Supply Chain Today Mar 2013

Supply Chain Today March 2013 1

www.krostshelving.co.za

2 Supply Chain Today March 2013

Firstby Nature

www. nampak.com

F I R S Tb y n a t u r e

The giraffe. A symbol of resourcefulness, cooperation and vision. In many ways, so is Nampak Corrugated.

We have state-of-the-art equipment and technology, supported by professional staff. We manufacture

a portfolio of fi t-for-purpose corrugated products that are designed to deliver value through supply

chain effi ciencies. Our packaging experts are available to offer assistance and support. These are

just some of the ways we’re striving to make sure that we’re the natural fi rst choice of corrugated

packaging solutions in South Africa and the rest of Africa.

As our products come from sustainable and recyclable resources, we’re also fi rst by nature. Always.

For more, contact:JHB: +27 11 876 6026 | CT: +27 21 505 1361 | DBN: +27 31 717 6136 | PE: +27 41 486 1035 | Swaziland area: +27 13 790 0007

http://www.nampak.com


Cover Story4 Big Brand

Racking & Shelving7 Inside the Box

Flooring9 Value Engineering

Warehousing11 Fire Protection

Packaging15 Fresher and Safer for Longer17 Packaging Waste Offers Revenue Opportunity

Systems21 Outlook for Materials Handling Systems

Market Forum — Unit 22 Market Forum - Unit

Trucking 27 Top Truck Exporter

AAirrpporrtss 29 A Turn for the Better

Industrial Hub31 Eco Industrial Park

Sustainability 33 Fair Trade Gains Ground

Strategic Elements 37 Driving Real Value and Competitive Advantage in SA

March 2013

Contents

Proprietor and Publisher: PROMECH PUBLISHINGTel: (011) 781-1401, Fax: (011) 781-1403E-mail: [email protected], www.promech.co.zaManaging Editor: Susan CustersAdvertising Sales: Lelanie DiamondProduction Manager: Zinobia Docrat/ Donovan VadivaluAdministration and Circulation Manager: Catherine MacdivaSubscriptions: Please email us at [email protected] if you wish to subscribe to “Supply Chain Today” at R440,00 (excl postage and VAT) per year; R1 100,00 per year for Africa/Overseas.Printed by: Typo Colour Printing, Tel: (011) 402-3468FSC (Forestry Stewardship Accreditation)

The monthly circulation is 4 025

CopyrightAll rights reserved. No editorial matter published in Supply Chain Today may be reproduced in any form or language without written permission of the publishers. While every effort is made to ensure ac-curate reproduction, the editor, authors, publishers and their employees or agents shall not be respon-sible or in any way liable for any errors, omissions or inaccuracies in the publication, whether arising from negligence or otherwise or for any consequences arising therefrom. The inclusion or exclusion of any product does not mean that the publisher or editorial board advocates or rejects its use either generally or in any particular field or fields.

Software 40 ERP that Teaches People How to Use it

Market Forum — Supply43 Market Forum - Supply

Endorsing BodiesAfritag (div of Smart Card SocietyCCF (Cold Chain Forum) CGCSA (Consumer Goods Council of SA)CILTSA (Chartered Institute of Logistics & Transport: SA)SAAFF (The South African Association of Freight Forwarders)SAEPA (SA Express Parcel Association) SAPICS (The Association for Operations Management of Southern Africa also mailed to: CSCMP (Council of Supply Chain Management Professionals)

Also mailed to RFA members

Featured on the cover:

www.promech.co.za

Krost ShelvingTel: (011) 827 5555


mailto:[email protected]

http://www.promech.co.za


http://www.promech.co.za

http://www.krostshelving.co.za


COVER STORY

S ales of the company’s storage solutions are skyrocketing as local companies seek bet-ter returns on their storage investments. In the face of a myriad of imported products,

companies are choosing to return to trusted brand name solutions that offer high quality products at competitive prices where the guarantees on prod-ucts and systems are lived up to and honoured.

Krost Shelving boasts a proud heritage in South Africa manufacturing racking, shelving and mez-zanine floors and other storage related products – a heritage stretching back 50 years. During this time the company has become a household name and market leader with a reputation for expertise, service and quality of the products it manufactures.

A history of qualityStorage products bearing the company’s nameplate uphold a proud tradition of quality spanning three

We believe in giving customers very little reason to look anywhere else

generations of the Krost family. According to CEO Uri Krost, the company remains on a constant path of improvement in an ongoing quest to provide innovative storage solutions, while maintaining the highest possible levels of quality and service to its clientele.

