Supply Chain Today May 2010 

 Supply Chain Today May 2010

 May 2010

Featured on the cover
S&N Labels/Bartrans
Tel: (011) 552-8245
Fax: (011) 397-8526
Email. luke@bartrans.co.za
Web: www.snlabels.co.za
www.bartrans.co.za
Contents
Cover Story Procurement
5 A Force to be Reckond With 31 Head-on
Racking & Shelving CIPS
7 Trial Retirement 33 Not a Backroom Activity
9 Racking on a Roll
Market Forum — Supply
Manufacturing 34 Market Forum
11 Look Ma, No Hands
Endorsing Bodies
Cold Storage Afritag (div of Smart Card Society)
13 World-class Facility CGCSA (Consumer Goods Council of
SA)
Sapics CILTSA (Chartered Institute of
15 Benefits are Two-fold
Logistics & Transport: SA)
Market Forum — Unit SAEPA (SA Express Parcel
16 Market Forum Association)
SAPICS (The Association for
Trucking Operations Management
21 Hooking the Truckers of Southern Africa)
23 Class-leading Heavy Truck Range also mailed to:
Launced CSCMP (Council of Supply Chain
WMS & Inventory Control Management Professionals)
25 The Evolution of WMS
29 The Real Brain

Copyright
The monthly circulation is 4 025
All rights reserved. No editorial matter published in
Supply Chain Today may be reproduced in any form or
language without written permission of the publishers. Proprietor and Publisher: Advertising Sales:
While every effort is made to ensure accurate reproduc-
PROMECH PUBLISHING Lelanie Lane
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Tel: (011) 781-1401
or agents shall not be responsible or in any way liable for DTP: Zinobia Docrat and
Fax: (011) 781-1403
any errors, omissions or inaccuracies in the publication, Sanette Lehanie
E-mail: sales@supchain.co.za
whether arising from negligence or otherwise or for any supplychain@promech.co.za Printed by:
consequences arising therefrom. The inclusion or exclu-
Website: www.promech.co.za Typo Colour Printing
sion of any product does not mean that the publisher or Tel: (011) 402-3468
editorial board advocates or rejects its use either generally Managing Editor:
Susan Custers
or in any particular field or fields.

Supply Chain Today May 2010 

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 Supply Chain Today May 2010

A Force to be
Reckoned
With
The marriage of two strong families invariably forges a formi-
dable alliance and this certainly appears to be the case with
the recent partnership between S&N Labels and Bartrans.
Dolphin 6500
W
hen Supply Chain Today meets Di-
rectors, Luke Dunstan and Simon
Grisdale, to chat about what the
amalgamation will bring to the
industry, Luke is quick to inform us of a couple
of new products in the pipeline.
Dolphins at work
Two of these come in the form of the Dolphin
6500 and Dolphin 9700 barcode scanners from
Honeywell. “We’re excited about them because
they’re as rugged, if not more so, than similar
models on the market, but they’re substantially
more cost effective,” says Luke.
With the 6500 aimed at the entry-level market
such as light warehousing, and the 9700 offering
more sophisticated functionality, the scanners
encompass most aspects of the warehousing
and supply chain sector. The Dolphin 6500 is
COVER STORY
Luke Dunstan and Simon Grisdale
suitable for a wide variety of applications while
still offering rapid return on investment. Features
include a tough, water- and impact- resistant
casing, ease of use and real-time wireless com-
munication.
The Dolphin 9700 offers similar rugged reliability,
with additional functions such as business com-
puting, voice calls, image and video recording,
GPS tracking and vehicle navigation. Not only is
it capable of scanning tasks, but it also connects
companies to clients and workers, simplifying
workflow and reducing expenses.
Specialised products
Luke tells us that specialist markets are also
catered for. “The Dolphin range is available in
hygienic medical housing units, which is unique.
They can go from the warehouse to the hospital
without having to change either the scanner or
the software.
“We also have ATEX-approved, intrinsically-safe
equipment which operates without producing
sparks. This makes it suitable for use in the
petroleum and mining industry.
We have various software solution partners, giv-
ing our hardware the flexibility to fit into most
processes for supply chain as well as verticals
such as agriculture, pharmaceuticals and FMCG.
All of these products work hand-in-hand with the
equipment and services offered by S&N Labels,
Supply Chain Today May 2010 
COVER STORY

which has opened up a number of doors for us,”
he explains.
Combined forces
“Essentially, this is what our relationship brings
to the mix,” adds Simon. “By combining our of-
fering, we can provide a turnkey solution for any
supply chain application.”
Between the two companies, products and services
include an extensive range of printers and scan-
ners, along with associated consumables such
as ribbons and labels. “Bartrans is a Business
Solutions Partner of Honeywell, and a Premier
Partner of Zebra Technologies,” Simon continues.
“We’re also distributors of Toshiba Tec and Seagull
Scientific.”
Another advantage of the partnership
is the expansion of both companies’
national footprint. “We can provide
nationwide support and expert back-
up of the SLAs we sell, along with
collection and delivery of terminals,”
adjoins Luke.
Though society may have reservations
about marriages of convenience, in
this instance it’s a relationship that
clearly has long-term benefits. This
team looks set to become a force to
be reckoned with.
Luke Dunstan, Bartrans, Tel: (011) 552-8245,
Fax: (011) 397-8526, Email. luke@bartrans.
co.za, Website: www.snlabels.co.za, www.
bartrans.co.za

Dolphin 9700

 Supply Chain Today May 2010


Trial
Retirement
When “Supply Chain Today” recently meets Tony Mongiat, of Symo Cor-
poration, to find out how he’s enjoying his first weeks of retirement, his
reaction is jovial. “The phone hasn’t stopped ringing yet,” he laughs.
“Nothing has slowed down. I’ll tell you how retirement feels when my re-
tirement actually begins.”
I
t’s hard to imagine that
Tony will ever slow down,
to be frank. He’s been in
racking and shelving for
more years than many of his
colleagues have been alive,
and he knows the business
better than almost anyone.
Not one to settle for simply
having a ‘job’, Tony has driven
himself as relentlessly as he’s
driven his staff.
Tough guy
“I’ve been known as a tough
person,” he admits. “But I like
to believe that I’ve been fair.
The client has always been
my focus and my method of
delivery was to check every
detail to give absolute accuracy
which is crucial in this busi-
ness. This often put pressure
on the people around me, but
I was lucky enough to have
a team that shared my pas-
sion. If we made a promise,
we kept it.”
In spite of his ‘tough guy’
status, Tony is surprisingly
affectionate when he talks
about his staff. “Although
the client always came first,
the only way to do this was
through the development of
the people I worked with.
With the right knowledge and
the ability, it was easier for
them to feel driven to be part
of the best racking and shelv-
ing company in the country,”
he smiles.
Understanding of hard-
ship
Tony’s unflagging work ethic
Tony Mongiat grew out of an intimate
RACKING & SHELVING
understanding of hardship. Having grown up
during tough times in Northern Italy, he knows
first-hand that success is about determination
and hard work.
“Back then, we had nothing,” he says. “I put
myself through technical college so I’d have
the knowledge to progress further and scraped
up enough money for a bicycle so I could get
around. Even then I understood that knowledge
is power.”
Into racking
Upon reaching South African soil, he first worked
as a toolmaker and eventually progressed to
project engineer. He joined Symo (then CF In-
dustries) as a project engineer, assisting in the
manufacturing and refrigeration section. During
this time, he drew the attention of management,
who recognised his potential. When the company
later established different business units and
the racking division came into being, he was
assigned to run it.
He knows first-hand that success is about
determination and hard work
“I’m passionate about quality,” he continues.
“Actually, I’m passionate about life too. I believe
you should be totally committed to everything
you do.” This commitment paid off for Tony’s
industry of choice. After his appointment at CF
Industries, he was largely instrumental for setting
the standards for racking in South Africa. “When
I started, there were no codes or regulations,
just vague mention of these, so I went abroad
and brought back the necessary standards that
I could apply here.
Graded-material
“At that point we were the only suppliers using
graded material from Mittal. Design was also a
crucial factor. A well-designed rack should last
a minimum of 20 years, maintenance-free apart
from the occasional coat of paint and repairs if
damaged by materials handling equipment. All
my products complied with the standards that
were set and we compelled the industry to do
Supply Chain Today May 2010 
RACKING & SHELVING

