SCT: Nov / Dec 2010

Supply Chain Today Nov/Dec 2010
Scania is the leading

supplier in South Africa
of Euro 4 products, with
EGR technology.
Just add Diesel.

Scania. Destined to Lead.
For more information contact Scania Southern Africa

your nearest Dealer. Details available Angola, Botswana, Malawi, Mozambique, Namibia
on www.scania.co.za South Africa, Tanzania, Zambia, Zimbabwe
November/December 2010
Contents
Featured on the cover: Cover Story Collaboration
UD Trucks 5 Keeping Industry Wheels Turning 29 Damaged Relationships with
www.udtrucks.co.za Suppliers
8 Racking and Shelving Survey
Pharmaceutical
Racking and Shelving 31 Dispensing with Politics
10 Going Live Software
35 ‘Ninjas’ at Integration
Express Freight
13 Its First Foray Market Forum — Supply
37 Market Forum
Trends in Industrial Premises
15 Fact or Fiction? Endorsing Bodies
Afritag (div of Smart Card Society)
Market Forum — Unit CGCSA (Consumer Goods Council of SA)
19 Market Forum CILTSA (Chartered Institute of
Logistics & Transport: SA)
CILTSA SAEPA (SA Express Parcel Association)
22 World First SAPICS (The Association for Operations
Management of Southern Africa)
Trucking also mailed to:
23 Shifting Into Overdrive CSCMP (Council of Supply Chain
27 Significantly More Payload Management Professionals)
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 Proprietor and Publisher: Advertising Sales:
written permission of the publishers. While every effort is made PROMECH PUBLISHING Lelanie Lane
to ensure accurate reproduction, the editor, authors, publish- Tel: (011) 781-1401
ers and their employees or agents shall not be responsible or Fax: (011) 781-1403 DTP: Zinobia Docrat and
in any way liable for any errors, omissions or inaccuracies in Sean Bacher
E-mail: sales@supchain.co.za
the publication, whether arising from negligence or otherwise supplychain@promech.co.za Printed by:
or for any consequences arising therefrom. The inclusion or Website: www.promech.co.za Typo Colour Printing
exclusion of any product does not mean that the publisher or Tel: (011) 402-3468
Managing Editor:
editorial board advocates or rejects its use either generally or
Susan Custers
in any particular field or fields.

COVER STORY
Keeping Industry
Wheels Turning
As one of the world’s leading truck
manufacturers, UD Trucks has over
the years invested a great deal in
developing vehicles that offer bet-
ter efficiency, fuel economy and
environmental responsibility.
T
he company has a well-balanced range a highly competitive market.”
ensuring appropriate technology for the
Research by UD Trucks has revealed that customers
needs of customers in the various ap-
are increasingly looking for a truck provider that
plications. Through a pioneering spirit,
can be a true professional partner. The company
groundbreaking engineering and a customer-cen-
is therefore committed to continue building closer
tric approach, UD Trucks applies the expertise
professional relationships with their customers
and to offer dependable transport solutions, a
Customers are increasingly looking for a truck provider recipe for future success.
that can be a true professional partner
“By matching customer business insight with the
amassed in the diesel engine field to produce global expertise inherent in our company, we are
trucks that are comfortable, safe and environ- aiming to get the fundamentals right, here in South
mentally friendly. Africa and across the region. This includes the
manufacturing of quality products at competitive
Recipe for future success prices, an effective parts supply and unrelenting
“UD Trucks Southern Africa takes great care to aftermarket support,” says Johan.
ensure that we provide a high quality product
in order to sustain our objective of providing the Nationwide dealer network
highest possible level of durability, and ultimately UD Trucks currently has more than 50 dealers
giving customers as much up-time as possible,” and service agents in southern Africa with several
says Johan Richards, chief executive officer of new developments underway. The company also
UD Trucks Southern Africa. “We believe that already has dealers in Angola, Botswana, Lesotho,
our commercial vehicle range offers customers Madagascar, Malawi, Mauritius, Mozambique,
versatility, quality and ultimate dependability in Namibia, Nigeria, Seychelles, Swaziland, Zambia,

COVER STORY
UD Trucks currently has more than

50 dealers and service agents in
southern Africa with several new
developments underway
Zimbabwe, and is currently

investigating a number of op-
portunities for expansion across
the region.
“We place great emphasis on
building long-term relationships
with our customers and provid-
ing ongoing support throughout
a product’s lifecycle. “Our
dealers remain committed to
providing customers with inno-
vative transport solutions and
service offerings, built on trust,
in-depth industry knowledge
and a strong technical skills
set,” says Johan.
UD Trucks Southern Africa has
a dedicated centralised call
centre that operates 24/7 to
facilitate roadside and emer-
gency assistance to customers
all across South Africa.
“We believe that by being
passionate, professional and
dependable in everything we
do, we are able to provide cus-
tomers with high quality prod-
ucts and transport solutions,”
concludes Johan. “With a long
and proud history in the region
dating back to 1962, and the
full support of the UD Trucks
Corporation in Japan, we are
customer-focused as ever.”
www.udtrucks.co.za

Are You
Doing
Your
Bit?
Green This prestigious award recognises

people, projects and products
that have gone above and
Supply
beyond the call of duty to
enhance the environment in which
they operate.
Chain The inaugural awards in 2009, followed
Awards
by those in 2010, enjoyed a wonderful
response from the supply chain
community and everything is on track to
make the 2011 event one of the
industry’s most prestigious accolades.
Enter your product

or project now!
Sponsors: Entry forms are avialble from:

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

Racking & Shelving Survey
Name of Company Acrow APC Barpro Dexion SA DNA Logic EM Ezi Systems Executive
Racking & Storage Storage SA Shelving & Storage
Shelving Solutions Racking Equipment
SA
Contact: Craig Fred James Ron Bon Alan Botha W. Thomas Allen Stanley
Albrecht Cunningham Chuys Cunningham Aucamp
Type of Shelving:
* Bolted Shelving ü ü ü ü ü ü
* Boltless Shelving ü ü ü ü ü ü
* Cantilever Racking ü ü ü ü ü ü
* Drive-in Rack ü ü ü ü ü ü
* Mezzanine Floors ü ü ü ü ü ü
* Mobile Rack ü ü ü ü ü ü ü
* Pallets/Carton Flow ü ü ü ü ü ü
Rack
ü ü ü ü ü
* Push Back Rack ü
ü ü ü ü ü
* Retail/Wholesale ü
Shelving
ü ü ü ü ü
* Shuttle Racking ü
ü ü ü ü ü ü
* Small Parts Storage ü
ü ü ü ü ü
* Standard Pallet ü
Automated DIY Products- Live storage
Racking Stacker Jungle gyms,
* Other Cranes, Mini- Greenhouses,
loads, Bulk etc
Filling Sys-
tems VLM’s
Do you work to SEMA Yes Yes Yes Yes No Yes No Yes

(Storage Equipment
Manufacturers
Association)?
Do you manufacture Manufacture Manufacture Manufacture Supply Supply Manufacture Manufacture

and/or supply? and Supply
Manufacturing Yes Yes Yes - Yes Yes Yes Yes

Standards (ISO)?
Turnkey Projects? Yes Yes Yes Yes Yes Yes No Yes
After-sales service/ Yes Yes Yes Yes Yes Yes No Yes

training?
Approximate turnover - R286 Million R15 Million R24 Million R16 Million R50 Million R5 Million R50 Million
in 2009/2010?
Number of staff? 140 207 13 7 10 26 15 26

Racking & Shelving Survey
First Storage Interrroll SA Linvar Marathon Palian Storage Storequip Group Universal Storage
Concepts Logistic Management Systems
Systems Systems
Kevin Cullem McKay Nicky Farrell Tom Dornan Johan Crafford Gerhard van Ron Stoltz Jan
Rees-Gibbs Deventer Breytenbach
ü ü ü ü ü ü ü
ü ü ü ü ü ü
ü ü ü ü ü ü ü ü
ü ü ü ü ü ü
ü
ü ü ü
ü ü ü ü ü ü
Rack supported
buildings
Yes - Yes Yes Yes Yes Yes Yes
Supply Manufacture Manufacture Manufacture Manufacture Supply Manufacture and Manufacture

and Supply and Supply Supply
- Yes Yes Yes No Yes No Yes
Yes - Yes Yes Yes Yes Yes Yes
- Yes Yes Yes Yes Yes Yes Yes
- - - - - R22 Million - -
40 22 35 - - 23 409 139