“My name is on the door of this business! It represents more than just a living to me and my staff. It represents our hard work, loyalty, honesty and fairness in dealing with our customers. We strive to maintain the highest levels of service and dedication to our clients and in return we have been rewarded with many customers who have remained loyal to us through the years.

“But, their loyalty is not blind. We still have to maintain tight control of our pricing models to ensure our products remain among the most cost-effective in the market. Together with our innovation, high service levels and ongoing prod-uct support, we believe in giving customers very little reason to look anywhere else,” Uri says.

Team effortLong-standing customers are central to the lon-gevity of the business. Uri explains that cycles on good quality shelving and racking span anywhere between 10 to 25 years per facility and even longer in some cases. During this time, after sales service is critical in order to provide for the ongoing needs of the customer and to provide further solutions to their changing requirements.

“We service all ends of the market from small,

Big BrandStorage solutions manufacturer Krost Shelving is continuing to boost production at its Wadeville manufacturing plant in order to keep up with the growing demand for its high-quality products.



COVER STORY

My name is on the door of this business! It represents more than just a living to me and my staff

basic shelving to the complete design and delivery of storage solutions across the entire spectrum of industry wherever storage is required. This kind of diversity allows us to understand companies’ needs and puts us in a good position to propose solutions that work for our customers and that can be adapted to changing business processes.”

He continues that in order to service these varying requirements, the company’s bustling factories produce a wide range of storage products. These range from impressive high rise racking, shelving for offices and supermarkets through to structural mezzanine floors that are able to carry up to 1000 kg/m² and are developed according to individual customer requirements.

Under one roofAll Krost Shelving products are manufactured in the company’s ISO9001 accredited factory and comply with the strictest quality and safety require-ments. The Krost System has been ingeniously designed and allows fast and easy installation with minimal disruption on site. Another advantage is the durability of the products. All components are built-to-last, from quality certified steel that is finished off with a high standard of powder coating or galvanized finish.

The company also specialises in the design and layout of facilities and is able to supply suitable equipment and systems to ensure efficiency in the workplace, as well as maximise workflows. Due to the wide selection of products available

most solutions can be selected “off the shelf” so to speak, or if non-standard types of units are required, these are designed and built in the factory.

“Our team of storage specialists are able to carry out complete site studies, take measurements, and advise on different storage methods and options available. They invest a lot of time to understand what our clients really need and once this has been established, they are able to put forward an affordable, high quality solution based on our existing product range or customised to meet specific operational requirements,” Uri concludes.

Product line-upThe standard product line-up includes Krostrak light/medium/heavy racking systems; Krost all-steel fully adjustable shelving; Krost boltless shelving; Krost raised storage area platform/mezzanine floors; Krost steel gondola/supermarket shelving; and Krost library shelving.

Additional storage solutions such as lockers, bins and consumables are available and the full range can be viewed by prior arrangement at the company’s showroom in Wadeville.

Krost Shelving, Uri Krost, Tel: (011) 827 5555, Email: [email protected], www.krostshelving.co.za


http://www.krostshelving.co.za


When downtime is NOT an option!

WE ALSO SELLPRE-OWNED FORKLIFTS

WE HAVE TRUSTED FORKLIFT RENTALS TO SUIT YOUR EVERY NEED

Terms & conditions apply. Subject to prior sales. @GoscorrentalGoscor Rental Company

Offices in: Johannesburg, Cape Town, Durban & Port ElizabethTel: 0861 GOSCOR (467 267)

A proud member of the Goscor Group of Companies

www.goscorrental.co.za


I n a world of computer-aided design and au-tomated factories, competitor products are often equally good, leaving only service and turnaround times as the final battlefront to

gain the upper hand. Modern warehouses and distribution centres therefore need to be geared to work efficiently and effectively in order to meet these imperatives.

According to Fred Albrecht, managing director of APC Storage Solutions SA, technology is fill-ing the void between actual efficiency versus target efficiencies. He says that properly engi-neered solutions involving “in and out the box (building)” designs and optimisations including storage equipment and machines are top of the list for local companies.

New-age storage“One of the biggest trends today is the auto-mation of processes to eliminate human error and limitations. Robotics in the warehouse and distribution centre is common and the concept of product-to-man picking is growing.