the same because they had to offer a

comparable product.
I also had an excellent on-time delivery
rate, which is probably a little harder to
match, because I managed the whole
process from customer order through
to delivery meticulously. This principle
allowed me to compete successfully in
Africa, the United Kingdom, Denmark,
Australia and the Arab Emirates.
You just have to get in the trenches with them
Having said this, he adds: “I believe
in people. Everyone has a talent. As a
manager, you have to find a way to bring
this out. Different systems suit different
people. To be a successful leader you
have to be creative, work hard and lead
by example. People don’t mind working
hard. Once they see your commitment,
they’ll commit too. You just have to get
in the trenches with them.
No compromise
“My main aim was always ‘Quality, Quantity
and Low-Cost’. I achieved this by micro-
managing operations. Some don’t agree
with this principle, but it worked for me.
I had a team of a thousand and I knew what “Everything has changed,” he chuckles. “South
everyone was doing at any given time. Africa has changed; the industry has changed;
labour has changed! We’re finally understanding
the need to be more proactive towards the cli-
ent. Be honest with them. If there’s a problem,
let them know.”
When asked if he has any amusing anecdotes to
share, Tony becomes stern. “I took my job seri-
ously. Although, I’ll admit that not every project
runs smoothly. I remember when working on the
Shoprite Centurion contract. We were given a
week to deliver and then had trouble procuring
the material. I sent up more than one prayer. The
next day the roof fell in, giving us our extension!
We were still the only contractor to deliver on
time however. But in recent years most projects
ran like a well-oiled machine. We had all the
systems in place and everyone knew their job.
Symo Storage had a soul and this translated into
customer satisfaction.”
Back on the scene
“So what now?” we ask, waiting to hear plans of
cruises to the Bahamas. “I think I’ll spend four
months doing nothing,” Tony says with a grin.
“Then I’ll decide if I’ll retire. Consider this a ‘trial
“It was extremely important that the customer retirement’.” We’re sure it won’t be long before
received his material at the promised delivery he’s back on the scene in some way.
date, no compromise. Symo, Tel: (011) 437-7700, Fax: (011) 437-7799 E-mail:
Making changes storage@symocorp.com
With so many years in the business it’s inevitable
that Tony would have been on top of changes.

 Supply Chain Today May 2010


Racking on a Roll
The racking business is by no means a static
industry. When Lindsay Weyer, sales and
marketing manager at Cape Gate, chats to
“Supply Chain Today” he tells us that the
developments in the retail sector have seen
a growing move toward containerisation.
T
he past couple of years have seen all the
major retailers either extending or build-
ing new DCs, and the trend continues,”
he says. “Latest developments include
Shoprite extending their Pretoria facility from
about 35 000m² to 150 000m², while Mass
Stores is putting up 75 000m² in Gosforth.
In spite of these obvious benefits, the trend has met
with some levels of resistance
Get rolling
“From a materials handling perspective, we’re
noticing that retailers are frequently opting for
equipment such as rolltainers. These can be
filled up just like a regular container, but have
the advantage of being more mobile as well as
being collapsible. They fold down when empty
and can nest, much like pallets, making it easy to
transport them efficiently on return journeys.
“Just as the shipping industry has regulated con-
tainers which have become a global standard, so
Game pallet
RACKING & SHELVING
retailers are applying the same basic principles to
their containers to maximise the space available
in transport vehicles.
“We’ve focused a lot of attention in this area,
custom-designing rolltainers for various clients.
For example, we prototyped a unit for Dischem’s
new DC in Jo’burg that is currently in its trial
phase. It needed to be more robust with a higher
degree of security, as well as being able to take
extra weight on top.”
Mix ‘n Match
In many instances, however, the company will
supply a variety of storage products which all
work together to provide a complete solution.
“Retailers are opting to mix and match different
mobile materials handling options to suit their
specific needs.
“At the Mass Stores DC in Gosforth, we’re sup-
plying three types of container. In addition to
fully-enclosed security rolltainers for high value
goods, they also require two-sided rolltainers,
which will be packed with bowed goods and then
shrinkwrapped. We’re also supplying furniture
trolleys for bulky ‘knock-down’ furniture.”
Easy picking
According to Lindsay, apart from mobility, the
rolltainers also allow ease of picking, with con-
tainers being pre-packed according to upcoming
orders. “We’ve found that companies like Makro
have almost been acting as distribution centres
for other retailers, such as the forecourts at
garages.
“When Engen’s One-Stops costed the process
of setting up their own DC, they decided that
it would be more cost-effective to source from
Makro, who stocks products specifically for them.
These items are picked as needed, containerised
and shipped where required.
Access is an issue
“Other companies like MacDonalds have pre-
packed condiments supplied by independent
contractors, stored in containers instead of boxes
on shelves since it’s a more controlled way of
picking an order.”
In spite of these obvious benefits, the trend has
met with some levels of resistance. “In Europe,
there are more rolltainers than trolleys because they
offer secure, cost-effective distribution,” Lindsay
advises. “South Africa hasn’t picked up the trend
as quickly because access is an issue.
“It’s all very well having a huge DC with masses
of product going out, but if you can’t get the
containers into the outlets you have a problem.
Supply Chain Today May 2010 
RACKING & SHELVING
Years ago, we were advised that we’d need to
get every store in the country ‘wheel-friendly’,
which would take huge expense. Most of the big
retailers are nearly there, but it’s certainly slowed
things down.”
DC to aisle
As far as distribution goes,
one of the main challenges is
to get goods from the DC into
the aisle; it’s always been a
lengthy process. “Some retail-
ers have the ultimate goal of
having goods delivered from
warehouse to shop shelf with-
out having to be stored in the
warehouse in back-of-store,”
he continues.
“Clicks tried it, but had to
overcome the problem of hav-
ing such a vast range that it
was impossible to predict what
products would be needed to
be packed. Ideally, the store
would need containers to be
packed in precisely the order in
which they would be unpacked
Cellphone lockable cage
onto shelves.
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EXTREME CONDITIONS.
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10 Supply Chain Today May 2010
“For this to be possible, every store would need
to have exactly the same configuration so that
containers could be prepared in advance.” Some-
thing of a tall order perhaps, however Lindsay
says that other retailers are even looking at stor-
ing products according to LSM, with different
branches aimed at specific markets.
On the rack
He adds that pallet racks are also gathering fa-
vour in local warehouses. “These are containers
used to store tricky products such as brooms or
mops, on racks without being damaged, while
still allowing racks to be stacked on top of each
other.
If you can’t get the containers into the
outlets you have a problem
“Cape Gate has always been involved in the
trolley section of the retail sector. We’ve taken
this further, going from the front of the retailer
with our trolleys, in the back of store with our
rolltainers and now we’re moving even deeper
with our racking options,” he concludes.
Lindsay Weyer, Cape Gate, Tel. 021 937 7123, Fax. 021
937 7177, www.cape-gate.co.za
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Look Ma, No Hands
In an automated manufacturing environment, the AGV (auto-
matic guided vehicle) usually completes the loop in order to
make a particular production line fully automated. The AGV
does not become hungry, or tired, or prone to absenteeism.
Picking up loads at the production line
C
ompared with the rapid evolution of
automated handling systems and robots,
AGVs seem to have lagged behind a bit in
some countries, but this does not mean
the development of technology has stagnated
altogether. While conveyors and lift trucks are the
most common handling solutions in warehousing
as well as in manufacturing plants, automatic
guided vehicles are increasingly becoming a viable
alternative in both of these situations.
Ultimate solution because it eliminates human presence
from high security areas
In South Africa there have been a couple of AGV
installations in both the manufacturing and ware-
housing environments. To learn more about these
and the latest technology available, “Supply Chain
Today” meets with Willem Prinsloo of Varic.
“Apart from our original installation at SA Mint’s
plant, we also installed AGVs at an engine as-
sembly plant and some for the handling of large
rolls of paper,” he says. “The installation at the
SA Mint, in terms of security, is the ultimate
solution because it eliminates human presence
from high security areas.
MANUFACTURING
Laser technology
“Original technology ‘steered’ AGVs via circuitry
built into the floors, but today we use laser
technology. By simply working out routes on a
CAD-type programme and feeding this into the
AGV’s system, the vehicle’s routes are now easily
managed,” explains Willem. “Depending on the
type of environment and how many AGVs are
operating in it, we fit certain levels of sensors
on each one in order to prevent collisions with
people or other moving objects that may not be
keyed into the system.
“If the AGV senses something in the distance,
it will slow down but not necessarily stop. As
it gets nearer the ‘unknown’ object, the second
level of sensing will slow the AGV down even
more and a third level of sensing will bring it to
a stop if the object does not move out the way
Willem Prinsloo of Varic
at all,” Willem elaborates.
The vehicle communicates with the main con-
trolling PLC system on a continuous basis while
continuously reporting back to the system on, for
example, its battery condition.
Artificial intelligence
“In plain language, an AGV will, for instance, get
to a station and tell the system: I am AGV 3, I
have completed my delivery to dispatch, my bat-
tery is still fine, standing by. The AGV will then
wait there until the system tasks it for the next
job,” explains Willem.
“At the point when it reports that its battery is low,
the system will instruct the AGV to go to the battery
bay for either a recharge or a freshly-charged battery
replacement. Today we even have technology which
allows the battery to be recharged without attaching
Supply Chain Today May 2010 11
MANUFACTURING

SGV Tugger with Optional man

Aboard platform

SGV2000 Side loaders have hand-

held PCs which are used to monitor
and adjust the SGV system by floor
personnel
while the AGV is parked on that spot.”
Four basic types
a n y When it comes to traditional AGVs there are four
cables. The AGV will basic types of vehicles most commonly used. “Tow
simply park on a spot where high induc- vehicles, also known as tuggers, are simple and
tion coils are embedded in the floor. Through inexpensive and they pull rail trailers or carts.
this induction process, the battery is charged By adding multiple trailers you can move more
loads at one time than with a single lift truck.
Simply park on a spot where high induction coils are Tow vehicles are used where you have a set path
embedded in the floor with distinct pick up and deposit locations. They
follow a route and stop at stations for loading or
unloading,” explains Willem.