RACKING & SHELVING
Live Storage
Acrow is the first racking and shelving com-
pany in South Africa to manufacture pallet
live storage, carton live storage, roller push
back and specialised gravity conveyors, all
under one roof.
Marketplace problems
One of the company’s decisions to manufacture
live storage was based on problems within the
marketplace. These had cost many large distribution
centres downtime with their storage equipment due
to not being able to replace damaged components
for a period of up to 12 weeks as suppliers had
to order their products from overseas.
“We have a full manufacturing facility and all
components are locally produced in accordance
with our ISO 9001:2008 manufacturing and
quality control standards. The records are main-
tained to demonstrate conformance to specified
requirements and the effective operation of the
quality system, which are available for customer
inspection.
Distribution centres experienced
downtime due to not being able to
replace damaged components for up to
12 weeks
“Acrow’s live pallet storage’s first-in first-out
system (FIFO) has been designed to meet their
client’s needs to operate their systems more
smoothly and efficiently,” he says.
All clients will be able to easily gain access to any
parts needed for maintenance and upgrades as
the majority of components are kept in stock.
Advantages
The main advantages in comparison with static
racking are the following:
• Greater use of available surfaces and volumes
(approximately 44 to 88% more)
• Safe application of the FIFO system
• Reduction in transportation to handle pallets
(often a frontal lift truck for feed and one for
picking are enough, but if the work load is
S
relatively low, just one may be sufficient).
upply Chain Today” speaks to Craig An- • Handling frequency inside the warehouse
nandale of Acrow to find out more about is cut by 50% since handling is executed
its Live Storage system. “Integration of on rollers
our racking and live storage systems are
• No energy cost as pallets move automati-
engineered locally by our highly experienced
cally
design office ensuring peace of mind and lower
costs to the client who only has to place an order • Unlimited functioning warranty with the
with one company, says Craig. simplest maintenance interventions.
10 Supply Chain Today Nov/Dec 2010

RACKING & SHELVING
“With our live push back last-in first-out (LIFO) research has revealed that many of the problems
system principle, goods that were put into store encountered are the different types of trays, ie,
last are removed first. The advantage of the LIFO straight type tray full roller 0 deg, 5 deg type tray,
principle is optimum space utilisation. Furthermore, 15 deg type tray, 30 deg type tray and welded
storing and retrieval takes place from the same trays,” Craig continues.
location and the backs of the racking system can “Many of these trays come from all over the world
therefore be against the wall,” explains Craig. and finding replacement parts is very difficult for
“Push back racks offer up to seven pallet locations the client. We have designed one type of tray that
deep and the speed of the operation is controlled can be adjusted from 0 deg to 30 deg. There are
by the loading vehicle. Additional brake or brake many advantages to our tray type such as lower
conveyor rollers are not necessary in this system costs, short delivery times, lower installation
as has been proven in Europe, however, if it is and project management fees and everything is
a requirement from the client, we can offer our locally manufactured,” he enthuses.
2-way directional brake as apposed to a 1-way
directional brake,” adds Craig. Pallet safety and lifespan is much higher than
conventional trolley or cart push back systems
Greater lifespan
Safety and lifespan of the pallet on the Acrow Finally, Acrow’s wheel tracks and full length
LIFO system is much higher than conventional guides can be easily adjusted to suit any size
trolley or cart push back systems as these systems carton, box or crate.
create a high deflection on pallets and damaged
pallets will deflect more and possibly collapse. “In addition to our products, we also offer project
management services which include managing on
“With our Roller LIFO system, all types of pal- site installations from date of installation to com-
lets can be used as the pallets and loads are missioning. In addition, we offer onsite training to
uniformly distributed over several full width forklift operators working with our system. This
rollers at any given time within the depth of the training is to ensure that the operator understands
lane,” he says. the loading and offloading procedures so as to
Versatile and modular prevent goods and equipment being damaged,”
“Our live carton storage FIFO system is very concludes Craig.
versatile and modular. This design of carton live Acrow, Craig Annandale, Tel: (011) 824-1527, Email:
storage is the first of its kind, and our market info@acrow.co.za, www.acrow.co.za
Carton flow system
Supply Chain Today Nov/Dec 2010 11

EXPRESS FREIGHT
Its First Foray

Elite Line Haul is using 8- and 10-ton freight carriers for its first foray into smaller category trucks as it
expands its business which primarily serves the South African courier industry.
From left: Karl Steyn, operations manager at Elite Line Haul, Tony Krole, general manager at Elite Line Haul, Piet Smit, sales manager at Hino
T
Elandsfontein and Bobby Pringle, sales executive at Hino Elandsfontein
he company originally purchased 12 Hino two drivers on this route and the trucks are fitted
500 series 1626 model trucks and has with a bunk bed so they can sleep between their
taken delivery of a further 18 of these two-hour driving shifts.
trucks recently to bring this section of
Depending on usage
its fleet up to 30 units. The other trucks in the
The 8-ton van bodies are made by Roberts Van
current Elite Line Haul fleet of 150 units are
Bodies (RVB) and the 10-tonners have Anchor
extra-heavy duty truck-tractors.
Bodies fitted. Tracking and security features were
Fitted with special 530-litre long range, stainless steel fitted to the carriers.
fuel tanks Elite carries out its own maintenance at the
Elandsfontein and Centurion depots, with their
Daily run technicians having been trained by Hino. Joint
“The Hinos are being used for countrywide deliv- venture service contracts are in place with
eries of bulky but comparatively light automotive maintenance service providers in Cape Town and
replacement parts from Johannesburg, which Durban. Operations manager Karl Steyn says he
includes a regular, daily run to Cape Town as expects a replacement cycle for these trucks of
well as cross-border routes to Swaziland and between 600–700 000km or 3-5 years, depend-
Botswana,” explains Karl Steyn, the operations ing on the usage.
manager. The company is currently conducting trials on
Some of the first trucks, running between Johan- various makes of tyre to assess the most suit-
nesburg and Cape Town are proving both reliable able for this operation. It recently took control
and fuel efficient. They are fitted with special of its tyre maintenance and fitment after using a
530-litre long range, stainless steel fuel tanks so number of service providers in the past.
that they can travel from Johannesburg to Cape Exceptionally well
Town without refuelling en route. Each truck has Elite Line Haul was established as a division of

EXPRESS FREIGHT
Elite Truck Hire in 2005 with the takeover in 2005 for green band driving and the like, as well as for
of Denver Transport, which had been in opera- attendance. This scheme is coupled to an incen-
tion from 1992. Medu Capital bought 25.7% of tive programme for the good drivers and training
Elite Truck Hire in 2008, thereby ensuring the to improve the poor performers. Ongoing driver
company’s empowerment status. training is part of the driver support.
It operates from four facilities – Elandsfontein, Performing exceptionally well, despite the tough
Centurion, Cape Town and Durban and operates economic conditions
five days a week, with most of the driving tak-
ing place at night, other than the long distance Hands-on
route to Cape Town. The general manager of Elite Line Haul, Tony Crole,
“Elite Line Haul is performing exceptionally is a person very well schooled in all aspects of
well, despite the tough economic conditions,” business, including the transport industry. One
said Karl Steyn. “The fleet has grown from 80 of his first jobs was, in fact, in 1968 with the
to 150 trucks since 2005 and we are showing country’s first private waste removal company,
significant growth. which was then part of Murray and Roberts.
Electronic scorecard He was also involved with Hultrans’ cane operations

“We believe the reason for our ongoing success is in KwaZulu-Natal and later worked for Hultrans
exceptional service levels as we know our custom- in Gauteng. Tony Crole joined Elite five years ago
ers cannot afford to miss delivery times,” adds running the administration and was appointed
the operations manager who trained originally in the company’s general manager in 2006.
Information Technology (IT) and then worked at “Success in our company is due to hands-on
Denver Transport. “My IT experience has resulted involvement by our executives as well as care-
in our using many systems to ensure more efficient ful people selection,” says the experienced
control of our complex operation.” businessman.
Karl adds that the company’s 200-odd drivers are Hino, Ignatius Muthien, Tel: (011) 809-2064, Fax: (011)
DS_SOLUT_BENEFITS_SYPPLY_CHAIN_TODAY_176x130_ZA_Layout 1 24.09.10 11:53 Seite 1
all monitored by means of electronic scorecards 809-9064, Email: imuthien@hino.co.za
Doubled picking performance

Halved space requirement
For Interroll dynamic storage solutions – the complete standard
• Space saving up to 60 %
• Considerably increased picking
performance
• ROI of 2-3 years
• Maintenance free
Interroll S.A. (Pty. Ltd.) · South Africa · +27 1128199 00 · za.sales@interroll.com · www.interroll.com