“In this way companies are able to have dense warehouses with narrow or no aisles in which the product is picked and automatically brought to the person. These kinds of live racking solu-tions are particularly common among the new breed of e-commerce distribution centres that we are seeing springing up lately,” Fred adds.

Combined with intelligent warehouse manage-ment systems (WMS), there is almost no limit to the kind of efficiencies that can be achieved just as long as the right solution and products are specified from the very beginning,” he says.

Complete solutionFred continues that like their customers, APC differentiates itself through their services of-fered and the ability to provide solutions that exactly fit the needs of customers. In South Africa, considering the sheer number of storage solutions, products and equipment on offer, there are few companies that can compete with the diverse product range of APC Storage Solutions SA.

Demands for faster, quicker better supply of goods is escalating as companies seek competitive means of gaining advantages over increasingly smart rivals.

Inside the Box

Fred Albrecht of APC Storage Solutions

Our solutions are more expensive than the average, but then there is nothing average about our solutions

RACKING AND SHELVING

www.apcstoragesolutions.co.za


“Part of our service to clients is that we have a massive range of products that can fulfil every wish that they may have. From our very own Mecalux WMS to the full range of Mecalux rack-ing and shelving solutions of every description including pallet, pushback, drive-in, drive-thru, narrow isle and dynamic (live pallet) racking.

“We also have an extensive range of warehouse machines to get the most out of our systems. The combination of engineered storage and han-dling solutions makes the most out of the space available and dramatically improves the cost per pick. Our solutions are more expensive than the

A large scale installation by APC Storage Solutions

Would have taken our entire South African storage equipment manufacturing industry two-and-a-half years just to complete the manufacture of so many racks

RACKING AND SHELVING

average, but then there is nothing average about our solutions. In fact, we’ve remained in business because we are not the cheapest, but rather aim to be the best,” Fred contends.

Sizeable projectsThe value of this philosophy was recently illus-trated when APC Storage Solutions SA won the contract to supply Unilever in Boksburg with the world’s largest conventional pallet racking system under one roof. Although the company’s ability to supply the required 187 000 pallet positions on time was tested, all delivery and installation requirements were easily met – and on time.

“Our client wanted something specific and we were able to provide the solution. Our principle, Mecalux, was able to deliver all products on time

and to the required standard, whereas we estimate it would have taken our entire South African storage equipment manufacturing industry two-and-a-half years just to complete the manufacture of so many racks. The job entailed landing, clearing and transporting 480 large 40 foot containers to the site where 355 of our people undertook the careful assembly and installation of the racks.”

Other recent projects undertaken by the company include a host of automotive companies such as Volkswagen, John Deere and Imperial, household goods supplier Reckitt Benckiser, as well as logistics giant, DHL. The latter making full use of the company’s full service offering from designing and engineer-ing the entire operation through to correctly costing the project, as well as identifying OPEX requirements etc, to make the operation run as efficiently as possible.

Time to changeIn conclusion Fred says South African companies who have traditionally wor-ried about automating plants in order to preserve jobs have undergone a change of heart. With efficient storage and distribution solutions, they have found that they can redeploy workers to more productive areas that increase their profitability, rather than clinging onto past practices.

“As this continues we are building an ever-stronger case to prove the value of automation and of using the right technology to achieve competitive advantage in a tough marketplace.”APC Storage Solutions SA, Fred Albrecht, Tel: (011) 974-9060, Email: [email protected], www.apcstoragesolutions.co.za


http://www.apcstoragesolutions.co.za


FLOORING

V alue Engineering on construction projects is an integrated and detailed planning process that considers techniques and materials that could provide better per-

formance and better value over the life of the project. Design concepts, materials and methods of construction should be carefully considered by all parties without compromising functionality and operational requirements of the client and should not just be seen as a cost-cutting exercise.

In the case of specialist industrial concrete floor-ing this would include advising on slab thickness and reinforcement types to ensure the most ap-propriate option is selected. Value engineering offers significant advantages when looking at pile supported ground floors slabs where pile types, pile spacing and other interfaces such as edge beams can be considered to deliver an optimal design solution.

Example 1If specifiers and contractors review the piling and floor slab packages together they can vastly reduce their programme and costs as the pile type, size and spacings have a direct effect on the floor slab design. This requires early design input, to enable an optimum slab thickness to be provided. Looking at pile sizes and grids can

change the slab thickness by over 100mm and taking into account UDL loads, will have direct impact on design of pile type/size.

Example 2(Example based on 4 100m2 floor slab area rates applicable to the United Kingdom).

