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Supply Chain Today March 2010 www.sapics.org.za
Mar 2010
Contents
Featured on the cover Cleaning Equipment Green
4 A Clean Sweep 31 Comply or Explain
Nissan 7 Ideal for Maintenance
www.nissandiesel.co.za
Standards
Racking and Shelving 35 Thirty New Entries
9 Working Flat Out
Market Forum — Supply
Palletising 37 Market Forum
13 Three Options
Endorsing Bodies
Market Forum — Unit Afritag (div of Smart Card Society)
17 Market Forum CGCSA (Consumer Goods Council of
SA)
Cover Story CILTSA (Chartered Institute of
21 Expanding Across Southern Africa
Logistics & Transport: SA)
Trucking SAEPA (SA Express Parcel
23 Promise of Stronger 2010 Truck Association)
Sales SAPICS (The Association for
Operations Management
Software of Southern Africa)
25 Credit Card Protection? also mailed to:
27 A Viable Option CSCMP (Council of Supply Chain
Logistics Management Professionals)
29 It’s Not All About Price
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
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While every effort is made to ensure accurate reproduc-
PROMECH PUBLISHING Tarina Kriel
tion, the editor, authors, publishers and their employees
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.
A Clean Sweep
Although a good old Hoover may get the job done when “All these factors need to be considered to ensure
cleaning an office or small retail outlet, keeping a the correct machine is selected for the job. “Our
warehouse dirt-free takes a little more elbow grease. Issues 8300 series sweeper/scrubbers used by Shoprite
such as floor types, gradient, safety requirements, square me- DC have racked up 20 000 hours over seven years
terage, dirt type and hazardous materials all impact the type of use, a testament to their impressive reliability.
of cleaning protocols used. Ultimately, the size of the facility does not nec-
essarily determine the size of the machine. This
F
is set by the frequency and standard of cleaning
or this reason, Ricky Bodmer, MD, and required within the environment.”
Alex Theodoridis National Sales Manager
at Goscor Cleaning Equipment, both em- On the floor
phasise the importance of doing a site While Goscor’s products are used in a wide range
survey before recommending a cleaning system of commercial and industrial applications, Alex
or products for a particular warehouse. “Let’s admits they have enjoyed high market share in
face it, the numbers for this type of machinery the warehousing sector, with companies such as
are higher than for a simple vacuum cleaner,” Spar, Supergroup, DHL, Shoprite/Checkers and
says Ricky, referring to pricing. Woolworths using their equipment. “Pick n Pay
just ordered R1,8 million worth of equipment for
It’s an industry first in terms of sweepers and it’s stood the Perishables section in one of their centres,”
up to some pretty heavy trials he tells us, raising the issue of specialised equip-
ment for specific areas.
“The survey is imperative to provide the right
information such as the type of dirt (size, volume, “Not every machine can handle every environ-
density) to be cleaned. The survey will also reveal ment,” Ricky continues. “Freezer units, which are
information pertaining to the floor type, coverage prone to ice build-up due to condensation, need
frequency, and time constraints from a produc- special attention since operating in temperatures
tivity perspective, power source, maintenance around the -30°C mark can pose challenges. Apart
requirements and environmental impact. from trouble running machinery, the cleaning
solutions literally freeze before they can be used.
Some clients will try to get around the problem
by shovelling the ice off the floors, but end up
damaging the surface.”
Dust busters
The real trick to a clean environment is not merely
sweeping dirt from one area to another, but
actually removing it entirely. “A filtered vacuum
system is necessary if you want to control dust
properly,” says Alex. “The dust controlled system
will ensure that .03 of micron is contained within
the machine and the air that passes through the
system is clean and dust free, obviates the need
for cleaning dust off products later, which is es-
sentially a double handling of dirt.”
The company has a number of cleaning products
that achieve this with considerable efficiency, a
couple of which are new on the market. “Our
cyclone rotates the air and dust through the
system, changing the direction and the airflow.
70% of the dust is re-directed back to the hopper
reducing the amount of dust accumulating on the
canister filter,” Ricky continues. “It’s an industry
first in terms of sweepers and it’s stood up to
some pretty heavy trials. We just tested it in a
cement plant and it was very successful.”
