Supply Chain Today Feb 2011 

 Supply Chain Today Feb 2011

 February 2011

Featured on the cover:
Goscor Lift Truck
Company
Tel: 011 230 2600
Fax: 011 976 2176
Email:
lifttrucks@goscor.co.za
www.goscorlifttrucks.co.za
Contents
Cover Story Green Supply
4 Beating Space Costs 27 Beet the Biofuel Dilemma
31 Ground Zero
Forklifts
7 Advantages of Gas Who Exactly Does What?
9 Image Lifted 33 Illogical Logistics
Market Forum — Supply
Barcoding, Labelling Scanning &
36 Market Forum
RFID
11 Bar None
Endorsing Bodies
Afritag (div of Smart Card Society)
Sensitive Cargo
13 Flying Horses CGCSA (Consumer Goods Council of SA)
CILTSA (Chartered Institute of
Market Forum — Unit Logistics & Transport: SA)
18 Market Forum SAEPA (SA Express Parcel Association)
SAPICS (The Association for Operations
Security & Theft Management of Southern Africa)
23 Highway Robbery 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 Proprietor and Publisher: Advertising Sales:
written permission of the publishers. While every effort is made PROMECH PUBLISHING Lelanie Lane
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ers and their employees or agents shall not be responsible or Fax: (011) 781-1403 DTP: Zinobia Docrat and
in any way liable for any errors, omissions or inaccuracies in Sean Bacher
E-mail:
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exclusion of any product does not mean that the publisher or Tel: (011) 402-3468
Managing Editor:
editorial board advocates or rejects its use either generally or
Theresa Hendricks
in any particular field or fields.

Supply Chain Today Feb 2011 

COVER STORY
Beating Space Costs
Perhaps the fastest growing forklift and warehouse equipment supplier in the country, Goscor Lift Truck
Company (GLTC) owes its success to great products, exceptional service, unwavering discipline and a strong
belief in innovation.
O
ur success is based on a bouquet
of interrelated activities carried out
in a coordinated and professional
manner,” says Darryl Shafto GLTC.
“One of these activities is a conscious effort to
always be looking for innovative solutions for
our clients.”
An extra 40% storage space has been achieved
Fortklifts to fit anywhere
The revolutionary Bendi range of narrow aisle
forklifts, which GLTC brought to the country
The Bendi articulated forklift
 Supply Chain Today Feb 2011
less than two years ago, is a perfect example of
such a solution.
“As the cost of space spirals, there is an increasing
demand for narrower aisles and the Bendi, with its
unique ability to articulate and operate in narrow
aisles and spaces is helping to make a significant
difference to our clients’ bottom line.
Even in widths of just 1.8m, the Bendi articulated
forklift helps the operator work faster, safer and
more accurately. We have also had reports from
our Bendi users here and overseas that racking
damage is significantly less,” says Darryl.
He adds that the Bendi, because it can pick
indoors and load outdoors with equal dexterity,
precludes the requirement for two machines thus
enhancing efficiency. “The Bendi can load a
truck straight from the rack avoiding the double
handling of pallets,” says Darryl.
Outdoor use also
“The typical reach truck requires aisles of 2.5 to
3m for storage and racking, but reach trucks typi-
cally have small, harder wheels and low ground
clearance, making outdoor use impractical. But
the Bendi, because of its unique counterbalanced
design and its ability to articulate, is able to
handle a similar load to a common forklift truck
and work in aisles that are much narrower.”
Another advantage of the Bendi is the speed that
it can transfer from aisle to aisle. Darryl explains,
“Obviously, very narrow aisles (VNA) machines
make efficient use of narrow aisle space, but
they need large areas and longer times to transfer
between aisles. However, the Bendi behaves like
a VNA but moves like a conventional forklift.”
Benefits noticed
Several high-profile retailers have seen the benefits
of the Bendi including Makro and Spar. In the
process of narrowing its aisles in various stores,
Makro has taken delivery of a fleet of Bendi trucks
from Goscor and the retailer’s Alan Walker says
that the trucks have performed according to spec
and that he is pleased with their overall effect.
“Not only have the trucks performed to our
expectations but also, as usual, we continue to
receive professional backup and service from
Goscor which helped us considerably in introduc-
ing these revolutionary articulated forklifts into
our system,” says Alan.
Another good example of the benefits of Bendi

technology is at Spar Eastern Cape where, through
innovative design, an extra 40% storage space
has been achieved at its 9 000m² ‘slow-mov-
ing’ off-site warehouse in Port Elizabeth. Two
Bendi 318 articulated forklifts were bought to
operate in the narrower aisles. These were the
first Bendi forklifts to be used in the Spar Group
nationally.
GLTC Eastern Cape branch manager Mike Burley
says the main challenge in this facility was the
utilisation of space as it is a long and narrow
building. “The task was to help increase the stor-
age capacity and the Bendis, with their unique
capability to articulate and operate in very narrow
spaces, were a part of the solution,” he says.
Spar Risk & Maintenance Manager at the facility,
Julian Koutsouvelis says that apart from their
ability to work in the facility’s narrow 1 950mm
aisles, the versatility of the Bendis with respect
to their ability to work both inside and outside
was important in the decision to buy them. “It’s
all very well having machines that can work in
narrow aisles, but if one had to then transfer to
another machine to load onto the outside vehicles,
the advantage would be lost,” he says.
Great overseas demand
South Africa is not the only place where demand
for Bendi is burgeoning. It is the case in Europe
and especially in the United Kingdom where
technology is in great demand.
One of the better known companies there, which
has narrowed down its aisles and has used Bendi
trucks for some time is Animal. James
Runcimen, operations manager at
COVER STORY
Animal’s global distribution centre in Poole says
that Bendi products have helped the company
significantly reduce warehouse costs including the
efficient use of space, reduced lighting, heating
and building maintenance. They have also helped
overcome a difficult building structure to achieve
maximum storage and distribution efficiency.
As the cost of space spirals there is an increasing
demand for narrower aisles
Animal operates with 4 636 total bulk pallet
positions up to 7m high, with 12 755 pick faces
and 1 203 full pallet pick faces. A fleet of Bendi
B313 articulated trucks is used to remove pallets
from the marshalling areas and place stock in
predetermined pallet positions. The three-wheel
trucks maintain excellent stability in the narrow
aisles with up to 1.35ton lifting capacity at heights
of 7.2 m with no special floor requirements.
Darryl says that he is pleased that Goscor is once
again at the forefront in offering groundbreaking
technology to the materials handling industry.
“We are dedicated to maintaining and improving
our world class service levels for our customers
and Bendi contributes significantly to our ability
to do this,” he concludes.
Goscor Lift Truck Company, Tel: (011) 230 2600,
Fax: (011) 976 2176, Email: lifttrucks@goscor.co.za,
www.goscorlifttrucks.co.za
Supply Chain Today Feb 2011 
 co usin Boo
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 Supply Chain Today Feb 2011

 FORKLIFTS

Advantages of Gas
Nobody needs to be told about electricity prices, however there are many other valid busi-
ness reasons to run a fleet of forklift trucks on gas.

F
or example, the main advantage
LPG has over electricity is that
it is more suitable for use both
inside and outside and allows
for less downtime.
Gas-powered forklifts provide consistent
power for longer periods and are effective
on any surface. Moving heavy loads is
not possible for forklifts powered with
electricity and, the power output is re-
duced as the battery discharges.
Less downtime
Because an electrically powered forklift
needs to be recharged for between 6 – 8
hours for an equivalent working period,
it increases downtime and means more
batteries are required for continuous
operation.
It takes approximately five minutes to
refuel a forklift running on gas which
obviously increases productivity – a vital
benefit to businesses whose margins
depend on getting the most out of every
working day.