A ‘jointless’ floor slab that contains only con-struction/day metal armoured joints will have a substantial effect on improving efficiency of MHE equipment. A substantial reduction in long term maintenance costs on saw-cut joints and MHE can be demonstrated when compared to a traditionally reinforced floor slab with saw-cut joints every 6 metres.

Example 3Adopting SFRC completely eliminates the need for the detailing, procurement, site storage, fixing

Project Area (m²) Design Joints

X 10,000 Custom mesh

25kg/m²

285lm metal armoured joints + 2,940lm saw-cut joints

Y 10,000 30 - 45kg/m³ AFT steel

285lm metal armoured joints only

(Example 2 based on building 80m x 125m)

Pile Grid

Pile Size

Nr of Piles

Cost per pile £

Total piling cost £

Slab depth mm

Reinforcement Cost per m²

Total slab cost£

Slab programme

Original Design 3.5m x 3.5m

200 x 200

360 305 129,800 220 2 layers A393 mesh

36.50 149,650 8 days

Value Engineered Design

4.0m x 4.0m

200 x 200

273 305 83,265 200 45kg/m3 +1/60 32.00 131,200 3 days

(Example 1 based on 4,100m2

Value EngineeringValue Engineering

The influence specialist contractors can have during the design and specification stages of a scheme should not be underestimated as being of great value to all parties.

www.twintec.co.za


FLOORING

and checking of steel bar or fabric reinforcement more than halving the programme time that would have been needed for a traditionally reinforced concrete floor slab. In addition eliminating the

Project Area (m²)

Design Flatness Preparation Days

Production Days

Total Time on Site

X 10,000 Custom mesh25kg/m²

FM2 48 7 11 weeks

Y 10,000 45kg/m³ AFT+1/60 steel

CAT1 6 6 3 weeks

(Example 3)

need for heavy steel bar reinforcement, leading to a reduction in slab depth, the demand for ce-ment and aggregates is greatly reduced, hence improving the whole life environment performance of the building.

ConclusionA properly-managed and effective value engineer-ing process will easily repay the time invested by the involved parties over the life of the building and a truly effective process will yield signifi-cant competitive advantage for companies that engage with it.

The benefits to an end user in involving specialist contractors early in a project are significant and not only related to costs and programme. The project is likely to experience fewer changes as the project progresses and a greater understanding will be developed between all parties involved in the project.

If all parties engage fully with the principles of value engineering and the planning/design process is integrated carefully with the building/logistics systems and if the correct contractor and supply chain is selected, everyone gets exactly what is best for the project.

Twintec, Tel : (021) 914-7752, www.twintec.co.za

http://www.twintec.co.za

www.ssi-schaefer.co.za


Air sampling smoke detection devices reliably measure extremely low concentrations of smoke

WAREHOUSING

“An aspiring smoke detection system, which gives the earliest warning of an impending fire hazard in a warehouse envi-

ronment, protects mezza-nine and general storage areas, high bay racking, automated pick areas and loading bays. This system ensures there is sufficient time to investigate and intervene, avoiding damage and disruption to business.”

Vesda air sampling smoke detection devices, which reliably measure extreme-ly low concentrations of smoke, protect warehouse contents from smoke, fire and water damage.

Fire Protection“The challenge of protecting warehouses from fire can be complex, depending on the fire load of the

warehouse and the fire risk as presented by the product stored in the warehouse. A sprinkler system is always the first line of protective apparatus that comes to mind when protecting a warehouse. However, in many

cases, even greater supplementary fire detection, in the form of very early warning smoke apparatus, may be required.” This is the view of Duncan Boyes, chairman of the Centa Group, specialists in fire protection.

Sufficient time to investigate and intervene, avoiding damage and disruption to business

www.centa.co.za


Laser Plus

Multiple warningThe multiple warning levels of this system can be used to trigger different responses at different stages of smoke, from controlling air conditioning, to suppression release. This system has a wide sensitivity range and multi-level warnings, which mean even the lowest levels of smoke can be detected before a fire has time to escalate.

Vesda sampling points can be placed at return air grille, or in equipment cabinets, detecting smoke as it is carried by the airflow. In large open ware-houses, sampling points for these detectors can be placed where the smoke goes – often some distance below ceiling level.

