Professional Documents
Culture Documents
Contents
Featured on the cover: Cover Story Sapics
4 Mass Movement 25 Tissue Samples and Corpses
Masslift
Tel: 011 786 8524 Racking & Shelving Pharmaceutical
Fax: 011 887 1253 5 Off the Shelf 27 In the Nick of Time
Email. sales@mlift.co.za or 7 Preserving History
mitsubishi@mlift.co.za
Procurement
31 Buying Power
www. Cold Storage
mitsubishiforklifts.co.za 9 No False Alarms
11 Remote Reefer Monitoring Railways and Ports
34 Lüderitz Set for Major Expansion
Trucking Market Forum — Supply
13 Heaven and Earth 35 Market Forum
Mass
Movement
Masslift Africa or Mitsubishi Forklifts as it is better known
initiated a new order of things in 2010 with much success.
They recently came under the wing of industry stalwart Geoff
Tucker. “2010 has been a year of massive change for us,” says
Marco Caverni, Sales Director of Masslift Africa.
W
e’ve focused mainly on infrastructure tition but in some cases have gone even better,
upgrading which consisted of moving for example offering a 10m platform height order
to new premises in both Cape Town picker, which is a first in the Warehouse Market.
and Durban, implementing major The Mitsubishi reach truck also offers height
administrative / system upgrades and a complete selectors and indicators as a standard and can
overhaul of our fleet. With our vision for 2011 lift a 1000kg capacity at 11,5m.
being the continued strengthening of customer Mitsubishi’s Japanese reliability with European
relationships, we want to make sure that we technology is not only a competitor in an aggres-
have the infrastructure to keep our promises,” sive market but is quickly becoming the brand of
he smiles. choice for clients in the know.
Electrically powered and protected from temperatures as Cold case
low as -35°C The range is seeing growing local support, with a
number of vehicles being assigned to some fairly
Warehouse range specialised applications. For instance, well-known
Of interest to warehouse specialists is the company’s South African company Eskort, recently ordered
range of warehouse equipment, which, until now, five of Mitsubishi trucks, namely a sit-down
has been a somewhat unknown offering from Mit- 1400kg reach truck, a stand-on 1300kg reach
subishi Forklifts. “Not a lot of people know that truck and three 1800kg three wheel forklifts.
our range caters to a large variety of applications All units are electrically powered and protected
and we offer comprehensive solutions to almost from temperatures as low as -35°C for cold store
every material handling requirement, this includes operations. The high capacity stand-on electric
some top quality warehouse equipment,” Marco reach truck is capable of working in very narrow
advises. Mitsubishi’s electric counterbalanced drive-in racking. Mitsubishi’s standard offer of a
trucks and standard warehousing equipment are 3 year – 5000 hour extended warranty coupled
now complimented by a ‘stand-on’ reach truck, with a service plan gave Eskort additional peace
which is quite a rarity in the industry. of mind.
“Our warehouse range is manufactured in Finland “This year we’ve gone to great lengths to rebuild
with a design specification that is aimed at rival- partnerships with our clients and explore new
ling the best Europe has to offer,” he explains. partnerships. Implementing this fresh approach
“However, in spite of being sophisticated enough is a young and dynamic sales and service team
to compete with top quality products, the equip- focussing on customer requirements rather than
ment is easy to maintain. This is important for growing market share. This, we believe, is the
local users because South African conditions key to ensuring sustainable growth and delivering
can be harsh, while the right technicians are not service excellence,” says Marco Caverni.
always readily available.”
Marco Caverni, Masslift, Tel: 011 786 8524, Fax: 011 887
Mitsubishi have not only come into the market 1253, Email. sales@mlift.co.za or mitsubishi@mlift.co.za,
with a warehouse range to meet the top compe- Website. www.mitsubishiforklifts.co.za
Off
the
Shelf Budget
cutting
can make it
difficult for a supplier
to make a profit when times
are tough. Many companies will make
do with existing infrastructure rather than
invest capital in non-productive equipment
which may be deemed unnecessary by
those who hold the purse strings.
M
eanwhile those who take the step to will be out on the 1st of May,” Mark adds. “This
buy new equipment are being very will be the 18th issue and we’re very proud of it.
cautious with their available funds. No one else in SA offers a catalogue like this.”
Mark Veldon Sales Manager at Linvar
Diversity
spoke to “Supply Chain Today” about overcom-
The approach seems to have paid off, because
ing this obstacle. “Last we’ve had to sell more
the company appears to be thriving and a number
effectively due to companies being more frugal
of noteworthy projects have graced the books.
in their buying ways,” he tells us.