Gas powered forklifts have longer service

intervals than their electrically powered
counterparts

Reduced costs
Electrically powered forklifts require extra
equipment such as batteries, chargers
and hoists and, additionally, ventilated
space in the form of charging and wash
down rooms. There is no need for any
of this with gas powered forklifts and
there is no risk of a power cut.
Gas-powered forklifts have longer service
intervals than their electrically powered
counterparts while labour costs are re-
duced due to the elimination of charging
operation management.
Simply put, electrically driven forklifts
are best suited for indoor operations.
Gas-powered units are suitable for both
indoor and outdoor usage.
Easigas, Tel: 0800 001 504, Email: info@
easigas.co.za, www.easigas.co.za

Supply Chain Today Feb 2011 

 Supply Chain Today Feb 2011
 FORKLIFTS

Image Lifted
Leading international logistics specialist, Jungheinrich AG, has teamed up with newly-
formed local company, JHR Equipment SA, to re-launch its brand of materials handling ma-
chinery in the South African market.

G
erman-based Junghein- software to deal with any technical problems.
rich is internationally- Such software is only available to authorised
recognised as one of partners and is not universally available.
the world’s top three
Access to a full range of spares
leading manufacturers of forklift
“Thanks to this new partnership, we have access
trucks and materials handling
to the full range of genuine Jungheinrich spares,
equipment, employing more than
and we offer top-quality maintenance services.
8 000 people in over 100 countries.
While a number of local companies may service
However, during the number of
our machinery, they do not have access to the
years it has been active in South
latest diagnostic software that is exclusive to
Africa, the company has not met
JHR Equipment. By using laptops and advanced
its South African market projec-
computer programmes, we are able to digitally
tions as a result of insufficient
diagnose a fault in most machines and rectify it
representation.
with minimal downtime. Another added benefit
It was for this reason that JHR is that we have qualified technicians in Germany
Equipment SA was set-up as the who are on-call, should we be unable to deal with
exclusive regional partner to of- a particular problem,” Colin adds.
Alan Keschner fer the complete range, as well
The company offers all popular methods of en-
as provide backup service and
gines, from petrol to diesel to gas. In addition,
spares availability.
they are world leaders in state-of–the-art electric
According to JHR Equipment SA
chairman, Alan
Keschner, “In the
past, a few local
distributors sold
other brands of
standard forklifts
as well, and were
thus only able to
sell specialised
Jungheinrich
warehousing re-
lated machines,
Colin Govender
effectively reduc-
ing the ability for
clients to select and standardise
on the our brand.”
Have access to the latest authorised
software to deal with any technical
problems

Unrealised potential
Colin Govender, managing direc-
tor of JHR Equipment goes on to
explain that JHR Equipment is the
only local company that employs
technicians that are fully-trained
by Jungheinrich, and who have
access to the latest authorised

Supply Chain Today Feb 2011 

 FORKLIFTS

technology, and are taking a proactive approach

towards increasingly-stringent international en-
vironmental laws. All equipment complies with
strict EU measures to minimise the contamination
of environment and food products - a factor that
is essential to many companies.

By using laptops and advanced

computer programmes, we are able to
digitally diagnose a fault in most
machines

Wide range of trucks available

The electric counter-balance and reach trucks
are ideally-suited for food and pharmaceutical
warehouses, and come in a wide range of variants
in terms of reach height and payload capacity.
Colin points out that Jungheinrich electric reach
trucks can attain staggering lift heights in excess
of 14 m. Other equipment available includes hand
pallet trucks, pallet trucks, stackers, IC trucks,
order pickers, tow tractors and VNA trucks.
Importantly, Colin notes that their range of forklift
trucks and warehouse equipment is custom-built
and configured to suit a customer’s specific re-
quirements from within six to eight weeks – one of
the shortest turnaround times in the industry.
“Owing to the advanced design, Jungheinrich’s
lifting capabilities can match or exceed most
machines available in the market, with reduced
de-ration and an ergonomically designed driver’s
cab,” says Colin. “The machinery is also highly-
reliable, with increased service intervals. With
the ability to handle high heights and narrow
aisles, our machinery can ultimately reduce costs
per m 2 for clients, effectively paying for itself in
the process.”
New refurbishing factory
In addition to new machines, Jungheinrich has
commissioned a special factory in Germany,
which is dedicated to refurbishing equipment that
has ended its lease period. These machines are
completely re-built and re-sold to the market at
very competitive prices.
“The rebuilt machines are ideal for the South
African market, as consumers are able to buy a
high-spec machine that looks and performs like
new and comes with a warranty, for a greatly-
discounted price. This is a better option than
purchasing a new, lesser-quality machine for
much more,” notes Alan.
He stresses that it is not the Jungheinrich brand
that needs to be introduced to the market, rather
the extended range and new and improved services
that JHR Equipment will be offering.
JHR Equipment SA, Colin Govender, Cell: 082 322 7723,
Email: info@jhrequipmentsa.co.za, www.jhrequipmentsa.
co.za

10 Supply Chain Today Feb 2011

 BARCODING, LABELLING, SCANNING & RFID
Bar None
Some industries are regularly in the headlines by virtue of the fact that they often experience vast technologi-
cal advances, but for the most part change comes incrementally. However, it is these small changes that add
up to big improvements in the long run.
W
hen “Supply
Chain Today”
speaks to Nico
Scheepers,
technical manager at iData
Distribution, he explains
some of these improvements
to us. Nico’s track record in
the industry has given him
hands-on experience with
most of the large players from
a barcoding and scanning
perspective.
Stable technology
“The technology has stabilised
to a large extent and not
Nico Scheepers much appears to be moving
forward dramatically,” he tells us. “This doesn’t
mean that things aren’t changing for the better.
Usually it’s more a matter of getting users to take
advantage of them more fully.
Some can even scan 2D from seven metres away
“For instance, barcoding has evolved to some
degree from one-dimensional to 2D technology,
which has been touted as the next big thing. But
1D is still the de facto standard in the industry
because many users haven’t fully embraced the
extra functionality offered by 2D. Most simply
Rugged usability is a key feature in most environments
want to scan and identify the item and 1D is
fine for this.1D is also driven by industry as
a way of being interoperable. The GS1 global
standard is another factor for the 1D prevalence
in the market.
Far-Near
“Strides have been made regarding Far/Near scan-
ners with new scanners being able to scan from
both very near and very far with equal efficiency.
Some can even scan 2D from seven metres away,”
Nico continues. “Years ago everyone was using
laser engines but new imagers use raw process-
ing power for increased functionality in a wider
range of situations.
“There are various versions of these imagers avail-
able, with varying levels of speed and accuracy.
Some only do 1D, but they do it very fast. New
generations are more aggressive and do 1D and
2D at the same speed.”
Great strides
Functionality has also made strides. “Many read-
ers having the same imaging capabilities as a
movie camera,” he says. “This has nice spinoff
benefits. For instance EMDI allows document
scanning similar to what you’d achieve on a
document scanner. Devices are so feature-rich
they can do more than a Smart Phone, like your
Blackberry or iPhone.
“Essentially, the guy delivering Coke has this
level of sophistication at his fingertips,
combined with the advantage of rugged
usability. Many of these clever scan-
ners have high IP ratings and can be
dropped from two metres, or survive
1 000 tumbles from one metre. These
ratings also give assurances of operation
even when exposed to dust or water
ingress. Some can operate after being
submerged for an hour.”
Systems are failing
According to Nico, Smart Phone manu-
facturers have been trying to move into
the scanning market, but with limited
success. “The brands were aimed at
sales reps going into supermarkets and
similar applications,” he explains. “A
year later, these systems were failing.
They’re simply not tough enough. In the
case of one Smart Phone, the back would
fall off and the battery would fall out.
Supply Chain Today Feb 2011 11
BARCODING, LABELLING, SCANNING & RFID

The question then becomes of who want to

maintain the devices for 3 to 8 years.
“Rugged devices are just stronger, and also
have the service support to back them up.
While you may be paying anything from R8k
to R50k, at the top of the range you’re look-
ing at units that can handle forklift vibration
levels while incorporating Bluetooth tethers
and other sophisticated funcationality.”
The back would fall off and the battery would fall out