TO LET The second type are unit load vehicles that carry
pallets, slip-sheet, cartons or sub-assemblies on
their decks. These decks may be raised or lowered
with lifts, or have a conveyor to interface with
20 000 square meters @R18 per meter other equipment. Alternatively, the vehicle may
Crane rail siding offices, 5000 KVA, immediate occupation have multiple compartments to carry two, three
or four pallets at one time.
The third type is a forklift-type vehicle which
operates just like a lift truck, but without a driver.
Finally there are custom vehicles which can be
engineered to handle very large loads, like a
twenty ton steel roll, or unusual loads, like the
whole body of a school bus.
Conclusion
“South African industry has still not fully embraced
AGV technology, yet there are many instances
where they can benefit from it” says Willem in
conclusion. “In any manufacturing situation where
the driver of a vehicle is endangered, such as
toxic chemical processes or high temperatures,
an AGV system can be engineered to fulfil the
task much more effectively. The technology has
matured and it’s available as a cost effective
solution to complete the automated production
Location: Brits line of today.”
© Creamer Media 120210CG

Varic, Willem Prinsloo, Tel: (011) 918-4590, Email: wil-

Contact Paul Steyn: lem@varic.co.za
7HO‡&HOO

12 Supply Chain Today May 2010


World-class Facility
One of the country’s most technologically advanced cold stor-
age facilities, built by Transnet at a cost of R45 million, has
been officially launched today at the Cape Town Multipurpose
Terminal (MPT), with a firm commitment from port operator
Transnet Port Terminals to add value to fresh produce export-
ers throughout the Western Cape and beyond.
C
onstruction of the new, multimillion
rand facility commenced in November
2007 and was completed in stages.
Final commissioning and testing took
place last year.
Solution to the outdated cold stores in the fruit export
logistics chain
Outdated cold stores
Addressing customers, official stakeholders and
the media at the facility’s unveiling, Nosipho
Damasane, Transnet Port Terminals Chief Operating
Officer, said the multi-dimensional repository was
Transnet’s solution to the outdated cold stores
in the fruit export logistics chain, many of which
are being withdrawn from service.
COLD STORAGE
“A world class fruit exporting country such as
South Africa requires the services of a world
class cold storage resource. The Cape Town MPT
Cold Store makes this a reality with its advanced
technology and equipment,” she said.
Ideal position
She added that the 24-hour facility is situated in
the most convenient place in the logistics chain
– directly on the quayside – and is therefore in an
ideal position to reduce the cost of doing business
by shortening the export route and eliminating
additional handling.
The cold store is located at the Port of Cape
Town’s E–Berth where the draft of approximately
10.4 metres caters for most conventional vessels
in operation today.
The operation is under the management of Opera-
tions Manager, Beyers Pape, who has intimate
knowledge of cold store management and opera-
tions, having worked in the fruit export industry
for 20 years.
While the high-tech facility was initially intro-
duced as a fruit only storage facility and initially
handled citrus, grapes and small consignments of
Supply Chain Today May 2010 13
COLD STORAGE
avocadoes, it has since broadened its services to
offer storage facilities for all perishable goods.
It has since broadened its services to offer storage
facilities for all perishable goods
24-hour monitoring
Hannes Human, Business Unit Executive at Cape
Town MPT, says the cold store features 24-hour
monitoring of the entire cold system and tracking
14 Supply Chain Today May 2010
of all cargo under the protection of the Paltrack
tracking system throughout the export journey.
Continuous quality inspections are carried out by
the Perishable Product Export Control Board in
order to maintain high quality service standards
and compliance with world standards.
The new cold store offers product-specific pre-
cooling of conventional palletised cargo to required
protocols, containerisation of cargo for the export
market and shipping of cargo directly from the
cold store into vessels.
Specialised pre-cooling services
It also provides specialised pre-cooling services
for fruit sterilisation, which is a requirement by
certain world markets such as the Far East and
USA.
The cold store’s port-to-road linkages include
five loading bays to ensure quick loading and
offloading of cargo, with a turnaround cycle of
ten containers per hour. The facility’s courtyard,
which is situated adjacent to the cold store, is
canopied to ensure safe loading and unloading
of cargo during inclement weather.
Port-to-rail connectivity includes a rail siding
adjacent to the cold store, where palletised fruit
is then transferred from or onto internal road
transport vehicles for fast delivery in or out of
the cold store.
The cold store has three floors, each with cold
storage capabilities. The ground floor, which
can cater for the handling of 2 229 pallets is
for storage only, the 1st floor is for pre-cool-
ing and has a 740 pallet capacity, while the
second floor, which can handle 486 pallets, is
for pre-cooling and storage.
Lunga Ngcobo, Transnet Port Terminals, Email: Lunga.
Ngcobo@transnet.net, Hannes Human, Email: Hannes.
Human@transnet.net
 SAPICS

Benefits are Two-fold

Colgate Palmolive’s
team with lecturer
Greta McNiven (third
from left)

BizzPro was recently selected by Colgate Palmolive to run a pilot skills development programme for its inven-
tory controllers and production planners. And, reflecting the value and relevance of the Sapics supply chain
education programmes, the association’s
PPIM (Principles of Production and Inven-
tory Management) was chosen as the pre-
ferred course to provide this team with the
requisite skills and knowledge.

E
ight eager delegates were identified by
Colgate Palmolive and began the pro-
gramme under the guidance of lecturer,
Greta McNiven. The Sapics course ma-
terial is designed to give the learner a thorough
introduction to operations management, cover-
ing topics such as demand planning, inventory
management, product lifecycles, manufacturing
control and production planning, she explains,
adding that the Colgate team was a pleasure to
teach.
“They showed enormous commitment to their
studies and we had very thought-provoking
discussions in the class,” says Greta.
She really commends progressive companies like
Colgate Palmolive who invest in the education
of their employees. “The benefits are certainly
two-fold,” she stresses. “The employee reaps the
rewards of skills upliftment, while the employer
gains a more productive, motivated workforce.”
Please note: The 32nd Annual Sapics Conference
and Exhibition will be held at Sun City from 25
to 27 July 2010 (inclusive).
Jenny Froome, Sapics, Tel: (011) 805-5677, Email: jenny@
Sapics.org.za, www.Sapics.org.za

Supply Chain Today May 2010 15

Market Forum
Rapid rise
The rugged and compact
iKôn handheld computer,
delivers increased pro-
ductivity across diverse
industr y applications,
according to newly ap-
pointed Psion Teklogix
Countr y Manager, Mi-
chelle Hollis.
Says Michelle, “The iKôn
has been welcomed by
the South African lo-
gistics industry and we
have secured a loyal,
still growing, high profile
customer portfolio for this
ingenious device”.
Industry world wide had to
brave a negative economic
climate and in order to
survive had to investigate
cost containing measures.
Pictured onboard the new Dezzi 2300 front end loader: (Left to right): Sipho Dube, Fleet Manager of TPT’s Agriport; “While spending had to
Harry Dickinson, Project Manager for TPT; Ron Stroebel of Desmond Equipment SA; Robert Teale of TPT, Ernest
Bell of TPT and Desmond Gutzeit of Desmond Equipment SA.
be curtailed, industry also
had to consider that
Via Durban outdated or wrong
It was a case of “local is lekker” when Transnet Port technology could
Terminals chose local heavy machinery manufac- cause inaccurate
turer, Desmond Equipment SA, to supply a R1.1 picking, late, wrong
million front end loader for the Agriport terminal and/or non-deliver-
in Durban. ies, spoilt products,
The Dezzi 2300 articulated front end loader with incomplete paper
5m³ bucket was delivered to the terminal recently, trails, overtime, in-
and will be used at Agriport’s new 80 000 tonne voicing and payment
bulk warehouse. The new warehouse will be used delays,” comments
for the storage of soya meal, most of which enters Michelle and adds
the country via Durban. that these unneces-
sary errors escalate
Ernest Bell, Commercial Specialist in TPT’s Pro- production costs at
curement Department, says the supplier’s delivery a time when cost
within tight deadlines bore testament to the capacity containment should
of local manufacturers. be the prime consid-
Based in Port Shepstone, Desmond Equipment SA eration.
has been in operation for over 30 years, manu- Whether accurately
facturing and supplying a variety of earthmoving scanning barcodes
equipment to the Southern African construction, with the integrated
mining, quarrying, forestry, sugar, industrial and imager or scanner, or
harbour bulk handling markets. using the camera to
Robert Teale, Project Manager at TPT, says the take a colour picture,
establishment of the bulk warehouse forms part of the Psion Teklogix
several investments aimed at realising capacity and iKôn is the right
generating new business at the Agriport terminal. tool for the process
These include the establishment of bio-directional offering numerous
conveyor routes enabling TPT to load and offload features and ben-
at the same berth, extension of the rail structure, efits.
and investment in a new pneumatic ship unloader The iKôn effortlessly
to offload wheat. simplifies anytime,
Lunga Ngcobo, GM: Corporate Communications, Transnet anywhere, wireless
Port Terminals, Email : Lunga.ngcobo@transnet.net voice and data com-