WAREHOUSING

Even the lowest levels of smoke can be detected before a fire has time to escalate

www.centa.co.za

www.bartrans.co.za


In large open warehouses, sampling points for these detectors can be placed where the smoke goes – often some distance below ceiling level

Accessible locationsThese detectors are mounted in accessible loca-tions, allowing easy access for maintenance. Only the sampling pipe network is placed in the inac-cessible area.

This system, which encompasses a network of pipes with small sampling holes in them, as well as capil-lary sampling tubes, is well-suited in applications where unobtrusive detection is required. These pipes all report back to a control panel which samples the incoming air for hydrocarbons, a by-product of fire.

This system also has approval for use in hazardous areas (Factory Mutual Class 1 Div 2) where there is poor air quality or extreme temperatures. Detectors can be installed elsewhere, with only the sampling pipes in the extreme environment. The sampled air can be filtered, warmed or cooled, before reaching the detector.

How it worksOperating by continually drawing air into the pipe network via a high efficiency aspirator, a sample of this air is then passed through a dual stage filter. The first stage removes dust and dirt from the air sample, before it allows the sample to enter the laser detection chamber for smoke detection.

The second, ultra fine stage provides an additional clean air supply to keep the detector ’s optical sur-faces free from contamination, ensuring calibration and extended service life of the detector.

Air is passed from the filter, through to the calibrated detection chamber where it is exposed to a laser light source. When smoke is present, light is scat-tered within the detection chamber and is instantly identified by the highly sensitive receiver system.

BMSThe signal is then processed and presented via a bar graph display, alarm threshold indicators and graphic display. These detectors communicate information to a fire alarm control panel, a software management system or a building management system via relays or a high level interface.

The Vesda air sampling smoke detection system, which is installed and supported throughout South-ern Africa by the Centa Group, is also suitable for industries that include telecommunications and electrical facilities, mining, manufacturing plants and power stations, as well as the healthcare and commercial sectors.

The Centa Group, Duncan Boyes, Tel: (031) 569-1175, Email: [email protected], www.centa.co.za

WAREHOUSING


http://www.centa.co.za

www.linvar.co.za


Partner with the warehouse pioneers

0861 61 61 61 www.apcstoragesolutions.co.za

e pro i e e er thing necessar to achie e warehouse e cienc in cost, operations and capacity.

For a complete warehouse solution, contact us today!

http://www.apcstoragesolutions.co.za


hile MAP is not an entirely new concept, the technology has become increasingly sophisticated and more widely used in recent years. This is

according to Arthi Govender, specialty gas sales manager at Air Products. She says, “MAP is well-established overseas, particularly in Europe, but it is relatively new in South Africa.”

She continues, “Good looking, fresh, convenient food has become something the consumer demands from the food industry. In the past, MAP was primarily used to prolong the shelf life of foodstuffs such as processed meat under refrigeration. These days, MAP is used to package anything from fresh salads and meat portions, to sandwiches and snacks.”

MAAP?What exactly is MAP? Arthi provides a definition: “In MAP, the gas composition in food packaging is changed by altering levels of oxygen, nitrogen and carbon dioxide, which inhibits microbial growth, controls reactions of enzymes and bio-chemicals, and reduces moisture loss. In simple terms, the composition of the atmosphere surrounding food is modified, according to the type of food, in order to extend the shelf life of the food.”

Apart from a longer shelf-life, the benefits of MAP include a better, more appetising appearance of food, an important consideration for both supplier and consumer. MAP, in the packaging and retail process, is often used in combination with permitted respective preservatives, as the process does not stop the growth of bacteria entirely, just slows it down,” Arthi points out.

There is a range of high purity gases, delivered in both liquid and gas form, that are primarily used for the food industry. Carbon dioxide is used widely in MAP, Arthi explains. “CO2 inhibits the growth of most bacteria and moulds. It is used extensively in the packaging of bakery products. Generally speaking, the higher the level of carbon dioxide, the longer the achievable shelf-life.”

Helpful agentsNitrogen, another important element in MAP, is used as an inert gas which displaces air, and in particular oxygen. Nitrogen is mostly used in extending the shelf life of processed fruit and vegetables. “Oxygen causes oxidative deterioration, and moisture needs to be as far as possible reduced or eliminated, as it attracts micro-organisms,” Arthi adds.

Aerobic bacteria thrive in an oxygenated environment. Not only that, but bacteria are able to mutate. “Bacteria are becoming increasingly intelligent and adaptable,” and find ways of reproducing, which is making food safety technology more important than ever.

