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Supply Chain Today April 2010 

 Supply Chain Today April 2010


April 2010

Contents
Featured on the cover Cover Story Report-Back
Masslift Africa 4 Man Up 31 Education Excellence Awards
Tel: (011) 786-8524 Forklifts Consumer Goods Council of SA
Fax. (011) 887-1253
7 Lifting Society 35 Food Safety Audit
Email: sales@mlift.co.za/
service@mlift.co.za Barcoding, Labelling, Scanning & Market Forum — Supply
Website:
www.mitsubishiforklif ts.
RFID 36 Market Forum
11 Advances in Auto Inventory Control
co.za Endorsing Bodies
13 The Best By Far
Afritag (div of Smart Card Society)
Market Forum — Unit CGCSA (Consumer Goods Council of
15 Market Forum SA)
CILTSA (Chartered Institute of
Procurement Logistics & Transport: SA)
19 Active Buying SAEPA (SA Express Parcel
20 Tackling Uncontrolled Maintenance, Association)
Repair and Operations Spend SAPICS (The Association for
Cold Storage Operations Management
23 The Effects of Cold of Southern Africa)
also mailed to:
CSCMP (Council of Supply Chain
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 written permission of the publishers. Proprietor and Publisher: Advertising Sales:
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.

Supply Chain Today April 2010 


COVER STORY

Man Up!
The logistics industry is a small one and like many of the products shuttled around our shores, news travels
fast. When “Supply Chain Today” heard that Geoff Tucker, previous MD of Barloworld UK, had taken on the
CEO role of locally based Masslift, the Southern African distributors of Mitsubishi Forklifts, we were curious to
find out more.

W
ith 30 years invested in various divi- to have its act together and it’s just waiting to be
sions of Barloworld, the last three of developed. Finally, I was drawn back by my family.
which were spent in the UK, Geoff They stayed behind when I went to the UK and
clearly has strong ties to the com- it was hard to be separated for so long.”
pany. But when we ask why he chose to return His feelings about Masslift are equally convinc-
to South Africa to a relatively small concern, he ing. “The company has a long history and offers
doesn’t hesitate when he gives his answer. a great product in the form of Mitsubishi’s lift-

ing range. I saw a chance to get back home and


We want to empower each of our staff members with the do something really exciting with a fantastic
product and couldn’t pass up the opportunity,”
ability to help anyone who calls Geoff continues.
“My aim now is to get out there and communi-
Sunny skies cate the Masslift story,” he says. “With the help
“Three things drew me back. Firstly, the weather,” of Marco Caverni as Sales Director, I think we’ll
he laughs. “Secondly, the opportunities available. get the point across.” With corporate overhauls
South Africa is one of the few emerging countries being Geoff ’s speciality, this statement holds

 Supply Chain Today April 2010


COVER STORY

considerable credibility. Accelerating the upskilling process will make us


globally competitive.
Maintaining intimacy
“We don’t plan to be the market leader because “I’m also looking forward to reconnecting with
market leaders lose their customer intimacy,” he some of my old contacts. I know a lot of people
goes on to emphasise. “Big companies may have in the industry and I have no doubt that there is
five layers of management that clients have to much we can achieve together,” he says. With
work through before they can solve a problem. 30 years in the lifting business, Geoff ’s ‘little
black book’ must certainly read like the Who’s
“We want to empower each of our staff mem-
Who of logistics.
bers with the ability to help anyone who calls.
Our company success must be built on service As we end off our conversation, his enthusiasm
excellence that extends beyond uptime on the remains unbridled. “I’m excited to be home,” he
lift truck. It must also be based on ease of doing smiles. “One of the things I love about South Africa
business with us,” Geoff says. is our ability to see opportunity. We’re not happy
to tread water and we can achieve anything once
Future growth we set our minds to it. Who wouldn’t want to be
“Once we’ve established service levels, we’ll be a part of such a rewarding process?”
looking at introducing new products. This may
include big trucks, as well as large and small Mitsubishi Forklifts offer a full range of materi-
tow tractors. We’ll also be looking into various als handling equipment including 1- 25 ton IC
warehouse solutions, exploring means of elimi- counterbalance trucks, 1- 5.5ton counterbalance
nating the hassles of running lifting equipment electric trucks both manufactured in Japan and a
in these areas. Expansion of rental fleets is also full range of warehouse equipment manufactured
on the cards.” in Finland.
Geoff Tucker, Masslift Africa, Tel: (011) 786-8524, Fax.
(011) 887-1253, Email: sales@mlift.co.za/service@mlift.
Our staff will be our primary concern
co.za, Website: www.mitsubishiforklifts.co.za
since they’ll be crucial to the success of
our service plan

While some companies believe that 95% avail-


ability of equipment is an acceptable level of
service, Geoff won’t settle for less than 100%
as he believes lift trucks need to be available to
INSULATED IMPACT TRAFFIC DOOR
customers when they need them. “The absence of
vital equipment can result in shutdown of opera-
tions and the non delivery of their promises to
their customers. Nobody should be expected to
tolerate this. When companies have worked out
their schedules to the last minute, we can’t expect
them to wait days for machines,” he says.
“Lift trucks are a grudge purchase and many cus-
tomers resent having to spend money on them.
We want to add value to this purchase, delivering
what they need, so that they’re happier to make
the investment.”
Strong values
Geoff adds that he intends to apply strict values
to the company’s operation. “Adding value will be
fundamental,” he tells us, “as will honesty and � Fully gasketed heavy duty swing door.
TM

ethical behaviour. Ultimately, we aim to provide � Lightweight yet robust.


Withstands heavy traffic such as carts and
something for all stakeholders, including the sur- �
motorised man ridden vehicles.
rounding community and the environment. � Impervious to moisture, acid, petroleum products,
salt solutions, animal fats and insects.
“Our staff will be our primary concern since they’ll
be crucial to the success of our service plan. APEX
Management can make all the promises in the STRIP CURTAINS
AND DOORS
world, but without the right team to back them
up, they won’t be able to keep them. At Masslift,
I’m able to speak to almost every staff member
everyday, which is a luxury I didn’t have before.
Designed by Atomic Design Studio. Produced by Coralynne & Associates Tel: (011) 422-1949

Supply Chain Today April 2010 


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 Supply Chain Today April 2010


FORKLIFTS

Linde’s equipment gave client, Afripack, a firm handle on things

Lifting Society
While 2009 proved to a difficult year for most companies,
some took advantage of the crisis by plunging headlong into
brave new ventures. For Linde Material Handling, the move
has paid off, with the company gaining significant market
share during this period.

W
hen “Supply Chain Today” speaks to
Linde MD, Phil de Wet, he explains
some of the contributors to the
company’s success. “It has been a
challenge to overcome the massive decline in forklift
sales but we’ve tackled the problem by introduc-
ing innovative ways of selling our products,” he
Phil de Wet, MD, Linde Material Handling
begins. “We’ve increased our Short Term Rental
fleet substantially, by some 20%, to ensure more
availability for customers. Market indications are sales representation and expanding our network,”
that the rental option is the preferred choice and Phil adds. “Our footprint has also extended into
we have geared our business to cater for it.” Africa – specifically Mozambique, Ghana, Zambia
and the Congo.

It has been a challenge to overcome the massive decline “Service quality has been a major focus over the
past 2-3 years, and this has played a significant
in forklift sales but we have tackled the problem by
role for Linde,” Phil tells us. “Insofar as the After
introducing innovative ways Sales Division is concerned, we identified a need
to increase and extend our force of technicians in
Strong sales the market to provide our customers with top-level
A strong sales initiative can mean the difference service. Our service footprint was also increased
between success and failure during lean times in the North, South and Central region. Various
and Linde has paid particular attention to this. KPIs that were introduced have proved useful in
“We’re currently in the process of increasing our measuring the success of the quality of our service

Supply Chain Today April 2010 


FORKLIFTS

and further continue to assist us in continually A recent upgrade to Linde’s Head Office facility
improving the same. Further to this, a healthy is designed to provide a welcoming environment
percentage increase in maintenance and service to visiting clients, while the revamp of Linde’s
contracts is testament to this improvement.” Used premises ensures that the facility now truly
caters for used sales in various categories. “These
Internal focus
will include warranties and other services not
Internal renovations have also been prioritised.
normally offered in a used business,”
Phil explains.
Administrative processes have received
similar attention. “Our Parts Department
has been streamlined in line with our
expectations and the introduction of a
Parts Management System ensures that
we enjoy a 97% first pick,” he adds.
Growth trend
Phil anticipates that their growth trend
will continue and there are plans to
broaden the company’s range; among
others, a new product from Germany
will be launched in South Africa during
the 3rd quarter of 2010. Competitive
pricing, however, will remain a priority:
“We will continue to concentrate on
ensuring that our prices are acceptable
to our customers,” he assures us.
To make certain that value for money
is balanced by viable profit margins, a