TRENDS IN INDUSTRIAL PREMISES
Fact or Fiction?
We’ve put together some guidelines aimed at
One of the great ideas of a green world is everyone driving
warehousing and distribution operations, but many
around in electric vehicles. Well, the power crisis in South are also applicable to factory environments.
Africa has put paid to that idea – there’s no electricity to
charge them. On the factories and warehousing front, I sup- Design of facilities
pose we actually think DCs (distribution centres) and ware- Industrial buildings in South Africa are gener-
houses are green today, as most equipment is electric. The ally steel sheds with light sheeting and minimal
truth of the matter is that electricity generation is probably temperature control or insulation (other than
the most carbon-polluting source on this planet so the need buildings for perishable products). You certainly
won’t find the kind of airconditioning for summer
to be efficient with electricity, even if running electric ve-
or heating for winter that you would in Europe
hicles, is paramount, say Martin Bailey and Gary Benatar of
or America.
Industrial Logistic Systems.
We tend to feel this is not necessary with our
T
temperate climate and let’s be honest, how many
he minute we start talking about green
companies care about the DC or warehouse
buildings, we envision buildings that are
personnel being comfortable as long as the lofty
energy efficient in cooling and heating
offices are great?
and natural light. Again a myth. In South
Africa, other than for temperature-controlled facili- Environment
ties for perishables, no-one gives a damn about Occupational legislation in first-world countries
a temperature-controlled industrial building. doesn’t allow staff to work in unsatisfactory condi-
No-one gives a damn about a temperature-controlled tions. If the conditions are right, the productivity
increases. How many of you have been in a facility
building
in Durban in the
humid summer?
Or what hap-
pens in a facility
in Gauteng or
Cape Town in
the middle of
winter? What
temperature
do you experi-
ence? We have
measured up to
45 oC and over
95% humidity
or as low as
3 oC. In addition
to the people is-
sue, what about
products?
Most packaging
carries warn-
ings about not
exceeding cer-
tain limits – how
often do we do
it? Chocolates
get ruined at
both extremes
and many other
products can be
Regardless of whether you blame Eskom, the spoilt by heat or cold. Now I’m not saying we
Government or anybody else, it is clear that in need to heat and aircondition the buildings
order to survive in South Africa, we all urgently – that would be tantamount to treason with the
need to save substantial amounts of power. present energy crisis.

Radiant footprint A side benefit is the lower you are from the roof,
It is, however, possible to design buildings that the less you experience the heat being transmitted
are comfortable to work in without any additional and being built up under the roof. A secondary
energy costs. The first step is to understand the effect of high buildings is the densification you
difference between radiant heat and transmissive get industrially.
heat. Simply put, radiant heat is the heat that With the current cost of land and getting services
you get when you park a black car in the sun and and roads to facilities, the more we densify, the
touch it - transmissive heat is the heat that gets less energy we use in the long term. Internally,
inside. So when we design facilities we need to shorter distances mean we get higher productiv-
insulate them. Good insulation will let less heat ity out of our materials handling equipment thus
in and keep the facility comfortable longer. using less energy.
It is, however, possible to design buildings that are com- Ventilation

In South Africa, we pay scant regard to ventilation
fortable to work in without any additional energy costs
in buildings, other than what is legislated. So if
we need 2% of the roof to be ventilated for fire
Just as important is its radiant footprint. Light
extraction, we will put it in, but with the hope
colours are a must. One of the easiest ways of
that we will never have to use that ventilation.
reducing heat build-up in a building is its ori-
One of the key ways to control temperature in a
entation. A building designed with the long side
building is to use the smoke ventilation systems
North-South will generate less heat than East-West
intelligently, so at least there is some payback.
orientation as the direct roof exposure is reduced.
Then you come to the East and West walls, they A simple method is to open the smoke ventila-
also transmit heat, so insulate them too. tion systems at night when it’s cooler and there
is no radiant heat to exhaust the hot air that has
High buildings built up in the building. So if the temperature
One of my pet topics is building high. The higher is colder outside than the required temperature
you build the more efficient the building. Forget inside, open the vents! In winter the vents can
about the cubic volume you get at a lower con- be opened in the day to let in warmer air if the
struction cost, that’s the cherry on the top. The internal temperature is colder than necessary.
higher you go, the less footprint you need for the
same capacity and, therefore, the smaller the Two systems
radiant signature. At the same time, the area to If the building needs mechanical ventilation (positive
insulate is reduced. pressurisation) or cooling systems, design them
to be reversed in the event of fire and reduce the
need for two systems. This system can also be
used intelligently to control the environment.
How many refrigerated facilities will bring in
external air if it’s the same temperature as the
internal requirement in winter, and switch off the
refrigeration plants? So the need for some intel-
ligent building control in warehouses and DC’s
is becoming a necessity.
Heating and cooling
If you need airconditioning in your warehouse,
you can install more energy-efficient systems.
Typically these may include:
• Evaporative cooling (although not as reliable,
it uses 40% to 60% less power)
• Ice storage facilities (builds up ice outside
peak times – reduces peak loading)
• Zone controlled airconditioning (only cools
areas where necessary).
If you are building a freezer instead of electric
heating in the floor, consider building the freezer
on a glycol tank instead. This requires little or
no energy.
Natural lighting
The first thing people try when conserving energy is
natural light. Well it’s free and it will save energy.
And here comes the “but” – with light comes heat.

and exploding bulbs are one of the most common

sources of industrial fires. Mercury vapour and
metal halide are little better; they cost more but
the white light is a benefit to productivity and
accuracy due to the colour rendition.
Fluorescent lighting has been ineffective in high
warehousing applications until now. The fittings
So unless you design to balance this, what you
are expensive, the tube life short and unsuitable
gain on one side, you lose on the other.
for giving sufficient light in high applications.
First of all the transparent panels that we use for This has all changed with the development of
natural light are not insulated. For your insulation the T54 tubes and reflective technology. Today,
to be effective, the RK value of the transparent we can get a fluorescent light that will work at
or translucent sheeting or windows needs to be 14m and higher, give in excess of 50 000 hours
the same. There are products that are insulated life, give perfect colour rendition, use significantly
but let light in. less electricity and generate little or no heat.
The next step is to place the light openings in Certain companies even offer intelligent fittings
such a way that we reduce radiant heat. In South that switch on progressively to only use the
Africa, we need south-facing openings. If you put number of tubes or fittings required to give the
horizontal translucent or transparent sheeting in required light level. These fittings will also detect
the roof, the natural light is excellent, but the movement and only switch on automatically if
heat coming through makes all money spent on there is activity in an aisle.
insulation a waste. Similarly on the East and
Another simple trick is to set out the lighting
West faces.
circuits so that one can manually switch on in
Mechanical shutters sequence to finally put on all the lights in an aisle
Natural light on the South and North faces can depending on ambient light. It’s also possible to
work – on the South face you never get any direct install lights that fall under natural (south light
light, on the North face you get direct light only in monitors) on a different circuit. These only switch
winter when a bit of free heat is worthwhile. So, on at night or in low light conditions.
unless you are investing in expensive mechanical Now all of this is not science fiction or new. We
shutters that change the light coming in over the have designed most of the above lighting types
day and the year, invest in good design. into Shoprite’s DC’s back in 1995 and modern
It is possible to put natural light in the roof but lighting has been part of the our specification or
this must be in vertical monitors and south or added value we give in any facility we design.
Unfortunately, precedence is often given to the
Reduction in peak demand is as important as reducing electrical or ventilation consultants or architects,
overall power consumption and often our recommendations are ignored.
Batteries and charging
north facing. Both Shoprite facilities we designed
One of the biggest users of electricity is the facility
(CT 1995 and JHB 2001) have this and we
to charge batteries for forklifts. It is, however,
didn’t enter them for a design award – it was
possible to save up to 30% of this power as we
just good design practice.
have been doing for years. Firstly you need to
The more natural lighting you can use the less use full cycle and not opportunistic or end-of-
energy you will expend. We have designed a shift charging.
facility in Saudi Arabia where the external tem-
By running full cycle charging, you only charge
perature gets to 50 oC. Therefore, we omitted
it when it has depleted to 20% of capacity. This
natural light totally, as the cost of transparent
means that charging becomes random. The ad-
sheeting with sufficient insulation to allow the
vantage here is that all chargers do not switch
facility to be managed to a consistent 25 oC
on at the same time reducing the peak demand
internal temperature was prohibitive. In South
by up to 45%.
Africa it’s feasible but never done. No-one does
energy balance viabilities on good natural light Batteries need to have a chance to cool down
vs. artificial lighting and insulation costs. before being used and need to have been through
a full equalization. This requires time, so 2 or 3
Artificial lighting
The natural tendency has been to use the cheap-
est lighting fixtures. The most common industrial
light is sodium lighting. These lights are highly
inefficient. The light they produce is poor, they
degrade over time, the colour rendition affects
productivity and accuracy, they generate heat

mission network. Power factor correction (PFC)