“Mining, pharmaceuticals and motor industries
Companies are trying to save wherever possible are on the up again,” he continues. “This year
we completed projects for Avocent Mining in
Catalogue system Burkina Faso; Boss Mining in the DRC; and Rio
“There are stricter criteria that they work to- Tinto (QIT) in Madagascar.”
wards, trying to save wherever possible. We Installations have ranged from basic bolted shelv-
have an advantage because we offer a larger ing to fully operational turnkey projects. “Pallet
range of material handling equipment through racking was our biggest seller, although we had
our catalogue ‘Storage Direct’.” The wider choice a lot of interest in Linspace, our boltless shelving
of products gives clients more alternatives to fit system.” Linspace has earned market approval
within their spec, without having to shop around. for its incredibly flexible nature. The four way
“Linvar also works in conjunction with Siabeka upright allows bays to be added in any direction
Industries, a black empowerment company which - sideways - backwards or even on top of each
has opened up more markets to us. We can offer other using common components.
our complete range to a variety of different types
Strong and modular, the system allows easy ex-
of customers.”
pansion of storage areas by joining panels on the
In a time when ‘niche’ marketing can drive a sales end of bay runs. A range of accessories such as
team into a corner, the vast variety offered in the dividers, tool holders, security doors, trays and
Storage Direct catalogue means that Linvar’s target Linbins mean that the installation can easily be
market is pretty much anybody who needs any customised to almost any storage application.
form of storage or material handling equipment. “We’ve helped store everything from chemicals to
“Our new catalogue is launching this year, and general mine stores, from fresh produce to cold
Effective warehousing in Madagascar The wider choice of products gives clients more
alternatives
Preserving History
Two years ago, English Heritage, which looks after England’s historic monuments and associated artefacts,
had run out of storage space. 200 pallets holding stone work from Hadrian’s Wall were lying in an un-
manned, unsuitable facility in Matfen and 15 pallets from Tynmouth Priory were being stored in a WW2 gun
emplacement on the North Sea coast. As English Heritage had a 1993 custom built storage facility in Helms-
ley, Yorkshire, it was decided to increase the storage capacity there as cost effectively as possible.
O
nce the decision had been made Humidity and pests
in 2008 to install Storax mobiles, In the end, pallets were assigned different coloured
the curator of the Helmsley store, markers depending on weight and stored accord-
Susan Harrison, had to decide the ingly. Some items including metalwork needed to
maximum weight of each pallet, a standard pallet be stored in a low humidity micro climate which
size and where in the store each pallet should was achieved by using airtight boxes and silica
be placed. gel. As the relative humidity could vary rapidly
near the ceiling of the store, items which could
As the store holds Roman, early Saxon and medieval be negatively affected, including those made of
artefacts, each pallet holds an invaluable history of wood, were stored on the lower levels. Tests are
these periods still ongoing regarding humidity levels, and on
the possible movement of the wooden pallets
In order to prevent the creation of dust, and to while the mobiles are in motion.
strengthen the existing floor, an overlay slab As insects can cause damage, traps have been
was laid which included ramps to allow forklift put down to detect them early. Being able to clean
access and a wide moving aisle was created so the entire floor easily assists the housekeeping
as to allow the existing counterbalanced forklift regime and helps to prevent insect pests. Under
sufficient space to do a 90 degree turn. the current risk assessment, the Storax base motors
are left uncovered so to be accessible in case
of a motor failure. Susan has also implemented
a stock location system in the store.
Still plenty space
“With over 1 000 pallets stored, there is still
capacity to take in more collections, and it is
now much easier to retrieve any pallet quickly
whenever it is required for study” says Susan.
Previously, it was necessary to move other pallets
first, which made the retrieval process slower
and increased the risk of damage.
As the store holds Roman, early Saxon and
medieval artefacts, each pallet holds an invalu-
able history of these periods. Between Roman
memorial stones, Susan pointed out an effigy of
Henry Percy, the first lord of Alnwick, who lived
in the 13th Century and pointed out how some
masonry, from the nearby Rievaulx priory, still
showed remnants of the medieval paint.
One arch head from this priory, popularly known
as “ET” seemed to show the head of a baboon.
Investigations suggested that the image would
have been taken from a bestiary or book of
beasts, some real and some imagined, which
would have been one of the prized possessions
of any religious house.
http://www.storaxsystems.com/
No False Alarms
Mankind has always drawn inspiration from nature, particularly when finding solutions to problems; let’s face
it, most of the obstacles we encounter have already been solved by some smart squirrel or inventive insect.
Supply Chain Today recently spoke to Grant Wilkinson, Engineering and Marketing Manager at AST, about a
fire-detection system that is simply fool-proof – and the beauty of the device is that it’s based on the actions
of the weather.
T
he Cirrus Pro is an aspirating detection and AST simply focused it on African
fire detector that uses Cloud conditions.”
Chamber Technology to detect
a fire in its true incipient stage Since the device is not sensitive to
before smoke even begins to be emit- dust it can also be used in a number of
ted,” Grant explains. Most aspirating ‘dirty’ operations
detection systems are laser-based, ana-
lysing air samples for smoke particles, In an impromptu demonstration, Grant sets up
but this can be problematic. “Smoke a detector in a few simple connection steps and
and dust particles are similar in size then shows us how the system quickly identifies
so a filter system needs to be used to overheating from a faulty cable long before it starts
differentiate between the two. This to emit smoke. With electrical malfunction being
needs to be maintained to minimise high on the list of fire hazards, this is an impres-
nuisance false alarms.” sive display of the product’s capabilities.