Voice picking has taken off as an accurate, hands-free
option
New scanning technology puts increased levels of accuracy in the hands
of forklift operators
DC Picking up
Picking has also seen improvements, with
voice technology gaining more ground. “In
many instances, companies are going all
voice; they barely even look at a barcode
anymore,” Nico goes on. “A lot of retail chains
have taken this route. The system allows
pickers to be hands-free, while ensuring
accuracy. Ease-of-use and swift training are
other attractions. Pickers can be operational
after 20 minutes of training.
“In many installations I see a combination
of technologies, however. Receiving and put
away is still done using scanners because
of accuracy, while voice picking rounds the
system off.”
For most systems, the race has always been
on to keep the processors up to speed. This
is teamed with accuracy of scan, keyboard
accessibility and ease of use, along with
sophistication of operating software. Nico
tells us that Microsoft still rules the envi-
ronment.
RFID stall
In response to our questions about RFID,
Nico is stoic. “I don’t see it ever replacing
barcoding,” he assures us. “It’s still too
expensive to match a barcode, which comes
in at less than a cent. Even the Walmart
test model hasn’t taken off yet.
“RFID has, however, found a place in closed
loop environments. One of the biggest suc-
cess stories I’ve been aware of is with Chep’s
pallet tracking, where they’re able to track
pallets from DC to DC. For the most part,
it’s a technology that is complementary to
barcoding.
“Actually, this sort of thing probably defines
the industry; finding suitable technologies
that work hand-in-hand to provide the most
effective system in an environment which
can throw a thousand challenges into the
mix on a daily basis,” he smiles.
Nico Scheepers, iData Distribution, Tel. 011 391 3779
Fax. 011 397 3867 Email. nicos@idatadistribution.
co.za, Website. www.idatadistribution.co.za

12 Supply Chain Today Feb 2011


Flying
Horses
Fedex provided transport for nearly 450 horses from Europe to the Altech FEI World Equestrian
Games in Kentucky, USA
The Altech FEI World Equestrian Games (WEG) held in Ken-
tucky in September last year drew considerable attention from
the riding community. The Games, which hold similar prestige
in riding circles to the Olympics, are held every four years
with numerous countries vying for the privilege of hosting the
event. In fact, the Games were the largest sporting event in
the US in 2010.
S
upply Chain Today” was curious to learn
how WEG’s equine contestants arrived
on the scene. With over 800 horses and
riders competing in the Games, 445 of
which were based in Europe, organising logistics
was a job best left to the experts. So the horses
were Fedexed.
Entry level economy class priced at 8500 euros,
followed by business and first class with prices going up
to 13000 euros
Utilising wide-bodied modified jets carrying 50
horses per trip, Fedex managed the tricky task
of loading and shipping its equine passengers
SENSITIVE CARGO
from Liege Airport in Belgium to
Kentucky, USA. The project involved
ten specialised charter flights over
a 14 day period. While equestrian
flights aren’t a new concept, it was
the first time a commercial airlift
of this size has taken place for an
international event.
Class systems
Much like conventional air travel,
the equestrian flight offered three
different classes, with the entry
level Economy Class priced at 8
500 Euros, followed by Business
and First Class with prices going
up to 13 000 Euros.
While human First Class may boast
champagne service, the main dif-
ference for equine passengers came
in the form of space, with class
determining how many horses
were allocated to each ‘air stable’.
Economy Class catered for three
horses per stable, Business Class
had two, while First Class allowed
maximum space with just one horse
per stable. While most traveled
Business Class, rumour has it that
only one horse was allocated a First
Class ticket, but its identity remains
a mystery.
Having been separated by class,
organisers also kept specific types
of horses together, with stallions
kept separate for safety reasons and
they arranged the travelers accord-
ing to their various sporting specialities, such as
eventing, jumping and dressage.
Up, up and on board
Competent animal handling was a vital cog in
the process and from the time each horse ar-
rived in its pre-boarding paddock to the time it
reached its temporary stable yard in Kentucky,
it was escorted by an experienced handler. Each
flight had a crew of 24, including attendants,
vets and grooms, many of them professional
flying grooms.
With horses being highly sensitive to disruption
it was essential that each individual be moni-
tored carefully throughout the trip to ensure that
they arrived in optimum condition to compete.
Fragile limbs and finicky digestive systems can
result in disabling or even fatal consequences.
All qualified personnel accompanied the horses
from their country’s particular Equestrian Federa-
tion to monitor signs of trouble. In the case of a
Federation not having a vet, a vet from another
Federation monitored their charges.
From the pre-loading paddocks, the animals were
Supply Chain Today Feb 2011 13
SENSITIVE CARGO

loaded into large crates resembling wheel-less

horse boxes. With most being accustomed to this
mode of transport the familiarity minimised stress
during travel. Although many had numerous flying
miles under their belts, first time flyers needed all
the care they could get. Boxes were transported
by truck to the plane and crane-lifted to a wheel
bed where flight staff moved the horses to their
berths and secured them.
Service with a smile
In-flight entertainment may have been limited, but
personal attention certainly wasn’t. If personnel
Horses were loaded into specially designed flying stables
sensed that a horse was claustrophobic, more
space was given. If individual temperatures rose
due to stress or cabin heat, equines were hosed
down to cool off. Some flights employed air-con-
ditioning systems to keep temperatures constant.
Much like their human counterparts, nervous fliers
were offered reassurances by sympathetic staff,
with sedation available if necessary, although
this was considered a last resort.
“It was too loud on board to warrant anything
like soft music, but there were plenty of bad
jokes from the flying grooms to keep everyone
entertained,” quipped Henry Bullen, director of
Peden Bloodstock, the company which provided
the on-board grooms. According to Henry, once
Crates were loaded into the plane by crane
airborne, traveling is actually smoother than

LindeMaterialHandling

/6XSSO\&KDLQ$GYHUW6HSWLQGG 30

14 Supply Chain Today Feb 2011
 SENSITIVE CARGO

road transport, apart from occasional

turbulence. Pilots were briefed to ensure
smooth, gradual take-off climbs, while
slower braking systems were installed
for landing.
Preserve the priveledged
Dietary requirements were also an impor-
tant consideration since horses require
a constant supply of grass to keep their
digestive systems healthy. In addition,
nuts, oats and bran were supplied, along
with ample water; each flight carried over
Qualified staff managed the process from start to finish
1 500 litres. At the end of the nine hour
flight, the athletes were transported by
road to southern California for a 48-hour
quarantine.
First Class flying has always been con-
sidered the preserve of the privileged,
with Business Class reserved for wealthy
industrialists en route someplace impor-
tant. Now it seems that even a horse can
fly in more comfort than those of us in
Cattle Class. But perhaps if we were all
worth millions of Euros, we’d be afforded
the same luxury.
Source: www.fei.org

Getting the right goods to the right place at

the right time is a timeless advantage. But
the way in which we achieve this is forever
changing. Only continual innovation can create
and maintain competitive advantage. This is
why we build flexibility into our supply chain
model. And why we are actively involved in
managing it. Enabling low-risk supply chain
evolution that brings about efficiency and
adds the greatest value. This is how we do
supply chains.

Call us. We go the extra mile.

Innovative supply chain solutions

1109

t +27 11 485 8700 marketing@cargocarriers.co.za

www.cargocarriers.co.za

Supply Chain Today Feb 2011 15

 Much less of a slurper.

The future of fetch & carry is here. In spite of the fact that our new range of trucks offer you engines with more power
& torque, you will also find that most of them are more fuel efficient. The entire FK/FM range has also been upgraded to
greener Euro 2 emissions level engines with super efficient common rail fuel injection. So your FUSO will fetch, fetch and
fetch again... Another reason why FUSO should be your business’s best friend.

C A L L 0 8 6 1 F U S O 0 0 O R V I S I T W W W. F U S O . C O . Z A A N D C H O O S E F R O M O V E R 3 0 D E A L E R S H I P S N AT I O N W I D E
16 Supply Chain Today Feb 2011
 THE OLD SHANGHAI FIRECRACKER FACTORY 700308

Mercedes-Benz South Africa (Pty) LTD is an authorised distributor of MITSUBISHI FUSO trucks.