 Supply Chain Today April 2010


FORKLIFTS

strong focus has been placed on finance. “Wer- reach trucks for the Nestle Longmeadow depot.
ner Kilian was recently appointed to the Board Nestle now has a fleet of over 40 trucks, which
as Finance Director to ensure proper financial are backed up by an on-site technician,” Phil
controls are in place for a company our size,” says.
Phil continues. Linde Material Handling is also proud to have
Blue-chip clients enjoyed a mutually beneficial association with
The company’s approach to sales and service has Vector Logistics (formerly I & J) for some 13 years.
won the approval of a number of big names. For “There is a fleet of about 67 Linde trucks based
instance, Linde Material Handling’s association at various locations throughout South Africa,” he
with Afripack Ltd commenced in 2004 when elaborates. “Forty-one trucks are on Long Term
a fleet of trucks was sold to it. During 2009, Rental, the balance being made up of outright
Afripack replaced its fleet of 13 trucks. The purchases and Full Maintenance Contracts. We
trucks are situated at five of its locations and are commenced with the delivery of a further fleet
counterbalance trucks made up of 6 x 1.8-ton during 2009 with 12 trucks, made up of reach
LP-gas; 4 x 1.8-ton diesel and 3 x 3.5-ton LP-gas trucks and counterbalance trucks being delivered
trucks. The 6 x 1.8-ton LP gas and 4 x 1.3-ton to a number of Vector’s locations.
diesel units were customised to fit Afripack’s
Recently began the process of delivering a new fleet of
drive-in racking. 
H18D, 1.8-ton diesel forklifts
Linde Material Handling recently began the pro-
cess of delivering a new fleet of H18D, 1.8-ton
Growth in difficult times
diesel forklifts to Schnellecke SA (Pty) Ltd, a
“We’ve been recognised as the preferred supplier
logistics service provider for Volkswagen South
of several blue-chip companies in South Africa
Africa (VWSA). This coincided with VWSA’s
and are pleased with the opportunity to expand
export contract to deliver R27-billion VW Polos
this by forming new alliances, necessitating the
over the next six years. Due to the urgency of this
appointment of agents/dealers in the Rusten-
requirement, Linde sourced Short Term Rental
burg, Polokwane and George regions. We will
Units as an interim measure until such time as
soon be expanding our network to Middelburg in
the new fleet arrived. Delivery of the new fleet
Gauteng,” Phil smiles. “While many a competitor
was completed by end January 2010. Schnellecke
found themselves retrenching, closing branches
has a fleet of over 200 Linde forklifts which are
or actually closing doors, Linde effectively expe-
backed up by a fully-fledged on-site workshop.
rienced growth in different environments during
The trucks range from 1.0-ton electric to 16-ton
2009.”
diesel forklifts.
While many might see a forklift as simply a piece
Sweet deal of handling equipment, for Phil it plays a far more
In another sweet deal, the first batch of Linde important role. “If I could change the world with a
trucks was delivered to Nestle in 2003 and forklift, I’d pick up the ruins created by mankind
comprises a fleet of trucks made up of reach and uplift our society to where it deserves to be.”
trucks, electric counterbalance trucks and power With Linde’s substantial forklift range, it’s likely
pallet trucks. These trucks are situated at various that he has just the machine to do it, too.
Nestle depots throughout the country. “In 2009,
Phil de Wet, Linde Material Handling, Tel: (011) 723-7000,
we commenced with the process of delivering a
Fax: (011) 608-1446, Website. www.linde-mh.co.za
new fleet of trucks to Nestle; the first 10 being

Part of the Linde family of lifting equipment

Supply Chain Today April 2010 


Are You
Doing
Your
Bit?

Green This prestigious award recognises

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

Chain
they operate.

The inaugural awards in 2009

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

Come and see who walks away


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

Entries for this year’s event close in


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

Contact: Catherine Larkin on


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

30
10 SupplyChain
Supply ChainToday
Today Jan 2010
April 2010
BARCODING, LABELLING, SCANNING & RFID

Barcoding is part of our


lives. When we visit our local

Advances in
store or garage shop, our purchases
are whisked through the scanning
process in seconds. However, when
goods are supplied to a shop or warehouse
these arrive with a barcode which is

Auto Inventory
applied by the supplier or manufacturer.
When stock is taken into the shop or
warehouse, the barcodes are scanned
and this information is transferred to

Control
a stock-keeping database on a central
server. And when we make purchases,
this remarkable labour-saving system
enables the stock to be taken off the
system in an instant update, as we
pay for it.

W
hile other forms of inventory manage- speeds up the ‘ringing up’ process at the till,
ment have been advancing, the field something which is a real boon in today’s mass
of barcoding and the intelligence it stores which have to handle hundreds of custom-
allows its users to access, has been ers every day.
developing with remarkable new capacity. The point-of-sale scanner also has more ‘intel-
A new level of capability has been introduced ligence’ than its earlier counterparts. In large
to barcoding with the introduction of multi-level retail outlets, it is inevitable that some barcodes
barcodes otherwise known as PDF417s. “This are accidentally damaged. Chris explains that,
is basically the code that is used on the back when a point-of-sale scanner reads a damaged
of your driver’s licence,” explains Chris Meyer, barcode, it can often extrapolate what the missing
National Auto-ID Sales Manager of Kemtek Im- information is, and enters the completed data in
aging Systems. “Information contained on your the system in a matter of an instant.
driver’s licence can contain your height, colour
of eyes, if you have any endorsements against Margain for error
your licence and its expiry date.” Says Chris, “If you think about pre-barcode days,
every item had to be manually entered into a
till. The labour involved was expensive and the
Ensures that stock items do not get mislaid in today’s margin for error much greater.”
vast warehouses
The Achilles Heel of any hand-held scanner is the
cord. With usage, this mechanical linkage inevita-
bly breaks. Now, with new technology, hand-held
scanners are cordless, and use Bluetooth instead
of copper wire. In the past, very large items were
a problem at fixed barcode scanner points. Cord-
less scanners solve this bottleneck.
Increased intelligence
The mobile scanner is a comparatively new in-
troduction to the world of barcoding. This device
has actual on-board intelligence. “It is not just
a ‘dumb’ reader,” explains Chris. It is a small
hand-held computer that connects wirelessly
to a central host computer. By using the mobile
scanner, the operator can be told where to go in
a warehouse, for example. If he receives a stock
item, he can scan its barcode, and the mobile
scanner will check on the system to see if the
code is valid.
More sophisticated barcodes “The warehouse checker will then be directed
However, barcoding has reached even greater to the rack where this item should be packed.
levels of sophistication. Larger stores employ a The reverse of this process also applies in that
more advanced technology known as the point- this system ensures that stock items do not get
of-sale scanner. What this scanner does is scan mislaid in today’s vast warehouses. With this
five sides of the average six-sided object. This system, the transfer of data and transactions

Supply Chain Today April 2010 11


BARCODING, LABELLING, SCANNING & RFID

can be ‘live’, explains Chris. The use of mobile


scanners makes the business of stocktaking much
faster and more accurate.
Replayed
The latest development in the world of inventory
management is the personal digital assistant (PDA).
While the mobile scanner has its use mainly in
the warehouse, the strength of the PDA is mainly
in its applications outside the warehouse. In
contrast to the mobile scanner, the PDA can be
used for processing information.
For example, a delivery driver could use a PDA
to record goods that have been delivered to
clients. This would include preparing an invoice
and capturing the client’s signature on the PDA
screen as well as an image of the client on the
PDA’s camera. This information can then be
relayed by the standard cellphone network to a
central server.
Using the PDA, the driver could also access the
central server to download a route map or other
information.
Space-age inventory control
The latest technology in the world of inventory
control is radio frequency identification (RFID).
Entire pallets of stock are tracked with RFID rather than The cost of this new technology, which is in its
individual items early stages in South Africa, is still an important
consideration. RFID requires the use of a com-
puter chip, which is a comparatively expensive
item to produce. RFID readers and writers are
also substantial hardware investments.
To date, RFID has had successful applications
in vehicle manufacturing and in automating the
flow of traffic through toll roads, for example. It
also has important applications in safety where a
person or a machine can be tracked in hazardous
situations such as in mines.
Major advantage
A major advantage of RFID is that the technology
can read the RFID tags from a distance. It is also
possible to read many tags at one time. Theoreti-
cally, it is possible for shoppers to walk out of a
store with a trolley load of items without going
through the usual check-out system. The RFID
reader would record instantaneously all the items
in the trolley. This data would then be used to bill
the shopper’s credit card automatically.
“RFID is a very exciting technology with great
potential,” says Chris. “However, at present its
application is limited to use on high value stock
items. A possible application is where entire pal-
lets of stock are tracked with RFID rather than
individual items,” concludes Chris.
Chris Meyer, Kemtek Imaging Systems, Tel: (011) 624-8000,
Fax: (011) 613-3230, Email: chrism@kemtek.co.za, www.
kemtek.co.za

12 Supply Chain Today April 2010


BARCODING, LABELLING, SCANNING & RFID

The Best By Far


While the widespread use of RFID technology has yet to be- on high volumes spread nationwide. In conjunc-
come a reality, the good news is that many of the promises tion with TrenStar, the solution is being trialled in
made in the past few years are now coming to fruition. various industries and is proving to be workable
and very successful.

R
odney Bartman, CEO, and Frikkie Koegelen- Bi-Phar
berg, MD of Roan Systems, tell “Supply One of the most exciting new developments ac-
Chain Today” that many of the projects cording to Roan management is the improvement
they’ve been involved in are heading into of Bi-Directional Phased Array RFID technology,
the roll-out stage. “We’ve moved beyond the or Bi-Phar. The term describes the phased array
pilot phase with a number of big ventures,” says technology applied to the signals transmitted to
Frikkie, and Rodney concurs, adding: “We’re no (and received from) tags, which are energised
longer just talking about the possibilities. We’re by the transmitted RF energy. It’s designed to
now implementing these concepts.” provide the simplest infrastructure to attain
Someone finally invested the money to make a reality of continuous, ‘real-time’ monitoring of large areas
what everyone has known RFID can do with passive UHF tags.
“Someone finally invested the money to make
As a subsidiary of TrenStar, Roan and TrenStar have a reality of what everyone has known RFID can
combined RFID capabilities and are in the process do,” laughs Frikkie. “Luckily for us, they’ve also
of rolling out RFID technology to approximately chosen Sirit readers to implement the system,
half a million of TrenStar’s rental assets. “This will which we believe are the best in the world.”
provide the ability to achieve real-time manage-
One of the expectations of passive UHF RFID has
ment of TrenStar’s
been its ability to reveal where things are at any
resources,” Rodney
given time by virtue of automatic data capture.
continues.
In the past, several limitations have restricted
As a means of implementation of the technology, for instance,
strengthening the the potential for false readings from reflections
RFID solution, the or other nearby tags, or the inaccuracy of read-
hard and software ings due to nearby materials that may distort RF.
solutions have been Avoiding these issues could only be solved by
combined into one installing multiple readers, or portals, to facili-
division as part of tate accurate reading, which became a financial
TrenStar Services. limitation in itself.
According to Tren-
Star CEO, Tap du Active tags
Plessis, using Tren- While some have overcome the challenge by
Star’s rental assets using active tags, this is not an ideal solution,
confirms that the particularly for the continuous tracking of ‘one-
Rodney Bartman, CEO, and Frikkie Koegelenberg, MD
of Roan Systems solution is workable way’ disposable items, which far outnumber
returnable assets.
Bi-Phar allows the necessary continuous vis-
ibility of passively tagged objects, resulting in a
number of benefits. These include reduced loss
of materials or products, timeous replenishment
orders, elimination of ‘out-of-stocks’, optimised
forecasting and more effective operational de-
cisions. Ultimately, this all leads to improved
product availability, increased sales and happy
customers.
No quick-fix
However, the system is not a miracle cure. “It’s
important to understand that RFID is not a quick-
fix,” emphasises Rodney. “A lot of customers
don’t understand that it’s a complicated system
requiring middleware and portals, checking of
radio waves and building shrouds to enclose these