False alarms in large facilities such Dirty apps
as warehouses are more than just Since the device is not sensitive to dust it can
an inconvenience. They contribute to also be used in a number of ‘dirty’ operations,
Grant Wilkinson costly downtime and dips in produc- such as substations in mines, and power sta-
tivity, not to mention the nuisance tions, as well as cable trenches. It can also be
value of calling management to site at 2am for used in food stores and cold storage facilities.
no good reason. With dust being unavoidable in “Extremely cold conditions are often an issue
such areas, laser systems can be hard-pressed because the pipes freeze up,” he says. “We en-
to function optimally. gineer the system to eliminate the requirement
No smoke and mirrors of inline heating systems used by other systems
Grant explains that the Cirrus Pro detects com- to overcome the problem.”
bustion from the incipient stage through to full High atriums in offices and shopping malls are
ignition. “The incipient stage of a fire is when also well within the scope of the Cirrus Pro. “We’ve
an object begins to overheat, where there is no shown that a small paper fire can be detected
smoke, just invisible combustion particles,” he by the Cirrus Pro in a 45 metre high atrium in 3
tells us. Combustion particles are produced at a minutes and 40 seconds,” smiles Grant, adding
Networking
Fire safety can be further enhanced by integrating
Cirrus Pro Detectors on a network. “The Cirrus
Pro can be incorporated into a fibre optic network
to allow us to interrogate all detectors remotely
via the world-wide-web. We’re able to log his-
tory, examine recent events and adjust sensitiv-
ity settings off site.” The Cirrus Pro can also be
networked via an RS485 cable system.
Additional benefits come in the form of ease of
installation and low-maintenance requirements.
“This system makes for an easy drop-in replace-
ment for other systems,” Grant adds. “Maintenance
is also significantly reduced. While it still needs
periodic checking to adhere to safety codes, in
general, the only requirement is the replacement
of the water in the chamber every six months or
so.” Merely a matter of refilling the container
with distilled water – available at most pharma-
cies for under R10 – this is certainly not going
to break the bank.
Along with easy maintenance and installation,
the Cirrus Pro has earned full approval from all
relevant bodies including FM and UL. “It’s a far
more cost effective option than the alternatives,”
Grant assures us. “And while it’s based on some
fairly sophisticated thinking, it’s as simple as
the weather.”
Grant Wilkinson, AST, Tel. 011 949 1157, Fax. 011 949 1110,
email. grant@astafrica.com, website. www.astafrica.com
Remote Reefer
Monitoring
In a first for Sub-Saharan Africa ports, South African port Hector Danisa, TPT’s assistant terminal executive
operator Transnet Port Terminals (TPT) has implemented the of the Western Province terminals, says, “A major
world class Refcon system at its Cape Town terminal to re- benefit of integrating Refcon into the Navis system
motely carry out temperature checks on refrigerated shipping is that faulty and out-of-protocol reefers can be
containers, known as reefers. identified easier and quicker, which reduces the
terminal’s risk profile and saves costs. Shipping
lines are now able to access Refcon on Navis.”
P
reviously reefers were manually checked Operators have undergone intensive training on
by operators at intervals of four hours. In remote monitoring of reefers. Refcon’s remote
addition, shipping lines carried out their monitoring server gives operators electronic mes-
own “shadow monitoring” twice daily. sages highlighting exceptions. The operator then
Faults and breakdowns were only identifiable reports relevant alarms to the shipping lines for
during the monitoring times. rectification.
Faulty and out-of-protocol reefers can be identified In the event of Refcon or Navis shutting down,
a manual procedure has been created to protect
easier and quicker the cargo’s integrity.
Synchronisation Further improvements
The recent commissioning of Navis, the main Reefers that are not Refcon compliant will con-
operating system which plans and records all con- tinue to be monitored manually. However, 80%
tainer and equipment moves, has been successfully of the terminal’s customers are already Refcon
integrated with Refcon. This allows for automatic compliant, and initiatives are being implemented
synchronisation of information between the two to improve this further. Shipping line Maersk leads
systems, which improves operations immensely. with 95% compliance.
Refcon feeds reefer temperature information into
Future plans currently being considered for Refcon
Navis at intervals of 30 minutes.
include automatic e-mail and text message alerts
to customers and stakeholders.
TPT also hopes to extend Refcon
to more reefer areas within the
terminal.
Meanwhile the Navis SPARCS
N4 terminal operating system
- which was first installed at
Pier 1 in Durban, Port Elizabeth
Container Terminal and East
London Multipurpose Terminal
- has maintained an average
of 99% uptime during the six
months from April to October
2010.
Hector says the inevitable teeth-
ing problems, experienced when
Navis was first introduced at
the terminal, are a thing of the
past thanks to training and up-
grades to rectify challenges in
its stability.
Transnet Port terminals, Ayanda Man-
Pictured among the reefers which can now be temperature controlled remotely are left to right: Hector
tshongo, Cell: 083 301 2975, email:
Danisa, TPT’s Assistant Terminal Executive: Western Province; Dakalo Mboyi, General Manager for
Maersk: Western Province and Nomaphelo Thyaliti, Operations Co-ordinator: Landside.