Supply Chain Today Feb 2011 17

Market Forum
New container handler
SACD Freight purchased its first Taylor THDC 975 loaded
container handler about two years ago to improve full
container operational efficiencies and capacity on site.
Because the facility has now become even busier, SACD
has invested in a new Taylor TEC SP-156H empty container
handler,” says Clinton van den Berg, products manager
for BLT.
“The new Taylor container handler will further improve the
Durban operation’s empty container storage and handling
capacity and will enhance service levels. The company,
which handles over 400 000 containers annually and
stores over 8 000 full and empty containers nationally at
any one time, is committed to providing reliable trans-
portation logistics solutions.”
Taylor container handlers and reach stackers are avail-
able exclusively throughout Africa from BLT, which offers
a technical advisory, maintenance, operator training and
support service.
Clinton van den Berg, BLT. Tel: 031 274 8270. Email; clinton@biglift.
co.za, Web: www.biglifttruck.com

According to Rudi Schellhorn, National

Achieve compliance easily
The new R146 Labelling and Advertising of Foodstuffs
Regulations, designed to help consumers make informed
product purchasing decisions, will require manufacturers
to supply additional information on food product labels.
One of the provisions of the regulations is the inclusion of
date marking and batch number information on products
stipulating when the product should be used by as well
as where it was manufactured. With only four months to
go, Pyrotec PackMark addresses issues manufactures may
face on the road to compliance with the law.
Sales Manager of Pyrotec PackMark,
the machinery division of Pyrotec,many
companies are daunted by the date
and batch coding requirement of the
new regulation as they do not have the
required coding expertise to fully comply
with the law.
Most manufacturers are also concerned
about production downtime during the
transition period, which they cannot afford.
Pyrotec PackMark is the sole distributor
for Markem-Imaje, a trusted worldwide
manufacturer of product identification
and traceability solutions.
With an extensive knowledge of the
requirements of the new regulations, the
backing of some of the best coding and
labelling machinery in the world, as well coding expertise
spanning over 40 years, Pyrotec PackMark is confident
that it can help manufactures comply with the batch and
date coding before March 2011.
Lizarie du Plessis, Pyrotec. Tel: 021 787 9611, Web www.pyrotec.
co.za
2011 expected to be a cautious recovery
year
Due to the industry’s exposure to a variety of sectors,
the South African freight industry’s performance remains
closely linked to the performance of the South African
economy. With 2011 expected to be a cautious recovery
year, the industry is not out of the woods yet.

18 Supply Chain Today Feb 2011

Market Forum
“The robust TCM FD series, also known for enhanced
safety and extended service life, has been designed
for improved drawbar pull and gradeability,” says
Gerhard Duvenhage, national sales manager for
Criterion Equipment “Another important feature of
these heavy duty forklift trucks is the environmentally
friendly, low emission engine, with a rated output of
between 114 kW/2 200 r.p.m and 125 kW/2 200
r.p.m. The overall raised mast height of these ma-
chines are between 4 400 mm and 7 790 mm.”
The FD range has a maximum fork lifting height of 6
000 mm, lifting speeds of between 240 mm/s and
460 mm/s (with a load), a forward/backward mast
tilt angle of 6/12° and a traveling speed of 34 km/h.
These machines have an outside turning radius be-
tween 4 000 mm and 5 350 mm and considerable
lateral fork adjustment.”
Another advantage of the 16 T – 23 T series is the
increased 400 litre fuel tank capacity, which enables
Some areas of immediate concern include the impact extended operating time, before the need for refueling.
from the recent floods on the agriculture, building and
construction industries. These industries utilise freight Gerhard Duvenhage, Criterion Equipment (Pty) Ltd. Tel: 011 966 9700,
Email: gerhard@criterion.co.za, Web: www.criterion.co.za
forwarders the movement of goods, and as the rains may
have destroyed some crop shipments as well as delayed
building contracts, the shift or cancellation of contracts
for transporting goods is expected to affect freight for-
warders.
In addition, logistical delays and re-routing
of trucks to avoid flooded or flood damaged
areas could also affect margins.
In the medium term concerns have been
raised about the cost of transport particularly
with regards to fuel prices and especially
in areas such as Gauteng. The soon-to-be-
introduced toll system poses threats to an
already highly price competitive industry.
Some positive elements include the effect
the rand value has had on the lower cost to
import goods which saw a slight improve-
ment towards the end of 2010.
Overall, the recovery of the freight industry
in 2011 is directly linked to the recovery
of the South African economy which is
expected to be cautious in 2011.
Natasha Hardy, Coface. Tel: 011 208 2601, Email:
natasha_hardy@cofaceza.com

Heavy duty forklift trucks

Criterion Equipment’s range of TCM heavy
duty forklift trucks, with load capacities
between 10 T and 23 T, is designed for
efficient operation, easy maneuverability,
operator comfort and low maintenance
requirements.
The FD range has a maximum fork lifting height of 6 000 mm

Supply Chain Today Feb 2011 19

Market Forum
Rescue SA receives a lift
Founded 10 years ago, Johannesburg-based Rescue South
Africa is Africa’s only advanced urban search and rescue
operation today. The Rescue SA emergency response team
has been deployed to humanitarian disasters all over the
world, most recently the Haitian earthquake and an aircraft
crash in the jungles of the Republic of the Congo.
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To help the non-government organisation operate more
efficiently and ensure a rapid response to disasters,
Barloworld Handling has now provided it with a 2.5 ton
Hyster forklift. This will be used in the Rescue SA ware-
house in Kempton Park. The specially refurbished LPG
forklift was supplied at a significantly reduced rate as
part of Barloworld Handling’s corporate social investment
programme.
The Rescue SA team previously
had to weigh, load and off-load all
equipment by hand. To illustrate
the enormity of this task, the relief
mission to Haiti required hand load-
ing of nine tons of equipment, says
Rescue South Africa founder and
CEO Ian Scher. “The forklift from
Barloworld Handling will help us
run a more professional operation
and save many hours of the rescue
team’s time.”
“Our next aim is to offer disaster
and rescue training throughout the
SADC region, to improve local skills
sets. We have already purchased the
necessary training equipment, funded
by USAID, for this,” says Scher.
Rudolph Briedenhann, Barloworld Han-
dling. Tel: 011 898 0480, Email: rbrieden-
hann@barloworld-equipment.com


20 Supply Chain Today Feb 2011

Market Forum
Hoists hold steady
Sales of Hitachi chain-hoists
into mines and the automobile
industry remain steady despite
the generally difficult economic
conditions experienced by both
sectors.
Authorised distributor Condra
reports that Hitachi sales into
warehousing applications are
slightly up.
The chain-hoists are well known
for careful design and their
ability to perform well under
robust conditions. They feature
helical gearing for quiet op-
eration, electro-magnetic disc
brakes for long life, and plug-in
cables to reduce maintenance
and installation time.
Safety features include a 24-
volt impact-protected and rain-
proofed control pendant with
wire rope moulded into the
cable for strain relief. An elec-
tro-magnetic contactor with
mechanical interlock protects
against shorting due to shock.
Supply Chain Today
Emergency stop buttons and overload
protection are available on request
and chain containers are fitted as
standard.
Hitachi chain-hoists have upper and
lower limit switches to prevent hook
over-travel, and most models are
fitted with a reverse-phase relay to
facilitate inspection.
Among the more ordinary features in
the range are chains with hardened
surfaces for optimum strength and
wear resistance, and hooks that are
heat-treated and fitted with a safety
latch and 360-degree swivelling.
Condra, the Germiston-based manu-
facturer of high-capacity overhead
cranes in the 2-ton to 500-ton
range, was appointed sole South
African distributor of Hitachi hoists
in September 2009.
The company is now using the Hitachi
product to target lifting applications
in the 250kg to 2-ton range.
Josef Kleiner, Condra (Pty) Ltd. Tel: 011 021
3712, Email: condra@mweb.co.za
Feb 2011 21
22 Supply Chain Today Feb 2011