Supply Chain Today April 2010 13


waves. Establishing a system based on barcoding is
easy by comparison.”
Frikkie adds that RFID can actually exacerbate existing
problems. “If you lack an efficient business process,
don’t expect RFID to fix things. It’s an enabler, speed-
ing up systems that are already well-established. If
there was a hole in the paper or barcoding system, it’ll
be there in the RFID system. And you’ll have made a
significant investment which is not being efficiently
utilised.” Rodney agrees. “You can do a stocktake at
the click of a button, but you need the systems in
place first.”
You can do a stocktake at the click of a
button, but you need the systems in place first

In-house testing
Not satisfied with simply marketing a wide variety of
products, the Roan team insists on using their ranges
in their own offices before adding them to their stable
of solutions. “The only way you can get a good work-
ing knowledge of a product is to actually work with
it,” says Frikkie. “Also, we won’t represent a product
or service without having full representation and dis-
tribution rights. We want to keep our destiny in our
own hands.”
Considering the time and effort the company invests
in its ranges, this is understandable. “The new RFID
Division offers everything from developing tailormade
products, to implementing technology, to managing
company data and providing weekly or even daily
reports,” continues Rodney. “It’s an intensive process
and we have to have an in-depth understanding of
the technology.”
Affordability
The RFID Division has also invested a lot of effort into
making this technology available to its client base.
“You’re not limited to outright purchase of the hardware.
This applies not only for barcoding, printing and RFID
technology, but also for handheld scanners and read-
ers,” adds Frikkie. “We offer “pay per use” options to
make these systems as accessible as possible.”
“This approach allows customers to engage RFID
technology without large upfront capital investment,”
explains Rodney. “RFID is not the solution to every
process. In some cases, barcoding would be a better
option.”
Website. www.roan.co.za & www.trenstar.co.za

14 Supply Chain Today April 2010


Market Forum
volved with an all-makes truck workshop
in George in 1991. He subsequently
sold this business two years later and
switched to selling used truck compo-
nents and refurbishing trucks.
“This was at the time when the Certificate
of Fitness (COF) was introduced which
enabled us to buy used trucks at keen
prices that we then refurbished or else we
sold used components to companies that
rebuilt their own trucks, so it was good
business,” says Andre Duvenage.
A new truck franchise was obtained in
2001 and Duvenage’s George dealership
sold more than 40% of these trucks in
the Southern Cape, which gave him and
his team valuable experience in the new
truck market.
Indian Ocean opportunity “I was delighted when offered the Hino franchise and see
Gen Tech Trading Ltd is based in Mauritius and operates great potential for this brand, as there are many Hino and
into the Indian Ocean Islands in the private sector as well Dyna trucks operating in our area despite the fact that
as with the governments in Mauritius, Reunion, Madagascar there has not been a dealer here for years,” adds Andre.
and the Seychelles.. “We have already picked up several strong leads which I
am sure will lead to sales.”
The company is mostly involved in special projects such
as energy, industry, sea hub, and cold stores. Its aim is Andre says the focus now is to get his team fully trained
to keep on the watch for new projects and, when oppor- on Hino products and systems as soon as possible so he
tunities arise, to include the right partners locally and can provide his customers with top level service in keeping
from overseas. with one of the country’s leading truck brands.
Gen Tech is seeking suppliers who may offer services Ignatius Muthien, Hino, Tel: (011) 809-2064/2255, Fax: (011) 809-
around the cold storage/industry/logistics/warehouse 9064, Email: imuthien@hino.co.za
management/ and niche services. Any company which
would like to offer such services/consultancy or related
products, please contact Gen Tech.
Patrick Desmarais, Gen Tech Trading Ltd,
Tel: 230 698-8433 / 8869, Fax: 230 698-0287,
Email: gentech@intnet.mu

Dedicated truck outlet


“We are very pleased to have filled
a very important gap in our dealer
network with the appointment of Hino
George,” comments Hino vice president
Dr Casper Kruger on the opening of the
brand’s 54th dedicated truck outlet at
the beginning of February 2010.
“We have been looking to fill this
gap for some time after Loerie Toyota
relinquished the truck franchise to
concentrate on passenger vehicles,”
explains Casper.
Hino George is headed up by dealer The Hino George management team (Left to right). Front: Marinda Duvenage (Financial Manager
and Company Director), Ansie Smit (Sales), Nicolize Olivier (Administration and Secretary). Rear:
principal Andre Duvenage, who has a
Louw van der Westhuizen (Sales Manager), Willie Leslie (Workshop Manager), Rynnardt Vorster
financial background and became in- (Parts Manager), Andre Duvenage (Dealer Principal and Managing Director)

Supply Chain Today April 2010 15


Market Forum
and hence burn more fuel and
money and emit more carbon
emissions into the atmosphere,
and P-Eye’s road safety, cost-saving
and environment-friendly qualities
become abundantly clear.
Serco, Clinton Holcroft, Tel: (031)
508-1000

Rugged lightweight
ramps
A range of light weight aluminium
loading ramps for the safe loading
and unloading of wheeled, rubber
Preggie Govender & Phumlani Bayeni of Serco with a newly fitted p-eye tyre pressure monitor and steel track vehicles is now
Tyre pressure-monitoring device available from plant equipment
A revolutionary heavy vehicle accessory which monitors specialist, Bobcat Equipment South Africa (Pty) Ltd.
tyre pressures on trucks, trailers and buses is playing Manufactured from exceptionally high-strength alloys by
a significant role in improving safety on roads in South Italian company, CLM, the meticulous design of the ramps
Africa. incorporates double-T profiles which keep the weight
Marketed under the brand name P-Eye, the device replaces to a minimum and further add to the ramps’ unrivalled
the tyre valve cap monitoring preset minimum tyre pressure strength; a very small surface guarantees the highest
– if the pressure drops more than 5% below the required bending strength with the least weight. In addition, the
setting, an LED lamp starts blinking. This makes it a rela- rugged structure and thick beams easily withstand dents
tively simple task for commercial operators to establish tyre and knocks, eliminating the risk of cracks or splits in the
pressures on their fleet, as a visual check on any vehicle ramp structure.
fitted with the device quickly reveals whether tyres are all Ramps for wheeled and rubber track vehicles, available in
correctly inflated.
The system is thus both
safer and more cost effi-
cient than manual checks
as it is not necessary to
check every single tyre,
with action necessar y
only when the LED’s are
blinking.
Research has shown that
about a quarter of all com-
mercial vehicle tyres are
not sufficiently inflated,
increasing wear by about
15% to 20% and fuel up
to 7%.  It is also com-
monly known that many
blow–outs and tyre strip-
ping are caused by under
inflated tyres, sometimes
with devastating and fatal
consequences.
Add to that the fact that
under-inflated tyres have
a greater rolling resistance Lightweight aluminium loading ramps

16 Supply Chain Today April 2010


Market Forum
lengths up to 5 metres, handle load capacities from 200kg proof-of-delivery and helps resolve customer claims more
to 14 000kg while ramps for steel tracks are designed quickly. Faster Wi-Fi support (600 mbps) enables larger
to support weights ranging from 2 500 kg to 28 600kg. and richer content downloads such as training videos to
Ramps are supplied with and without edges and different 90 000 drivers simultaneously.
connections are also available. An aggressive 2D imager can decode many symbologies,
The ramps undergo rigorous testing, all parts are certi- including existing UPS linear barcodes and the UPS Maxi-
fied and all CLM manufactured products comply with the code, and thus speed the upload of additional package
highest internationally-adopted quality standards. information at the time a package is first picked up. The
Bobcat Equipment SA (Pty) Ltd, Deryck Jordan, Tel: (011) 908-2377/ 2D imager will also make it even easier to “capture” a
(011) 389-4400, 0860 BOBCAT, Email: info@bobcatsa.co.za, www. clear view of a recipient’s signature.
bobcatsa.co.za UPS, Thore Saether, Tel: (011) 922-9200, Email: thore.saether@
ups.com

New-generation handheld
computer
UPS, the world’s largest package
Maximum efficiencies with RF devices
delivery company, and Honeywell,
United States Cold Storage (USCS) has begun a nationwide
a diversified technology and
implementation of new Psion Teklogix’ ruggedised mobile
manufacturing corporate, are
devices in over 30 sites.
teaming up on a new-generation
handheld computer for UPS USCS first implemented radio frequency equipment from
drivers that will further improve Psion Teklogix in 1997. Currently, the company has over
communications links. More 1,000 ruggedised mobile devices deployed, ranging from
than 100 000 of the Honeywell handhelds to vehicle mounted computers, helping to keep
computers will ultimately be the supply chain moving with maximum efficiency. The
deployed. devices are in the field from receiving to picking and stack-
ing to shipping, and are tasked with managing inventory
Known internally at UPS as
and orders wirelessly in real-time. 
the Diad V (Delivery Informa-
tion Acquisition Device V), the “Psion Teklogix’ rugged mobile devices are built like tanks,”
Honeywell mobile computer said Terry Groff, IT RF tech specialist at USCS. Many of
features innovative cellular tech- the units initially deployed in the 1990’s are still working
nology that provides on-the-fly extremely well today.
switching between cellular car-
riers, meaning the
computer can auto-
matically jump to
another cellular car-
rier if the preferred
carrier’s signal is
lost. This industry-
leading technology,
when combined with
Honeywell’s sophisticated 2D imaging capabili-
ties, will further ensure the package tracking
and reliability that customers expect from the
world’s largest delivery company.
At approximately half the size and weight of the
Diad IV, the new, more durable mobile computer
will feature: a state-of-the-art colour display
and microprocessor with substantially expanded
memory – all to support driver training and future
applications like navigation. For example, the
Diad V will enable maps to be displayed to help
a driver avoid a traffic jam.
A colour, auto-focus, flash camera enhances