16 Supply Chain Today May 2010

Market Forum
munications, GPS positioning, with simultaneous WiFi,
Cellular (GSM/GPRS/UMTS) and Bluetooth connectivity
options. The device enables real-time information man-
agement, improved efficiencies, increased asset visibility
across operations.
When compared with a number of other devices with ¼
VGA display, the iKôn, with a 3.7 inch VGA display, is
the ultimate hand held computing device for complex ap-
plications with sophisticated graphics. Maximum, all-day
productivity for mobile workers is guaranteed as iKôn™
features the highest battery capacity for hand held com-
puting devices in the market.
Psion Teklogixs mobile devices perform all functions
necessary for 3PL, proof of delivery, electronic signature,
photographs, fingerprint scanning, invoice tracking, com-
patibility with GPS and GPRS, Bluetooth capability.
Michelle Hollis, Psion Teklogix, Tel: (011) 805-7440, Fax: (011)
805-7444, Email: michelle.hollis@psionteklogix.co.za
Clean air
Bulk Connections, part of the Bidvest group, is renting 6
Nissan 2.5 ton diesel forklift trucks from McCarthy Heavy
Equipment’s Materials Handling division.
Bulk Connections operates a wide range of specialist mate-
rial handling facilities systems, and has been in business
since the early 1900’s. Over the years the company’s
fleet has been maintained, upgraded and state-of-the-
art equipment added. “Dependability and reliability are
proving to be the terminal’s critical success factors, with
fleet availability exceeding 98% and this is reflected in
the choice of equipment used to facilitate this,” Hannes
Engelbrecht, operations manager at Bulk Connections,
based at the Port of Durban, says.
The Nissan 2.5 ton diesel forklifts lined up for handover to Bulk Connections
“We were struggling with the forklift trucks previously be-
ing used and needed to find a supplier who could respond
to our specific needs. McCarthy stepped up to the plate
and we are more than satisfied with the performance of
the Nissan forklifts and the service we have received from
the KZN branch.”
Hannes explains that the Nissan forklifts are being used to
lift mini 1 ton bags containing concentrates, at a density
of approximately 2.5, from road and rail trucks and move
them to the storage shed where they are stockpiled.
The McCarthy Heavy Equipment’s Materials Handling
division in KZN, fitted a twin precleaner to the forklifts at
McCarthy Heavy Equipment’s Boksburg facilities to address
the dust generated during offloading. It effectively channels
air through the precleaner at the top of the overhead guard
and through two air filters whose inlet is situated above
the level of the dust created, notably when the bags are
cut and emptied onto the bulk stockpiles. This cleaner
air means that the machines run for longer between filter
changes reducing downtime, increasing productivity and
extending the life of the machines.
Graham Callanan, Mccarthy Heavy Equipment Materials Handling
Division, Tel: (011) 306-7300, Website: www.mche.co.za
Maintaining the chain
Significant energy savings can be realised by refrigerated
delivery truck operators through the installation of Apex
General Purpose Strip Curtains across truck doorways.
This is achieved by maintaining a thermal seal across the
doorway even when it is opened with knock on effects
being a load reduction on the truck’s compressors and
the elimination of coil freeze-up.
“Refrigerated transportation plays a vital role in keeping
Supply Chain Today May 2010 17
Market Forum
scanner, delivering the
same high performance,
reliability and value.
The Magellan 1100i
reader is designed in
a compact form factor
with the latest solid state
electronics and innovative
imaging technology, that
allows it to scan the most
challenging bar codes
across all retail checkout
environments.
A major perk of the ad-
vanced technology is the
aggressive data collection
of 1D and 2D barcodes
with the ability to be
used as either a presen-
tation or sweep mode
reader. The Magellan
1100i has the ability to
Significant energy savings can be realised by refrigerated delivery truck operators through the installation of Apex read almost any barcode
General Purpose Strip Curtains across truck doorways and its small footprint,
the cold chain intact, but it is in transit makes it a natural fit
that spoilage frequently occurs. The for scanning applications in convenience, specialty and
most common problem is the rise in pharmaceutical stores.
temperature every time goods are Emerging trends in retail mobile commerce require
off-loaded, as warm air enters and the use of e-coupons, admission tickets and boarding
there is a dramatic temperature passes presented on the displays
increase,” he says. of cell phones or PDAs. The
This temperature rise can be Magellan 1100i imager
controlled by the truck’s refrig- is compatible with the
eration unit, but not without Datalogic Illumix in-
some degree of damage to the telligent illumination
produce. Trucking companies technology, with the
who have installed Apex Strip ability to read bar
Curtains have reported that, codes from back-
apart from savings in energy, they lit displays found
have experienced a lower percent- in mobile phones,
age of spoilage, a longer shelf life PDAs and PDTs.
and better quality produce on This feature not only
delivery. supports fast paced
Wim Dessing, Apex Strip Curtains, consumer lifestyles,
Tel: (011) 452-8723, Website: www. but also ‘green’
apexstrip.co.za initiatives to
go paper-
less.
For the first time,
the Datalogic’s pat-
ented ‘Green Spot’ tech-
nology is available on the Me-
gellan 1100i. In noisy workspaces, it
Scanner for retailers is often difficult to hear the ‘beep’ of a scan - the Green
iData Distribution, has launched the latest enhancement Spot technology provides additional visual good read
to the Magellan family of high performance scanners, the feedback to the user.
Magellan 1100i barcode reader. Heinrich von Solms, iData Distribution Managing Director, Tel:
The Magellan 1100i imager represents the second genera- 011) 397-3779, Email: info@idatadistribution.co.za, Website: www.
tion offering of the world’s first imaging-based presentation idatadistribution.co.za

18 Supply Chain Today May 2010

Market Forum
Unique labels
Hue-Tone Manufacturing
(Pty) Ltd has developed a
unique process for printing
onto anodised aluminium.
The company produces a
wide variety of high-defini-
tion printed products on
aluminium sheets, from
single colour to the full
colour spectrum.
Anodised and sealed alu-
minium is a highly durable
material. In-house anodis-
ing enables the produc-
tion of high quality black
or multi-colour print on
aluminium, including full
colour litho reproduction.
Thereafter the print is
sealed within the surface
of the aluminium, result-
ing in a product which is
resistant to most chemi-
cals, as well as to corro-
Criterion Equipment has implemented a programme to further improving its service by enhancing its distribution sion and scratching.
network and support to its leading brand, TCM forklifts, imported from Japan
The print process is ideally
Enhancing distribution suited to unique labels,
Criterion Equipment, which was acquired recently by such as barcodes or serially numbered labels, and offers
Invicta Holdings, has implemented a programme to fur- higher quality print than screen printing.
ther improving its service by enhancing its distribution
The company specialises in the manufacture of aluminium
network and support to its leading brand, TCM forklifts,
barcode labels which are used for a variety of purposes:
imported from Japan.
asset identification, audit and recording of maintenance;
“Criterion Equipment, which has traded in South Africa container and pallet tracking; identifying warehouse bin
for nearly 40 years as the sole distributor of TCM forklifts, locations; labelling of manufactured products.
has sold over 10 000 TCM material handling products
Either acetone-activated or self adhesive may be pre-applied
to the local market,” says Shaun Collins, national sales
to the rear of the labels.The company also manufactures
manager, Criterion Equipment.
anodised aluminium: labels; plaques; panels; signs.
“One of Criterion Equipment’s greatest strengths is its
Hue-Tone supplies customers with aluminium products
ability to provide a wide range of quality branded materi-
throughout South Africa, Africa, and internationally.
als handling products, which includes not only standard
units, but ‘special’ models, where particular market needs Hue-Tone Manufacturing (PTY) LTD: Tel: (011)493-9038, Fax:
arise. (011)493-9038, Email: huetone@mweb.co.za