Food is subject not only to bacterial micro-organisms, but to other harmful agents, such as insecticides, fungicides and herbicides. Arthi draws attention to two recent international incidents where toxins caused wide-spread illness. In 2004, Chinese milk powder manufactures added the chemical melamine to their products. Melamine,

Fresher and for Longer

Air Products has made important strides in food safety technology in the last four to five years. This is true particularly in the area of modified atmosphere packaging (MAP), where their Freshline offering brings a complete packaging

solution to food manufacturers and suppliers, as well as new standards of safety for the consumer.

AA gooodd ffoood maanaagemment system caan reeduuce prrobblems bbyy 999%

PACKAGING

Arthi Govender

www.airproductsafrica.co.za


a rich protein substance,is used to make plastics and fertiliser. Many thousands of babies fell ill as a result, and, according to Arthi, the effects of the disaster are still being felt to this day.Foodd safetetyMore recently, a month-long e-coli outbreak caused by bean sprouts from a farm in Germany, killed several people and left thousands ill.

“That is why it is crucial to having a proper food safety management system in place,” she says. In this, the World Health Organisation (WHO) plays a crucial role by promoting safe practices and ensuring that food is both healthy and nutritious. “There is no alternative to food safety,” she says, “but the onus is on food companies and manufacturers to put in place safety systems, enhanced by MAP. A good food management system can reduce problems by 99%.”

MAP is a highly effective means of ensuring food safety. It is becoming widely used among the large food companies in South Africa who, by and large, have a reputation for responsible and reliable food safety practices.

“However, it doesn’t end with MAP - there are still risks if factory staff are not trained properly. Dirty hands, for example, can be lethal weapons,” she asserts.

HHazarddssThis is where the ISO 22 000 standard in food safety plays an important role. Arthi explains, “ISO 22 000 is used to demonstrate food safety management. It teaches manufacturers how to train

their staff, and it also protects intellectual property.” The ISO

22 000 international standard speci f ies requirements for a

food safety management system that involves, among other

things, interactive communication and system management in the food supply chain.

“Since food safety hazards can occur at any stage in the food chain it is essential that adequate control be in place at all times,” says Arthi. “Therefore, a combined effort of all parties through the food chain is required.

The ISO food safety standards also provide formulations for processes such as weighing and sequencing when combining ingredients, which have to be signed off. Staff must know what they are doing, which includes supervisors, who need awareness of what is happening in the production environment,” Arthi emphasises.

Air Products, whose facilities are all ISO-accredited, including GMP (Good Manufacturing Practice) in food safety, believes that training has an important role to play. “We provide training and advice in MAP technology and its role in food safety, to all our clients in the food industry.”

The company’s customers include suppliers and packers of red meat, poultry, ready-made meals, beverage producers (who use CO2 to make sparkling drinks, as well as nitrogen which retains the rigidity of the can), manufacturers of dry products, such as cereals, milk formula, and suppliers of fresh fruit, vegetables and fish.

Air Products, Arthi Govender, Tel: (011) 570-5000, www.airproductsafrica.co.za

Byy annd laargge, haave a reputation for resspoonsis bblee aanndrreeliaabblee fooodd ssafeety ppractices

http://www.airproductsafrica.co.za


lthough the South African packaging and paper industry has made a great deal of progress in

effectively dealing with its waste material, a significant opportunity remains for the waste generated by households in the country to be used as a raw material in the production of other goods as well as energy, and thus act as a source of revenue rather than a cost.

Negative percepttionPackaging Council of South Africa (PACSA) executive director Andrew Marthinusen tells “Supply Chain

Today” that there is a negative perception around packaging in that many people view it as waste.

“I am passionate about packaging because it saves more than it wastes, by protecting and preserv-ing the contents. By actively tackling the issue of household packaging and paper waste we can find optimum solutions to the waste challenge and in doing so, makes a real difference,” says Andrew.

PACSA is a voluntary industry body, with members from three broad categories, namely converters, associates and affiliates. The converters repre-sent some 70% of the revenue generated by the industry. Associates are in effect the major raw material suppliers, and affiliates are customers and major recyclers. Collectively, the industry directly employs some 60 000 people in South Africa.

An emmerging supplyly cchahaiinAndrew reports that in 2010 South Africans consumed 3 562 million tonnes of packaging (encompassing paper, plastic, metal and glass) and printing and writing papers. Also the consump-tion of a further 2.2 million tonnes of packaging was avoided through managed re-use systems, particularly prevalent in the beverage sector.