Ayanda.Mantshongo@transnet.net
Supply
beyond the call of duty to
enhance the environment in which
they operate.
Awards
by those in 2010, enjoyed a wonderful
response from the supply chain
community and everything is on track to
make the 2011 event one of the
industry’s most prestigious accolades.
G
raham begins by telling us a bit about of precast viaduct sections, precast beams for
their fleet. “Our company moves a major bridge construction, and the ancillary items such
portion of the earthmoving equipment as platforms, parapets and acoustic barriers, on
going local or into Africa. Our fleet specially-designed trailers.
consists of smaller type equipment designed to “Although most of our equipment is busy, we
handle light, but volumetric loads going right have been impacted by the shrinking economy.
up to the existing multi-axle combination with Because we operate in a niche market that be-
a capacity of 135 tons that has been in such came overtraded towards the latter part of 2008,
demand that a second combination is in the coupled with a shrinking market, the rates have
process of being commissioned. come under severe pressure and a number of
The rates have come under severe pressure and a operators in this niche are taking “strain”.
number of operators in this niche are taking “strain” Escorting
The company has its own service vans to comple-
“Obviously there are a lot of regulations that have
ment their fleet and all the combinations are
to be adhered to when you transport these kind of
equipped with cellphones, two-way radios, and
loads. The trips have to be planned because the
satellite tracking. “We arrange all the permits
trucks are only allowed to be on the roads from
that are required from the relevant authorities
six in the morning until five in the afternoon.”
and then provide our own escort vehicles.
No de-railing “Safety and security is an aspect we really take
Although strong in mining and earthmoving, very seriously,” he adds. “Hijacking is always
Transcor has recently been involved with trans- a threat, especially as disposal of many of our
porting a number of different components for the loads by the criminals would be very difficult,
Gautrain project. This includes the movement but the actual trucks are under threat. The safety
Crocodile Rock
Transporting items is tricky enough without these goods having teeth attached. For most, the prospect of
shipping large, dangerous reptiles across the country is daunting; for others, it’s all in a day’s work. “Supply
Chain Today” recently chatted to Dawn Dodds at Trenstar about an unusual project the company had handled.
W
e were approached by a farmer who able containers for auto parts for companies such
wanted to move 900 crocodiles from as Toyota, GM, Nissan, Ford and VW.
Brits to a farm near Pietermaritzburg,” “The containers are far more cost-effective than
she tells us. “The obvious solution purchasing conventional wooden crates, which
arose in the form of our collapsible, re-usable are expensive and not re-usable, especially after
containers.” moving this sort of cargo. Also, the fact that our
containers are collapsible means they don’t take
A farmer wanted to move 900 crocodiles from Brits to a up valuable space on the trip back,” explains
farm near Pietermaritzburg Dawn. “Although in this instance, they were
simply sent back to our Durban depot to await
Container appeal their next assignment.”
Re-usable containers have found favour for their The client turned to Trenstar after his previ-
affordability and efficient use of space on return ous experience with a competitive product had
journeys. “Our products are extensively used in a proved unsatisfactory. “He’d utilised re-usable
wide variety of industries as for example also in containers in the past but they weren’t easy to
the automotive industry where we provide reus- use, requiring multiple cable ties to hold them
CONEXPO-CON/AGG 2011
is co-located with:
together. Our interlocking 1A containers needed and covered with a tarp before heading off to the
just one fastening to close the top, which meant coast to arrive the next morning.”
that the packing process was a lot quicker and Cool customers
safer for the crocodiles,” she says. “Additionally, The need for ventilation made this a better option
the containers can safely stack six high, allowing for the wellbeing of the cargo than an enclosed
optimum use of vehicle space. vehicle, and the tarpaulin provided protection
Croc pot from wind and the elements. “Fortunately it was
The crocodile trade appears to be booming and overcast, which was even better for the animals’
the breeder of the animals currently houses about welfare,” she smiles. While the mesh containers
35 000 of the scaly beasts, all strictly according provided ample breathing room, their solid bases
to EU standards. At four years of age, the crocs’ protected the occupants from injury by preventing
genders are identified, at which point they’re their feet from slipping through the floor.
put into family groups of six, with one male to
five females. Weighing in at 45-50 kgs with gnashers to match, these
Although the reptiles have a reputation for being animals can inflict a nasty bite
indestructible, stress can be fatal, so the team
worked quickly to minimise any undue trauma.
“The containers were collected in the morning and “It was certainly a learning curve – we’ve never
handlers spent the day preparing the crocodiles handled a project quite like this before,” Dawn
by taping their jaws shut before packing them admits. In spite of this, the process ran like clock-
five to a container,” Dawn explains. work and the result was a delighted client and
Weighing in at 45-50 kgs with gnashers to match, 900 healthy passengers. “Every crocodile arrived
these animals can inflict a nasty bite, making safely at their destination,” she assures us. “We’re
the taping an essential precaution. Night-time proud to consider ourselves an environmentally
travel further reduced stress by ensuring that the aware company, but I think that this is about as
trip was cool and calm. “It really was a painless green as you get,” she chuckles.
process,” she assures us. “The containers Dawn Dodds, Trenstar, Tel. 012 676 3300, Fax. 012 676
were loaded onto a conventional 3300. Email. dawn@trenstar.co.za, Website. www.trenstar.