“The company’s service encompasses the sale of new and

used forklift trucks, long and short term rentals, service
and maintenance contracts, as well as the supply of
genuine TCM parts.
Included in the range are internal combustion forklifts,
battery-powered counterbalance forklifts (3 wheel and 4
wheel configurations) as well as battery-powered reach
trucks for warehousing applications. Strong reputation
Lindy Morton, Festivitas, telephone and fax (031) 502 2374 or 083 268 Nissan Diesel South Africa has launched a new range
6666. Shaun Collins, National Sales Manager, Criterion Equipment of Medium Commercial Vehicles that adheres to Euro II
(Pty) Ltd, Tel: 011-966-9700, Fax: 086 617 1219, Email: shaun@ emission regulations.
criterion.co.za, Web: www.criterion.co.za
“Over the years, Nissan Diesel’s versatile medium com-
mercial vehicle offering has built a strong reputation as
Log onto www.promech.co.za to read some of the most reliable and durable trucks on the road
back issues of “Supply Chain Today” and has found favour as a durable no-nonsense product

Supply Chain Today May 2010 19

Market Forum
that offers extensive application flexibility,” said Johan load percentage, contributing to the expected durability
Richards, chief executive officer of Nissan Diesel South of the range.
Africa. Power is delivered through a 5-speed ND MES50C
“As one of the world’s leading truck manufacturers, Nissan manual synchromesh transmission and is combined with
Diesel is investing a great deal in developing vehicles that matched final drive ratios to offer excellent economy and
offer better efficiency, fuel economy and environmental performance. Power take-off (PTO) can be installed on
responsibility. All new trucks launched by Nissan Diesel the gearbox as an optional extra.
South Africa since July 2007, already complies with Euro Ray Schulz, Manager: Marketing & Retail Services, Tel: (012) 564-
II standards,” adds Johan. 9550, E-mail: raymonds@nissandiesel.co.za
There are three variants in this series that are known
as the UD 35A, UD 40A and the UD 40L-A, a long-
wheelbase derivative, and
many improvements have
been made to improve
driver comfort, overall
performance and fuel
consumption.
The range is powered by
the ND TD42T in-line
6-cylinder turbocharged
engine, which produces
87kW at 3 250 rpm
and 275 Nm of torque
at 2 000rpm. The 4
169 cc capacity engine
ensures that the unit is
able to operate at a low

Cross-border deliveries
As the World Trade Organization (WTO) forecasts a global
trade growth of 9.5 % in 2010 and company-internal year-
to-date volume statistics suggest a positive development
on many trade lanes, DHL Express announces a further
expansion of its import services on a worldwide basis.
In addition to offering the most extensive next-business-
day import service to more than 200 countries around
the world, the company is now backing its pre-noon and
pre-nine import deliveries by on-time delivery guarantees
in 135 and 90 countries respectively.
The newly-enhanced import services portfolio reflects
DHL’s strategy to concentrate on the cross-border express
business. DHL has considerably strengthened its interna-
tional express delivery network in the past year, building
further its industry leading expertise and capabilities.
The successful optimisation of its global network and
enhancement of its worldwide import billing capabilities
over the past months has paved the way for expanded
DHL’s Import Express services.
Says Roland Thomas, DHL Express’ Global Vice President
Products & Services: “With a clear focus on international
express, DHL has created a strong and very competitive
range of services that is being offered to our customers
through trained international specialists. DHL’s import
services are ideal for regular import needs and help cus-
tomers manage their import costs, cash flows and supply
chain. Customers also benefit from a one company-one
invoice-one currency approach.”
Website: www.dhl.com

20 Supply Chain Today May 2010


Hooking the Truckers
One of our people here at “Supply Chain Today” recently
bought a property in a small town in the Eastern Free State.
The tenant renting the property ran a driving school and told
our man the following story.
M
ostly, I get the local farmers bringing
in a worker to have him trained as
a truck driver. These trainee drivers
live in my driving school barracks
for three weeks during which time I train them.
When they have a licence, the new driver then
TRUCKING
has to drive produce to market and do various
other driving-type work.
“However, in the past two or three years, I have
had young black women arriving at the school
wanting to be trained as truck drivers. I have to
admit I was surprised. However, it is the new
South Africa, and I could see no reason why
they should not drive trucks if they wanted to.
I converted the barracks so females could also
stay there.
Best wishes
A couple of women drivers graduated
from the XYZ Driving School and
went on their way with the trainer’s
best wishes.
I converted the barracks so
females could also stay there
However, the trainer, who wishes to
remain anonymous, said his curios-
ity nagged him about why these
girls wanted to drive, and who was
hiring them.
A couple of months later there was a
fatal truck accident on the Durban-
Johannesburg run. It was this crash
that provided the trainer with the
answer he sought. For in the cab of the
wreck, not one body was extricated,
but three. Of the three, two were
Supply Chain Today May 2010 21
TRUCKING

women and one was the driver. The driver and

one of the women were in a state of undress.
It transpired that the hookers who plied their trade
on the Durban – Johannesburg run understand
that their truck driver customers cannot stop their
rigs for 15 minutes of romping recreation. So the
way around this for the ladies was to team up
with another young woman who knew how to
drive a truck. While one was behind the wheel,
the other could be pleasuring the driver in the
truck’s bunk. The arrangement turned out to be
satisfactory for more than one truck driver, and
lucrative for these two-girl teams.
The driver and one of the women were
in a state of undress
So the tenant concluded: “There is something
new every day. And just because they are so-
called ladies of the night, does not mean they
are lacking in enterprise.”

22 Supply Chain Today May 2010


Class-leading Heavy
Truck Range Launched
“Supply Chain Today” was recently invited to the launch of
the new Isuzu F-Series. Already enjoying a strong reputation
in South Africa with its heavy-truck brand, the new Isuzu F-
Series looks set to take this reputation even further in areas of
safety, economy and environmental care.
G
ross vehicle mass (GVM) is the recog-
nised basis for vehicle selection and
capital investment for any transport
task. GVM represents a truck’s total
Interesting Isuzu truck facts
Isuzu ranks among the top four medium to extra-heavy truck
manufacturers in South Africa with an annual retail market
share greater than 10%. The total registered South African
Isuzu truck population up to 25 years old is over 36 500 mak-
ing it one of the most durable and reliable trucks on South
African roads. For an international perspective, Isuzu is also
Australia’s leading truck supplier – a position Isuzu has held
for 20 consecutive years.
At the beginning of 2010 there were over 17 244 Isuzu F-Series
registered and operating on South African roads. Some of these
Isuzu F-Series heavy trucks are as old as 25 years and still in
daily operation. A heavy truck is classed as those falling into
the category of 8 500 to 16 500kg gross vehicle mass (GVM),
or from around 4 500 to 9 000kg payload.
operational mass that includes payload, cargo
body, driver and crew, chassis and cab and any
other extras. This vehicle includes a 13-model
line-up compared with the previous 9-model
range and offers GVM’s stepped from 10000kg
to 11 000kg, 13 500kg, 15 000kg, 16 000kg,
TRUCKING
22 500kg, 24 000kg and 26 000kg making its
freight carrier line-up available to South Africans
a formidable one. Specialist F-Series models in-
clude full-time 4 X 4 and 6 X 2 freight carriers,
a 6 X 4 refuse compactor and truck tractors.
For trailer operations Isuzu F-Series has a gross
combination mass (GCM) that tops 32 000kg in
the model FVR 900.
Modern technology truck model line-up
1 January 2010 saw a change in the transport
industry with only trucks equipped with Euro
2 engine emission technology allowed to be
produced in South Africa. This has not proved
problematic for Isuzu as their entire South African
Isuzu range, medium N-Series, heavy F-Series
and extra-heavy Gigamax now include turbo-
intercooled, electronically-managed engines for
2010 to match Euro 2 requirements. Utilising
common rail fuel-delivery systems, improved
fuel consumption is a hallmark of these new
technology engines.
The advantage in common rail diesel engines
is very high injection pressure – over 1 600
bar – that is consistently maintained from idle
to maximum engine speed. This ensures clean
burning in a diesel engine’s compression ignition
cycle with the benefit of improved fuel economy
and reduced exhaust emissions.
Further to this, the Isuzu common rail diesel
engine design has other advantages in that these
engines are flexible and ready for the introduction
of both Euro 3 and Euro 4 emission standards
with only minor changes required when the time
comes.
Supply Chain Today May 2010 23
TRUCKING
Proven safety technology
The new truck range for 2010 in South Africa is
equipped with ABS (Anti-lock Brake System) for
enhanced safety. ABS also has the added benefit
of steer-ability under emergency braking reducing
the skill required of drivers in potential accident
situations. These trucks are all also equipped
with an engine exhaust brake for extra retardation
without using a footbrake that preserves brake
linings and keeps the brakes fade-free for any
emergency application.
Offering fully-homologated seating for a driver and six
passengers
Standard automatic slack adjusters ensure that
brake settings are correct at any stage in spite of
brake lining wear. In addition to these, drivers will
24 Supply Chain Today May 2010
appreciate the inclusion of an air-suspension seat
on every model in the new F-Series which will
serve to minimise driver fatigue with a consequent
improvements for productivity and safety.
Standard crew cab
The F-Series range also includes one crew-cab
model, the Isuzu FSR 750 is a 13500kg gross
vehicle mass (GVM) truck, offering fully-homolo-
gated seating for a driver and six passengers. This
matches National Road Traffic Act, Regulation
247 requirements for goods and passengers to
be carried separately. An outstanding technical
feature of the FSR 750 crew cab is that it is
powered by an electro-hydraulic tilt mechanism
to offer full maintenance access to the engine
as on all Isuzu truck cabs. All doors in the new
F-Series are also equipped with side-impact
protection beams.
Another technology benefit is unitised construc-
tion for cab parts on both the N and F-Series as
medium and heavy truck models are equipped
with common cab parts – doors, lights and
dashboard, for example which simplifies parts
inventories for large fleets.
Hanlie du Preez, Isuzu Truck SA, Tel: (011) 563-4125, Fax
(011) 806-4693, Email: hanlie.dupreez@isuzutrucksa.
co.za

