non-food products to companies and institutions in the hotel and catering industry as well as in the healthcare sector.

Deli XL has a national distribution centre (NDC) for am-bient goods and a separate, temperature-controlled NDC for chilled products. Furthermore, the company has four regional DCs, located across the country, and eleven small, satellite DCs to support local customers. Until now, Deli

XL has relied on several heavily customised warehouse management solutions within its DCs. With these solu-tions, Deli XL had become extremely restricted in the way it was operating and decided to start looking for a new range of distribution management solutions to help it realise its growth ambitions.

Following an extensive selection process, Deli XL selected Manhattan Associates. A highly positive experience by many other organisations in the food sector is one of the reasons that Deli XL chose Manhattan Associates. Moreover, the solutions in the Manhattan SCOPE solution suite are very suited to the type of high volume product throughput seen across Deli XL’s warehouses where goods of variable size and shelf life are being processed.

www.manh.com

Affordable solutionSCT Services, a local SAP Business All-in-One Gold Partner, has announced that it is leveraging SAP’s ERP best-of-breed technology on an IBM platform to give lo-cal companies total visibility of business operations and performance. SCT’s certified SAP template for Consumer Products, MTS.Worx Solution, enables companies to take control of their end-to-end business operations in order to improve customer service levels, control costs, streamline

supply chain operations and respond quickly to market change.

Designed specifically for mid-sized consumer products businesses, SAP’s Business All-in-One solution on an IBM platform gives executives the ability to streamline business processes, eliminate waste and maximise resources quickly, easily and affordably.

A faster, higher and more predictable Return on In-vestment (ROI) is ensured through a fixed implementa-tion investment and once-off licensing cost, which has also been adapted to suit small to medium sized organisations. In addition, the traditional capital expenditure models


Market Forum

associated with IT investments has been replaced with an affordable finance option that spreads the investment of both licenses and implementation into affordable monthly instalments.

The SCT MTS.Worx Solution will encompass key materials management, manufacturing, sales, accounting, cost-ing and profitability analysis processes. Other benefits include optimised supply chain operations by increasing inventory accuracy by 10 – 30 percent and eliminating unnecessary waste and cost from the supply chain with increased flexibility.

Furthermore, reduced time to market by 20 – 30 percent by improved planning, innovation, design and produc-tion. Companies can also now create a more predictable, low-cost structure and improve sourcing efficiency 10 – 15 percent with increased visibility and control of all business processes.

SCT Services, Alan Yates, Tel: (012) 345 5669, Email: [email protected]

In touchPsion says that their industry-first, online collaborative community and social network has received more than 112 000 unique visitors and has grown to over 8 000 registered members since its launch six months ago.

Members are openly working together to transform how products in the industrial mobile computing market are developed and deployed. In a September survey of 300 Psion partners, over 90% stated that IngenuityWorking.com will help their business through collaboration and the market insight it creates.

John Conoley, CEO, Psion, says, “IngenuityWorking.com is quickly becoming this industry’s most important collabo-ration centre, development network and business tool. It already goes far beyond Psion and everything we thought it could be as part of our Open Innovation strategy. Users, partners and developers are online 24x7, driving discus-sions on every facet of our industry. The shared insight and interaction is unparalleled. It represents an entirely new approach to product development.”

“IngenuityWorking.com enables us to keep in constant touch with Psion’s entire worldwide development commu-nity,” said Dominik Rotzinger, managing director of Warok GmbH, Germany, a leading distributor of automotive ID solutions. “The key advantage of IngenuityWorking.com is that it provides a vehicle for sharing information and ideas, but also expertise and thoughts, 24 hours a day. One very useful additional benefit of the community is that local expert developer partners can make requests to their suppliers, and even Psion direct, for the features they require to meet the needs of the markets they serve.”

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

Sealing the deal Ezethu Logistics has renewed its contract with Total South Africa for the transportation of fuel from Waltloo to Pretoria and Pretoria North. Ezethu’s commitment to SHEQ, and its newly acquired fleet of Euro 4 compliant trucks (provided by Scania) secured the deal. This is the first Euro 4 fuel distribution compliant fleet in South Africa. “Sustainable development, including dealing with environmental challenges, is integral to Total’s business.” says Total South Africa MD Jean-Denis Royère.

Euro 4 vehicles significantly reduce the amount of nitrogen oxide, carbon monoxide, hy-drocarbons and other Carbon


Market Forum

Dioxide emissions that are deemed harmful and toxic to

the environment. Total SA is the first South African

petroleum company to incorporate Euro 4

standards into its fleets.