Supply Chain Today April 2010 17


Market Forum
As we phase out the older narrowband
units and convert to the 802.11 technology
standard with Psion Teklogix’ 7530 G2
flexible, rugged handheld and the 8525
G2 wireless vehicle mount computer, we
look forward to getting the same type of
exceptional results.”
Psion Teklogix rugged mobile devices
are able to perform all functionalities in
temperatures as low as -15° Fahrenheit. 
With rugged mobile devices and a battery
life that can last through the whole day
without recharging, USCS is able to keep
the business efficient and accurate.
Psion Teklogix, Michelle Hollis, Tel: (011) 805-
7440, Fax: (011) 805-7444, Email: michelle.
hollis@psionteklogix.co.za

Versatile hoists
Condra has reported a good order intake
for its hoist range, which comprises two
main ranges: the veteran K-Series and the

newer Titan range, the latter divided into the Titan Short
Headroom (SH) and Titan Compact sub-ranges.
Titan-SH hoists are designed to make maximum use of
expensive factory space – headroom as well as floor. Based
on the proven K‑Series, this newer design has reduced
the size of many K-Series components to take height out
of the final crane assembly. Hoist profile is some 20%
less than the K‑Series.
Efficiency in Food and Energy processes The reduced height can deliver huge savings during factory
construction by lowering the entire roof. Alternatively, the
GEA Project extra lift height delivers an ability to take on projects that
Solutions, the project other factories cannot.
management division The Titan-SH series has a maximum capacity of 16 tons,
of GEA Refrigeration and incorporates refinements such as automatic rope
Africa has a dedicated tensioning, smoother travel, a built-in load limiter, stan-
team of engineers who dardised direct drive and universal carriage.
specialize in the design
of new and modifica- Condra’s sister sub-range, the Titan Compact series, delivers
tion of existing refrig- all the modular capabilities of the earlier K-Series in any
eration facilities. application, but in a refined and more compact design.
Allowing a lifting capacity of up to 32 tons, the features
In partnership with our on all models include electromagnetic DC disc brakes;
clients, we develop,
standard frame-size motors with parallel rotors; double-
implement and manage
acting limit switches; solid bronze rope guides and totally
developments from
enclosed, splash-lubricated gearboxes.
conceptualization
through to completion. For lifting capacities larger than 32 tons, there is the
K-Series, which Condra has manufactured since 1972.
Refrigeration Technologies Open-drum K-Series hoists provide lifting capacities in
excess of 250 tons.
GEA Project Solutions Grenco Condra (Pty) Ltd, Josef Kleiner, Tel: (011) 021-3712, Fax: 086 669-
19 Chain Avenue, Montague Gardens, 7441
Tel: 021 555 9000, Fax: 021 551 4036 www.geaprojects.co..za 2372, E-mail: condra@mweb.co.za

18 Supply Chain Today April 2010


PROCUREMENT

Active Buying
I see one of the greatest problems of the corporate world as being their buying systems. I call it “Passive
buying”. Procurement is centralised in a department in which the staff have no specialised knowledge of the
products.

T
he technical and if they want to buy from me they
guy, who must pay upfront. This really cast a cat
needs a among the pigeons. Five months later
product, I was paid upfront and I supplied
requisitions it. the goods. The suppliers who push
It goes out on their products are the ones who
tender and gets have little to offer. The suppliers
bought from who do not push are the ones
the cheapest whose products are bought on
supplier or their own virtue.
the one who
manages to Just give your card to
buck the the guy who needs the
system. The
product pur-
product and tell him he
chased may must choose an agent
have little in himself to represent
common with you
the requisitioned
item. We all know So how should purchasing
that money changes be done? Whoever needs
hands under the table, the product should take
but the responsibility full responsibility for it
for purchasing is so and buy it. If it works,
diffuse that nobody he or she should get
can be pinpointed as the credit and if not
guilty. he must suffer the
Double the price blame. Under these
I have a large cor- circumstances, corrup-
porate company that tion cannot thrive.
has been buying a small item off me for many A neat tip
years. I don’t really want the business, I don’t Open tenders are good, provided all suppliers get
even manufacture the product, I just outsource it. the enquiries. It is a pity that customers don’t
Then one day I had to tender for this business. I send enquiries to all the suppliers. “Active buy-
sighed, doubled the price and tendered. Mine was ing” is where the customer goes out and looks for
the only tender. Then they lost my tender. I said the appropriate product. Unfortunately this only
“that’s fine; I don’t want the business anyway.” happens in small and medium-size companies.
Here’s a neat tip; if you want to sell anything to
This caused great consternation. If I don’t the mines, just give your card to the guy who
supply it, where will they get it? I said I was needs the product and tell him since the mine
sure they could get it for a quarter of the does not have an account with you, he must
price in India; all they have to do is look for choose an agent himself to represent you.
it. Look for it? What a concept! They have
Watch the miner smile! Your business is in the
never looked for anything before. All they
bag, and at your price too!
do is wait for people to come and beg them
to buy their products. Tel: (011) 412-3261, Fax: (011) 692-1232, Email: keram@
global.co.za, Website: www.keramicalia.com

Now I suddenly had this huge corporation begging


me to sell them a product. I was most amused.
I told them I reject their conditions of purchase,

Supply Chain Today April 2010 19


PROCUREMENT

Tackling Uncontrolled
Maintenance, Repair
and Operations Spend
Maintenance Repair and Operations (MRO) Stock Procurement can represent as much as 50-60% of external
procurement spend, and represents a particularly high portion of total spend in asset-intensive supply chains.
While the value of the spend may be large, the number of stock keeping units (SKU) procured can have a diz-
zying array of characteristics, from large and infrequent commodity purchases, such as coal, to small frequent
purchases of low value items such as bolts and milk. In many organisations, the Procurement department is
disempowered by insufficient technical knowledge, insufficient demand visibility/understanding and/or insuf-
ficient authority to manage these commodities.

T
his typically has the following conse- These problems highlight the trade-off between
quences: cost, (both price and transactional cost) and
• A lack of technical knowledge for availability of the items to internal customers
some procurement items who are often not concerned with cost.
• An expectation from internal customers to In order to understand the problems associated
stock all items all the time with MRO, it is useful to analyse the physical
• Low level of integration with maintenance characteristics of the procurement items according
planning to demand type and volume characteristics.
• Excessive inventories Typical categories include the following (in fig1,
• High volumes of purchase orders for low values the characteristics of the demand type are de-
• High risk of obsolescence for many items tailed on the left, the procurement and inventory
• Low first-pick-availability management drivers on the right):

Fig1: Procurement demand profiles

20 Supply Chain Today April 2010


PROCUREMENT

The benefit of differentiating different types of


procurement is to highlight what the minimum
cost driver of that process may be and to man-
age it appropriately. For example, transactional
cost can frequently exceed the value of small and
frequent purchases such as milk or bolts.

The Procurement department is


disempowered by insufficient technical
knowledge to manage these
commodities

Bulk items of high value should be sourced


through a robust process focused on price. Regular
consumption makes the management of stock
relatively easy, assuming good supplier delivery
performance. Key measures for this category are
cost and delivery against schedule. Graph 1
Planned MRO and Routine MRO are the same
items procured for different reasons; the higher
the level of planned consumption, the higher the
level of availability that can be expected from
procurement. The key focus for procurement is
lead time, as the risk of down-time or additional
maintenance work frequently outweighs the cost
of the part.
Critical items are capable of stopping a plant.
They typically have long lead times. There is
usually a small number of SKU’s that must be
held, usually for OEM machinery. The criticality
of these parts is known and adequate stock is
kept to cover breakdowns.
Diagnosing the problem
Some of the ways of telling that there is a problem
are by measuring the following:
• A large number of suppliers with a small Graph 2
spend may highlight opportunities to consoli-
parent in distorted stock holding patterns as
date either to one supplier, or to consolidate
seen below.
orders. The reduction in the effort of placing
orders by the use of catalogues or contracts Stock No Stock
creates procurement capacity to concentrate Issues No. of SKU’s 20 - 30% 10%
on high-value sourcing projects. The key is to Item value 90% 10%
reduce the administrative burden, usually by Consumed
effective use of technology (see graph 1). Value of Stock on 50 - 60% 0%
Hand
A symptom of the administrative problems affect-
ing procurement is shown in a typical profile of No Issues No. of SKU’s 20 - 30% 40 - 50%
order values in graph 2. Item value 0% 0%
Consumed
Many small orders are concentrated in a very
Value of Stock on 40 - 50% 0%
small area of spend. Typically, large orders get Hand
the required attention. The missed opportunity is
in orders in the middle bands that are typically Current stockholding profiled by currently in stock and is-
sued in the last year
going to the same supplier and represent ripe
opportunities for sourcing. Initial formalisation of
The table above shows the scale of different
contracts with the primary objective of reducing
problems, first that a few SKU’s account for
supply risk can yield benefit through improved
the majority of the spend. These items need to
performance and supply a baseline for a sourc-
be planned and/or forecast to more accurately
ing intervention.
understand the timing of their demand. An em-
The product of small orders is also readily ap- phasis on inventory management policies and