Combination station
The team is also particularly proud of its new
Overlooked
“Although there’s a lot of attention
given to the chemicals used in cleaning
products, very often the type of mate-
rial being removed is overlooked,” he
continues. “Obviously hazardous waste
gets special treatment, but people
sometimes disregard the fact that
they’re pouring oils and chemicals into
our water system when they dispose
of dirty water after cleaning the floor
of an industrial facility.”
Currently available as a hand-sprayer,
the unit is currently available as an add-
on to other cleaning equipment, allow-
ing it to operate either with chemicals
or without. The pair admit that while
it isn’t cheap the saving in cleaning
fluids make it a cost-effective option.
“The water has a sanitising quality, and
eliminates bacteria, mould and fungus,
making it useful in areas where food
hygiene is vital. The hand-held unit is
particularly useful in restaurants and
at check-out tills to clean surfaces,”
says Ricky.
Mercedes-Benz South Africa (Pty) LTD is an authorised distributor of MITSUBISHI FUSO trucks.
Supply Chain Today March 2010
RACKING AND SHELVING
H
owever, when “Supply Chain Today” warehouse facilities are taking a smaller footprint
speaks to Peter Norton, Director, and while offering the same storage space. They’re
Mike Stanley, Sales Manager at Con- doing this by growing upwards. This means higher
crete Laser Flooring (CLF), safe forklift racking with more sophisticated equipment for
operation is not their only concern. “Floors take a materials handling.” When equipped with extra
hammering at the best of times,” says Peter. “With length masts, reach forks and solid polyurethane
industrial space becoming increasingly scarce, wheels, many of these can weigh more than a
standard forklift, putting additional
point load stresses on the floor.
Raising the roof
“Our work takes two forms,” explains
Peter. “Firstly we work on new instal-
lations using laser screed flooring ma-
chines calibrated to achieve excellent
levels and flatness. We had a boom in
this type of work a couple of years ago
when there was a big move to build
new distribution centres in the FMCG
sector. We did floors for Pick ‘n Pay,
Shoprite/Checkers, Woolworths and a
string of others.
Concrete Laser Flooring’s system ensures superflat floors for maximum warehouse efficiency
A damaged joint in need of repair Builders are installing floors that may
have been acceptable 20 years ago, but
now they’re not good enough
Three Options
In many cases, a corrugated carton that has been correctly finished or while it is being transported.
designed and specified for a particular product can fail at the Brick stacking
palletisation stage if incorrect methods are used. Using the brick stacking method, each successive
T
layer of cartons is swung around, allowing the
here are basically three methods of pal- cartons to bind together. The advantage of brick
letizing a carton. These include column stacking is that when the pallet is finished, the
stacking, brick stacking and half column load is stable and does not have a tendency to
or half-brick stacking. Each has its own open outwards.
set of considerations to bear in mind. The disadvantage is that the compression strength
Column stacking of the cartons is reduced by as much as 40%.
Using the column stacking method, the cartons The reason for this is that the weight of the car-
are placed directly on top of each other. Each ton above pushes into a non-load bearing area
layer of successive cartons is placed squarely on of the carton below, causing this carton to bulge
top of the carton below. The advantage of this or even collapse under the weight.
method is compression strength. A pallet that has Brick stacking cannot be used where the carton
been built in this way ensures that the weight features stacking tabs and other such elements.
of the cartons above are transferred directly to They will be damaged by the brick stacking process
the load bearing area of the carton below it - the and not function correctly. Additionally, cartons
corners. that have stacking tabs are designed specifically
to be column stacked. The stacking tabs are used
Normally a good place to start is with a half/half split in
to increase the stability of the pallet load.
the pallet
Half and half
The disadvantage of this method is that columns Both colum and brick stacking have advantages
of cartons may lean once the pallet has been and disadvantages. However, it is possible to
combine the two methods on
one pallet into a half-column/
half-brick style.
By column stacking the bottom
layers of the pallet (normally
at least the bottom half of the
pallet) it is possible to maximise
the compression strength of
the cartons at the base of the
pallet - where the most weight
is focused.
By brick stacking the top layers
of the pallet (normally the top
half) you increase the overall
stability of the pallet. The ratio
of column- or brick-stacked
cartons can be altered according
to the specific demands of the
product. Normally a good place
to start is with a half/half split
in the pallet.
This method cannot be used
where the carton features stack-
ing tabs and other such features.
They will be damaged by the
brick stacking process and not
function correctly.