16-wheeler using a forklift co.za
A big challenge
The conversion of Hino 700-
Series truck-tractors to log-car-
rying rigids is a challenge that
was willingly taken up by Hino
Pietermaritzburg sales execu-
tive Peter Foxon when a local
customer, Tekwani Sawmills,
expressed interest in buying
some the trucks to transport
logs to the sawmill.
Peter came up with a proposal
that found favour with the
Tekwani management team
after a very thorough evalua-
tion process.
The 1.3m chassis extension
within the wheelbase and
600mm rear overhang ex-
tension were carried out by
Pretoria Engineering and the
body building is the work of
Rapid Truck Bodies, situated
in the Mkondeni industrial
area outside Pietermaritzburg.
Besides alterations to the chas-
sis, other changes included
relocating the air tanks inside
the chassis rails, fitting stack
exhausts and “belly plates”
under the power train.
The main reason for starting
with a Hino truck-tractor is
that it has a standard intarder,
which is virtually essential for
operating in hilly forest terrain.
Another benefit for this opera-
tion is seen as the fitment of
a Jake Brake instead of an
exhaust brake.
The Tekwani fleet consists of
21 truck tractors and rigids
Upgrades
“Our HCV range
employs engines
rated at 240 and
270hp, depending
on model deriva- The HCV range employs engines rated at 240 and 270hp
tive, are new com-
A cost engineering specialist company will be offering its clients a more in-depth and com-
prehensive range of services with the introduction of a new logistics division – aimed at op-
timising strategies involving cargo management.
T
he Johannesburg-based company, known is of additional benefit and value to our clients
for its market-leading expertise in estimat- operations, in a market flooded with service
ing and controlling the cost, schedule and providers. Another challenge has been dealing
performance aspects of capital projects, with the delays of customs registrations, as there
decided to make the move into logistics after had been a number of procedures to deal with
identifying the need for this specialized service before we could get registered.”
in the market.
Main focus
Looking to the future, Mike notes that PaCE Lo-
If we were to become a general freight forwarder, we
gistics will target all industries in South Africa;
would have to compete with hundreds of similar however, mining will be the company’s main
companies focus for the short-term. “If we were to become
a general freight forwarder, we would have to
Same package compete with hundreds of similar companies
PaCE Logistics Director Designate Mike Barnes that are already out there in the market. In order
explains, “Logistics and planning are part-and- to succeed, we will need to remain focused on
parcel of the same package, and we believe industries that we know and, at this point in time,
that the time is right to offer this service to both mining is our core focus,” he explains.
existing and future clients. In the planning and
cost engineering scenario, we know what the Mike says that although the mining industry was
customers’ needs are, and the added value of hit hard by global economic crisis, he believes
making sure that their logistics and supply chain that things are starting to pick up, and that
fits in to their performance models is critical to investors have already started looking more
project success.” seriously at pumping money into Sub Saharan
African mines.
Mike points out that business is off to a good
start, with major contracts already signed and First step
implemented. “PaCE logistics has contracts with “We have cargoes coming in from China that are
two separate mining companies - one is a 20- going to give us that first step to take us through
year deal which will last until 2030, while the to the end of this year, and I forecast continued
other is going through until 2014. This good start growth through 2011,” he concludes.
proves that we are certainly going to be around PaCE provides clients with project control ser-
for a long time, constantly striving to provide vices, using the best available tools to ensure
the value-adding service that clients require,” that their projects are successful by meeting set
he explains. goals and targets. This can be achieved through
Despite signs of early success for the logistics direct involvement in projects on a day-to-day
division to date, Mike admits that PaCE still has basis, by training client personnel in project
to overcome a number of challenges. “The big- control disciplines or by providing the relevant
gest challenge facing the logistics division is to computer software and support services.
convince clients that we can offer a service that PaCE Services, Tel: (011) 805 1349
B
oth global trade hubs and routes will shift This development will relocate global trade
to emerging markets within the next 20 flows and new transport corridors will emerge.
years,” says Akhter Moosa, South African The African continent, including South Africa, is
Transport and Logistics Leader for PwC, already experiencing this shift. Emerging markets
which recently published its third such as China and South Africa fared relatively
Transportation & Logistics 2030 well during the recent economic downturn. As
Report. “Trade volumes will move a result, freight flows between these emerging
towards emerging markets such as market countries continue to strengthen.
Africa or Asia and competition for
future large transport contracts Pivotal role
will be determined within the next Asia’s heavy industry will continue to play a pivotal
few years. role in the global demand for iron ore and coal.