As an empower-ment partner of

J S E - l i s t e d Cargo Carri-

ers, Ezethu practises the high-est stan-

dards of Safety Health, Environment and Quality (SHEQ). Because of this, Total renewed its five year contract, with a po-tential three year extension as long as Ezethu maintain high-level safety standards.

Cargo Carriers Joint CEO Murray Bolton’s view is that big players in the fuel industry will only do business with you if you can guarantee the highest levels of SHEQ.

“Ezethu is a Level 1 B-BBEE contributor and SHEQ is as much a non-negotiable in today’s business environment as BEE. We encourage all our associates and subsidiaries to embrace SHEQ as a business imperative.” says Murray.

Ezethu’s Euro 4 fuel distribution fleet was provided by truck manufacturer Scania – the only original equipment manufacturer willing to engage with Total SA and Ezethu in providing the ten-strong fleet. Scania South Africa MD Christoffer Ljungner has called for government to enforce more severe legislation to encour-age the use of environmentally friendly vehicles.

Cargo Carriers, Murray Bolton, Tel: (011) 485 8700, Fax: (011) 485 8781, Website: www.cargocarriers.co.za

Safe disposalWhen a company does a technol-ogy refresh of their IT equipment, there is always the problem of how to recover the asset value of the old equipment and to find a way of disposing of this equip-

ment quickly and effectively with the least impact on the environment. How do you know when you have the right service provider?

PartServe Channel Support director Lee Bowes says the company offers two solutions for the disposal of this equip-ment, Fixed Price buy backs and Shared Revenue sales.

Fixed Price Buy Back is based upon a fair market value of IT equipment and a negotiated set price is established. Upon receipt and inspection of equipment, a report of any defects is issued and PartServe absorbs the inventory risk during the sale cycle.

Alternatively, the Shared Revenue Sale allows PartServe to take the disposal burden by handling the inventory and verifying its specifications. Product is sorted and tested to verify functionality and specifications are confirmed. If product has value in the marketplace, it will be sold at fair market value and a negotiated percentage of the proceeds will be returned to the company upon completion of the sale. If there is no value, the product is scrapped and disposed of.

PartServe offers a complete service where all product in-cluding old scrap IT assets will be removed and disposed of from anywhere in the country. Furthermore, all products that are not recovered for resale, are disposed of accord-ing to the environmentally friendly IS014000 standards and PartServe is a member of the e-Waste Association of South Africa and supports Sustainable Computing.

PartServe, Lee Bowes, Tel: (011) 201 7777, Email: [email protected]


Index to Advertisers

Afzelia 8

Barpro Storage 10

Conexpo 16

Engineer Placements 32

ILS 22

Interrol 6

Masslift Outside Front Cover

Mercedes Benz Outside Back Cover

Paul Steyn 14

Proscan Inside Back Cover

SAID 30

Scania Inside Front Cover

Universal Storage Systems 20

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FindingfavourOn the back of an innovat i ve business model and a commit-ment to creating t rue customer value from ERP implementations, Namibia’s Afresh Consult is expand-ing its presence in South Africa. It has opened a new office in Middleburg and another in Lenasia in Gauteng, while it has a presence in the Western Cape through its Somerset West office. In addition to its Pretoria head office,

Afresh Consult has a Namibian office in Windhoek, and Zimbabwean offices in Harare and Bulawayo.

Managing director Immo Böhm explains the business model: “In effect, we offer a franchise structure, but the product isn’t fast food or video rentals. It’s business software.”

While this may seem an unusual approach, it is one in which Immo has complete confidence. “The model works because the franchise owner has a vested interest in developing the market, finding new clients and applying business software to the advantage of clients. Meanwhile, since achieving client value wherever the Afresh Consult name is used is an imperative to grow our business, com-plete support is provided from head office. This includes training, access to technical resources, and structured support which ensures that service level agreements can be honoured.”

Providing ERP solutions from vendor HansaWorld, Immo says Afresh is rapidly carving a niche for itself, particularly in the manufacturing, retail and distribution industries. Particular interest is also coming from hospitality and transport and logistics verticals. “The flexibility, short time to implement and predictable cost basis associated with the HansaWorld Enterprise solution is finding favour, especially in the mid-market,” he notes. “This is an ERP system which provides a complete and fully-integrated set of modules to meet the needs of almost any company.”

Afresh Consult, Immo Böhm, Email:[email protected]

Immo Böhm

Market Forum

proscan advert CS40 repro.FH11 Tue Nov 30 18:28:16 2010 Page 1

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www.afzelia.co.za

www.barprostorage.co.za

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www.interroll.com


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www.universal-storage.co.za


proscan advert CS40 repro.FH11 Tue Nov 30 18:28:16 2010 Page 1

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www.proscanmobility.co.za

�0 Supply Chain Today Jan 2011

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sct: jan 2011

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