Increasing effectiveness
Depending on the specific ap-
plication of the carton, it is possible to make use are experiencing palletisation problems there are
of a number of pallet stability devices to increase various products to increase the pallet stability.
the overall effectiveness of the pallet load. If you Angle boards are stiffened strips of paper or plastic
that are placed on the edges of the pallet. Using
strapping (normally nylon-based strapping), you
can tighten the nylon strapping around the pal-
let. The strapping has the effect of pulling the
pallet-load together, forming a solid block. The
angle boards are used to stop the nylon strapping
from cutting into, or damaging, the corrugated
cartons and their contents.
Securing strips
Securing strips are pieces of corrugated board
or reinforced paper that are placed between the
layers of a pallet. These securing strips can only
be used where a carton has stacking tabs as part
of the design. The securing strip has cut-outs that
locate exactly over the stacking tabs of the carton,
according to a specific pallet pattern layout.
These strips or sheets have the effect of pulling
the layers of cartons together at strategic points
in the pallet thereby increasing the overall stabil-
ity of the carton.
There are various products to increase
the pallet stability
Most types of shrink-wrap plastic have a higher
slip-coefficient than that of corrugated board.
This means that two pieces of plastic are less
likely to slip off each other than two pieces of
corrugated board, making it more difficult for the
cartons to slip off the pallet. Be careful, though,
about specific environmental considerations, such
as cartons intended for export. Many countries
do not accept plastic easily. Also, shrink-wrap-
ping of cartons requires heat tunnels, which are
expensive.
Binding together
Many different products are available for stretch
wrapping a pallet. Essentially, you are wrapping
the pallet load in a stretchable plastic shroud,
which has the effect of binding the pallet together.
These products are expensive as well as being
an environmental concern. Consider using angle
boards and nylon strapping first – it’s generally
cheaper.
There are a number of products available such
as pressure-sensitive glues that can be applied
to the top of a carton. When another carton is
placed on top of the carton with glue on it, the
glue is activated, bonding the cartons together.
There are specialised types of glue available with
different strength characteristics, but the most
important feature of these glues is that they
have high shear strength (sideways) and a low
bonding strength (lifting the carton upwards).
These glues always require an applicator of some
sort, which can cost tens of thousands of Rand.
So glue generally more suitable for high speed
production lines.
Carton styles
There are thousands of corrugated carton de-
signs from which you can choose. Many of these
cartons are standard (such as a regular slotted
carton - Rsc) which are the most cost effective
packaging options.
However, there are also just as many highly spe-
cialised corrugated cartons which are specifically
designed for specific functions, like wrap-arounds,
machine assembled cartons, and trays.
To choose the most appropriate design, the best
does this, the wood fibres (which are hollow,
method is to first ascertain the requirements,
like macaroni), will absorb the humidity from
namely: what is the compression strength require-
the environment, and through capillary action,
ment of the corrugated carton; what protection
the moisture spread throughout the piece of pa-
does the product require; what special features
per. This has the effect of weakening the bonds
are required such as hand holes, ventilation and
between the paper fibres, causing the strength
stacking aids, to make the carton easier to use;
of the carton to be weakened. The opposite is
what are the critical dimensions required; and
also true. Should a carton be exposed to an
what methods will be used to erect, fill and seal
environment where the humidity is lower, the
the carton?
carton will begin to release the excess moisture
Humidity and moisture in its wood fibres.
There are numerous studies that have been con- These glues always require an applicator of some sort,
ducted over the years on the effect of moisture,
which can cost tens of thousands of Rand
humidity and temperature have on the perfor-
mance of corrugated cartons. Moisture refers to The speed of the transition between different
direct moisture or water, such as may be found environments is also critical to the performance of
in a dairy, where water is used to wash up in a corrugated carton. If the environment changes
the production process. When a piece of paper slowly, the carton will be given time to adjust
comes into direct contact with water, the fibres to these changes slowly. However, should these
of the paper are loosened, causing the strength
of the paper to deteriorate.
Disintegration is not limited to water only. In
deep freeze cold rooms, it is common for ice to
form on corrugated cartons. The carton will
not deteriorate immediately, but should
the carton be moved into a warmer
environment, where the ice melts, the
paper fibres will be loosened.