South Africa is expected to remain an important
“Nearly 100 industry experts from source of these commodities, especially in light
all over the world participated in of weakening demand from Europe.
the survey, which covered seven
specific emerging markets: Brazil, Christopher says, “The emergence of China as
China, India, Mexico, Russia, one of South Africa’s main trading partners will
South Africa and Turkey,” contin- continue to have a tremendous impact on the
ues Moosa. economic feasibility of certain hub and spoke
initiatives. The demand for South African resources
New corridors will result in substantial investment being made
Akhter Moosa As the importance of emerging mar- in multi-modal corridors to satisfy the hunger of
kets increases, a major proportion Chinese heavy industry.”
of global trade will be carried out
South African logistics companies are not only
through these emerging markets
competing with each other, but also with their
by 2030. New trade corridors
clients. Fierce competition is expected to continue
between Asia and Africa, Asia and
between logistics service providers which will put
South America, including trade
downward pressure on margins.
within Asia, will re-chart global
supply chains. Simultaneously, increased competition will also
lead to a wave of industry consolidation and
Privatisation has already bolstered
the number of logistics providers is expected
China’s economic growth and
to fall sharply. PwC analysis shows that 69%
countries like Turkey are looking
of companies that have been taken over during
to benefit from increased efficiency
the second quarter of 2010 were located in Asia
and better access to capital. Trade
and Oceania.
between Asia and the former Soviet
states is growing 42% annually. Neighbours
Trading volumes on the South-South Emerging markets provide outstanding opportunities
route between South America and for logistics providers in terms of overall growth
Chris Siewierski
Africa is also showing considerable and in response to rapidly changing market trends.
double digit growth. Medium-sized companies are also capitalising on
this change for further growth.
Freight flows between these emerging market countries Respondents to the Transportation & Logistics
continue to strengthen 2030 report believe it is unlikely that companies
from emerging countries will seek further growth
Christopher Siewierski, Associate Director in in the developed European and North American
Corporate Finance, PwC, adds, “China already markets. Instead, they will concentrate on domes-
owns seven of the world’s twenty largest ports. tic markets and the strong growing neighbouring
India, Russia and South Africa are also expected countries.
to play a significant role as logistics giants.” PwC, Chris Siewierski, Tel: (011) 797 4000, E-mail: chris.
South Africa will become the starting point of a siewierski@za.pwc.com
T
om Morrison and Anthea Booker were Tom undertook an initial overview of the processes,
among the students invited to create followed by a series of interviews and time stud-
“poster presentations” at last year ’s ies. “This allowed significant issues to be isolated
Sapics Conference for supply chain and using Pareto as well as statistical analysis, and
operations professionals. thus be addressed,” he explains.
“These problems were predominantly associated
Putting members of the public through the trauma of with working environment, as well as ergonomics
actually viewing multiple bodies within process. By introducing hydraulic scissor-
lifting trolleys, as well as the adaptation of PPE
(Personal Protective Equipment), the working en-
Lessen the trauma
vironment could be significantly improved, hence
Roodepoort mortuary was the inspiration for
helping to stem the current rise in absenteeism
industrial engineering student Tom’s presenta-
of employees. This is vital in an organisation
tion. He’s a third-year undergraduate student at
that is already significantly short-staffed, or one
the University of the Witwatersrand. “The opti-
operating within strict procedural guidelines,”
misation of the Roodepoort mortuary is of great
he stresses.
significance due to the number of autopsies that
have to performed there, as well as the stressful The introduction of a barcoding system currently
nature of the working environment,” he says. used in hospitals was also outlined by Tom.
Students from various universities around the country were invited to display “poster presentations” at the 2010 Sapics
Annual Conference
“This would decrease administration as well as Tom says that he chose this rather unusual topic
prevent mishandling and misrepresentation of because he believes that the health care sector
information.” is a critical area of development within South
Another significant issue that he discussed in Africa, as well as throughout Africa. “Often simple
his presentation is the formation of a digital industrial engineering techniques can make a
identification database. “This would eliminate marked improvement in the service provided to
the necessity of putting members of the public the public, as well as ensuring that employees are
retained due to a good working environment,” he
The lead time in processing samples that enter the labo- notes. “This is especially important within South
ratory could be reduced by 80% Africa, where government healthcare expenditure
is often less than what is required, and optimisa-
through the trauma of actually viewing multiple tion is crucial in order to function.”
bodies in order to determine if a loved one had Waiting time
been found. It would also allow for the storage Anthea Booker’s project on the histology de-
of images within a database after an unclaimed partment of Lancet Laboratories was aimed at
body had been buried, facilitating later identifi- decreasing the lead time in processing a sample.
cation,” he adds. She elaborates: “Histology is the microscopic
examination of tissue and deals with cases such
as biopsy samples from any organ suspected of
disease. The lead time in processing samples is
Forthcoming Features 2011 important since the faster the sample is processed,
the faster the patient can be treated. Ultimately,
March 2011 : improving processing times will improve Lancet’s
* Supply Chain Software incl. ERP, MRP, Scheduling, Forecasting etc relationship with their customers as they will be
* Trucking able to provide test results that are accurate and
* Focus on the mining and manufacturing industry
available soon after samples are given.”