“Importantly, 68.5% of packaging and paper

waste was diverted from landfill through reduc-tion re-use and recycling initiatives. This means that it was necessary to dispose of 31.5% of waste, amounting to almost 2 million tonnes,” says Andrew.

“This waste is an emerging supply chain that requires greater efficiency measures to get opti-mum benefits for companies involved.”

PACSA, in collaboration with various industry as-sociations, has drafted the Packaging and Paper Industry Waste Management Plan (IWMP), which it submitted to the Minister of Environmental Affairs in late 2011.

IIndustry WWaste Management PlannAndrew explains that industry has to date invested a great deal of time and capital in recycling ef-forts and the IWMP proposes building on and expanding these initiatives.

The plan also considers how the producers intend to grow existing markets for recycled materials and to develop new markets to deal with addi-tional tonnages of recyclable material that will be collected through source-separation systems. Andrew emphasises that for this objective to be realised, it is essential that the material delivered for recycling is clean and uncontaminated.

“This is particularly relevant as far as households are concerned, with the majority not separating their waste appropriately. We advocate a two-bag system whereby organic wet waste is placed in one bag and recyclable material in another. These bags would then each travel into a different sup-ply chain,” Andrew explains.

CClean andd uncontaminatedHe adds that in order to ensure that the materi-als delivered by municipalities for recycling are clean and uncontaminated, the municipalities must establish source-separated collection and sorting facilities, known as material recovery facilities (MRFs) and to adopt the appropriate regulations and to ensure households participate by separating their waste.

Many different organisations and individuals work with the municipalities on the collection and sorting of waste, thus generating materials for recycling and providing many people with an income. In terms of the IWMP, collection ar-rangements in each municipality should ideally

Packaging Waste Offers Revenue

Thhee wwastste genneraated bby the South AAfricaan ppackagginng aannd ppapperr innduustry reepressents an emergiing ssuppply chhainn aandd

shs ouo ldl bbe viv ewwed aas a valuable ssourcce oof reeveenuue.

Andrew Marthinusen

CCoollecctivvelly, thee inndusstry directly emmplooys somee 660 0000 peep opplee iin SoS uthh AfAfricaa

PACKAGING

www.pacsa.co.za



involve these enterprises.

Soolluutitiononss mmuustst bbee aarea sspepeciifificAndrew explains that the involvement of these varied enterprises, together with the wide range in income levels and different types of housing in South Africa, means that collection and sorting models will vary significantly.

“The plan cannot be based on a single ‘one size fits all’ model. It will be necessary to consider factors such as the amount of waste generated in a specific area as well as the distance to MRFs

and recyclers,” Andrew cautions.

He adds that PACSA has evaluated recycling models in Brazil, which like South Africa is a developing country with high levels of unskilled workers who earn a living through waste picking.

“Brazil has a great collection model which is supported by industry and incorporates the informal sector. We need to ‘South Africanise’ the solution but we would be remiss if we did not also utilise experiences from the rest of the world. In South Africa it is estimated that there are already 80 000 collectors, many of whom earn a very unpleasant and dangerous living on landfill sites.”

Colllaborattive efforts the way to ggo“The plan will succeed only if all interested par-ties collaborate and play their respective roles effectively, be it central government, provincial governments and the municipalities, producers and importers, the waste sector and consumers,” warns Andrew.

He adds that government regulations are essential to ensure compliance by all parties to ensure there are no free riders.

“Equally important will be enforcement action by the authorities against those who refuse to participate in this or any other approved scheme.”

Andrew MarthinusenPackaging Council of South AfricaTel: (011) 463-9909, Email:[email protected], www.pacsa.co.za

Material Recovery Facility

TThhiss wwasstee iss ann eemergrging supply cchah inn thhat reqquirees ggrreaateer effficiiency meaasures to get ooptimmumm bbenneffitss for ccoommpaaniei ss innvoolveed

PACKAGING

Myths and misconceptions about packaging

Packaging is wasteful and a threat to the environment

Packaging is the biggest contributor to

the solid waste stream

The packaging industry is doing nothing

in the area of extended producer

responsibility dealing with the waste stream

The solution to packaging is simple –

apply a deposit or levy on all packaging

Product taxes imposed by the Treasury

such as supermarket checkout bags is

the way to go

The SA packaging industry alone must

bear extended producer responsibility

and fix the packaging waste problem

There is widespread understanding of

the term environmentally friendly packaging

(Source: PACSA)


http://www.pacsa.co.za


Yes, our company wants

to be part of Demand Response Rewards Programme because…

Company name:

Contact name:

Tel: e-mail:

We don’t use all our electricity all the time

We want to increase our bottom line

We want to help conserve the environment

If you’ve ticked most of the boxes then join the Demand Response Rewards Programme today.