Humidity is more commonly referred to as
relative humidity (RH). Relative humid-
ity refers to the percentage of water in
a specified volume of air. Basic sci-
ence dictates that as air is warmed, it
expands. The converse is also true – as
air is cooled, it contracts.
Therefore, as the temperature of the air
changes, the volume of the air either
increases or decreases. Because relative
humidity is expressed as a percentage
of the volume of air, this means that
as the temperature changes, so the
relative humidity does as well.
Vice versa
This is particularly important in the performance
of corrugated cartons. A corrugated carton will
assume the same temperature and relative hu-
midity as the surrounding environment. As it
Bulk warehouse
It was a case of “local is lekker” when Transnet Port Local installation
Terminals (TPT) chose local heavy machinery manufac- EM Shelving Storage Solutions with their 20 years expe-
turer, Desmond Equipment SA, to supply a R1.1 million rience in the racking field have supplied, delivered and
front-end loader for the Agriport terminal in Durban. The installed another drive-in racking project to International
Dezzi 2300 articulated front end loader with 5m³ bucket standards.
was delivered to the terminal recently, and will be used
Drive-in racking can utilise up to 80% of the available floor
at Agriport’s new 80 000 tonne bulk warehouse.
space and 75% of the volume, taking into consideration
The new warehouse will be used for the storage of soya airflow and the aisle space for loading.
meal, most of which enters the country via Durban.
This system is still the most cost effective storage system
Ernest Bell, Commercial Specialist in TPT’s Procurement available for bulk storage and E.M Shelving Storage Solu-
Department, said the supplier’s delivery within tight tions have further developed and perfected this system to
deadlines bore testament to the capacity of local manufac- international standards.
turers. “Our technical managers have already visited the
This installation of 800 pallet positions of drive-in rack-
manufacturing plant on two separate occasions and have
Pictured onboard the new Dezzi 2300 front end loader: (Left to right): Sipho Dube, Fleet Manager of TPT’s Agriport; 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
See http://www.cips.org/southernafrica/conference/
or email pvision@netactive.co.za
or telephone ProVision Marketing +27 (0)827 787649 (08.00 – 17.00)
Expanding Across
Southern Africa
Nissan Diesel South Africa, one of the leading truck manu-
facturers in the country, will change its name to UD Trucks peak during the last quarter of 2010, whereafter
Southern Africa later this year. the dealer network roll-out will be completed
within a period of eight months.
A
“We believe that evolving from Nissan Diesel into
t the same time, its parent company, UD Trucks provides the company with a clear
the Nissan Diesel Motor Company Ltd vision and dedicated path going into the future
in Japan, will be renamed as the UD - matching customer business insight with our
Trucks Corporation. As the UD Truck global expertise,” says Johan Richards, chief
Corporation, the company will also remain part executive of Nissan Diesel South Africa.
of the world’s second biggest trucking group.
Fully evolve
Locally, the new name and brand campaign will
The company currently has more than 50 deal-
Take responsibility for the company’s activities in the ers and service agents in Southern Africa, with
a dedicated manufacturing facility situated at
entire Southern African region
The new UD 300WF which was recently released to the South African market
their head office in Rosslyn, Pretoria. “Part of As a result, the company remains committed to
the company’s vision will continue to focus on provide products and services that are not only of
Ultimate Dependability: a message that has over world-class standards, but are also appropriately
time become part of the company’s DNA and suitable to the local environment and operating
the way our customers relate to our services conditions.
and products.”
Twenty countries
Johan continues by saing that the brand change As the country’s top truck exporter, Nissan Diesel
now allows the company to evolve fully as a will also continue to develop its footprint in the
leading and dedicated trucking company, after Southern African market wherever fleets can
the company’s separation from the Nissan pas- benefit from its efficient design, state-of-the art
senger operation in 2002. technology, quality assembly and dependable
We don’t believe in merely ‘dumping’ sub-standard support.
products and services in Africa “As part of a new strategy adopted by the Nissan
Diesel Motor Corporation in Japan, NDSA will
“The brand UD Trucks will also be a symbol of from now on take responsibility for the company’s
this process and will distinguish us from our activities in the entire Southern African region - a
competitors in all aspects of the business. And total of 20 countries,” says Johan. “We strongly
our trucks will continue to carry the well-known believe that there are a number of untapped op-
UD topmark, albeit in a more dynamic and modern portunities to provide quality products and services
guise,” Johan adds. to transport fleets across the region, especially
Building partnerships with customers in countries like Nigeria and Angola.”