is the process of adjusting the characteristics of
electric loads.
Machinery and operations
Often overlooked when trying to optimise produc-
tivity, is the payback in reduced energy consump-
tion, fewer people and fewer machines. Clearly,
if we can find ways to simply handle goods less,
we will improve operational efficiency and save
power. Every time you lift, lower, transport, pack
or unpack product you use power. Thus if you
handle the product less, you can save power.
Managing your power
All warehouses have associated offices. Here
power can be saved by:
• Installing intelligent monitoring systems and
building management systems (which switch
lights on and off, airconditioning, etc only
batteries per machine are imperative. The initial where absolutely needed)
capital outlay is higher but over time it boils down • Turning off airconditioning, lights and equip-
to the same if not a lower investment. People ment when not being used
don’t actually think this through. A fully charged
and cooled battery will last longer and give its Reducing wastage
charge out over a longer period with fewer losses Reduction in peak demand is as important as
(another reason to cool the facility). reducing overall power consumption. For example,
if you can use some of your electricity at night,
New high-frequency chargers that are more ef- this will reduce the day load on Eskom. This can
ficient exist. These chargers automatically detect be achieved by:
when a battery is full and reduce overheating,
overcharging and gassing. They also detect the • Swopping out batteries in such a way that
battery status and therefore continue charging battery charging can be done randomly and
after disruption at the same status as before, delayed if peaking is approached
rather than starting the programme over. Some • Using a generator to “lop off ” peaks
of the older chargers will restart the charge • Using ice bank cooling to reduce aircondition-
process on being switched on. ing loads in the day
• Using heat exchangers to warm water by
using excess heat from cooling plants.
Generators need to be oversized to achieve your power Generators
objectives A generator is an essential part of any modern
warehouse. Without a generator, it is likely that
Battery management the warehouse will not be able to service cus-
It is also possible to install battery management tomers.
systems that manage the chargers and the charge • Generators need to be oversized to achieve
process, so that the peak load is managed, and your power objectives. For example, if you need
the position in a cycle is remembered. If power to produce 200Kw to run your warehouse,
goes down, there is intelligent load shedding of you will need a 250Kw generator.
charging without affecting battery life. • Generators should not directly feed sensi-
Finally, the selection of the correct battery tech- tive equipment (such as computers). An
nologies will give savings. We now have sealed uninterrupted power supply (UPS) needs to
batteries that can be charged anywhere without be located between the generator and the
ventilation (reducing electricity consumption). sensitive kit.
There is no hydrogen gas, but they require good • Make sure the generator has sufficient diesel
chargers. Additional savings include the elimi- storage to operate effectively.
nation of flame proofing and acid resistance. • All the savings you make will require less
Sealed batteries also work better in a cooler emergency generation. Batteries for forklifts
environment. can be connected to inverters to supplement
emergency needs – especially clean power.
By installing power factor correction at your
incoming power distribution boards, you can Gary Benatar, ILS CT, Tel: (021) 421-2474, ils-ct@ils.
improve the stability and efficiency of the trans- co.za

Market Forum
Really cool
How do you keep premises cool enough to favour pro-
ductivity when doors have to be left open to allow traffic
of goods and people? The answer does not lie in mas-
sive air conditioners and fans, but in an ingenious strip
curtain designed and developed by Apex Strip Curtains.
This product has been maintaining comfortable working
environments in South Africa for over 26 years.
Apex Strip Curtains offer even more effective temperature
control through the patented Balledge design. Each strip
features the Balledge and it creates an efficient thermal
seal while still allowing individual strips to part easily
under pressure so that people and goods can move through
unhindered without being snagged or scratched. At the
same time, it prevents any air ingress into the workplace.
The feature also strengthens the strips enhancing the life
of the curtain, even in aggressive environments.
The same characteristics which prevent hot air from pouring
into the workplace in summer operate just as effectively in
winter stopping cold air from rushing in to cause undesir-
able temperature drops in the workplace.
Apex Strip Curtains, Wim Dessing, Tel: (011) 452 8723, Website: Apex Strip Curtains offer even more effective temperature control through
www.apexstrip.co.za the patented Balledge design.
Failed floor joints

Sika was specified by contractor, MCS, to re-instate 150 house because DHL are in the process of building a new
linear metres of failed floor joints at the DHL Warehouse warehouse nearby. For this new project, Sika LoadFlex
in Pretoria West. The over-worked floor joints were treated has already been specified.
with Sikafloor-156ZA Primer, Sikadur-42 ZA and LoadFlex
joint sealant in the weekend-long job. Sika South Africa (Pty) Ltd, Paul Adams, Tel: (031) 792 6500, Fax:
(031) 700 1760, Email: headoffice@za.sika.com
The joints in the DHL old warehouse floor had been sub-
jected to materials handling equipment such as pallet
jacks and forklifts and thus had spalled to such a degree
that a simple joint sealer would not suffice. The consistent
heavy traffic had created cracks below the surface, caus-
ing concrete to split and chip off. The contractors were
firstly required to cut back and die into the concrete slab,
clean the surface, and then begin priming the substrate
with Sikafloor-156ZA Primer.
Sikafloor-156ZA Primer is a two part resin used for priming
concrete prior to the application of epoxy mortar screeds,
self-levelling floor toppings and overlays. The primer is
easy to apply, solvent-free and has the capacity for high-
strength bonding. Static cracks in the floors were levelled
using Sikadur-42 ZA, a mixed fluid grout of epoxy resins
and special fillers, before the application of the primer,
to ensure optimum results.
Sikadur-42 ZA was allowed to cure, following which the
joints were re-cut and cleaned with an electric blower in
preparation for the third Sika product used, LoadFlex.
Loadflex is a hard bearing sealant designed to withstand
industrial traffic and can be used to fill interior horizon-
tal control joints as well as to repair random cracking of
concrete slabs.
Sika’s high performance products and systems were ap-
plied mainly to the high traffic area of this existing ware-

Market Forum
Extra storage
space
Through innovative
design, Spar East-
ern Cape has gained
an extra 40% stor-
age space at its 9
000m² ‘slow-mov-
ing’ off-site ware-
house in Port Eliza-
beth. Two fir for
purpose Bendi 318
articulated forklifts
from Goscor Lift
Truck Company’s
( G LTC ) E a s t e r n
Cape branch were
chosen to operate in
the narrower aisles.
These are the first
Bendi forklifts to
be used in the Spar
Group nationally. Mike Burley, Goscor Lift Truck Company, PE Branch Manager with Julian Koutsouvelis, Risk and Maintenance Manager,
GLTC Eastern Cape SPAR Eastern Cape.
branch manager
Mike Burley says the main challenge in this facility was
the utilisation of space as it is a long and narrow build-
ing. “The task was to help increase the storage capacity
and the Bendis, with their unique capability to articulate Consolidation
and operate in very narrow spaces, were a part of the Corruseal Packaging has taken delivery of five new Linde
solution,” he says. forklifts for their Durban plant, Chappy Moodley (Branch
Manager KZN) says that Corruseal has been dealing with
Spar Risk & Maintenance Manager at the facility Julian multiple forklift suppliers and wanted to consolidate and
Koutsouvelis says that apart from their ability to work in use a single supplier who would justify long term cost sav-
the facility’s narrow 1950mm aisles, the versatility of the ings. Corruseal also wanted a one stop supplier option and
Bendis with respect to their
ability to work both in- and
outside, was important in the
decision to buy them. “It’s
all very well having machines
that can work in narrow
aisles, but if you have to then
transfer to another machine
to load onto the outside ve-
hicles, the advantage would
be lost,” he says.
Mike concurs: “The Bendi’s
ability to pick indoors and load
outdoors with equal dexterity,
precludes the requirement for
two machines. It can also
load a truck straight from
the rack avoiding the double
handling of pallets. All this
significantly enhances ef-
ficiency,” he concludes
Goscor Lift Truck Company, Dar-
ryl Shafto, Tel: 0861 467 267, Fax:
(011) 976 2176, Email: lifttrucks@
goscor.co.za, Website: www.gos-
cor.co.za