The Evolution of WMS
As the supply chain becomes increasingly
complex, so warehouse management sys-
tems are evolving to meet the demand. This
is essential, since the number of processes
requiring careful control have outstripped
the ability of any manual management pro-
cess.
W
hen “Supply Chain Today” speaks
to Michael Badwi at Supply Chain
Junction, he tells us that the vari-
ables involved can be staggering.
In a typical DC, there can be up to 80 million
personnel and operational variables affecting the
planning of job assignments for typical workloads,
service level commitments and costs.
WMS & INVENTORY CONTROL
Some of these include number and length of
shifts, employee details, overtime expenses,
job specifications, time constraints, volume and
equipment requirements. “Each of these has its
own variables attached and a WMS should be
capable of controlling these,” explains Michael.
Skill allocation
“For instance, employees – who could be either
full-time or temporary – should be assigned tasks
according to skill level, historical performance
and availability. This allows management to al-
locate staff according to their abilities in order to
optimise efficiency. It is also possible to factor in
additional costs such as overtime expenses.”
The person with the right skills is then
matched to job requirements
In spite of this, numerous DCs still manage op-
erations manually, leaving them open to error in
terms of efficiently managing systems. According
to Michael, labour tasks should ideally be man-
aged by a system such as Manhattan Associates
SCOPE Labour Scheduling Optimisation™. “By
analysing performance records, management can
determine which employees work best in specific
areas.” The person with the right skills is then
matched to job requirements across the entire
enterprise – not just within operational silos.
Supply Chain Today May 2010 25
WMS & INVENTORY CONTROL

Staff sharing
An example is the manner in which supervisors
may assign teams to tasks such as unloading or
picking, without factoring in the need for activity
‘sharing’ should one area become understaffed
while another is overstaffed. Invariably, the su-
pervisor in charge of the overstaffed operation
will send his least effective performers to relieve
the other team, rather than affect productivity in
his own processes. An automated solution would
ensure maximum efficiency and performance in
both areas.
Time-to-market for new products has
dropped by 50 to 70 percent
“Labour costs make up half the cost of running a
DC,” says Michael. “Being off the mark by a few
percent in a facility with an annual payroll in the
millions can amount to significant unnecessary
expense.” Refining the process on an enterprise-
wide level not only reduces expenses, but also
boosts efficiency, service levels, throughput and
employee satisfaction.
Spreading the load
On this topic, Michael raises other areas in which
WMS has a valuable role to play. “As the supply
pipeline becomes more global, companies are
sourcing cheaper goods or materials internation-
ally. This means that order fulfilment encompasses
more regions and countries. It also drastically
changes the way warehouses function.”
Warehouses are no longer seen as simply a place

26 Supply Chain Today May 2010

 WMS & INVENTORY CONTROL

to store goods, or as a cost centre. They now solution due to the product’s reputation in the
offer a source of competitive advantage, giving retail environment. To date, feedback has been
an opportunity to enhance revenue and customer overwhelmingly positive, with shipping volumes
satisfaction. This has led to the growing accep- improving substantially within just five days of
tance of the necessity for sophisticated software go-live.
to manage not only the warehouse, but also the “It’s no longer enough to simply get the job done,”
entire supply chain. concludes Michael. “Now a company’s survival
To date, feedback has been depends on constant improvements to maintain
overwhelmingly positive a competitive edge. The right software can give
that advantage.”
Much smarter Michael Badwi, Supply Chain Junction, Tel. (021) 426
New technology options include voice recogni- 1703, E-mail: mbadwi@scjunction.co.za, website. www.
tion, while optimisation technologies cover not scjunction.co.za
just labour management, but also slotting. Most
importantly, the system needs to facilitate inte-
gration applications such as planning,
replenishment, transport management,
distributed order management, supply
chain intelligence, reverse logistics
and ERP systems. Ideally, inventory
should be visible across the supply
chain, transmitting information im-
mediately to all parties involved in
the process.
“Companies using advanced Warehouse
Management Systems experience sig-
nificant improvements in efficiency,”
emphasises Michael. This statement
is borne out by the fact that time-to-
market for new products has dropped
by 50 to 70 percent over the past 20
years.
Additionally, inventory-to-sales ratios
are less than half, and the number of
unique products available has skyrock-
eted. “In many instances, customers
don’t just want more products, they
want better products,” he elaborates,
emphasising the fact that customer
satisfaction is not just a matter of speed
and quantity, but also quality.
Proof of the pudding
An instance in which WMS has earned
its stripes is the recent Foschini project
that Supply Chain Junction was involved
in. Installing Manhattan Associates’
Warehouse Management Solution for
Open Systems in four centres in Cape
Town, the aim was to support busi-
nesses processes such as postponement,
cross-docking, part order allocation
and part delivery.
The software allowed the standardi-
sation of the supply chain and gave
flexibility to implement a continuous
improvement programme. According
to Jan Tukker, group logistics direc-
tor at Foschini, the company chose
Supply Chain Junction’s Manhattan

Supply Chain Today May 2010 27

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 WMS & INVENTORY CONTROL

The Real Brain

Supply chain management (SCM) has become increasingly
difficult as companies source products, components, and
materials on a global scale. Similarly, they are distributing
their goods more globally as they seek to penetrate new
and growing markets. This means products must travel far
greater distances and be stored in more locations, exacer-
bating the challenges of visibility and threatening perfect
order delivery.

J
ane Thomson, MD of Softworx, an
EOH company and reseller of Infor in
sub-Saharan Africa, reminds us that
regulatory challenges are also put-
ting manufacturers under pressure to track
their products with even greater precision.
They must have immediate access to data
on everything, from lots to serial numbers
to shipping locations, if they are to avoid
crushing costs – and legal penalties in the
case of a product recall.
No choice
”Given these factors, suppliers are faced with
escalating costs and complexity, driving de-
mands for greater productivity in warehouse
operations. With distribution seen as a cost Jane Thomson
centre, companies have no choice but to find manage and monitor labour productivity.
ways to drive warehouse performance to new levels
if they want to remain competitive and profitable. Soaring costs
However, their existing ERP systems often lack “Manufacturers and distributors that intend to
the automated capabilities necessary to increase remain competitive must move beyond their exist-
visibility into operations, enhance market agility, ing ERP systems and adopt advanced capabilities.
and boost warehouse productivity.” Advanced warehouse management solutions are
proven to maximise product placement strategies,
The limitations of many companies’ warehouse
prioritise tasks, implement productivity standards,
operations are manifested along three key dimen-
and increase logistics efficiency,” adds Jane.
sions: orders, labour, and the warehouse assets
“Those that have invested in advanced warehouse
themselves. One of the key factors undermining
management solutions are strengthening order
productivity and performance on all three of these
management, increasing labour productivity, and
dimensions is an absence of clear visibility into
maximising their use of warehouse assets.”
operations.
She concludes that as customer demands rise and
Productivity supply chains grow increasingly global, companies
Jane says, reliant on existing ERP systems, most will need to drive gains in warehouse productivity
of today’s manufacturers and distributors lack and performance to avoid soaring costs. But, just
detailed inventory tracking capabilities. This as important, these investments promise to pay
results in difficulty to support the same product off in terms of greater warehouse visibility, agil-
housed in different discrete locations within a ity, and productivity as they lay the foundations
warehouse. Different pallets become one bundle for profitable growth in the hyper-competitive
of inventory or lot in their systems. They are markets of today and tomorrow.
unable to track the lots and expiration dates of
www.infor.com
those pallets.
Space optimisation becomes another problem as
workers fail to put products in appropriate bins
or support the proper rotation of products out
to customers. And, finally, existing ERP systems
lack the capabilities necessary to proactively

Supply Chain Today May 2010 29

 Are You
Doing
Your
Bit?