Extensive research by Nissan Diesel has revealed Same Standard
that customers are increasingly looking for a NDSA already has dealers in the SAF Economic
truck provider that can be a true professional Zone which includes Botswana, Lesotho, Ma-
partner. The company is therefore committed to lawi, Mozambique, Namibia, Nigeria, Zambia
continue building closer professional relation- and Zimbabwe.
ships with their customers to offer dependable
“We don’t believe in merely ‘dumping’ sub-stan-
transport solutions.
dard products and services in Africa. We are in
Nissan Diesel South Africa has always adopted the process of establishing dealerships all across
an evolutionary rather than a revolutionary ap- the region who all have to adhere to the same
proach in their dealings with their customers. stringent quality requirements we have here in
South Africa. As a result, we are
able to deliver the same quality
services and products to our cus-
tomers, no matter where they are,”
states Johan.
UD Financial Services
launched
NDSA has also announced the launch
of UD Financial Services as part of
a joint venture with Wesbank, in an
effort to enhance customers’ access
to vehicle finance.
UD Financial Services will offer a
range of products and services to
customers as part of their aim to
provide a complete and convenient
service throughout a vehicle’s lifes-
pan, which includes sales, vehicle
financing, fleet planning, training,
parts and service support.
These vehicle financing products
include instalment sales, financial
and operating leases, financial
rentals as well as full maintenance
agreements.
For more information, visit www.nissand-
iesel.co.za
S
ays Man Truck and Bus (SA) CEO Thomas in major decision-making on the supervisory or
Hemmerich, “While the TGS WWW looks advisory board, is because the company brought
similar to the earlier TG models, under- Man technology into this deal. As part of this
neath the body it is a completely new deal, Man licensed its TGA truck engine, chassis
truck. Changes to the engine and drivetrain have and axle technologies to Sinotruk.
resulted in an even higher reliability factor.”
In 2010, various measures are being taken to
Surviving the downturn ensure the company operates at a moderate profit.
While the global economic crisis plunged the In 2009, Man SE divested itself of its majority
global truck industry into its worst crisis in years, shareholding in Man Ferrostaal. Since then, the
severely punishing Man and its rivals, in Southern company has focused on building its two major
Africa the market has remained relatively buoy- business areas, Commercial Vehicles and Power
ant, compared with Europe and the other parts Engineering.
of the world.
The Workshop business also showed an improve-
In January, we almost doubled our sales figures ment over 2008. Thomas comments, “The eco-
nomic engine is still running here in South Africa
In 2009, Man acquired 25 +1 share of Sinotruk, despite 2009, which has been described as the
the market leader in heavy truck manufacture. worst year for business in the past century.”
Thomas explains that the main reason for the
The Spare Parts business also performed well.
25 +1 purchase, which gives Man a veto right
Says Thomas, “You can build the best truck on Exciting start
the road but without the right backing and spare “In 2010, the year has kicked off with truck sales
part support, it will not be able to continue to that are very exciting,” says Thomas. “In January,
perform. we almost doubled our sales figures, and in terms
Those are the big markets where you can really put of market share in the extra heavy segment, we
increased our position from No 5 by the end of
volume in
2009 to No 2 in February 2010. This is a most
exciting time with sales in January being up
about 100%.” In February, Man Truck and
Bus (SA) sold almost 200 units.”
Thomas is confident that Man Truck and
Bus (SA) will increase its business in 2010
compared with 2009 by 20% to 30%.
“In 2009, we launched the MAN CLA truck,
manufactured by our joint venture with Man
Force Trucks in India, in all the right hand
drive countries in Africa. At the beginning
of this year, we achieved homologation in
America, in Germany, and in Egypt – those
are the big markets where you can really put
volume in – so sales have been excellent so
far, and we expect to sell three times more
than last year,” concludes Thomas.