S
upply Chain Today” recently attended the
first RFA Fraud Forum, aimed at identifying
areas of concern and providing possible
solutions. The Forum was led by Bakkies
Buitendach, Executive Director of the Forensic
Response Group, along with Brian Peters, CEO.
The company specialises in crime investigation,
forensic accounting, procurement consulting,
labour consulting and security services.
‘Investigators’ appearing to charge random sums for in-
explicable ‘services’
Fraud and theft takes numerous forms, from overt
hijackings to white collar crime. Although violent
activities often take centre stage, profit margins
and productivity can be seriously eroded by petty
theft, often managed by widespread syndicates
who operate ‘below the radar’. Clearly, all of
these situations require different approaches,
however both Bakkies and Brian stress that the
best weapons in a company’s arsenal against
crime are vigilance and an understanding of both
criminal investigation and labour relations.
SECURITY & THEFT
Highway
Robbery
South Africa’s motorists are at the mercy of
a multitude of criminal activities and those
who use the roads most, namely the coun-
try’s transport companies, are hardest hit. In
many cases these crimes invariably extend
beyond the tarmac.
From the floor
The audience was invited to share their experi-
ences and thoughts on the problems currently
being experienced in the industry. Primary among
the issues raised was the problem of police re-
sponse to fraud within companies. Many felt that
investigations take too long to conclude and often
culprits walk free. Confidence in the process is
also low, with stories of police corruption and
destroyed evidence.
Other members in the audience had attempted
to outsource their investigation process, with a
few admitting that they’d been taken advantage
of by so-called experts who subsequently failed
to produce results. The additional problem of
fluctuating fee structures also arose with many
‘investigators’ appearing to charge random sums
for inexplicable ‘services’.
It is important to note that a labour case is faster
than a criminal case and it’s not necessary to
await the outcome of a criminal case before taking
up a labour matter. In addition, unlike criminal
cases, labour cases do not require guilt to be
proved beyond a reasonable doubt. Bakkies adds
that by enforcing disciplinary and criminal action,
management not only sends a clear message to
other employees, but also stands a better chance
of recouping some losses. Section 300 of the
Criminal Prosecution Act dictates that criminals
must reimburse a portion of stolen property.
Bad company
Another problem brought up by members in the
audience pertained to fraudulent companies of-
fering supply chain services. Unscrupulous freight
brokers were a bone of contention, but while some
advocated the implementation of a blacklisting
system, it was agreed that apart from the legal
issues involved, this would merely compel fraud-
sters to resort to other forms of crime.
Bakkies and Brian added that companies should
also be wary of labour brokers. In some instances,
Supply Chain Today Feb 2011 23
SECURITY & THEFT
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the brokerage may be free to waive responsibility if things
go wrong, leaving the client carrying the cost. Furthermore,
while the broker may remove a particular individual from a
facility, there’s no guarantee that the broker won’t simply
reassign him or her to another project, particularly when
marketable skills are concerned.
One member of the forum told the group about a bookkeeper
who had stolen R219 000 by skimming cash from deposits
and altering slips to hide the theft. She had been sourced by
a labour broker who took no liability for crimes committed
by their staff leaving the organisation convinced that they
had no recourse. Bakkies advised companies to deal with
brokers who accepted liability as well as having insurance
to cover themselves in the event of an incident.
The likable, hard-working employee who never
takes leave may be using quiet periods in the
office to get a hand in the till
Unusual suspects
Often a wheeler-dealer attitude or a desire to beat the sys-
tem will indicate a potential threat but crime doesn’t always
surface in the most likely places. Criminal checks should
be standard procedure, particularly for financially-sensitive
positions, but remember that not every criminal has a record.
The over-assertive micro-manager could be using aggression
to mask illicit activities knowing that nobody dares question
him. On the other hand, the likable, hard-working employee
who never takes leave may be using quiet periods in the
office to get a hand in the till.
Feb 2011

On the topic of tills, one interesting case study
showed the lengths miscreants will go to earn a
dishonest buck. An audit of a store showing a steady
stock loss uncovered that someone had set up an
additional till point and not even the supervisors
had realised that there were nine stations instead
of eight. This point highlights an issue in many
companies: management has to have control over
their systems. It’s not enough to put a system
in place and expect it to fix everything since the
information entered may be incorrect.
SECURITY & THEFT
Information systems
Generally it helps to be a step
ahead, and here, accurate informa-
tion is key. Those in the know are
able to spot common indicators
of fraud, or the potential for it.
High personal debts, living be-
yond means, gambling problems
and drug or alcohol addictions
can all lead an employee to dip
into company coffers. Research
indicates that it is possible to
bribe a high-earning employee,
for instance someone who earns
between R800k to R1mill per an-
num, with as little as a thousand
rand. For others, a few cigarettes
will suffice.
It’s a mistake to overlook petty
theft since sometimes this can
be a means for syndicates to test
security systems. It is also unwise
to assume that low-earners are
stupid. A menial job may be the
perfect cover for a lucrative role
as an inside contact. Hijackings
are a good example, particularly
when they occur with a low injury
rate. Sometimes it’s as simple
as stopping at the roadside and
waiting while a second truck
arrives with a forklift to unload
goods and drive off.
Be aware that syndicates can
be all-pervasive, and implement
measures to determine whether
your company is a target. Under-
stand that syndicates can be as
interwoven as a family, with some
including initiations, identifying
tattoos and even blood ties.
Companies at risk are those
with a lack of competent per-
sonnel, as well as those with a
rapid turnover of key employees.
Criminals invariably exploit tran-
sition periods. It is a good idea
to be vigilant during quiet times
or year-end phases which may
be used to mask duplicate invoicing or unusual
transactions.
One or two members may end up contributing while
others benefit without making any effort
Some staff will ingeniously manipulate the sys-
tem to their advantage. For example, by delay-
ing delivery of a large order and then rushing it
through security to meet deadlines, items may
slide through the system unnoticed.
Supply Chain Today Feb 2011 25
SECURITY & THEFT

Tightening the net

All the systems in the world won’t be effective if
similar protection methods are not implemented
down the line. If problems are happening with
third party suppliers, there’s every chance that
this will impact your bottom line too.
There needs to be an incentive to disclose infor-
mation and employees who provide information
may also need protection.
Information sharing between companies is also
vital, though some members of the group displayed
a reluctance to take this step, citing issues of
protecting business information. This raised the
additional concern that ultimately, while one or
two members may end up contributing, others
would benefit without making any effort. Eventu-
ally the drivers of the programme lose interest.
This could be avoided by bringing in an outside
expert, such as Matrix or Tracker, for example.
Another solution could be the establishment
by the RFA of a Hotline or sms system to alert
members of hijacking hotspots giving information
on varying threat levels. Ultimately, the efficacy
of the process is reliant on the big role players
driving it.
There needs to be an incentive to disclose information
Building relationships
In conclusion, it was determined that by putting
processes in place, a company can not only make
crime more difficult, but also police can be given
more to work with when they need to make a
case. On this note, police relations need to be
developed, with comprehensive statements being
provided regarding theft. Criminal conviction rate
depends on the prosecutor, clarity of testimony
and strength of forensic audit. Follow-ups should
be conducted professionally and politely.
If forensic companies are to be contracted, these
need to have relevant credentials and adequate
infrastructure; organisations should do their
homework when choosing a specialist. If all par-
ties manage to work more effectively, together, a
better outcome may be reached.
www.rfa.co.za

26 Supply Chain Today Feb 2011

 GREEN SUPPLY

Beet the Biofuel

Dilemma
The switch to biofuels has been a hot topic for
some time with dwindling fossil fuel reserves
growing increasingly costly.

E
urope has given the matter
much attention, and Swe-
den has been leading the
pack with its strong focus
on environmental sustainability. Rynoux du Preez of Silversands, Winston Muir of Scania and Eugene Beetge
The country managed to reduce of Silversands
dangerously high air pollution levels
in Stockholm over just a couple of decades by Africa. “Johannesburg’s air pollution is currently
implementing strong carbon emission controls. three times higher than Stockholm’s was when
When “Supply Chain Today” chats to Winston authorities there deemed it hazardous,” Winston
Muir of Scania, along with Eugene Beetge and warns.
Rynoux du Preez from Silversands Ethanol, they Sweet deal
have a lot to say about the fuel situation in South In spite of these words, he’s optimistic about the
situation on the home front, citing the proposed
Johannesburg’s air pollution is currently three times Metro bus tender as evidence of Local government’s
higher than Stockholm’s was when authorities there commitment to the process. “Joburg Metro’s op-
deemed it hazardous eration of our demonstration Ethanol buses is a

Scania’s Ethanol buses have drawn increasing support on the local front

Supply Chain Today Feb 2011 27

GREEN SUPPLY

step in the right direction,” he tells us.