Supply Chain Today April 2010 21


PROCUREMENT

forecasting (where appropriate) 4. Leveraging of scale. High volume orders


will also reduce the potential for can be devolved into the business through
out of stock. The bottom quadrants the use of catalogues and enabled through
represent risk of obsolescence technology, either through the ERP, or through
(stock already held) and potential desktop solutions provided by suppliers e.g.
risk of ordering stock items that stationery.
are redundant. These items should 5. Business Intelligence. Visibility of what is
be inactivated. requisitioned and consumed is paramount in
Processes intervention highlighting the risks of ordering items that
Generally, the following interven- have not been planned or forecast.
tions yield excellent results These interventions can be planned as a complete
1. Definition of commodity structure project or individual projects. The current state
(Group, Category, Item etc). After of the procurement function in terms of internal
Grant Blair, Procurement Consultant at analysis of maintenance and rou- service provision will determine the scale of the
Volition Consulting Services tine stock items the engagement of intervention required. Current inventory stock
an internal subject matter expert holding profiles will also identify the need to
for individual commodities can lend credibility dispose of currently redundant stock and lower
to decisions regarding categorisation of items the risk of obsolescence.
and associated inventory management and Process differentiation benefits
sourcing strategies The proposed process interventions above have
2. The definition of procurement lead-times, the following benefits:
preferably at a supplier and item level. Pro-
curement of routine items is dependent on 1. Increased capacity within the procure-
the lead time and is a major objective of the ment department to focus on high-value
sourcing decision. Fixed lead times increase sourcing initiatives
availability to end customers and lower stock
holding requirements. 2. Increased value from suppliers through
price negotiation and improved delivery
performance
The key focus for procurement is lead time, as the risk
of down-time or additional maintenance work frequently 3. Increased availability of stock to internal
outweighs the cost of the part customers

3. Integration of the inventory management 4. Reduced risk of obsolete stock


function with the maintenance schedule and
combined with a good supplier management Reduction in procurement spend can be in the
can give the procurement function the ability region of 5% – 35% for the complete MRO spend
to commit to internal service level agree- and stockholding reduction in excess of 50% is
ments. Better notification from maintenance common.
must be negotiated into a higher availability, Grant Blair, Volition Consulting Services, Tel: (011) 259-
rather than availability being assumed. This 4380, Fax: (011) 259-4399, Web: www.volition.co.za
can reduce inventory levels AND increase
service levels

22 Supply Chain Today April 2010


COLD STORAGE

The Effects of Cold


Until quite recently, there appeared to be a general lack of interest in South Africa about the effects that
cold can have on the human body. To some degree this is understandable as excessive heat is perceived
to be a greater danger. However, there are many situations, apart from working in cold and freezer stores,
where hypothermia, or abnormally low body temperature, can easily occur.

H
umans have an optimum “core body “Goose bumps”
temperature” which ranges between To maintain temperature when exposed to an
36.8°C and 37°C. Outside these lim- absence of heat, humans can produce more
its, the human body will experience heat through shivering, physical exertion and
stress. metabolic activity. They can also minimise heat
But, one must be careful with the term “core body loss not only through increased insulation but
temperature.” This will vary as the organs of the also via vasoconstriction where the blood vessels
body operate at slightly different temperatures. It narrow in the skin and subcutaneous fat acts as
is clear, however, that when subjected to a cold an insulator.
environment, the trunk of the human body will One mechanism to reduce heat loss is rudimentary,
unconsciously attempt to maintain a constant core “goose bumps.” These are the body’s attempt to
or deep body temperature of around 37.3°C. straighten our “furry coat” away from the body
to improve insulation. However, unlike cats and
Lapdogs were popular in the days before electricity was dogs, our body hair mass is no longer sufficient
to provide additional heat to their elderly owners to make much difference. Teeth chattering is
really the spasms of the facial muscles working
Begin quickly overtime to produce heat for the brain. These
The onset of hypothermia occurs when the core initial bodily reactions may actually be sufficient
temperature drops below the minimum to maintain to increase the core temperature above 37°C for
homeostasis in an individual. There is misunder- a short time, but the body’s energy reserves will
standing that it takes freezing temperatures of be rapidly depleted. Shivering can increase the
below 0°C to achieve this but it can happen at body’s metabolism by a factor of four!
temperatures well above this point depending on
the conditions, which include wind chill. Metabolic rate
The body has a number of temperature sensors
which feed information to the hypothalamus
in the brain. Where sensory information
suggests that there is a general chilling of
the body, then the hypothalamus raises the
body’s metabolic rate. Raising the metabolic
rate is like taking heavy exercise. The heart
rate goes up, so does blood pressure, oxygen
intake increases and heat is produced by
muscle action.
There may also be certain chemical changes
within the body to produce heat. If the feel-
ing of cold is not addressed quickly, then
vasoconstriction starts, which can be within
minutes of entering a cold store. Vasocon-
striction is where heat is preserved in the
human trunk by reducing blood circulation
to the peripheries ie, the hands and feet.
Having a high surface to volume ratio, the
hands and feet loose temperature quickly and
Insulated hardhat for cold conditions together
the blood returning from them to the heart
A full face balaclava which reduces the with insulated liner. The face can also be
exposed skin to a minimum covered with a mask is relatively cold.

Supply Chain Today April 2010 23


COLD STORAGE

Start to go blue
Cutting off circulation to these areas keeps the
trunk warmer. In extreme cases, the hands and
feet will start to go blue and become extremely
painful as the blood circulation is reduced to
about a third of the normal flow. As a total lack of
circulation would be harmful to these extremities,
vasodilation also occurs for short periods initially
to allow sufficient blood back into these areas.
When this happens, a person’s hands can suddenly
feel warm. It has also been noticed that keeping
the face warm can reduce vasoconstriction in
the hands and feet. The wearing of balaclavas
or insulated hard hats in cold stores is therefore
advisable.
These are the body’s attempt to straighten our “furry
coat” away from the body to improve insulation

The hunting reaction


Vasoconstriction interspersed with periods of
vasodilation at the extremities is known as the
“hunting reaction” possibly because it was first
noticed by hunters. The hunting reaction has been Racking damage in a cold store
extensively studied and helps to prevent localised
cold injury. It seems to operate via blood vessels injury such as the ears, nail beds, lips, cheeks
called AVAs which are present in those parts of and nose as well as the insides of the hands and
the human body most at risk of localised cold feet. It also appears that certain genetic groups
have a less effective “hunting reaction” than others
although it can be improved through acclimatisa-
tion and the taking of vitamin C.
Africans, for example, have a relatively poor “hunt-
ing reaction” and are more prone to localised cold
injury than Caucasians. For this reason, they need
good protection when working in cold rooms.
Cold diuresis
Once vasoconstriction begins, the body has to
make further adjustments as there is now more
blood in the body trunk than was previously the
case. This increases blood pressure. Although
reduced blood temperature will reduce blood
volume somewhat by itself, it is insufficient and
the renal system starts to remove plasma from
the blood. The rate of plasma removal depends
on posture, and will be greater for someone who
is seated, such as a reach-truck driver, than it
will be for someone who is standing upright. This
process is called cold diuresis.
The kidneys are put under stress resulting not
only in increased levels of urination but also
in the loss of chlorides from the body. It was
originally thought that increased urination was
due to the body not having to perspire at cold
temperatures. However, this is incorrect as per-
spiration and moisture loss from the respiratory
tract still occur at low temperatures as any cold
store worker knows. It appears that the process
of cold diuresis is regulated by hormones excreted
by the pituitary gland.

24 Supply Chain Today April 2010


COLD STORAGE

Mental confusion
Superficial cooling can increase vigilance and
brain activity. However, in the first stages of
hypothermia, down to a core temperature of 35
C, brain activity will decrease. People become
confused which can make their situation worse.
Even small variations of brain temperature can
cause confusion as also happens with a mild
fever.
There is some argument that this mental confu-
sion in cold conditions can be partly caused by
a lack of oxygen, or anoxia. This is one reason
why physical stock counts in freezer stores can be
inaccurate. It also accounts for some of the dam-
age to equipment in this type of warehouse.
Shivering Lewis Pugh finishing his swim at the North Pole
Shivering generally starts after the onset of vaso-
palms and soles of the feet.
constriction although the initial muscle tension
may not be noticeable. Shivering is the body’s A thermal break
way of creating heat and is caused by muscle In the absence of fires, shelter and other forms
action. There are two major types of shivering: of external heating, a human must rely on the
normal shivering and deep shivering. Deep insulation provided by his or her own body and
shivering is the body’s last method for creating clothes.
heat which is very frightening for anyone who
The thermal insulation of clothing is proportional
has experienced it. It normally does not happen
until the rectal temperature has begun to fall. The It also appears that certain genetic groups have a less
body’s muscles contract in violent spasms which effective “hunting reaction” than others
are uncontrollable. This uses up the remaining
energy reserves and, thereafter, the body trunk
continues to cool until the heart stops beating
at a temperature of around 29°C. 
When the core temperature is lower, there is no 
detectable heartbeat and the need for oxygen is
reduced. Death however, is not inevitable and
people have been resuscitated from core tem-
peratures of as low as 13°C.
Resuscitation
Assuming that the person is removed from the
cold environment in time, care must be taken in
the resuscitation process. This is because moder-

ate heating, will cause vasodilation on the body
surface which is colder than the core. Relatively
cold blood will then return to the heart increasing
the risk of heart failure.
Understanding insulation
There are several kinds of heat loss. Body tis-
sues conduct heat outwards from the core, and 
more importantly there is convection of heat via
the blood. Finally 20% of human cooling occurs
through evaporation where there is a heat ex-
change between the water vapour and the colder
external air. Of this 20%, two thirds is caused
by perspiration and one third by water vapour
exhaled from the respiratory tract. 
Even at cold temperatures, the body continues to
exhale water vapour, and to perspire when excess 
heat is being produced via work and also when 
the person is under mental stress. In the latter 