MAN Truck & Bus South Africa, Tel.: (011) 928-6800,
Fax: (011) 974-3241, Email: info@za.man-mn.com
B
Safeshop. This payment gateway gives us real-
uy247 has invested significantly in pro- time credit card authorisation with 3D secure
viding a wide range of high tech, secure encryption,” says Wayne. “This process is ex-
payment facilities on its online shopping actly the same as a traditional retail credit card
website to ensure that its customers are transaction, with the only difference being that
protected from credit card fraud. However, it the actual card is not presented. The customer is
seems that even with all these security measures, also not seen by us until we receive an approved
there are fraudsters breaking the system, and Safeshop credit card transaction.”
the banks are playing a culpable role in these
transactions. Buy247 is a “bricks and mortar” Risk profile
company that has over 15 years experience in “It also provides us with a customer risk profile. If
the IT industry. it is shows a high risk rating, we do not expedite
the transaction without further security checks.
Unless the merchant gets the customer to sign the credit However, we cannot prevent a fraudulent trans-
action from happening if the card holder fails to
card voucher, they have no leg to stand on
report their card stolen. This is when we have
charge back issues with the various banks.”
They have an extensive distribution network that
can deliver orders throughout South Africa on a American Express is of opinion that, unless the
24hour/48 hour basis. Their warehouses and merchant gets the customer to sign the credit
distribution hubs are card voucher, they have no leg to stand on. An
situated in Johan- online merchant has no way of doing this and
nesburg, Durban therefore is 100 percent reliant on the cardholder
and Cape Town. being legitimate and honest.
Eliminate fraud
“This policy seems to fly in the face of global
online banking policy. Most banks will honour all
transactions that are approved by a site that uses
3D Secure technology. Furthermore, most banks
have really dragged their heels on the issuing of
the new Smart Credit cards, with 4-digit pin code
validation that will totally eliminate fraudulent
credit card transactions,” says Wayne.
Wayne says this will really make a
difference to both online traders and
customers alike. “But until such time,
online merchants will always be poten-
tially liable for fraudulent online transactions.
As a result, Buy247 has decided to withdraw
American Express from its store until there is a
change of policy. It is a shame as Amex is uni-
Assumed to be correct versally accepted. Due to the low profit margins
A recent transaction with American Express has on our products, we cannot afford to risk losing
shown that even when an online merchant tries any money through fraudulent transactions,” he
to mitigate all risks, the transaction can still be concludes.
reversed if a cardholder disputes the purchase. Buy247, Alisha Lennox, Tel: (011) 723-7573, Email:
An online merchant has no way of validating AlishaL@introstat.co.za, www.buy247.co.za
A Viable Option
Today’s business management solutions, particularly enter- on average only 15 percent of employees are
prise resource planning (ERP) solutions, are evolving from a licensed to use their company’s ERP solution
focus on transactions and data entry to one that places people and 46 percent of ERP licenses remain unused.
and usability at the centre of solution design. This includes Because a limited portion of the organisation is
attention to varying work styles, role-based perspectives on using the solution, the potential for productivity
information and tasks, and the need to extract information in benefits and growth remains untapped.
the context of business processes. Microsoft Dynamics AX 2009 is a leading example
of a business management solution designed to
S
trategix Business Solutions managing di- optimise usability, improve user productivity and
rector Jaco Stoltz says this shift is being meet the needs of people in a variety of roles to
driven by workers’ dissatisfaction with rigid drive business success. The solution’s user-friendly
solutions that fail to integrate cross-busi- navigation, familiar interface, visualisation aids,
ness processes, adapt to changing global markets, and self-service business intelligence (BI) tools
or address the needs of individuals in different are prime examples of highly usable features that
kinds of jobs. “This inflexibility results in poor are designed for the people who use them.
usability, both for the individual worker and for Creativity
the solution’s fit with company-wide business Jaco says a business management solution can
processes and requirements.” only increase efficiency through process speed
and automation. “It takes people, their ideas,
Only 15 percent of employees are licensed to use their
collaboration, and decisions to envision products
company’s ERP solution and 46 percent of ERP licenses and services, create value, and drive business
remain unused forward. Therefore, any system that prioritises
information processing over people and their
Untrapped needs limits the potential of those people and
According to a recent study from AMR Research, the success of the business.”
About Price
value proposition much harder than
cutting costs for our customers. By
adding value, we reduce cost. The
result is that our customers stay with
us for very long periods, primarily
because they appreciate the value
The first man to set foot on the Moon, Neil
and benefits that we invariably bring
Armstrong, was asked what he had feared
to their businesses.
most before getting into the Apollo 11 space
capsule. It was not the fact that that he was “Such value derives from
sitting atop one million litres of highly flam- backward integration
mable rocket fuel; nor was it because he within our customers’
was going where no man had supply chains and Cargo
Carriers’ commitment
been before.
to delivering a very
high service level at all
times, without fail!