Green This prestigious award recognises

Supply
people, projects and products
that have gone above and
beyond the call of duty to
enhance the environment in which

Chain
they operate.

The inaugural awards in 2009

Awards
enjoyed a wonderful response
from the supply chain community
and everything is on track to make
this year’s event one of the indus-
try’s most prestigious accolades.

Come and see who walks away

with the coveted trophies and
enter your product or project for
this year’s event.

Entries for this year’s event close in

June and the awards ceremony is
being planned for 26 August 2010.

Contact: Catherine Larkin on

Tel: (011) 789-7327/787-9127,
Cell: 083 300 0331, Fax: (011) 787-7865
Email: cvlarkin@ciltsa.org.za

30 Supply
SupplyChain
ChainToday
Today May
Jan 2010
2010
 PROCUREMENT

Procurement policies and guidelines

published by the Construction Industry
Development Board (CIDB) are among
the best in the world. However, for a
variety of reasons many clients and
consulting engineers do not apply these
when procuring service providers.

Head-on
P
rocurement within the South
African infrastructure environ-
ment has long been a conten-
tious issue with an array of
vastly differing policies and procedures
making it difficult for both consulting
engineers as well as their clients to
make an informed and equitable deci-
sion in this regard.
Zulch Lotter, CESA President
Consulting Engineers South Africa
(CESA) has embarked on a nationwide campaign,
visiting all nine regions, to inform and educate
on Procurement best practice for members and
public sector clients thus ensuring that our taxes
are spent effectively.
Understanding the reason why tenders may not be
re-issued within a 6 month period

CESA in consultation with the CIDB as well as industry

experts has developed a Best Practice Guideline for
the Procurement of Consulting Engineering Services
that is in line with the latest legislation, including
the Construction Sector Charter.
Working at risk
Wally Mayne, CESA’s Contractual Affairs Manager
states, “Some of the issues that are being addressed
include dealing with an inadequate brief; allowing
sufficient time from the request for proposals to the
closing of the tender; understanding the BBBEE
scoring system; understanding the reason why
tenders may not be re-issued within a 6 month
period; the issue of unlimited liability; and the
implications of working at risk.”
Roll-out
The CPD accredited technical briefing provides
delegates with the opportunity to workshop national
and international best practice with experts. The
briefing unpacks the procurement of consulting
engineering services and delegates attending the
briefing will be issued with best practice guidelines
in this regard. The content of the Manual and the
Technical Briefing focuses on the full lifecycle of
a project as well as the role of both the client and
the consultant. This includes the monitoring of
consulting engineering services by the client.
For the programme details please visit www.cesa.co.za or
contact, Graham Pirie, Consulting Engineers South Africa
(CESA), Tel: (011) 463-2022, Email: gspirie@cesa.co.za

Supply Chain Today May 2010 31

32 Supply Chain Today May 2010
 CIPS

Not a Backroom
Activity
The old IPSA (Institute of Purchasing and Supply South Africa) and CIPS (Chartered Institute of Purchasing
and Supply) have formed a new entity to launch CIPS Southern Africa (CIPS SA).

A
lthough in the making for quite some
time, CIPS SA got off to a great start at
an annual dinner in April 2010 which
kicked off their two-day conference held
at Emperors Palace,
Johannesburg.
The opening address
by Alec Irwin, retired
Minister of Public En-
terprises, emphasised
the fact that spend on
infrastructure in South
Africa is vital but it’s
a long-term imperative
even while short-term
pressures such as BEE,
green issues etc, remain
at the forefront. But
he warned that South
Africans need to keep
a careful eye on the
horizon.
Though local compa-
nies have a 10 to 15
percent automatic ad-
Alec Irwin
vantage when tendering for projects, large global
suppliers have raced ahead. And it’s no good
creating a ‘bubble-effect’. For example, despite
the 115 percent tariff on ‘assembled’ vehicles,
it’s still possible to import cheaper.
The question is how to build a competitive local
industry? Gearing up for Transnet and Eskom
work, for example, is risky for private companies
because of the stop-start nature of projects. They
need some certainties and transparency. Overseas,
suppliers are benchmarked to keep them honest
and relationships are long-term.
Alec pointed out that we need sophisticated and
articulated government procurement policies or
corruption reigns. Money comes into Africa but
very little stays in Africa. It flows in and most
flows straight out again while there is very little
technology transfer.
He ended off by saying that procurement is not
a backroom activity. It is one of the main drivers
to build society together. Most importantly, we
have to be globally competitive, just being on
home soil, doesn’t mean we’re going to get the
business!

With more than 60 000 members worldwide, Cips has grown to become an enduring force
in the purchasing and supply profession. Their Code of Ethics has become the international
model for purchasing and supply practice. Their study programmes are recog-
nised around the world and they also have offices in the UK, Australia
and the Middle East.
With an impressive heritage and a genuine passion for the profession,
these are exciting times to be part of Cips and the organisation is always
looking for new membership.
If you’re interested, please contact Cips Southern Africa (Pty) Ltd on Tel (012) 345-6177,
Email: info@cips.org.za, www.cips.orgsouthernafrica

Supply Chain Today May 2010 33

Market Forum
Christo Jacobs joins Business Modelling Associates
Business Modelling Associates is pleased to announce that Christo
Jacobs, formerly of i2 Technologies, has joined the company effec-
tive January 2010. Christo brings with him a wealth of experience
having spent the past ten years as a Solution Strategist at i2 Tech-
nologies, Inc. Christo is a skilled supply chain consultant with over
15 years of strategic modelling experience across multiple industries
including Consumer Packaged Goods, General Manufacturing, Min-
ing, Automotive, Pharmaceuticals, and Logistics.
Commenting on his recent move, Christo says that he is excited
about the possibilities of Enterprise Optimizer®, a leading integrated
business planning technology developed by US based River Logic
Inc and distributed locally by Business Modelling Associates

Local content
Universal Africa Lines (UAL), a specialist shipping line to
West Africa’s industries, has added to its African invest-
ments with a new office in the Angolan city of Luanda.
Monique Gubler, formerly Chief Operating Officer of a
global logistics provider, has been appointed General
Manager of UAL Angola.
Monique says the office will satisfy demand in the country
for ‘local content’ - a strategy of regulating foreign invest-
ment that is common in Africa and which forms the basis
of Angola’s economic resurgence after years of strife.
Also called indigenisation and black empowerment, local
content is gaining support in Africa and takes on a number
of forms, including: requiring domestic African companies
to do most of their trade with other African companies;
requiring foreign companies to invest in the countries
they do business in, directly or in partnership with local
business (rather than simply repatriate their earnings);
further requiring them to use local skills and to run skills
transfer programmes; and frequently requiring them to
sell a substantial stake in their local operation, to effect
a rebalancing of economic assets and resources.
Monique says in keeping with indigenisation practices, UAL
will develop the Angolan office and market in partnership
with a local entity which has been approved by Sonangol,
the Angolan national oil and gas company.
She notes that UAL’s investment will contribute to the
development of a local shipping industry and augment
regular shipments from South Africa as well as Europe
and the USA into the West African region. UAL maintains
a regular bi-monthly service from South Africa to the West
African oil theatre with many shipments originating in
Angola. Oil and Gas equipment from the West African oil
theatre will be sent to South Africa for refurbishment after
which it will be shipped back to West Africa.
Universal Africa Lines, Magna Carta, Margot Gutteridge, Tel: (021)
417-5801, Fax: (021) 425-6675, Email: margot.gutteridge@cape.
magna-carta.co.za
Know your oats
International trade is indelibly linked to international
transportation. This function must be properly managed
and controlled by people familiar with and with a sound
understanding of the complexities involved.
Importers and exporters rely to a greater or lesser extent
on freight forwarders and customs brokers, but the re-
sponsibility for the achieving the desired result remains
with their management. It is incumbent on import and
export management to understand the impact of the many
elements of international transportation, and this applies
to all disciplines – logistics, shipping, marketing, produc-
tion and finance.
From the freight forwarder’s perspective, management
and staff must have the skills and knowledge to operate
in this multi-faceted environment.