Market Forum
with Linde’s long standing relationship with Corruseal and Practical seals
Lindes’ excellent service reputation in KZN, Linde was first “Aluvin’s ‘Dragon’ security seal has helped us to keep fuel
choice says Operations Manager, Anban Subramany. theft at remarkably low levels,” says Eugine Alrode depot
Linde Material Handling, Linki de Jongh –Brown, Tel: (011) 723 700, manager Nick Murugan.
Fax: (011) 574 9406, Email: linki.dejongh@linde-mh.co.za, Website:
Coming from someone who is responsible for the dispatch
www.linde-mh.co.za
of around 35 million litres of bulk fuel per month and
more than 56 loads a day from its fleet of 14 fuel trucks,
this is praise indeed.
New heights The Dragon seals are part of a well orchestrated system of
The proven ability of Mercedes-Benz to provide one-stop security that Engen Alrode has devised. “In short, the seals
solutions was the determining factor which sealed a R20- are locked on the vehicles’ bottom loading points and on
million deal to supply 15 Actros 2644 truck tractors to the top domes and the numbers are recorded when leav-
Manline Energy, a subsidiary of the Manline Group based ing our premises. The customer then, on delivery, checks
in Pietermaritzburg. that they are intact and verifies the numbers.”
The trucks were handed over to Manline Energy at their Nick adds, “Apart from our efforts to reduce theft, we
headquarters in Mkondeni. The new Actros vehicles will have driver training programmes and driver monitoring,
all be used to transport dangerous goods - flammable including breathalyser tests whenever they leave or enter
liquids, liquid petroleum gas and bulk chemicals, among our premises. “
others - for Manline Energy, a growing company within The Dragon Seal, each with a unique printed number,
the logistics group. is designed for optimal tamper-evidence. It features an
Justin Blythe, managing director of Manline Energy, says easy-to-apply metal locking mechanism and large flap
the new trucks would be on the roads immediately. “They area, making this one of the most practical seals for
arrived fully specced and ready to operate so they’ll soon high-security applications. It is widely used for airline
be hauling tankers and drop-side trailers carrying danger- cargo, bank and postal services, clinical waste manage-
ous goods throughout South Africa as well as cross border ment, hazardous material transport, courier services,
into Zambia.” cash-in-transit and other applications requiring high pull
strength. It is also available in a longer version, where
The Actros trucks add to the group’s fleet which now extra length is required.
numbers in excess of 320 units.
Vikela Aluvin, Alan Browde, Tel: (011) 825 3648, Email: admin@
Manline Energy has also recently acquired 15 flat deck aluvin.co.za, Website: www.aluvin.co.za
dangerous goods trailers which now service a niche mar-
ket. Justin forecasts further growth for Manline Energy
with plans to buy another 15 truck tractors in the new
financial year.
Mercedes Benz SA, Shirle Greig, Tel: (012) 677 1904, Fax: (012) 677
1682, Email: shirle.greig@daimler.com, Website: www.mercedes-
benzsa.co.za
Engen Alrode depot manager Nick Murugan with Aluvin’s Rory de

Nobrega

CILTSA
World First
For his continued contribution to
among others, the global supply chain
management and procurement fraterni-
ty, Dr Douglas Boateng has been elect-
ed a Fellow of the United Kingdom’s
Chartered Institute of Purchasing and
Supply (CIPS).
W
hat makes this achievement par-
ticularly noteworthy is that this
brings to six the total number of his
concurrently held fellowships with
the world’s thought leading and foremost profes-
sional bodies. Additionally, he is also a fellow of
two South African bodies; the Chartered Institute
of Logistics and Transport, and the Institute of
Directors Southern Africa.
Dr Douglas Boateng
To date Dr Boateng is still the only known sup-
ply chain strategy authority in the world to be
Board level
concurrently conferred with elected fellowships by
He says that in recognition of the growing strategic
the foremost global organisations associated with
importance of the supply chain to competitive
uplifting standards in corporate leadership and
advantage, there has been a remarkable increase
governance, supply chain management practice
in the number of board level appointments of
and education.
chief supply chain officers. “These appointees
It is an accepted fact that it is supply chains, and not are tasked with operating the entire value chain
in a synchronised fashion to sustainably achieve
companies, that compete competitive advantage, improve bottom-line
results and shareholder value.”
A fellowship is the highest honour bestowed on
And that’s not something limited to the private
a select number of professionals. The fellowship
sector, Dr Boateng continues. “By the same
recognises specialist knowledge, ethics, thought
token, governments are steadily embracing sup-
leadership, directorial and management develop-
ply chain management as a means to improve
ment, decision-making capabilities and contribu-
service delivery and create sustainable jobs for
tions to industry, government and academia.
their citizens.”
Competition
Assuming the mantle
The president and CEO of PanAvest International,
As such, Dr Boateng notes that developments in
a company he founded, Dr Boateng holds a Master
local and international businesses, coupled with
of Science degree and a Doctorate in Engineering.
increasing pressure on government to improve
He acknowledges that he is a firm believer in the
service delivery, augur well for the talented sup-
power of education and applied knowledge to
ply chain professional.
achieve competitive advantage in supply chain,
logistics and procurement management. He also “Various independent research and commentar-
believes that these functions are where the modern ies from leading authorities including McKinsey,
business can – and will – distinguish itself from Bain, BCG, Accenture and Aberdeen are clearly
its competitors. indicating that chief supply chain officers, with
their broad spectrum of skills, will increasingly
“Never since the industrial revolution has so much
assume the President and CEO mantle. Already
emphasis been placed on strategically managing
some the world’s largest corporations, including
supply chains, be they in public or private sec-
Merck, are headed by supply chain profession-
tors,” says Dr Boateng. “It is an accepted fact
als,” Dr Boateng notes.
that it is supply chains, and not companies, that
compete.” www.panavest.com

TRUCKING
Shifting Into Overdrive

From sitting behind the wheel while putting the widest range of trucks through their paces, to getting up close
and personal with Ministers and Commissioners, if you were unable to attend the RFA Convention 2010, you
missed out.
T
he RFA Convention 2010 which took partners are introducing as part of the Customs
place from 22 to 24 August at the Wild Modernisation programme.
Coast Sun was one of the best-supported
“The RFA Convention definitely succeeded in ce-
conventions held over recent years. It
menting relationships between the RFA and several
featured more than 25 speakers and panelists,
government departments,” says Gavin Kelly, the
29 sponsors and over 245 delegates from around
RFA’s Technical and Operations Manager. “We
the country.
already have good interactions with the DoT and
Making your voice heard SARS and the convention reinforced this.”
Deputy Transport Minister Jeremy Cronin delivered
Networking
the convention’s opening address, appealing for
A number of government departments and para-
closer co-operation between the private sector
statals were represented at the convention, apart
and Government.
from the DoT and SARS, including the Department
Jeremy outlined some of the recent successes of Public Enterprises (DPE), the KwaZulu-Natal
the Ministry has had when working with the Department of Transport (KZNDOT) and Transnet
private sector in the early stages of the plan- Freight Rail (TFR). Attendees had the chance
ning process. This echoed the recent creation to interact with them and have their questions
of a quarterly forum between the Department of answered.
Transport (DoT) and the RFA which will go far
There was also an opportunity for manufacturers
in ensuring better communication and consulta-
and delegates to discuss the business of trucks,
tion on issues that could affect the road freight
highlighting challenges and issues affecting their
transport industry.
operations with each other and learn from one
another’s experiences.
In what is believed to be an industry first, RFA members
had the opportunity to test drive a range of trucks Trucks put through their paces
In what is believed to be an industry first, RFA
SARS Commissioner Oupa Magashula also ad- members had the opportunity to test drive a
dressed the convention, briefing delegates on range of trucks. Vehicles from DAF, Freightliner,
trade facilitation initiatives that SARS and its Hino, Man, Mercedes-Benz, Navistar International
Jeremy Cronin Jake White Nazir Alli (left) with Frank Wagner (right)

SARS Commissioner, Oupa Magashula behind the wheel of a Freight-
line Argossy truck
Trucks, UD Trucks (Nissan Diesel), Renault, Scania and Volvo

were all available for test drives. Delegates were able to
test drive all these vehicles, enabling them to do “on-site”
comparisons and have all their questions answered by the
manufacturers.
Keeping up to date
Nazir Alli, Chief Executive of the SA National Roads Agency
(Sanral), briefed delegates on the fiercely debated toll roads.
“A number of issues still need to be clarified,” says Gavin.
“The most important of these is the exact fee that will be
charged. Thereafter, a simplified understanding of how the
fee will be structured (taking into consideration any discounts
that will be applied needs to be made available). We were
grateful to Nazir for clarifying a number of issues that have
been misunderstood.”
There was an opportunity formanufacturers and

delegates to discuss the business of trucks
Gavin also shared with delegates the latest developments