H
is biggest fear? That “In support of this we
the two million have implemented a
separate compo- branch best practice
nents installed in system within all
the Apollo 11 space craft our contracts that
were manufactured by the focuses on each
lowest bidder! Armstrong customer and the
obviously had gathered specific needs of that
previous experience of low- customer.”
est cost not equating to Non negotiable
best value! The results, when
Hardest hit compared with in-
Today, more than 40 years ternational standards,
later, mankind continues show significant im-
to regularly encounter and provements. The com-
debate the topic of lowest cost parison against the total
and value for money so neatly acceptable levels of service
highlighted by Neil Armstrong’s and complaints in, for ex-
simple retort. The current interna- ample, the chemical industry,
tional downturn and credit crunch shows improvement by leaps
is prompting new pre-occupation and bounds.
with low cost, and manufacturers “Exceptional service levels,
and suppliers have become more however, come at a cost and
cost conscious at all levels within we regard this cost as a non-
their organisations. negotiable issue. Our focus on
There is an impact on the logis- improving and increasing our
tics industry. Logistics, sitting levels of service has differenti-
at the end of the supply chain, ated us from our competitors and
is invariably hardest hit when it this, together with our innovative
comes to cost cutting, despite the approach to the supply chain of
fact that logistics in many cases each customer, is the foundation
contributes less than 10% of stone of our competitive edge,”
the total cost in the manu- André adds.
facturing and supply chain. Resources
Come what may, its Cargo Carriers subscribes to the
status as a cost POOGI (process of on going improve-
focus point seems ment) approach as detailed within
permanent. André Jansen van Vuuren, Divisional Director: Marketing the concepts of the Theory of
Comply or Explain
As consumers’ demand for sustainable busi- as social transformation.
ness practice gains momentum, the global
focus on sustainable development is rapidly “This leads to a strong focus on the effects that
increasing. businesses have on society and the environment.
There is also a strong emphasis on sustainability
I
n these changing times, sustainability re- reporting. South African companies are starting
porting is rapidly gaining credence. Equally to realise its importance, but it’s a slow process.
important, however, is understanding the When it comes to legislation around sustainability
legislation around it. reporting, it is becoming abundantly clear that
the King III Report may have a substantial impact
According to Etienne Swanepoel, corporate and on the way businesses are managed and a clear
commercial law specialist and partner at Webber understanding of the Code is a necessity.”
Wentzel Attorneys, determining the legal require-
ments applicable to sustainability reporting is a
mechanical process. The first question to ask is
whether the company in question is listed. Dif-
ferent provisions apply to listed companies and
unlisted companies.
Intricate and complex
“Legislation around sustainability reporting is
relatively intricate and complex,” says Swane-
poel. “Broadly speaking, there are three sets of
legal requirements. These are: the JSE Listings
Requirements, the Companies Act, and the King
III Report. The latter replaced the current King
Etienne Swanepoel Report on 1 March 2010.”
Etienne adds: “The JSE Listings Requirements
stipulate that, in order for a company to become
listed, amongst other things it needs to comply
with the Companies Act. In turn, the Companies Fair share of risk
Act requires that companies prepare annual fi- According to Etienne, there are two models for
nancial statements in compliance with generally corporate governance. “The first model is a ‘Comply
accepted accounting practices. or Else’ approach to legislation, as followed in the
The JSE Listings Requirements further state that, United States. With this model, non-compliance
in order to be listed, companies must be aligned may have legal consequences. In South Africa, and
with the current King Report, until the third ver- most other countries, a ‘Comply or Explain’ model
Graham Terry is applied. This means that, while guidelines such
sion takes effect.”
as King III exist, it is not law and if businesses
‘Comply or Else’ approach to legislation, as followed in can give a valid explanation for not complying,
the United States. In South Africa, and most other they cannot be held legally responsible. He notes,
countries, a ‘Comply or Explain’ model is applied however, that the JSE Listings Requirements are
currently under review.