34 Supply Chain Today May 2010

Market Forum
The Department of Business Man-
agement’s Chair in Logistics at the
university of Pretoria is introducing two
programmes in “International Freight
Management and Administration”.
The first of these will commence in
July 2010 and will run over a period
of five weeks. Study will take place at
the university main campus in Pretoria
and involve 160 contact hours with
lecturing being provided by subject
matter experts.
With the objective of improving the stu-
dents knowledge and competence in the
vast and intricate field of international
trade, the course will examine amongst
other topics, the needs of importers and
exporters; the contract of sale, delivery
terms and payment methods; the role
of international organisations such as
the World Customs Organisation, the Merode, Executive Director, RedPrairie.
ICC and IATA; international freight forwarding and the role
“The new office gives companies across the continent
of Customs; modal selection and documentation.
access to RedPrairie’s full suite of productivity solutions.
The advanced programme will run over six weeks with Local companies can also benefit from global best practices
200 contact hours and will introduce students to the by tapping into RedPrairie’s experience of working with
legal framework of international transport; trade issues market leading companies for over 30 years,” he adds.
such as anti-dumping, the Common Customs Area, and
RedPrairie delivers productivity solutions to help com-
the Authorised Economic Operator; the transportation
panies around the world in three categories – workforce,
of dangerous goods and other special cargoes; marine
inventory and transportation. The company provides these
insurance, financial management, and freight forwarding
solutions to manufacturers, distributors and retailers look-
within the supply chain. The advanced programme will
ing to support business strategies that increase revenue,
commence in 2011.
reduce costs and create competitive advantage.
Department of Business Management – University of Pretoria, Wesley
RedPrairie, South Africa, Office: 0861-339-251, Fax: 0865-174-284,
Niemann, Email: wesley.niemann@up.ac.za, Tel: (012) 420-4635,
Email: infoafrica@redprairie.com, Web: www.redprairie.com, Ken
Fax: (086) 632-7333
Osler, Tel: 082-805-3360, Email: ken.osler@redprairie.com, Sandy
Arundel, Tel: 082-949-2385, Email: sandy.arundel@redprairie.com

New in South Africa

Johannesburg, South Africa - RedPrairie Corp, a productiv-
ity solutions provider, has established its own operations
in Africa with head office located in Johannesburg, South
Africa. For the last 10 years RedPrairie has been repre-
sented in Africa through its value added resellers. During
this time, RedPrairie has established a customer footprint
in some of the largest and most complex warehousing and
distribution operations in South Africa such as Imperial
Logistics, Clover and Simba.
“It was important to us to maintain service levels for our
existing South African customers, which is why experienced
personnel has been transferred from the VAR to RedPrairie,”
says Sandy Arundel, Regional Director, RedPrairie.
“We are excited about the launch of our new office in
South Africa, and look forward to helping manufacturers,
distributors, and retailers manage their inventory, work-
force, and transportation more efficiently,” says Peter van
Services expanded
Imperial Logistics and e-Logics (Pty) Ltd today has acquired
50%+1 in the share capital of e-Logics
“We are excited about the addition of e-Logics to our In-
tegration Services portfolio,” says Cobus Rossouw, Chief
Executive Officer, Imperial Logistics Integration Services.
“Not only are we expanding our technology service offering,
we are also improving our business process outsourcing
capabilities to address specific requirements with greater
software and systems support, providing integrated solu-
tions as and when required.”
IMPERIAL Logistics’ comprehensive experience of integrated
logistics and supply chain management, complemented
by e-Logics’ multi-disciplinary expertise is a win-win com-
bination. The technology services and design capabilities
offered by e-Logics will be leveraged to expand the Imperial
Logistics value-add proposition. Rossouw continues: “In

Supply Chain Today May 2010 35

 RFA
Convention 2010
Shift into Overdrive
Sunday 22 August to Tuesday 24 August 2010
Wild Coast Sun

36 Supply Chain Today

May 2010
WITHOUT TRUCKS, SOUTH AFRICA STOPS!
Market Forum
collaboration, both Imperial Logistics and e-Logics will
continue to focus on the development and implementa-
tion of integrated logistics and end-to-end supply chain
solutions including transportation operations and asset
management in the rail, road and utilities industries.”
Following the transaction, e-Logics will be able to offer
their customers 125% BBBEE procurement recognition,
in line with Imperial Logistics’ formal rating as a Level
4 Contributor.
Simoné Du Plooy, Brand Manager, Imperial Logistics: Tel: (011)
821-5500, Fax: (011) 873-1855, Email: simone@il.co.za, Website:
www.imperiallogistics.co.za
Nervous exporters
Credit insurer, Coface South Africa, has launched a service
giving exporters financial and credit information on more
than 50-million companies globally.
“South African exporters currently face massive challenges
in the global market. The international economic slowdown
has resulted in many financially stable companies becom-
ing unstable almost overnight,” says Coface Operations
Director, Jacqui Jooste.
“Countries that a year ago were classified as ‘safe’ to
Teleconferencing Trends
Teleconferencing has now become an essential tool for fast growing and changing business around the world.
Teleconferencing does not replace the essential face-to-face meetings, it supplements those meetings and
keeps the communications channels open between those meetings.
A
n example is provided by a major bank in South
Africa that holds weekly meetings with the
branch offices around South Africa to discuss
progress, to disseminate new policies, to col-
lect feedback from each office, and to have each branch
share its experiences with the other branches - telecon-
trade with have been turned upside down. Whilst the
current global economy is a minefield, exporters should
be exploiting the opportunities available to them using the
right information as a guideline to successfully export,”
she says.
“While some doors have closed for exporters in previously
well-developed markets, many windows of opportunity
are opening in unexpected and unexplored markets, but
companies need accurate information about them.”
Coface is able to provide exporters with up to date reports
on overseas companies through its international network
of information providers in over 94 countries. “The infor-
mation is always up to date because it is used internally
for our credit insurance business worldwide on a daily
basis,” says Jacqui.
“Without good quality information on specific companies
and markets many SA exporters are nervous to invest
time and money.”
Charles Smith, Tel: (011) 781-6190, Fax: (011) 326-4760, Email:
charles@csa.co.za, info@csa.co.za, web: www.csa.co.za, www.Sha-
Izwe.co.za. Coface: Natasha Hardy, Tel: (011) 208 2517, Fax: (011)
208 2601, Email: natasha_hardy@cofaceza.com
Engineer Placements
www.engineerplacements.com
ferencing provides the necessary multidirectional flow
of information. A big success for one local branch can
be shared with the other branches so everyone in the
group can benefit from it.
This major bank continues to conduct virtual meetings
on a weekly basis to ensure that a community is formed
between its branches and that each branch is involved
and engaged, irrespective of whether they are located
in the capital or in a remote location.
Teleconferencing has revolutionised the way business
is conducted, just like e-mail and mobile phones have
done in the past few years. Every organisation’s success
is directly related to its ability to exchange information
quickly and effectively. “I encourage each organisation
to learn about the new teleconferencing tools and how
to benefit from them – today they are available to every-
one,” says Ari Meyerthal, Managing Director of Chorus
Call South Africa.
ChorusCall, Tel: (011) 305-2000, Email audioafrica@choruscall.
com
Supply Chain Today May 2010 37
Market Forum
New head appointed
John Sims former General Manager of Magister Africa,
Goodyear South Africa’s distribution business in Africa
has been appointed General Manager of Trentyre.
In his new role, Sims, 58, will oversee Goodyear’s distri-
bution activities throughout South Africa and Africa where
it currently trades in 13 territories.
John Sims
“Historically, Goodyear ran two separate distribution
operations Magister Africa, for distribution in Africa and
Trentyre, for distribution in South Africa. There has been
a move to consolidate the two.”
“From 1996 until now, our focus has been on growing
our African business.” John says business in Africa has
changed dramatically in the 13 years Goodyear has been
involved. “At the start, many countries were just coming
out of war and were poor and under-developed. The situ-
ation was fairly volatile. Today, the economic situation in
many of these – like Angola, Zambia and Mozambique
– has improved drastically.”
Lize Hayward, Group Public Relations Manager, Goodyear Tyre &
Rubber Holdings (Pty) Ltd, Tel: (041) 505-5400, Fax: 086-614-0368,
Email: lize_hayward@goodyear.co.za,
38 Supply Chain Today May 2010
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Index to Advertisers
Afzelia 20
Barpro 15
Chorus Call 14
DHL Inside Front Cover
Digicore 28
Doosan 4
Eastleigh Varic 32
Engineer Placements 37, 38
ILS 31
Kemtek 10
Linvar 6
Mercedes Inside Back Cover
Paul Steyn 12
Psion Outside Back Cover
RFA Convention 36
SAID 24
GSC Awards 30
S&N Labels/Bartrans Outside Front Cover
Universal 22
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