situation, perspiration is largely confined to the

Supply Chain Today April 2010 25


COLD STORAGE

The outside fabric layer must be


windproof to prevent the ingress of
cold air. Curved surfaces like glove
fingers increase surface area and can,
in certain instances, reduce the level
of insulation. This is one reason why it
is difficult to keep fingers warm.
Perspiration
Finally perspiration, although uncom-
fortable, does not necessarily destroy
the thermal insulation of clothing
unless it compresses the structure of
the insulating fabric thus preventing
it from trapping air.
Working in cold climates makes the
body produce more heat. Indeed the
weight and bulk of the insulated cloth-
A Siberian Husky can survive comfortably at sub zero temperatures due mainly to his insulated ing itself raises the metabolic rate. It
coat, and his metabolism which will only start producing additional heat at around -10°C is therefore quite possible for those
to the amount of dead air that has been trapped. working hard in cold stores to overheat
There are now several types of insulation which inside insulated clothing. As far as possible, the
have been developed to trap air efficiently in clothing must effectively insulate a person when
lightweight garments. If the dead air space is they are standing still.
thicker than about 25mms, then air currents can When they are working, the clothing should allow
develop within the insulation greatly reducing its a sufficient loss of heat to more or less balance
ability to stop the movement of heat. what is being produced. Additional heat produced
Mental confusion in cold conditions can be partly caused with hard work can be almost three times what
by a lack of oxygen, or anoxia is produced by the body at rest. While it is advis-
able for people working in cold temperatures to
work methodically so as to keep additional heat
generation to a minimum, sweating will occur

HUE-TONE
and the clothing must be able to “wick” the
dampness away from the body while retaining it
within the clothing.
A Clo unit?
The clo unit was defined in 1941 to help military
MANUFACTURING commanders understand what type of clothing
soldiers required in different climatic conditions.
MANUFACTURERS OF
One clo unit represents the insulating value of a
ANODISED AND SEALED ALUMINIUM
man’s underclothes and lightweight suit which
LABELS allows him to be comfortable when he is sitting
BARCODES in an office with an ambient temperature of ap-
proximately 21°C, an airflow of 10cms/sec and
ASSET TAGS
For Public Road Operation
CHASSIS NO / ONDERSTEL NO

D/T

A(U) / A(E)
GA(U) / BA(E)
GCM / BKM

P/D

an air humidity of less than 50%.


SIGNS The number of clo units required by a cold store
Lubritec SA
PLAQUES worker at an air temperature of -20°C depends
GVM / BVM

A
V

GA / BA

26 January 2010
on the amount of heat his body is generating.
PANELS Without a heated cab, a reach-truck driver whose
IN BLACK OR MULTI-COLOUR PRINT metabolism is at rest will require about six clo
WITH PRE-APPLIED of insulation whereas a picker engaged in heavy
ACETONE-ACTIVATED ADHESIVE
OR work will only need two clo. When specifying cold
store protective equipment, managers should not
one must be pH7.00, the other can be any standard

8) For ORP or Redox calibration use a 475mV Buffer.


5) Press UP/DOWN to display the next menu option.
6) If no function is selected within 30 seconds, then
the unit will return to the normal default display.

HJM 31009

SELF-ADHESIVE
7) For pH calibration two pH Buffers are required,
2) Press ENTER to enable the value edit function.
1) Press UP/DOWN to display the desired option.

3) Press UP/DOWN to change the desired value.


Calibration and setup procedure.

4) Press ENTER to save the changed value.


Run

such as pH9.00 or pH4.00.

Model 51 pH/mV Controller


Probe

Fault

look only at price but consider the clo value of


Alarm 2
ALKALINE DOSING

CONTACT US AT
Out 2

the clothing and match it to the prevailing condi-


CHANEL 2

UP
Pulse 2

TEL: 011 493 9038


ENTER

SET
Alarm 1
ACID DOSING

DOWN

tions in the store.


Out 1

FAX: 011 493 9039


CHANEL 1
Pulse 1
HM Electronics

OR VISIT OUR WEBSITE AT


hjmelectronics@neomail.co.za

www.huetone.co.za Medical implications


J

There are several problems that arise when


people work in cold stores. First off, people who

26 Supply Chain Today April 2010


COLD STORAGE

are not correctly equipped will quickly become Thermal shock


uncomfortable and unproductive. Allowing them However, it is not only the cold temperatures
to warm up for ten minutes in every hour does themselves that can put a workers’ health at
not provide a solution as this moderate heating risk. The long-term danger of moving from ambi-
only serves to further drive down core tempera- ent temperatures of up to plus 35°C to those as
tures, in effect making the worker less productive low as minus 25°C almost instantaneously are
when he goes back into the cold store than he frequently overlooked. The shock to the system
was when he came out. As already mentioned, from this sudden temperature change can only
mental activity will quickly decrease, increasing be imagined. Cold-store personnel can make this
the chance of accidents and mistakes.
Workers will also be prone to catching colds and
Africans, for example, have a relatively poor “hunting
flu as the human immune system can be some- reaction” and are more prone to localised cold injury
what suppressed and any bronchial infections than Caucasians
can become worse when working in cold stores.
Apart from colds and flu, there are other long transition many times
term health risks which can affect those who work a day. Proper cloth-
in cold stores especially if they are not properly ing and the presence
protected. These risks will vary depending on of airlocks reduces
age, fitness and underlying health problems. It the intensity of this
must also be stressed here that there has been thermal shock.
no research done in South Africa, as far as we It is also known that
can tell, on long-term health problems associ- the risk of heart at-
ated with working in cold stores and it is an area tacks rises as the
where research is required. ambient temperature
In the UK, a report was commissioned by Birdseye falls. In France, tests
Walls in the late 1970’s. This report resulted in showed that a 10°C
substantial improvements to cold store protective drop in temperature
clothing and the way in which it is used. Today increased the risk
one is simply not allowed to enter a cold store of heart attacks in
in the UK without proper protection. males by 13% and
in the US the rate of
Dietary changes heart attacks in the
People’s diets can change when they are exposed winter months is over
to cold temperatures regularly. First of all they will 50% higher than for
eat more, although with acclimatisation, intake the summer months.
levels may reduce. There will also be a tendency These figures were
to eat a greater percentage of fat. Indeed, in some compiled from gen-
tests conducted in the Arctic, a craving for fat eral statistics. If one
was noticed. The consumption of carbohydrates, looks at the possible
although not as effective as fat, is also likely to added dangers that
increase and can sometimes be noticed in high come from work-
levels of sugar consumption, especially as this ing in cold stores,
is the quickest way to get an increase in body ie, thermal shock
heat. A high protein diet does not seem to be and possible dietary
effective for those working in the cold. changes, then it is
When dietary changes are considered from a likely that the inci-
health perspective, there are several aspects that dence of heart prob-
should be borne in mind. Increasing the intake of lems will be higher
fat will tend to raise the level of ‘bad” cholesterol. among cold-store
Increased consumption of sugars may increase workers than among
the risk of type 2 diabetes. In a South African the normal working
cold-store medical screening done in the early population.
1990’s unusually high levels of hypertension
Asthma
and diabetes were found among the employees
People suffering from
of one facility.
asthma experience
Whether this was due to the cold temperatures problems when they
was not proven as they may simply have been breathe in cold dry
the result of common eating habits. But the high air as it narrows the
incidence of these medical conditions among cold- airways by thicken-
store personnel was somewhat suspicious. ing the mucous lin- Salopette worn with a full jacket. This arrangement gives double
insulation to the body trunk

Supply Chain Today April 2010 27


COLD STORAGE

added care as exposure to cold


temperatures tends to exacerbate
joint pain. This is why those
whose work includes kneeling
on cold-store floors at operat-
ing temperatures should have
insulated pads on their knees. A
study has shown that cold-store
workers have more complaints
regarding joint pain than those
working at ambient tempera-
tures. This has been attributed
to the fact that the temperature
of the synovial fluid which sur-
rounds the joints decreases in
the cold increasing the risk of
Cold store worker using bubble wrap to keep his Chilblains are not confined to the fingers and toes. joint damage.
feet warm The nose, ears and face can also be affected
Raynaud’s disease
ing which makes breathing more difficult. This A lack of proper protection can
problem can be partially solved by covering the also increase the chances of Raynaud’s disease
nose and mouth with a scarf or by wearing a which seems to be caused by working at low
face mask. However, cold-store conditions are temperatures with inadequate protection. The
not favourable to asthmatics. hands and feet are subjected periodically to
Joint pain including arthritis spasmodic episodes of vasoconstriction which
Those suffering from arthritis also need to take are far more intense than the body’s normal
reaction to the cold.
Why many sailors died after being rescued from the
Immersion foot and chillblains
North Atlantic during the Second World War
Immersion foot is caused when the feet are ex-
posed to cold temperatures for long periods in

TO LET
damp conditions. Chilblains are a milder form of
immersion foot. The temperatures do not have to
be below freezing and perspiration alone is quite
sufficient to cause the condition.
20 000 square meters @R18 per meter Common signs of immersion foot include a swollen
waxy appearance. The feet feel cold and walking
Crane rail siding offices, 5000 KVA, immediate occupation
is difficult with complaints like “it feels like walk-
ing on cotton wool”. This is followed by periods
when the feet are gorged with blood becoming
red, hot and very painful. Immersion foot, like
Raynaud’s disease, seems to have its basis in
damage to both the nervous and vascular system
and can persist for considerable periods.
The best way to prevent immersion foot is by
keeping the feet dry, normally achieved by chang-
ing socks more than once a day. Immersion foot
does not appear to be common in South African
cold stores but fungal infections are. Changing
into dry clean socks more than once a day should
also prevent this.
Many are not aware that cold-store floors are
extremely cold and that proper cold store boots
are essential to reduce heat loss from the feet.
Renal stress
As has already been noted, the body removes
Location: Brits
© Creamer Media 120210CG

plasma from the blood when it experiences cold,


a condition known as cold diuresis. This places
Contact Paul Steyn:
stress on the kidneys. While we have no direct
7HO‡&HOO evidence that this can damage the renal system,
we understand that renal failure can accompany