April 2011 Anthea analysed the process of handling a sample
* Focus on food & beverage in the laboratory by means of current state map-
* Warehouse Management Systems and Inventory Control
ping, sample flow and layout diagrams and time
* Focus on greening the supply chain
motion analysis. “The methods used showed that
May 2011 a sample spends, on average, 60% of its time
* Procurement (including government initiatives) waiting in the laboratory,” she reports. “I found
* Truck Review that the constraints within the laboratory were
* Focus on security including fuel theft the machines used to process the samples and
June 2011 the consequent processing schedule that has
* Supply Chain Software incl. ERP, MRP, Scheduling, Forecasting etc been designed to work around the machines. By
* Focus on greening the supply chain re-evaluating the times at which the machines are
* SAPICS 2011 run it was found that the lead time in processing
samples that enter the laboratory could be reduced
July 2011
* Transport and Logistics Management
by 80%. This was considered an excellent result
* Trucking as patients would be able to receive test results
* Focus on railways and ports timeously without compromising on the quality
of the test results,” she states.
August 2011
* Warehouse Management Systems and Inventory control Anthea is also a third-year Industrial Engineering
* Outsourcing (3PL/4PL) student at the University of the Witwatersrand.
* Focus on greening the supply chain She chose her presentation topic because she
feels that service is important in any industry
SEP 2011
- from manufacturing and banking to processing
* Express freight industry
* Transport management incorporating routing and scheduling tissue samples. “In order for South Africa to be
* Focus on supply chain in retail / FMCG / pharmaceuticals elevated to first world status, more emphasis
must be placed on the importance of service in
OCT 2011 all industries,” she concludes.
* Warehouse Management Systems and Inventory control
* Security including fuel theft Sapics, Jenny Froome, Tel: 011 805-5677, jenny@sapics.
* Green Supply Chain Awards Winner Announcement org.za, www.sapics.org.za
Contact Lelanie Lane on Tel ( 011) 781-1401,
Fax: (011) 781-1403,
E-mail: supplychain@promech.co.za
to book your space
26 Supply
Supply Chain
Chain Today
Today Jan
Jan 2011
2011
PHARMACEUTICAL
In the Nick
of Time
If you consider the sums
of money involved in
developing certain
specialised drugs, it is
readily apparent that only
the very large,
financially-robust drug
manufacturers are
capable of their
development. And yet
the end-user remains the
individual. The challenge
is to ensure that these
myriad drug types from
various manufacturers
reach millions of assigned
patients when needed, at
an affordable price.
S
upply Chain Today”
speaks to UTi Pharma,
a giant in the field
of drug distribution,
about its supply chain.
A transport capacity
extending over 2 500
vehicles delivering
throughout the region
To move tons of medical supplies to numerous destinations every day, UTi Pharma has distribution centres in all the major centres
O
TH
R
AN
S
ES
IM
AL R
S I N DIS T
SO
CI ETY
FO
SHOW THEM YOU CARE BY MAKING A MONTHLY DONATION! SO
CI ETY F
O
E
E
TH
R
R
TH
As little as R50 a month, or whatever you can comfortably afford, can make a BIG difference in an animal’s life.
S
S
AN
AN
ES
ES
M
R
IM
AL AL
I
R
S I N DIS T S I N DIS
NAME : ______________________________________________________________________________________________
30 Supply Chain Today Jan 2011 Advanced Materials Today September 2007 39
PROCUREMENT
Buying Power
According to standard definitions, procure-
ment is the acquisition of goods or services
at the best cost, for the right quality and
quantity, at the right time, in the right place
and from the right source for the best ben-
efit of an organisation.
E
asier said than done when the variables
involved in this complicated set of
negotiations could result in a
breakdown at any step
of the process. When “Supply
Chain Today” took a look at the
intricate art of balancing supply
and demand, it became clear
that the procedure can be-
come as complex as politics.
And it appears to require a skill
set that includes similar talents.
How certain are you that the other person is being
can, and is their ‘best price’
honest? actually the best price they
can offer?
Get negotiating
Another consideration
Primary among this is the ability to negotiate.
is related to our human
Without this talent, even the most organised
urge to make people like
procurement professional will find it difficult to
us, which can result in the
succeed. According to professionals, however,
negotiator capitulating too easily. On the opposite
there are a couple of stumbling blocks to suc-
extreme are those who are so hard-nosed that
cessful negotiations. Firstly, how certain are
they end up developing poor relationships with
you that the other person is being honest? Are
their suppliers. While many may not recognise
they actually able to provide what they say they
the detrimental effect of this on business, it is
becoming increasingly accepted that in these
instances, many professionals adopt the ‘Mutual
Concession Close’, whereby for every concession
one party asks, the other party has the right to
ask for one too. Without a mutually satisfactory
conclusion, it’s unlikely that all parties will feel
that the outcome is a balanced one.