INSULATED IMPACT TRAFFIC DOOR on the points demerit system, dispelling some of the myths
and misconceptions about the proposed scheme and outlin-
ing some of the harsh, unintended consequences that the
system may have for operators. The new implementation
date for AARTO is 01 April 2011, although this date may
well be postponed due to a number of improvements and
changes that need to be done to the system.
Some of the latest developments included allowing an access
period (six months or annual) to driver and/or vehicle infor-
mation (the exact fees and procedure yet to be determined).
Aspects of driver re-training have also not been finalised.
Prasanth Mohan of the Department of Transport provided the
latest news on RTMS - an industry–led, government-supported,
voluntary, self-regulation scheme that encourages consign-
ees, consignors and road transport operators to implement
a management system (a set of standards) with outcomes
� Fully gasketed heavy duty swing door.
TM
that contribute to preserving road infrastructure, improving
� Lightweight yet robust. road safety and increasing productivity. Its focus areas are
� Withstands heavy traffic such as carts and
load optimisation, driver wellness, vehicle maintenance and
motorised man ridden vehicles.
� Impervious to moisture, acid, petroleum products, productivity. RTMS has been piloted in the forestry, sugar
salt solutions, animal fats and insects. and coal industries with extremely positive results.
APEX Award-winning green trailer
STRIP CURTAINS
AND DOORS On show was the Green Trailer from Barloworld Logistics,
which recently won the “Best Product under R1 million” in the
Green Supply Chain Awards. This interlink taut-liner-trailer
combination achieves, through some practical innovation,
significant reductions in the amount of fuel it uses, which
Designed by Atomic Design Studio. Produced by Coralynne & Associates Tel: (011) 422-1949

will result in significant environmental benefits and sav-
ings with existing transport fleets. The expected reduction
in fuel consumption on the green trailer project for the
next six months will be between 6% and 8%.
A number of government departments and

parastatals were represented at the convention
SMME mentorship
The RFA’s new Mentorship Programme is a part of the
Association’s SMME growth and development strategy
offering SMME operators an opportunity to learn from
one of our leading industry experts. The SMMEs will be
mentored by Otto van Griethuysen, who has 35 years
of technical, operational and financial experience in
the industry. This intense programme covers the entire
spectrum of what it takes to run a successful trucking
business.
The Road Freight Association (RFA), Tel: (011) 974-4399, Fax: (011)
974-4903, email: management@rfa.co.za, www.rfa.co.za

TRUCKING
Significantly More
Payload
Specialist tanker-trailer manufacture, CA Muller Fabrication, recently launched South Africa’s first fully legal
38-ton super-tanker, designed to carry Dangerous Goods (DG) and food-grade products. The tanker was com-
missioned by alcoholic beverage producer, Distell, which subcontracts its tanker hauliage to United Bulk, a
local tanker transport operation based in Vanderbijlpark.
A
ccording to United Bulk’s significant investment in sophisticated robotic
managing director, Patrick welding equipment and testing procedures to
Pols, “our mandate from ensure construction integrity of new tankers.”
Distell was to provide a
tanker capable of carrying significantly
more payload than the industry norm Express mission of lowering tare mass as
of 34-tons and built to stringent ADR much as possible
(Agreement on Dangerous Goods by
Road) specifications.”
Based outside Wellington in the Western Cape,
Robotic welding CA Muller Fabrication specialises in building cus-
“The ADR standards for road tanker tomised stainless steel tankers for both DG and
design were drafted in Europe but food-grade/beverage transporters. The challenge
extend to South Africa and apply to set by Distell and United Bulk required close
Christo Muller all DG tanker builders as stipulated in cooperation and collaboration with Sandown
the SANS code 1518,” explains Christo Commercial Vehicles (Bellville), which supplied
Muller, managing member, CA Muller Fabrica- the prime-mover, a 6x4 Freightliner Argosy 90
tion. “Complying with ADR standards requires CUM500.

TRUCKING
From scratch manager, Sandown Commercial Vehicles, Bell-

“Using a CAD 3D modelling system, we were able ville. “Our objective was to supply a prime-mover
to design each component from scratch with the that not only helped reduce overall gross vehicle
express mission of lowering tare mass as much mass (GVM) but also help reduce the vehicle’s
as possible without compromising structural overall lifecycle cost by fitting low-maintenance
integrity and safety parameters,” Christo says. components, notably, the fifth-wheel, axles, hubs
“The CAD software reflects the exact properties of and brake shoes, which all feature exceptional
all materials used to make the tanker, including service intervals and ease of servicing through
their respective weights. This allowed us to really smart design.”
push the payload envelope and proceed with the Designed for long-haul applications, the new
manufacturing process without too much risk.” tanker comes in just under the legal length re-
The tanker combination consists of a tridem-axle striction of 22 metres and is equipped with the
semitanker pulling a single-axle drawbar pup latest ABS braking technology from Wabco. The
tanker. “We were able to shave a massive 900kg Argosy features Autoshift automatic transmission
off the tanker using Domex steel and lightweight and a sleeper cab with all the creature comforts
fibreglass and polyethylene cladding materials,” to keep driver-fatigue at bay.
adds Christo.
Industry first
Industry-first with regard to payload capacity and full It has a tare mass of 9 080kg, while the unladen
compliance with international DG safety regulations semi-tanker weighs in at 7020kg and the pup
tanker carrying a tare mass of 1 940kg. “The
combined effort that has gone into this new tanker
Considerably lighter
has allowed us to provide an unprecedented,
“The SAF-Holland axles carry a full off-road spec
fully-legal 38-ton payload, two tons more than
and are each 21kg lighter than competitor de-
was initially anticipated,” says Christo.
rivatives. We opted for super-single Bridgestone
tyres on Speedline aluminium rims from BPW, “We’re extremely pleased at the outcome of all
which cut a further 500kg off the total tanker the hard work that’s gone into this tanker. Distell
tare mass. The air suspension units from SAF- is now serviced by a benchmark vehicle that
Holland are also considerably lighter than steel will assist in lowering CPK (cost per kilometre)
mechanical options.” while reducing the number of trucks on the road.
It will also relieve on-site congestion and help
Overall lifestyle cost streamline our overall transport function,” con-
The Freightliner Argosy truck-tractor boasts a cludes Distell’s distribution planning manager,
class-leading power-to-weight ratio and further Helmuth Biesenbach.
tare-mass reductions were achieved via the fitment
of aluminium rims and a lightweight SAF-Holland CA Muller Fabrication, Christo Muller, Cell: 082 378 3994,
fifth-wheel, explains Mark Croxon, brand centre Email: christo@camuller.co.za, http://camuller.co.za

COLLABORATION
Damaged Relationships
with Suppliers
A clear majority of leading industrial companies still see cost as their main priority when managing supply
chains, despite emerging evidence that excessive focus on cost has damaged relationships, and that new
approaches to supply chain management are gaining hold among leaders in the field, a survey from KPMG
International has found.
T
he survey, entitled Glob- New methods
al Manufacturing Outlook The survey also showed that many of the world’s
– Relationships, Risk and leading companies are applying new methods of
Reach, polled nearly 200 supply chain management designed to weather
senior-level executives from the an economic climate where various forms of risk
aerospace, metals, engineering and have become the norm. These new approaches
conglomerates sectors across North – more strategic than tactical – could well emerge
America, Western Europe, Asia-Pa- as best practices.
cific and Africa to understand how “The fact that nearly 40 percent of respondents
their supply chains were changing acknowledge that a focus on cost has done dam-
as a result of prevailing economic age to relationships with suppliers is an alarming
uncertainty. statistic,” says Jeff Dobbs, Global Head of Diver-
It revealed that cost still reigns sified Industrials for KPMG. “Those businesses
among 66 percent of respondents that continue to follow the traditional ‘low cost
as the leading consideration of or bust’ models in supply chain management are
their supply chain models. But 63 at risk of losing a foothold in the market.”
percent of respondents agreed that
New strategies
more attention should be paid to
Gavin Maile In interviews with bellwether companies such as
non-financial elements of the supply chain and
Philips, Leggett and Platt, Rolls-Royce, US Steel
38 percent said that an acute focus on cost has
and Tata Chemicals it becomes clear that new
harmed relationships with suppliers.
supply chain strategies are emerging. The survey
Designed to weather an economic climate where various revealed that some companies are forging stron-
forms of risk have become the norm ger relationships and engaging in collaborative