By modifying its normal diesel engine,
the company has effectively created
a system that is capable of running
efficiently on bio-ethanol. These have
been used extensively in Europe and
have now been introduced locally. The
fuel is so clean that exhaust emissions
are reduced by up to 90% compared
with Euro 2 diesel buses. Sweden has
a similar fuel option, E100, for use
in cars.
Ready source
“Until recently, the Metro bus has been
running on imported fuel,” Winston
continues. “However, Silversands’ bio-
ethanol plant is now producing ED95,
which will mean we have a ready source
of locally produced fuel, and this fuel
will have 90% local content.
Using sugar beet as a feed stock, the
company produces a biofuel that is
entirely home-grown and organic, aside
from an additive which makes it suit-
able for use in a diesel engine. “Our
Sugarbeet is a large plant that grows with relative ease
farm is the first commercial sugar beet
operation,” Eugene explains. “Until now we’ve been working
through the trial phases. Now our first batch is awaiting the
lab reports to confirm that it meets Scania’s specs. We’re
confident it will make the grade,” he smiles.
Job creation
Sugar beet is a little known product in South Africa, so farm-
ers have required some education regarding the production
process. In a bid to bring additional value to the project in
the form of job creation, Silversands has split production
between its main farm and a number of smaller empower-
ment farms in the area. These farmers are given seeds and
support to enable them to contribute to the process.
“It’s an easily grown vegetable, with irrigation being its
main requirement, and even here, it needs less water than
vegetables such as mielies or sugar cane. In fact, it will
grow without irrigation, but then you’re at the mercy of
the elements to determine your output. Also, since there’s
no other commercial demand for it apart from our ethanol
production, there’s no food competition.”

It’s also an abundant crop with yields that are 20

times greater than maize

With a 10 out of 12 month growing season, sugar beet can

be grown in a rolling production process that covers almost
the entire year. It’s also an abundant crop with yields that
are 20 times greater than maize, and farmers being assured
of two to three times the return. It’s hardy and can survive
for months before harvesting, protecting producers from
potential loss if crops aren’t sold immediately.
Competitive pricing
“It’s an incredibly cost-effective plant, which is why we

28 Supply Chain Today Feb 2011

 GREEN SUPPLY

work with it,” says Eugene. “If you produce the every city could run a fleet of ethanol buses,”
fuel from anything else the cost would double; says Winston, with Eugene agreeing.
sugar beet makes bio-ethanol competitively priced
compared with diesel.” There are numerous stumbling blocks to biofuel
acceptance, the main one being acceptance from the
The growth phase is five months and harvesting
takes around a month, with local labour being
fossil fuel suppliers
employed for the task, further enhancing the
job-creation facet. “It’s a large underground plant “You’d be looking at 500 buses in 12 year replace-
that needs to be dug out,” Eugene explains. “It ment cycles, which is ample to keep our business
can be done using specialised equipment, but lucrative. Best of all, estimates anticipate that we
this would negate the labour advantage without could create two to three jobs for every ethanol
significantly increasing output.” In order to ensure vehicle on the road. And there’s the additional
supply security, various farmers are contracted advantage of accruing carbon credits to boot,”
into the project to counter the problem of supply he concludes.
interruptions due to bad crops. Winston Muir, Scania, Tel. 011 661 9600, Email. winstonm@
Once harvested the plant is crushed, boiled and scania.co.za, Website. www.scania.co.za
distilled to 96% alcohol. At this point, the additive
is put in, after which it is tested. “The process is
actually quite straightforward,” continues Eugene.
“However there are numerous stumbling blocks
to biofuel acceptance, the main one being ac-
ceptance from the fossil fuel suppliers.”
Fuel monopoly
Traditional bioethanol has a blend of 10% ethanol
to 90% fossil fuel, with the ethanol used invari-
ably being a bio source or synthetic product
manufactured by the fossil fuel company. These
are unfriendly to the environment and limited in
terms of job creation. Apart from that, due to the
99% ethanol needed for a blended product, the
specific ethanol is also the most expensive fuel
source available.
Without government financing, the project has Abundant crops can be harvested from small areas
had numerous challenges to overcome, however
Winston and Eugene are confident that the partner-
ship between Scania, as the technology investor,
Silversands as the producer and Metro City as
the consumer will result in a winning formula.
Although vocal in its support of green fuel initia-
tives, there appears to be minimal government
support of such ventures. South Africa will this
year host an international Biofuel Summit attended
by global green decision-makers, at a stage when
the country has only one active project.
“We are the only ongoing biofuel producer in
South Africa right now,” says Eugene. This is
not from lack of interest; investors are regularly
picking up on new fuel trends but many fail to
meet expectations. Gas was touted to be a likely
contender but came with too many limitations
to make it viable. Sweden’s investigations into
Compressed Bio Gas, creating methane from sew-
age, established that the whole of Stockholm only
produces enough raw material for 110 buses.
Nationwide production
On the other hand, sugar beet’s tremendous flex-
ibility makes it very accessible. It can be grown
almost anywhere, with the result that a plant can
be set up outside every metropole. “Ultimately Biofuel could be the answer to South Africa’s increasing air pollution problem

Supply Chain Today Feb 2011 29

 Are You
Doing
Your
Bit?

Green This prestigious award recognises

people, projects and products
that have gone above and

Supply
beyond the call of duty to
enhance the environment in which
they operate.

Chain The inaugural awards in 2009, followed

Awards
by those in 2010, enjoyed a wonderful
response from the supply chain
community and everything is on track to
make the 2011 event one of the
industry’s most prestigious accolades.

Enter your product

or project now!

Sponsors: Entry forms are avialble from:

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

30 Supply Chain Today Feb 2011


Ground Zero
When it comes to CO2 emissions, scoring 0% means achiev-
ing 100% success. TNT’s Planet Me campaign and Drive Me
challenge aim to help stop pollution by curbing their own emis-
sions into the environment.
Management is encouraged to lead by example by adopting environmentally
friendly habits, such as driving energy efficient vehicles
A
s a major player in the global transport
field, TNT’s fleet of delivery vehicles,
cargo planes and various buildings play
a part as a key contributor to many CO 2
emissions. Recognising the responsibility to combat
the problem, the company has implemented two
campaigns to reduce emissions. “Supply Chain
Today” had a word with Mary Mashiane, Corporate
Responsibility Manager of TNT Express, SA.
Turned to government and aeronautical companies to
fast-track research into issues such as fuel consumption
Zero tolerance
“Planet Me is aimed at cutting our carbon emis-
sions down to zero,” Mary tells us. “This goal will
cover every aspect of our business from operating
buildings and depots, to the vehicles we use.”
The campaign adopts a three-pronged approach
incorporating Count Carbon, Code Orange and
Choose Orange.
“Count Carbon involves calculating and manag-
ing our CO 2 performance,” she explains. “Since
carbon monitoring is a relatively new area, it
has been necessary to implement some novel
systems to handle the process.” Following an
audit which began as far back as 2004, TNT
determined that its vehicles, aircraft and build-
ings were the primary contributors to its carbon
GREEN SUPPLY
Mary Mashiane worked with Kobus Fourie, Operations
Director at TNT, to encourage participants in the Drive Me
challenge
footprint and set about managing these aspects
with a view to reducing emissions.
Code Orange
The actual management process forms part of the
second arm of Planet Me, namely Code Orange.
“Each area of our three focal points has specific
needs,” continues Mary. “Vehicle management
involves network optimisation in terms of ra-
tionalising loads and reducing milage. Driver
behaviour is also a contributing factor and our
‘Drive Me’ challenge is instrumental in instilling
effective driving habits with the help of a national
competition in which the winner and runner up
are entered into TNT’s international challenge.
Our fuel choices can play a significant role too,
as well as the choice of technologies we make.
Finally, we have extended these principles to our
subcontractors, our ‘Orange Network’, encour-
aging them to adopt similar carbon reduction
practices.”
Air travel receives equal attention, with a focus
on route optimisation for fuel efficiency. Most
importantly, however, TNT has turned to govern-
ment and aeronautical companies to fast-track
research into issues such as fuel consumption,
routing and alternative energy.
The company’s Building Initiative is ambitious
and involves some radical steps. Occupying
Supply Chain Today Feb 2011 31
GREEN SUPPLY
Green buildings play a strong role in the company’s conservation effort
Drivers are involved in TNT’s Planet Me programme through
the Drive Me challenge
three million square metres of property globally,
TNT has identified this area as one in which
dramatic improvements can be made. Starting
in the Netherlands in 2007 with its first carbon
neutral green office, plans are afoot to extend the
practice to other divisions. “This is only the start
of the benefit,” Mary assures us. “Ultimately we
see these offices inspiring staff to adopt these
principles into their own lifestyles.”
Management is expected to lead by example, making
lifestyle choices that will influence staff to do the same
Choose Orange
Staff education is perhaps where TNT will per-
haps make its most significan social contribution
with Planet Me. “Employees and their families
32 Supply Chain Today Feb 2011
Fleet management optimises fuel consumption
create as much CO 2 as the company does and we
feel that it is important for us to ensure that the
benefits of Planet Me reach into their homes,”
she smiles. “Management is expected to lead
by example, making lifestyle choices that will
influence staff to do the same, for instance by
driving fuel efficient cars and limiting unneces-
sary business travel.
“Our teams around the world have become engaged
in numerous initiatives designed to enrich and
educate families. Locally we recently collaborated
with Johannesburg City Parks and the Gauteng
Provincial Government to plant trees along the
Albertina Sisulu highway towards OR Tambo
Airport. We chose the area because of the high
quantities of CO 2 produced here daily. By planting
trees we aim to offset emissions due to staff air
travel from June 2009 to June 2010.”
While Planet Me may set some lofty goals, some
might say that it’s better to aim high and fall short
than not to make any effort at all. However, it
seems that TNT has every intention of meeting
project expectations. With any luck other com-
panies will take a page out of their book.
Mary Mashiane, TNT, Tel. 011 437 3300, Email. Mary.
mashiane@tnt.com, Website. www.tnt.com

A
ll of this is exacerbated by the fact that
good stories are hard to find. Apart from
running the gauntlet of educated execs
with well-rehearsed PR pitches designed
to deflect any real investigative journalism, there’s
Organisations offering ‘logistics’ when clearly there isn’t
a soul in the company who understands the concept
the even more frustrating task of dealing with the
uneducated ones who have no idea what they’re
talking about.
WHO EXACTLY DOES WHAT?
Illogical
Logistics
The life of a “Supply Chain Today”
writer is not an easy one. Amidst the
glamour of launches and functions,
there’s a lot of trudging through mud
and dodging oil slicks to track down
news and meet deadlines.
Beyond the story
While this may be an inconvenient obstacle in
terms of getting useful information to readers,
the real concern lies in the likelihood of these
companies affecting unsuspecting clients. Take,
for instance, the deluge of organisations offering
‘logistics’ when clearly there isn’t a soul in the
company who understands the concept.
A recent call to a company called Gay Transport
but listed as a logistics provider yielded the fol-
lowing conversation, “I’d like to chat to you about
the logistics services you offer,” asks a “Supply
Chain” journalist. “We don’t handle logistics,
we’re a transport company,” replies Mr X. “I see.
Perhaps we could discuss the process involved in
managing the transport process for your clients,”
continues intrepid journo. “We don’t do transport
management. We have trucks,” responds Mr X.
“Do you manage these?” journo persists. “No,”
X says flatly.
A logistics company that doesn’t handle logistics
or manage transport? Contrary to their chosen
company name, they didn’t appear to be Gay
either. Or even very merry.
This is not an isolated conversation. We speak to
people like this all the time. The term ‘logistics’,
according to Wikipedia ‘involves the integration
of information, transportation, inventory, ware-
housing, material handling, and packaging, and
occasionally security [and] is a channel of the
supply chain which adds the value of time and
place utility’.
No party
We’ve discovered that it is applied to everything
from smoking bakkies to crumpled boxes and
Supply Chain Today Feb 2011 33
WHO EXACTLY DOES WHAT?

collapsing chicken crates. If you hand your busi-

ness over to one of these ‘specialists’, you’re in
for a big surprise. Or a party – particularly not a
Third Party Solution, which is another term that’s
bandied about with reckless abandon.
How many companies offer warehousing as a
‘3PL service’ purely because they know an oke
with some empty floorspace somewhere?

The customer waits while the

receptionist gossips about relationships
and management is out to lunch

Ask one of these companies how they manage the

situation and you’ll be advised that they utilise
the latest, cutting-edge IT technology to offer a
WMS solution that integrates
seamlessly into their ERP system
via LAN, WAN or maybe just
a MAN with a speedy flock of
carrier pigeons.
What solution?
Similarly, the word ‘solution’
is cropping up with increasing
frequency. Companies no longer
offer products or services; they
provide solutions. “We don’t just
sell labels, we offer solutions,”
says a marketing savvy execu-
tive. “Solutions to what?” we
ask. Unfortunately for those in
the industry, the well-crafted
response will have you believing
that these particular labels will
save time, money, and possibly
even the planet, because every
solution is also ‘green’.
Worse than green solutions,
is the emphasis on ‘service
excellence’. We challenge you
to find an organisation which
doesn’t wax lyrical about their
commitment to client satisfac-
tion – with the exception of
government departments, of
course. “Our biggest focus is
on building relationships with
our clients,” says management,
while phones ring unanswered,
emails remain unacknowledged
and messages are never re-
turned. Customer Relationship
Management is a lovely concept
when the three words are ap-
plied to each other. Instead,
the Customer waits while the
receptionist gossips about Re-
lationships and Management is
out to lunch.