Underutilised skill
While some organisations recognise the value
of procurement, in many instances these skills
are underutilised. Until recently, even some edu-
cated managers didn’t understand the strategic
importance of the process to a company. At best,
it was viewed as a means of ensuring that com-
modities were purchased at the cheapest price,
thereby cutting costs. However, the process is a
fundamental part of the overall operations plan
of a company.
Being in the unique position of seeing market
trends on the one hand, along with having an
understanding of company needs on the other,
the procurement division has the ability to exploit
opportunities that might not be immediately ap-
Buyer’s role
The term ‘buyer’ may be a little misleading, because
in a large organisation, the buyer is not actually
the true purchaser, but merely the common point
of contact between buyer (the company) and the
supplier. This is beneficial; since the procure-
ment function does not have a vested interest in
the acquisition of specific goods or services, the
procurement function can be more objective. The
process can remain fair and objective while still
ensuring the best buy for the company.
The relationship between buyer and supplier can
actually be a source of competitive advantage
for a company. While it may require a long-term
approach, putting the supplier ‘on the team’, so
to speak, aligns their process with that of the
purchasing organisation. In an ideal world, the
procurement function is part of the engine that
drives a company to success while others flounder
due to mismanaged resources.
Just clause
However, even the best relation-
ships need boundaries, and
at times it may be beneficial
to implement penalty clauses
for defaulting against contractual
agreements. While many may
see this as a punitive mea-
sure, in essence it’s more
of a mechanism to ensure
that contractors develop a
healthy respect for the terms
of their contracts.
Penalties for fraudulent
behaviour – an issue that
is all too familiar in many
industries – have become
regrettably important in
South Africa. Here, it may be the procurement going to be a long, hot summer unless there’s a
officer who is under the spotlight; supplier influ- way of stabilising costs. Forward buying is not
ence can make it difficult to remain objective in always an option as a means of buffering against
the face of huge contracts. The temptation of a future shortages.
shiny luxury German vehicle has toppled more
Analyse this
than one administrator.
Information gathering remains a necessary part
On the other hand, rewards are also a useful of the role and one which should never be over-
means of inspiring diligence. Often, simply looked. Procurement invariably involves decision
undertaking to renew the contract at the end making under some sort of pressure factor and
of the term is incentive enough. Some believe applying economic analysis methods such as
that relationship development requires a more cost-benefit analysis or cost-utility analysis is
proactive stance, however. Offering a contractor useful to mitigate the risks.
a ‘preferred supplier’ status is not only beneficial
to the primary purchaser/supplier interaction but
can also serve as a source of additional business
Only once all necessary criteria of supply are met, can
for the contractor. Being a preferred supplier to price be added to the mix and a ‘lowest cost’ supplier be
a blue-chip organisation is a source of pride to chosen
many companies.
I
n late 2009 Namport, Namibia’s Port Au- Positive results
thority, commissioned Aurecon to conduct These consultations yielded positive results on
a feasibility study for the Port of Lüderitz to 27 August 2010, when Namport signed three
investigate the possibility of a port deepen- Memorandums of Understanding (MoU) with
ing/expansion project. Karas Regional Council, Lüderitz Town Council
The outcome of this study and Lüderitz Waterfront Development Company
will enable the creation (Pty) Ltd at an event witnessed by the Minister
of a Port Master Plan to of Regional, Local Government, Housing and
guide Namport’s future Rural Development, Jerry Ekandjo. The event
developments for the Port also saw the MoU exchange in the spectrum of
of Lüderitz. economic development between the Lüderitz Town
Council and Namibia Chamber of Commerce and
Namport is concurrently Industry (NCCI).
considering every avail-
able opportunity to revive Open up corridor routes linking the port
the Port of Lüderitz, of Lüderitz to the SADC countries
within the context of
the entire town’s devel-
opment. To this effect, The salient features of the MoUs provides for a
Namport has been in joint support and cooperation:
consultation with various • on economic development for the region to
key stakeholders, seeking open up corridor routes linking the port of Lüderitz
support and co-operation to the SADC countries;
to start an all-inclusive • on the establishment of a private public part-
initiative that would lead nership (PPP) to manage the operations of the
to the establishment of planned corridors for the Karas region and the
a spatial development Port of Lüderitz;
initiative for the area
and using the Port of • on a broader spectrum of economic develop-
Lüderitz as the main link ment for the region to ensure optimum exploitation
to the sea. and utilization of the Port of Lüderitz;
• on matters of development and roles of the
region and/or the port hinterland connection;
• on collaboration and mutual update on mat-
ters of development for the Port of Lüderitz and
the Lüderitz Spatial Development Corridor;
• on the marketing of the Lüderitz Spatial De-
velopment Corridor and the Port of Lüderitz with
specific focus on the Trans Oranje corridor.
Core focus
The important sectors identified as the core focus
areas were port and rail development, economic
development, mining, tourism and hospitality
and various other industrial and commercial
enterprises.
www.railwaysandharbours.com
Safe disposal
When a company does a technol-
ogy refresh of their IT equipment,
there is always the problem of
how to recover the asset value
of the old equipment and to find
a way of disposing of this equip-