COLLABORATION
innovation with suppliers; strategically investing jobs, such as production of goods involving little
in key suppliers or bringing parts of the supply IP, assembly, and warehousing. Companies like
chain back in-house; and applying a mix of both Philips, on the other hand, which has several
regional and global supply sources to achieve the joint innovation projects and patents there, are
best combination of speed, quality and cost. benefiting from China’s increasingly strong and
“It used to be that sourcing decisions rested on innovative technological base.
routine considerations,” Jeff says, “like who could “A progressive way of thinking contends that
make the best component for the best price. This companies should be willing to look outside
approach worked when there was little variability their businesses for potential IP and be willing
in input costs. Now, leading supply chain strate- to license out any IP not core to their business,”
gies must involve detailed scenario modeling to Tim says.
determine the appropriate response to a host of
Sourcing geography
volatile elements. The most successful companies
China remains the most common sourcing location
will be those who build adaptability and flexibility
among 35 percent of respondents. When asked
into their supply chains.”
where respondents expect to increase sourcing
More important than the duration is the depth of the over the next two years, China also ranked first
(39 percent), with India not far behind, at 26
partnerships
percent. Cost remains the predominant decid-
ing factor.
Deeper Relationships
Having stronger and deeper relationships is criti- Yet some top performers are thinking beyond sourc-
cal among leading companies with 53 percent of ing locations for low-cost alone and considering
respondents expecting to enter into more long-term ways to align supply chains and their inherent
contracts but with fewer suppliers. Cost remains geography to other key considerations such as the
the key driver for much of the collaboration. business model, market dynamics, local talent
pools, customer profiles and demand.
More important than the duration is the depth
of the partnerships. Over half of the respondents According to Gavin Maile, KPMG Africa Indus-
plan to collaborate more closely with suppliers trial, Automotive & Pharmaceutical Partner, “The
on product innovation and development, research financial crisis dealt a blow that sent shockwaves
and development (R&D), and cost reduction. Such through the industry, but those same forces
collaboration appears to be a preferred approach are the catalysts that are helping organisations
among the top performers. create more dynamic, resilient and responsive
supply chains. It’s incumbent upon businesses
“Viewing the supplier relationship as a strategic
to embrace new ways to use the supply chain to
partnership helps top performers ensure certainty
future-proof their business models.”
of supply, improve demand planning and fine-
tune the mechanism for getting product to the KPMG, Gavin Maile, Tel: 011 647 7165, Email: gavin.
customer,” says Tim Waters, Director for KPMG’s maile@kpmg.co.za
Performance and Technology Advisory practice
in the UK.
New perspectives on risk management
Top performers are also pav-
ing the way in cultivating
relationships and controlling
risk when it comes to R&D
and sharing intellectual
property (IP).
While 26 percent of survey
respondents see IP protec-
tion as one of their biggest
supply chain risk concerns
over the next two years,
cooperative innovation on
IP can be very lucrative with
the proper risk management
in place.
China presents a particular
IP challenge and respon-
dents continue to look to that
country largely for low-end

PHARMACEUTICAL
Dispensing with Politics

Everyone knows that filling a prescription takes time, effort areas to provide drugs for Aids and TB patients,”
and patience. Standing in a queue when you’re already feel- John tells us. “The idea was to offer a means by
ing lousy is grueling enough without the added complication which people could easily access their medica-
of out of stock items. For the pharmacists behind the counter, tions, and therefore find it easier to continue
the problem is a daily dilemma. treatment.”
Ran into resistance when trying to work
H
owever, through modern technology
around Government’s existing
and clever design Storsure has devised pharmaceutical handling systems
the Apostore automated pharmaceuti-
cal dispenser. When “Supply Chain Interrupted treatment protocols are a major hurdle
Today” meets up with John Meiring, managing in the treatment of HIV/Aids and Tuberculosis and
director of Storsure, we can’t help being caught the problem has resulted in increasingly resistant
up in his enthusiasm about the product. strains of these deadly viruses. Patients often
The Apostore packs the shelves and dispenses medication so people don’t have to
Saving lives
“We’ve created a robotic, fully functional phar- discontinue medication when unable to travel
macy dispenser,” he begins. “Pharmaceuticals long distances to clinics, or because of extremely
are placed within it, sorted and dispensed when lengthy waiting periods for drugs.
necessary.” Originally touted as a solution to In bulk
some of the country’s health issues, the project “The problem is that the government buys its
ran into resistance when trying to work around drugs in bulk in bags. An automated sorting sys-
Government’s existing pharmaceutical handling tem requires items to be in containers if they are
systems. to be efficiently handled,” John goes on. While
“We wanted to situate our dispensers in outlying ‘the powers that be’ haven’t yet seen the need to

PHARMACEUTICAL
cies are able to lease dispensers through UTi,

who also supplies the medications. In addition
to the element of convenience, shrinkages and
expired medication now become the problem of
UTi,” John explains.
“The pharmacist can confidently expect medica-
tions to be available whenever they’re needed.
As drugs are dispensed, they’re invoiced out by
UTi, and the pharmacy only pays for the items
sold. UTi benefits because the process provides
a more reliable payment scenario than they may
have previously experienced,” he says, adding
that the installation process is relatively uncom-
plicated.
This might involve a whole trip for just
one pack
No worries
John Meiring, Storsure “We go in and design a dispenser, which is the
part I love, particularly when it’s a challenging
setup,” he grins. “Then we set up their software
adapt, others have recognised the value of the
and manage it. UTi’s countrywide transport system
dispenser, most notably, UTi.
ensures prompt deliveries wherever the client is
Good medicine located. UTi also manages stock control, replenish-
“IHD is the largest medical dispenser in South ing medication and removing expired stock without
Africa and is owned by UTi. We’ve entered into the pharmacist having to worry about it.
an arrangement whereby hospitals and pharma- “Although Uti provides the bulk of the products,
LindeMaterialHandling
/6XSSO\&KDLQ$GYHUW6HSWLQGG 30

PHARMACEUTICAL
Dispensers are custom-

designed and a variety of
accessories is available
the system is not an autocratic

one. UTI will provide other
brands if requested and will
even source unusual requests
if the pharmacist is having
trouble locating an item. In
these instances, there may be
a small rental allocated to the
space used in the dispenser, but
this is a nominal sum.”
No headaches
The system may seem to leave Storsure’s Apostore
a lot of the headaches on UTi’s automatic pharmacy can be
doorstep but John assures us placed anywhere
that the company is happy to
handle this. “Previously you’d have pharmacists
it will be immediately visible whereas normally
ordering medication as they required it. In some
shrinkage is only discovered much later.
cases this might involve a whole trip for just one
pack. The new system reduces visits per phar- “Cameras offer additional security, while provid-
macy, reducing mileage and minimising impact ing an interactive element that allows patients to
on the environment.” watch the internal workings of the equipment as
their prescriptions are dispensed. The action is
By determining what products a pharmacy may
visible on a screen over the dispensing counter,
require on a regular basis, UTi is able to maintain
and some pharmacists have made it even more
optimum stock levels of these items without the
entertaining by incorporating medical advice or
pharmacist having to manage stock. Special items
news bulletins.”
can be ordered over and above regular deliveries
when necessary. Healthy business
Since the system is automated, the business owner The machine stands about 2m high depending on
doesn’t even need to know when deliveries are the throughput and can be made bigger if needed.
scheduled. UTi does the stock check, delivers to Redundancy is also built in. “A system of this
the dispenser whether it’s at 2am or 4pm, all the nature can save up to a third of the space previ-
medication is stored and placed correctly. ously used for storing medication, while improved
efficiency can allow businesses to expand by 40%
Robo-Doc without having to employ more people.
“The facility is fully robotic,” he elaborates. “Items
“Growth is almost instant,” John enthuses.
are entered and tracked using barcodes and if the
“Customers are attracted by the efficiency of the
product has no code it assigns one. When a UTi
process and the lack of queues. Time saved on
employee arrives to load the machine he identifies
the dispensing process can contribute to expedite
himself biometrically or via pin. Once the iden-
verification of Medical Aid details.”
tification is done, he loads the medication and
the system checks it. If there are any shortages With pharmacies under increasing financial pres-

PHARMACEUTICAL
sure due to restrictions on dispensing fees and fewer pharmacists,

many are left running at a loss. “The irony of running a pharmacy
is that very often medications become their most expensive as-
set with the lowest return. Even a small pharmacy may have to
hold up to five million rand’s worth of stock at a time.”
Patients often discontinue medication when unable

to travel long distances
Automated medication sorting bucket
Ahead of its time
Acknowledging that some stores stock non-medical items,
the dispenser is also able to hold non-standard items such as
expensive perfumes and cosmetics. “One of our clients even
keeps his cashbox and keys in his,” John laughs. “Obviously
it’s not suitable for goods such as nappies, for instance, but
any item of value that might be stocked by a pharmacy can be
safely kept in the dispenser.
“I have been passionate about this for eight years and I’m so
pleased that UTi has seen the potential of the system. It is so
fulfilling to know they had confidence in us and the working
relationship has been fantastic,” John concludes. “I have no
doubt that others will come on board and that eventually we’ll
achieve our goal of helping patients receive life-saving medicines.
Up until now, we’ve simply been ahead of our time.”
Stock is loaded, logged and packed automatically

John Meiring, Storsure, Tel. 011 468 1268. Fax. 0(86 612 8582). Email. john.
meiring@storsure.co.za. Website. www.storsure.co.za