From Etienne’s explanation it is clear that com-
pliance requires an integrated approach to all Etienne says that non-compliance (apart from pos-
three sets of requirements. In addition, the King sible breaches of the JSE Listings Requirements
Report is supported by additional guidelines, such in the case of listed companies) does hold its fair
as the Global Reporting Initiative (GRI) and the share of risk as companies might very well end
Institute of Directors Practice Notes. up with egg on their faces if they choose to ignore
these guidelines – not only from their peers, but
Slow process from the consumer as well. He adds that legal
Graham Terry, of the SAICA (SA Institute of Char- regulation in this area is certain to increase in the
tered Accountants) and author of the recently future apart from the obvious moral and business
published book “Green, why corporate leaders imperatives to do so sooner.
need to embrace sustainability to ensure future
profitability”, says the King III Report is specifi- ‘Go green or go home’
cally aimed at corporate governance and highlights “A public that is increasingly well-informed on
the concepts of integrated sustainability as well ‘green’ issues will increasingly demand businesses
Supply
people, projects and products
that have gone above and
beyond the call of duty to
enhance the environment in which
Chain
they operate.
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.
30 Supply Chain Today Jan 2010 Supply Chain Today March 2010 33
34 SupplyHANDLING
BULK Chain Today MarchMarch
TODAY 2010 2008
STANDARDS
A
s both these standards are referred to “A new clause on Excepted Quantities has been
in legislation, they are required reading introduced to SANS 10229-1. The term is ap-
for all involved in transporting danger- plicable to dangerous goods of certain classes,
ous goods. The publication of the latest except articles, that are packed in quantities
editions of SANS 10228 and SANS 10229-1 ranging from 1 mL or 1 g to 30 mL or 30 g in
is therefore important news for all involved in inner packaging and outer packaging ranging
this field. from 300 g to 1 kg. A special mark has been
Daleen Fourie, the dangerous goods specialist assigned that should be depicted on packages of
responsible for these standards, commented on dangerous goods in excepted quantities intended
the key changes as follows: for transport.
“Consequently, a new column has been added
What are the key changes that have been
to the dangerous goods list in SANS 10228,
introduced to the latest editions of SANS indicating the quantities allowed for each entry
10228 and SANS 10229-1? in the list by means of alphanumeric codes E0
“To align with the revised UN Model Regulations, to E5”, Daleen concludes.
about 30 new entries were added to the danger-
SABS, Tel: (012) 428-6883, Fax: (012) 428-6928, Email:
ous goods list in SANS 10228. A number of the
sales@sabs.co.za. The standard can also be downloaded
entries deal with fuel cell cartridges contained
from www.sabs.co.za/index.php?page=standardspurchase
in equipment, and those dangerous goods that on entry of a credit card number. Elmarie Steyn, Tel: (012)
contain water-reactive substances, corrosive 428-6777, Fax: (012) 428-6869, Email:steynecm@sabs.
substances, liquefied flammable gases and hy- co.za, Chris Meyer, Standards Communicator, SABS, Tel:
drogen in metal hydride. Provision for ethanol (012) 428-6732, Fax: (012) 428-6869, Email meyercm@
and petrol mixtures containing more than 10 % sabs.co.za
ethanol has also been made in the list.
Address: ..................................................................................
Email:........................................................................................
Index to Advertisers
Afzelia 34
Barpro 30
Bar Trans S&N 24
Chorus Call 28
CIPS 20
Engineer Placements 32
Green Supply Chain 33
Foschini plans to roll-out the Manhattan solution across Hako Inside Back Cover
the remaining two distribution centres, also in Cape Town, ILS 26
in the coming months. These additional DCs comprise
Imperial Bank 36
another 17 000 square metres of warehousing space. Col-
lectively, the four warehouses serve 14 trading divisions Interroll 12
and 1500 stores across South Africa’s nine provinces as Kemtek 16
well as neighbouring countries Namibia, Botswana and Mercedes-Benz 10
Swaziland. Mitsubishi Fuso 8
Explains Jan Tukker, group logistics director, Foschini, “We Nissan Outside Front Cover
reduced volumes for the switch-over to the new system Polydex 14
in case we needed to iron out any problems - but there Proscan Outside Back Cover
weren’t any and within five days we were shipping greater
Sapics Inside Front Cover
volumes of goods than before.”
Toyota 19
Supply Chain Junction, Tel: (021) 426-1703, Fax: 086-617-6525,
Universal 6
Email: info@scjunction.co.za, www.scjunction.co.za