28 Supply Chain Today April 2010


COLD STORAGE

present in the outer layers of skin, but


heat stroke. As cold diuresis is caused by low care must still be taken. Ironically, the
rather than high temperatures, we feel that it lack of sensitivity in cold hands can
should also be avoided if at all possible especially also prevent a person from feeling how
as it also results in dehydration. hot an object is, resulting in burns.
Frostbite Conclusion
Frostbite should not occur among cold store Working in cold conditions affects the
workers as they do not spend enough time at human body in a number of ways,
low temperatures to actually freeze body tissue. and places it under stress. Worker
However if people are working in cold stores productivity in South African cold
with the evaporator fans running, then the wind stores is low when compared to
chill factor can negatively affect exposed skin, the US or Europe. Productivity
especially on the face. For example, in a room could be more than doubled if
running at minus 25°C an air flow of 10kms per employee comfort was taken
hour will reduce the effective temperature to minus seriously and properly-designed
33°C. This temperature level can cause frostbite protective wear worn. There is
on exposed skin in just over 30 minutes. also little interest in exploring
People have been resuscitated from core what the possible long term
temperatures of as low as 13°C health risks may be of work-
ing in these conditions. To
M
There have also been cases of frostbite recorded improve productivity as well th ohair socks p
an wo
among fishermen who have handled frozen tuna as to manage the risks at- ollen s rovide bette
ocks a r insu
nd do la
in the holds of sea-going fishing vessels. Frostbite tached to working in cold store not sm tion
ell!
needs to be distinguished from injuries caused conditions, the wearing of properly-designed
when exposed skin comes into contact with cold cold-store clothing is absolutely essential.
steel or concrete. Hands can acclimatise to this James Cunningham, Barpro, Tel: (021) 552-9190, Fax:
sort of situation within reason by reducing of water (021) 552-9170, Email: barpro@iafrica.com

Supply Chain Today April 2010 29


What’s red, blue, yellow,
and white...

...yet surprisingly green ?

In this increasingly environmentally sensitive time, the advantages of using a forklift truck, powered by Easigas,
become ever more obvious.
For example, diesel forklifts used in fresh produce warehouses actually cause fruit to ripen more rapidly due
to exhaust gases.
Easigas is cleaner burning with lower toxin emission.
Both petrol and diesel engines require more frequent maintenance due to carbon build-up.
And, both petrol and diesel driven units require dedicated filling points which are subject to spillage and soil
contamination whilst Easigas is a closed system and a non-pollutant.
LPG driven forklifts run with less vibration as the fuel is easier to atomise than both petrol and diesel allowing
for better combustion.
So, in addition to the considerable cost savings resulting
from longer service intervals, buying or converting your
existing forklifts to Easigas helps to make our world a good
deal cleaner.
For any further information or a free energy audit: Tel: (011) 389 7700 Fax: (011) 864 3800
Toll Free: 0800 001 504 info@easigas.co.za www.easigas.co.za
Supply Chain Today 6539/2009

30 Supply Chain Today April 2010


REPORT-BACK

Education Excellence
Awards
In recognition of outstanding achievement in various areas of education in operations management,
Sapics holds an annual gala award evening. Opening speaker, Deon Greyling of BTS South Africa com-
mented that the growth of Sapics has been to an extent mirrored in attendance at the Supply Chain Ed-
ucation Excellence Awards. At the first awards evening four years ago, attendance was about 60 people.
However, at this year’s function, some 150 were present.

T
he first award to be given was the CPIM top score achieved in a CSCP examination in
Top Scorer Award (Certified in Production Africa, this programme is a new industry educa-
and Inventory Management). The CPIM tional certification programme created to meet
program has been operational since 1973. the rapidly changing needs of the supply chain
During that time more than 90 000 manufacturing management field.
professionals have been educated on essential
Effective integration
terminology, concepts and strategies related to
The CSCP program takes a broad view of the
demand management, procurement and sup-
Supply Chain Management field extending beyond
plier planning, material requirements planning,
internal operations to encompass all the steps
capacity requirements planning, sales and opera-
throughout the supply chain from the supplier,
tions planning, master scheduling, performance
through the company, to the end consumer. The
measurements, supplier relations, quality control
CSCP provides students with the knowledge to
and continuous improvement.
effectively manage the integration of these activi-
This award is based on the top scores achieved ties to maximise a company’s value chain.
in Africa in a CPIM examination during 2009.
The runner up was Colin Seftel and the winner
The winner was Douglas Nel for Basics of Sup-
was Henricus Verhoef, who achieved one of the
ply Chain management, while the runner-up
highest exam scores achieved in the world to
was Churchward Mucheki for Material Planning
date.
Resources
This was followed by the CSCP (Certified Supply Perseverance
Chain Professional Top Scorer). Based on the The next award category was the Student of

Runner-up for Material Planning Resources, Churchward Mucheki, receives his The winner for the CSCP program, Henricus Verhoef, pictured
award from Abrie de Swardt, Managing Director of Imperial Logistics here with Samantha Bannatyne, of Tech-Pro Personnel

Supply Chain Today April 2010 31


REPORT-BACK

Student of the Year Award runner up: Leslie Locke

Here the winner was Rolindi Theart with Leslie


Locke the runner up. Rolindi proved to be an
outstanding PPIM (Principles of Production and
Student of the Year Award winner, Rolindi Theart, received Inventory Management) student. She assisted
her award from Chris Boshoff, Managing Director of Supply
Chain Management Solutions
her fellow students by writing a summary that
would assist them in studying for their mid-term
the Year Award. This award is presented to an exams, and even went into work on Saturdays
individual who has shown true commitment to to assist the students who were struggling. She
a course or programme and has demonstrated persevered with her studies and excelled in spite
perseverance to achieve against all odds. of the odds.

32 Supply Chain Today April 2010


REPORT-BACK

The Higher Education and Training Student of the Year


Liezl Smith of Sapics, presented the Lecturer of the Year
winner: Quintin Joubert, pictured here with his very proud
runner up award to Burnie Adonis
father, Colin

The Higher Education and Training Student of the Year run-


ner up: Mukovhe Ravhandalala, shaking hands with Liezl
Smith of Sapics
The Sapics Authorised Education Provider award runner up was Bizzpro

The Corporate Educator of the Year award was won by Imperial Logistics
Annually, Sapic presents an award to an individual
who is studying through a Higher Education
The Lecturer of the Year winner: Reuben Badana, pictured and Training institution for outstanding com-
here with Liezl Smith of Sapics

Supply Chain Today April 2010 33


REPORT-BACK

honours class and graduated


cum laude.
Acknowledging the
teacher
Sapics does not only present
awards to students but also
acknowledges the role of those
who teach. The Lecturer of the
Year award is presented to a
lecturer who diligently sup-
ports his or her students in a
manner that extends beyond
the call of duty, shows true
commitment to the students
and has true enthusiasm for
supply chain education. Here
the runner up was Burnie
The Corporate Educator of the Year award runner up was Transnet
Adonis and the winner was
Reuben Badana.
mitment, remarkable performance and overall
achievement. Reuben is described as a dedicated lecturer
who has shown excellent understanding of the
From Stellenbosch University, Quintin Joubert knowledge required and his lectures are of the
was the winner of the Higher Education and highest quality.
Training Student of the Year with the runner up
being Mukovhe Ravhandalala of Vaal University The winner of the Operations Management Pro-
of Technology. Quintin was the top student in the gramme of the Year was the company Volition for
its programme ‘Devolition’. The runner up was the
Transnet Procurement Academy with ISAPA
Continual development
The award for the Sapics Authorised Education
Provider which has shown commitment, significant
contribution and continual development during
2009 went to Kent Outsourcing. The runner up
was Bizzpro.
The Corporate Educator of the Year award was
won by Imperial Logistics, with the runner up
being Transnet
A “Special Award” to Vicenda was presented for
initiative, in promoting education in a new format,
which it calls “Workshop in a Box”. Working with
leading lecturers in the field of Operations Man-
agement, this company has recorded workshop
DVDs which are marketed to those students who
do not have the time or resources to attend a
live workshop.
Sapics, Heidi Lamb, Tel: (011) 023-6707, Fax: 086 575-
2979, Email: mail@sapics.org.za

34 Supply Chain Today April 2010


CONSUMER GOODS COUNCIL OF SA

Food Safety Audit


The Consumer Goods Council of SA (CGCSA) and its members • Saving in time with respect to staff members
have realised the far-reaching impact of the Consumer Protec- being allocated to shadow auditors on supplier
tion Act (CPA). The CGCSA is developing solutions and will be premises; and
undertaking a number of initiatives to assist its members and • Affording suppliers the choice of competent food
the entire industry. safety auditors (certain conditions will apply).

T
The following companies have already committed
he commitment to provide safe food to their full participation in the initiative:
the South African consumer, along with
the CPA has driven the need for enhanc- • Massmart
ing food safety among all players in the • Metcash
food industry. In May 2009, the food directors • Pick n Pay
of a number of retailers and wholesalers, met at
CGCSA, with the intent of developing a single, • Shoprite-Checkers
harmonized food safety audit at an appropriate • Spar
level. This audit would be applicable to suppliers
Woolworths has committed their participation
in this initiative only for branded goods and not
for their own private label. The CGCSA will be
engaging the companies who have not yet com-
mitted their participation.
In order to level the playing field and to create
consistency in the industry, the following major
decisions have been made since May 2009:
1. The Pick n Pay audit document has been
adopted as the South African Food Safety
Audit (SAFSA) and will be managed by FSI
(CGCSA);
2. A database will be developed by the CGCSA,
which will house all the results of food safety
audits conducted; this information will be
made available to all participating retailers
and wholesalers.