34 Supply Chain Today Feb 2011


Sgt Swanker pigeon Gunpowder II
WHO EXACTLY DOES WHAT?
It’s your problem
While editors of magazines sometimes have
a hard time, we’d like to point out that
the real victims here are the businesses
that put their faith in these companies. It
may not affect you too much if we can’t
get breaking news to you because some
MD doesn’t answer his phone. But it will
certainly be a problem when the same
person ignores your repeated requests to
explain where your last shipment is.
Loses emails, forgets appointments, can’t
remember names and is unable to open Word
documents
If it’s any consolation, however, the supply
chain field is not the only area which takes
liberties with terminology. Not surprisingly,
the construction industry has a similar
philosophy. Frankly, we’re more than a
little concerned that a major player in the
building of Gauteng’s new road system is
run by someone who loses emails, forgets
appointments, can’t remember names and
is unable to open Word documents. While
this may not be a fair reflection of the
company itself, we’ll be avoiding the new
flyovers just to be on the safe side.
Supply Chain Today Feb 2011 35
Market Forum
New distribution centre gets warehouse
management system
Global supply chain optimisation provider Manhattan As-
sociates announced that Samsung Electronics, the global
consumer electronics brand, has successfully installed
Manhattan Associates’ Warehouse Management System
at its new, automated, 55,000 sq. ft. national distribu-
tion centre (DC) at the Vorsino industrial park in Kaluga,
Russia.
The implementation was conducted as part of a wider sup-
ply chain systems re-engineering exercise for Samsung’s
Russian subsidiary Samsung Rus, and was led by Samsung
Electronics’ IT subsidiary, Samsung SDS. The project
also involved a number of other parties including Korean
company EXE C&T Co who were contracted by Samsung
to oversee, amongst other things, systems integration and
implementation and provide general logistics consulting
support. Manhattan Associates ‘GeoPartner’ Korus Consult-
ing was responsible for designing, configuring and testing
Manhattan Associates’ system, for training administrators
and key users of the technology and for developing system
generated reporting templates.
Finally, whilst Samsung Electronics’ new national distribu-
tion centre (NDC) at the Vorsino industrial park in Kaluga
was fitted out with various materials handling equipment to
automate the facility, end user training was carried out for
the Manhattan system and final integration testing between
the Manhattan and SAP systems was completed.
After a thorough quality assurance exercise undertaken by
the Korean experts from one of the numerous Samsung
divisions involved in the project, the warehouse went live
with the new system.
Manhattan Associates, Email: info@manh.com, www.manh.com
Onwards and upwards
As demand for its solutions increases in Southern Africa,
business software vendor HansaWorld has moved to new
premises to accommodate a growing staff complement. The
company officially opened its new offices at The Woodlands
in Woodmead, Johannesburg, on 19 January 2011.
With the development of HansaWorld’s brand and reputa-
tion, so too does the infrastructural requirements of the
vendor increase, Desai notes. “While moving offices is
disruptive and downright time-consuming, it is a necessary
growing pain. The primary focus for 2011 is to take our
African operations to new heights,” she says.
Providing some insights into her plans and vision for the
new year, Desai says that from solid foundations estab-
lished in the company’s 8 year history in Southern Africa,
it intends to grow rapidly. “With a sound and expanding
partner base, we will look to aggressively advance the
profile of our solutions. That includes attention to channel
and end-user marketing, where emphasis will be placed
on cost-competitiveness in terms of the complete pack-
36 Supply Chain Today Feb 2011
age: features and functionality, licensing, implementa-
tion timeframes, support and maintenance. Based on all
these services, Enterprise stacks up very well against the
competition – and especially when total cost of ownership
calculations are made.”
In conclusion, Desai says HansaWorld is positioned well for
growth in 2011. “The company is stable internation-
ally and profitable locally. Above all, we have a
proposition which is based on mutual and fair
value creation, which is very appealing to local
companies. That will form the basis on which
we will take HansaWorld forward.”
Swati Desai, HansaWorld SA. Tel: 011 656 6113,
Email: swati@hansaworld.com
A new business process management
suite
FlowCentric is very excited about their new product
offerings
Now processes built with FlowCentric can be viewed in a
Web 2.0 Client. This allows better visual customisation.
FlowCentric is also presenting the Execution API. The
FlowCentric Execution API offers a valuable customisa-
tion option to partners and customers alike
As a FlowCentric customer, you can access your pro-
cesses via the Internet, mobile devices, Microsoft Office
SharePoint Server, Microsoft Office Outlook and many
more Internet enabled technologies, making your pro-
cesses available every moment of the day. Stay in the
loop. No more delays! Increase your productivity.
FlowCentric’s new BI tool enables better, informed de-
cision making through improved visibility into a wide
range of business challenges across industries, func-
tions and systems. This enables companies to free up
their programmers to innovate and create, rather than
produce hundreds of reports.
“FlowCentric’s BI tool takes reporting into a new era,
if you thought cubes were great - this knocks blocks
off anything you have seen before.” Caroline Hein
(Parity)
With this dynamic tool you can run reports and create
dashboards quickly to detect things like market changes
and product sales in real time. This allows your sales-
people to immediately respond to new opportunities
and improve business performance.
FlowCentric Technologies South Africa. Tel: 012 665 2591, Web:
www.flowcentric.com
Market Forum
Choosing the right ERP solution
Implementing an Enterprise Resource Planning (ERP)
solution won’t solve underling company problems,
says Immo Böhm, MD of Afresh Consult.
“There are two major decisions to make when looking
at ERP’ the first is deciding if you need it, the second
is selecting the right system to suit your needs.”
Because of growth and scale it can become difficult
to control and manage your business. This can result
in you becoming uncompetitive or limiting yourself
to being a smaller operator.
ERP requires a new mind-set says Böhm. “That
mindset has to run right through the whole busi-
ness. The point of ERP is to connect all areas of the
business and provide a greater level of control and
predictability for all processes.”
The cost of support and the SLA should also be evaluated,
along with the cost of upgrades in future. “Choose a system
and service provider which can guarantee a timeframe
and cost of deployment. Look for one which can upgrade
automatically, without having to visit each site to bring
the underlying stack up to date first,” adds Böhm .
Always think , Böhm says. “When you’re implementing
ERP, you should be anticipating growth for your company.
Therefore, seek a system which not only meets immedi-
ate requirements, but which offers flexibility to cater for
more advanced functionality and which can be easily
customized, too.”
Immo Böhm, Afresh Consult. Email immo@afreshconsult.com
Nurturing small business and practical skills
development
The Gauteng Provincial Government, together with Ford
Motor Company of Southern Africa (FMCSA) officially
opened an incubation centre to establish and nurture
black-owned component manufacturing for the South
African automotive industry.
A Production Simulator Facility adjacent to the FMCSA
assembly plant in Silverton, Pretoria was also officially
opened. The newly operational facility is helping FMCSA
prepare for the production launch of the next-generation
Ford Ranger. In less than a year, the facility will be avail-
able to engineering students in the province.
The Gauteng Provincial Government (GPG) committed
R50 million for the construction of the Broad Based Black
Economic Empowerment (BB-BEE) Supplier Incubation
Facility and an additional R15 million for start-up costs
for Broad-Based Black Economic Empowerment (BB-BEE)
companies. A further R32 million was allocated for training
and development programmes for FMCSA employees.
According to FMCSA president and CEO Jeff Nemeth, the
BB-BEE initiative and training program is another example
of Ford’s commitment to strengthen South Africa’s position
as a world class manufacturer and exporter of vehicles
and engine components.
Manilal believes that the BB-BEE Supplier Incubation
Centre is the opportunity of a lifetime for the entrepre-
neurs involved. “The Gauteng Provincial Government has
ensured that all the usual risks associated with start-ups
have been addressed.
Lloyd Marlowe, Ford Southern Africa. Tel: 012 842 2747, Email:
lmarlow6@ford.com
SME scoops industry supplier award
In a recent ceremony, liner and cover manufacturer Pow-
erPlastics beat off some strong competition when they
walked away with an award from Pretoria Portland Cement
Company Ltd Coastal Division (PPC) for Best Supplier
in the Small Enterprise category at an event recognising
outstanding service within PPC’s supply chain.
“We are thrilled to have received this accolade from
such a large industrial player and feel it is a tremendous
achievement for an SME such as PowerPlastics. It is also a
good measure of our market position as well as our agility
and capacity to win such a large first-time contract with
tight timelines and still exceed expectations,” says Caryn
Formby, director of PowerPlastics.
Supply Chain Today Feb 2011 37
Market Forum
“These awards pay tribute to the fact that our suppliers are
critical to our own success in delivering superior products.
It is a rigorous and highly competitive environment out
there and we need to be able to depend on our suppliers.
Excellent relationships within a trusted network go a long
way towards survival in this economic climate and Pow-
erPlastics is an exemplary example of this,” says Ginger
Singh, Area Manager for PPC.
“What particularly impressed us was how PowerPlastics,
despite being a SME, didn’t shy away from this massive
order. They stared it in the eye and if they were intimidated,
they certainly didn’t show it!” says Singh.
Specialising in the manufacturer of covers and liners, Pow-
erPlastics’ production facility is geared to both long- and
short-term production runs. Other covers and liners include
fumigation sheets, container liners for goods in transit, dam
liners, branded scaffold sheeting and thermal covers.
Power Plastics. www.containerliners.co.za
On the Move
Lee-Ann Colyn Denise Howard
Denise Howard has been appointed as Sales Manager
at TNT Express for the Durban and Port Elizabeth re-
gions.
Lee-Ann Colyn has been appointed as Sales Manager
at TNT Express in the Western Cape office.
38 Supply Chain Today Feb 2011
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Index to Advertisers
APC Storage Solutions SA 22
Apex
Cargo Carriers
Continental Tyres Outside Back Cover
24
15
Fuso 16, 17
Goscor Outside Front Cover, 21
Interrol 12
IQPC 6
Linde 14
Nissan Forklift 10
Paul Steyn 28
Proscan Inside Back Cover
Psion 20
TNT 8
Toyota Forklift Inside Front Cover
Universal Storage Systems 34
Supply Chain Today Feb 2011 39
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