SOFTWARE
‘Ninjas’ at
Integration
EOH Global Application Solutions, MD Haydn Pinnell
predicts that software test automation will soon go from
‘nice to have’ to ‘absolutely necessary’ for distributed
quality assurance teams to succeed. In retrospect, he
suggests that the “wall will fall” and testers will become
an integrated part with development teams and, quality
will “finally get the respect it deserves”.
I
t can be expected that all quality The core competen-
assurance professionals will have cies of functional
to have automation exposure or testing, load testing
experience on frameworks that and test-case-gen-
support versatility and rapid changes eration will become
and, enable collaboration and efficiency pivotal for vendors,
in an interactive environment. while existing solu-
tions such as testing
Vigilance frameworks, develop-
Haydn Pinnell Ezanne Grobler
Ezanne Grobler, general manager, Global
ment approaches and
Testing Service (GTS), EOH Global Application
additional technologies will be leveraged and in-
Solutions’ independent specialist testing service,
corporated on a much higher level than before.
says that quality assurance professionals will
need to become ‘ninjas’ at integration. “Testers Lessons learnt
should also have technical testing experience, Better integration of test management solutions
be vigilant, and understand the latest testing and business management solutions can also
trends.” be expected, as it has played a huge part of the
functionality of these solutions and, offers great
Who knows what we will be able to do in the near potential in future implementation as it has led
to many lessons learnt in the past.
future to minimise the critical failures of business
applications and software? Haydn says that a highly efficient testing service can
be delivered to the larger enterprises by establish-
ing a Test Centre of Excellence (TCoE), which is a
She says that testing has evolved over the years framework, comprising of strategic assets focusing
from ‘a necessary evil’ to a ‘value enhancer’; on process, people and technology, which enables
however, many companies are still at various better governing of the testing organisation. He
maturity stages of this evolution. says the EOH managed service-operating model,
for example, allows a small management team to
Eliminate human intervention work at a customer side. The focus of the team is
In the future, Ezanne says the focus will be on
to develop the overall test management approach
model-based testing tools for automated generation
for each project with responsibility for the defini-
of test cases from business requirements. The
tion of the test approach, resource requirements
trend will be to eliminate human intervention,
and test planning.
reduce cost and time to market. The challenge
to do this however, will be the capability to build Near shore
an integrated tool for automated test execution “The core script development and execution is
during the first test run. delivered remotely by the near shore delivery

SOFTWARE
team. As an integral part of the project definition be able to do in the near future to minimise, or
phase of each project, the team is onshore for a eliminate the critical failures of business appli-
short period in order to understand the projects cations and software? By reducing business risk
specific challenges, approach, deliverables and and endangerment of time to market with GTS
timescales before returning to the test centre. solutions, companies will find that their costs
This model allows our customer to manage their are reduced significantly and the organisation
test schedule effectively and efficiently, while will successfully be able to manage their ap-
also ensuring that they have sufficient capacity plication performance and availability lifecycle,”
to deal with high volume resource demands,” he concludes.
he adds. www.eoh.co.za
The TCoE has clearly established goals,
well-defined processes, a governance
mechanism, multi-disciplined skill sets and
common tools and technology. Within the
last year, Haydn says GTS has delivered a
number of key benefits to its customers:
• Automated regression test cycles down
from a calendar month to two full cycles a
week
• Significant reduction in the length of
functional test cycles
• Significant cost reduction on overall test
spend
Who knows?
“With the advancement of application testing
in South Africa, who knows what we will

Market Forum
On every bag CECM was established after concluding a deal with Chev-
AfriSam has developed a relative CO 2 footprint system ron, the brand manufacturers and distributors of Caltex
which calculates the CO 2 associated with the production products in South Africa, for the transport and distribution
of every kg of cement of each main AfriSam cement type of all fuels and lubricants throughout the rural Eastern
from its various production facilities. Cape in December 2005. Initially the company supplied
fuel to 35 Caltex service stations and relied on existing
The model, developed by AfriSam, not only takes specific
Chevron transporters for their distribution, as well as third
types of direct and indirect emissions into account, but also
party service providers.
weighs up the effects of interplant transportation. Emission
calculations and summations are based on a “cradle to However, CECM wanted more control over the trans-
gate” approach, where the “gate” is the factory gate. portation function, and needed to find a partner with
the highest SHEQ standards, fuel experience as well as
The actual value of CO 2 associated with manufacturing and
reliability, and as importantly in these uncertain times, a
transporting each individual product will soon be printed on
strong balance sheet.
all AfriSam cement bags, and this will be clearly visible to
the end user. The bag will carry a CO 2 barometer insignia With its extensive network, more than 50 years experi-
indicating emissions in comparison to the world average of ence in the transport industry and impressive SHEQ and
890g/kg. Characteristics of low CO 2 cement could include B-BBEE scores Cargo Carriers was identified as the ideal
low fuel consumption, high mineral component extension candidate.
(fly ash and GGBS or a combination thereof within SABS “Negotiations led to the signing of a 50-50 equity deal,
standard requirements) and low clinker content. and Khanya Carriers was born. Management of the new
Victor Bouguenon, AfriSam, Tel: (011) 670-5520, www.afrisam.com company falls under the control of Cargo Carriers, and
operations currently include the use of eight dedicated
bulk tankers to service the area,” said Cargo Carriers Chief
Operating Officer, Johan Kruger.
“This equity partnership allows us to further expand our
footprint in the fuel industry and opens up opportunities
for us to partner CECM in their expansion, and to work
with other fuel companies interested in contracting out
their last mile distribution,” Johan concludes.
Cargo Carriers, Johan Kruger, Website: www.cargocarriers.co.za
Making its mark

Port operator Transnet Port Terminals (TPT) says the creation
of an additional 100m of berth space over the next few
months will allow the Ngqura Container Terminal (NCT)
to simultaneously berth two large vessels of 305m each
in length. Currently NCT is able to berth one 305m vessel
and one 275m vessel at the same time. The expansion is
scheduled for completion by July 2011.
There is also the possibility of dredging of the quayside
so that two additional berths can be introduced. This will
increase the existing 800 000 TEU capacity to two million
TEUs and make the terminal a four-berth facility.
Best year ever
2010 is proving to be a year of high growth for JSE-listed TPT chief operating officer Nosipho Damasane says,
supply chain and logistics service provider Cargo Carriers. “Volumes have far outstripped projections during the
This, in a year where many in the logistics industry are container terminal’s first year of operation. Year to date
still reeling from the recession, Cargo Carriers is having figures show 259 vessels handled since October 2009
its best “new business year” for 20 years. Among the with an average of 1,100 TEUs each.”
several new business contracts the company has secured TPT acting chief executive Karl Socikwa says the volumes
is a 50-50 equity deal with Caltex Eastern Cape Marketer proved the success of Transnet’s strategy of positioning
(CECM) to establish a new transportation business aptly the port as a major transhipment hub for the region. “Our
named Khanya Carriers (Khanya means to shine) for the strategy from the outset has been to position the port as
distribution of Caltex fuels and lubricants into the rural a world class transhipment hub – the first of its kind in
Eastern Cape. Southern Africa – as a means of growing the economy and

Market Forum
bringing additional trade to our shores.”
Karl says Transnet shares the bullish business sentiment Subscription
and projections of its anchor customers at Ngqura, the
two shipping lines MSC and MOL SA. Both have been
instrumental in ramping up performance at the terminal, Please fax us if you wish to subscribe to “Supply Chain Today” at
directing how operations are deployed, and assisting R375,00 (incl postage and VAT) per year; R875,00 per year for Af-
Transnet with planning and training. rica/Overseas. We will post you an invoice on receipt of your fax.
The lines were together running 8 line services per week
through Ngqura. PROMECH PUBLISHING Fax No: (011) 781-1403
Transnet Port Terminals, Sindie Ndwalaza, Email: sindie.ndwalaza@

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On the Move Index to Advertisers

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Do you manufacture Manufacture Manufacture Manufacture Supply Supply Manufacture Manufacture

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Carton flow system

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Its First Foray

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Electronic scorecard He was also involved with Hultrans’ cane operations

Doubled picking performance

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It is, however, possible to design buildings that are com- Ventilation

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and exploding bulbs are one of the most common

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mission network. Power factor correction (PFC)

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Failed floor joints

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Engen Alrode depot manager Nick Murugan with Aluvin’s Rory de

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Shifting Into Overdrive

Supply Chain Today Nov/Dec 2010 23

Trucks, UD Trucks (Nissan Diesel), Renault, Scania and Volvo

There was an opportunity formanufacturers and

Gavin also shared with delegates the latest developments

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A number of government departments and

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From scratch manager, Sandown Commercial Vehicles, Bell-

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Dispensing with Politics

Ran into resistance when trying to work

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/6XSSO\&KDLQ$GYHUW6HSWLQGG 30