Saving of costs due to the reduction


of food to participating retailers and wholesal-
ers. We have identified the following associated in the number of food safety audits
benefits to suppliers: conducted
• Saving of costs due to the reduction in the
number of food safety audits conducted, for which The envisaged date of implementation is sched-
the supplier pays; uled for the 3rd quarter of this year. This date is
subject to the full participation and co-operation
needed for the successful implementation of this
initiative.
Further, more detailed communications will be
sent to interested and affected parties as the
CGCSA progresses in this regard.
CGCSA, Tel: (011) 789-5777, Fax: (011) 886-4966, www.
cgc-sa.co.za. Massmart, Tel: (011) 517-0000, Fax: (011)
517-0020, Email: info@massmart.co.za. Metcash, www.
metcash.co.za. Pick n Pay, Customer Careline: 0800 11
22 88, www.picknpay.co.za. Shoprite-Checkers, Tel: (021)
980-4000, Fax: (021) 980-4050, www.shoprite.co.za. Spar,
Tel: (031) 719-1900, www.spar.co.za

Supply Chain Today April 2010 35


Market Forum
Optimisation logis-
tics processes
Kühne + Nagel will imple-
ment a business pro-
cess automation platform
(BPAP) in cooperation
with Software AG in or-
der to further optimize
and harmonize its lo-
gistics processes. This
platform will increase
process efficiency and
provide management with
a clearer view of opera-
tional processes. Various
escalation levels enable
fast counteractive mea-
sures in the event of error.
The BPA platform will be
realized with Software
AG’s webMethods BPM Suite. meanwhile our auditor is getting the right information
The platform automates processes for business operations first time, every time.
such as those which deliver services to customers. Fur- “Debits and credits are totally accurate, debtors are properly
thermore, through business activity monitoring, process managed and creditors are easier to deal with. It works
data can be evaluated based on pre-defined KPIs (key for us the way we want it to.”
performance indicators). Warnings are issued immediately With inventory ranging from a small brass seal to a com-
if a process deviates from a defined standard. plex hydraulic pump worth more than R12 000, Flynn
The project will begin next year with a pilot stage and is finds the “drag and relate” function in the SAP software
expected to be completed with a worldwide roll out by extremely useful as it enables items sold to be tracked
2014. All products in the webMethods BPM Suite will be instantly. This brings up who the item was sold to and
implemented. The combination of the Suite and CentraSite when, who Hydra-Quip sourced it from originally as well
creates a considerable added value and is particularly well as the original purchase price and the sale price. It also
suited for global implementation. simplifies re-ordering.
Software AG SA, Dominique Zuma, Tel: (011) 317-2910, www.soft- 4MOST, Colleen Bellas, Tel: (011) 234-3000, Email: colleen@log-
wareag.com.de icgroup.co.za

Dynamic ERP solution


Safeguarding hydraulics specialist According to Strategix Business Solutions managing
Hydraulic and pneumatic systems and equipment spe- director Jaco Stoltz, many hosting and managed service
cialist, Hydra-Quip has contracted mid market ERP and providers have experienced tremendous expansion in both
business software specialist 4most, a member of the Logic their service offerings and customer base but are still us-
Group, to supply, install and commission a SAP Business ing the same systems, laden with heavy customisations,
One solution. to support a demanding service.
“We hold 8 000 different line item part numbers and “Microsoft Dynamics AX provides us with a single system
each has variations so the total inventory amounts to ap- that handles ordering, billing, inventory management,
proximately 40 000 spares and components. Tracking and tracking, purchasing, and support, giving us a strategic
traceability of pumps, hoses, seals, metal pipes, clamps advantage over our competitors,” he explains.
and other fittings were a critical requirement for us, says Managing the customer lifecycle with an ERP system
Hydra-Quip managing director Bradley Flynn.” enables each employee to reach across multiple depart-
Bradley adds that the SAP Business One system has been ments within an organisation to effectively manage the
live for almost a year and fully available since switch-on. customer experience. This is accomplished with a real-
“Initially it can be a little intimidating to new users and as time information flow from Sales to Operations to Billing
laypeople we are probably using only 20% of the system to Finance. Sales and Marketing are able to work together
capability. That will increase as time goes on but in the to tightly manage marketing campaigns segmented by

36 Supply Chain Today April 2010


Market Forum
customer profile, on-demand industry services, or on-hand Fat profits from lean supply chain
inventory allowing quicker to market and provisioning Keith Fenner, Sales Director, Softline Accpac, says cost-
turnaround times. cutting continues to dominate business decisions, including
In addition to the marketing function, sales has access those related to IT investment. However, struggling busi-
to all prospecting data, faster sales cycles, in-depth nesses are realising that the only way to improve profits
knowledge of service offerings, intuitive quote building is to put the right systems in place.
tools, and access to real-time provisioning estimates. As He says those who
the customer moves through the sales process, the sales already have sys-
group is capturing valuable server environment and setup tems in place should
information, which will be available to the provisioning be looking at better
and support group during the setup phase. ways of using these
The ERP system allows the provisioning and support group to help them be-
in-depth views of the customer’s environment including come more produc-
detailed technical specifications, role specific contact tive, which means
information, billing cycles, payment type, and payment optimising inven-
status. Billing information is used by the support and tory levels. “Agile
billing group to maintain tight controls on slow-paying supply chains are
and aging customer pay cycles. critical in meeting
today’s challenges
Strategix Business Solutions (Pty) Ltd, Jaco Stoltz, Tel: (011) 805-1023
of demand and sup-
Email: jacos@strategix.co.za
ply uncertainties,
cost reductions, and
complexity.” Keith Fenner

While solutions like


Transhipments drive Ngqura volumes Business Process Management, Quality Management and
The new Ngqura container terminal is enjoying a busy start ERP have all addressed only the inner workings of an
to 2010 as transhipment volumes from the Far East, South organisation, Supply Chain Management (SCM) aims to
America and the rest of Africa began arriving at the facility integrate the company’s internal systems to those of its
for the first time in January, bumping total vessel calls up suppliers, partners and customers. Technologies such as
to 43 and total cargo volumes up to 35,403 TEU’s since the Internet, electronic data interchange, transportation
the terminal’s operational launch in October 2009. and warehouse management software, including software
that manages plant scheduling, demand forecasting and
January alone saw 18 ships arrive at the terminal, com- procurement, make SCM a versatile strategy to adopt.
pared to an average of seven over the months October
to December. By understanding what customers demand and what goods
are being marketed to stimulate demand, it would make
Says Siya Mhlaluka, Transnet Port Terminals’ Divisional sense to then integrate directly to the supply chain in terms
Executive Manager for the Container Sector, “Our strategy of purchasing goods. This would typically be a purchase
was always to position Ngqura container terminal as a order projection module that understands the dynamics
potential transhipment hub because of its position midway from usage, minimum levels, lead times as well as mar-
between the Americas, Far East and Asia. keting data. Combine this with a view into the supplier
“We are seeing a good response now, with vessels com- in terms of packaging, shipments and delivery times, and
ing in from the Far East to drop off containers that are the business can obtain huge cost savings when it comes
then picked up by vessels heading to South American to delivering these goods to store locations.
locations.” “Supply Chain Management is one of the most powerful
Lunga Ngcobo, Transnet Port Terminals, Tel: (031) 308-8364 engines of business transformation and one of the leading
Lunga.Ngcobo@transnet.net, www.transnet.co.za cost saving and revenue enhancement strategies,” Keith
concludes.
Softline Accpac, Tel:
(011) 304-2000, Fax:
(011) 304-2030, www.
accpac.co.za

Supply Chain Today April 2010 37


Market Forum
New Head Subscription
John Sims – former General Manager of Magister
Africa, Goodyear South Africa’s distribution business
in Africa – has been appointed General Manager of Please fax us if you wish to subscribe to “Supply Chain Today” at
Trentyre. In his new role, Sims, 58, will oversee R375,00 (incl postage and VAT) per year; R875,00 per year for Af-
Goodyear’s distribution activities throughout South
rica/Overseas. We will post you an invoice on receipt of your fax.
Africa and Africa – where it currently trades in 13
territories. PROMECH PUBLISHING Fax No: (011) 781-1403

From:.........................................................................................

(insert your name)

Title: ..........................................................................................

Company: .................................................................................

Address: ..................................................................................

....................................................................................................

......................................................................Code: ..................

Telephone: ( ) ....................................................................
John Sims

“Historically, Goodyear ran two separate distribution Fax: ( ) .................................................................................


operations – Magister Africa, for distribution in Africa
and Trentyre, for distribution in South Africa. There Email:........................................................................................
has been a move to consolidate the two.”
John, a qualified Chartered Accountant, has spent
the past 30 years working for either Goodyear or Index to Advertisers
Trentyre. Apex 5
Lize Hayward, Goodyear Tyre & Rubber Holdings (Pty) Ltd, Barpro 24
Email: lize_hayward@goodyear.co.za, Tel: (041) 5055400,
Bar Trans 29
Fax: 086-614-0368
Chorus Call 12
CLF 14
Easigas 30
Engineer Placements 38
Feel at home 34
GEA Grenco 18
GSC 10
Huetone 26
Engineer Placements Linde 22
Masslift Outside Front Cover
When the business world lights up again, and the Mitsubishi Fuso 6
clarion call for skills is heard once more, will you M&M Systems 25
be on our database for us to contact you? Paul Steyn 28
Proscan Inside Front Cover
Psion 8
www.engineerplacements.com
or email us at: Sapics Inside Back Cover
admin@engineerplacements.com Toyota Outside Back Cover
Universal 32

38 Supply Chain Today April 2010


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

The SAPICS Annual Conference is the Leading


Event in Africa for Supply Chain and Operations
Management Professionals.
With the participation of: Principal sponsor:

32nd Annual Conference & Exhibition


Platinum sponsors:

25 - 28 July 2010
Sun City
Gold sponsor: Silver sponsor:

T 011 023 6707, F 086 575 2979 or


upavon@icon.co.za. www.sapics.org.za
Supply Chain Today April 2010 39
40 Supply Chain Today April 2010

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