The programme offers a financial incentive to businesses that minimise their electricity consumption

at critical times or generate their own power. This will help relieve the pressure on the national grid.

To join the programme simply cut out this page, scan and e-mail to [email protected] or

contact your nearest Eskom Energy Advisor by calling 08600 37566. You can also scan the QR code

below or visit ww.eskom.co.za/idm for more information.

Eskom Holdings SOC Limited Reg No 2002/015527/06

MO

HLA

LEN

G_ESK

D_562 /

E25 /

Dem

and R

esponse


www.eskom.co.za


SYSTEMS

A part from this, material handling equip-ment is being incorporated with immense electronic intelligence in the form of touch screen interfaces, distributed

control functions that obviate the need for bulky control panels, upgraded software, and many more features.

Levels buoyantOnce considered a total in-house operation, ma-terials handling is now being carried out by third party logistic (3PL) providers. Cross-company collaborations have increased with integrated supply chains and concurrent movement of goods and information.

Economic trends and the performance of the construction, power, and manufacturing sec-tors are major factors affecting the dynamics of the materials handling systems market. It is anticipated that coal demand, primarily for its use in utility power stations will keep demand levels buoyant.

Wait-and-watch approachThe task of implementing a successful warehouse poses a big challenge as it involves a proper bal-ance between a variety of conflicting objectives including:

increased picking speed combined with flexibility,

organisational flexibility combined with effective space utilisation,

increased throughput at decreased labour cost.

Outlook for Materials Handling Systems

It is anticipated that coal demand, primarily for its use in utility power stations will keep demand levels buoyant

New analysis from Frost & Sullivan in materials handlings systems, finds that the most common trend in the material

handling industry today is to build material handling equipment that is smaller yet smarter.

With the current economic conditions, many companies are deferring investments and fol-lowing a wait-and-watch approach. Others are working toward actively pursuing lean practices, continuous improvement, and just-in-time pro-duction systems.

In order to reduce complexity in materials handling operations, warehouses are deploying integrated warehousing that is capable of handling thousands of varieties of stock keeping units (SKUs), while reducing the overall complexity in customer de-livery and distribution. The resultant complexity in market segmentation has also enhanced the need for stringent tracking and tracing of product movement, which is also effectively undertaken through the deployment of handling equipment.

Ratchet down costsGoing forward, green initiatives are poised to pick up steam in the material handling industry. Industrial practitioners are displaying a prefer-ence for environmentally-responsible material handling systems that reduce emission levels and produce less noise.

To ensure greater uptake of materials handling systems, new technologies must be developed to ratchet down costs and improve ROI. Greater investments in research and development, and faster innovation rates are utmost necessities for the industry.

Frost & Sullivan, www.frost.com, www.technicalinsights.frost.com

http://www.frost.com

http://www.technicalinsights.frost.com


Serco recent-ly sold three re fu rb ished 2 8 - p a l l e t trailers to the Spar super-market group in Zimbabwe.

Refurbishment work was undertaken on the trailers at Serco’s factory in Jetpark and completed in line with the company’s usual high standards.

MARKET FORUM

"Stealing mobile devices from a store or warehouse is actually quite easy given the small size of the devices and the packaging they come in," says Deon Bayly, MD of Electronic Tracking Services. "And when you add the ease and profit in reselling these devices on the black market, it's no wonder there is a steady flow of stolen goods out of stores and warehouses."

To address these stock losses, Dean says Mtrack's wireless tracking device is the answer. Mtrack devices are small and run off their own battery power, making it easy to hide inside a pallet or even inside a package that looks exactly like the box your favourite mobile phone comes in.

And since Mtrack uses the cellular network to track its devices, they can be found when hidden in a package and stored in the thieves' warehouse, ie, it doesn't have the same limitations as satellite tracking.

This means that when stock is stolen, the batch can be tracked wherever the criminals go. With an effective response team ready to react as soon as the alarm is raised, not only will the stock be recovered quickly, but there is a very good chance that the criminals will be apprehended as well.

Dean concludes, "Each tracking device can run for at least a year without changing the battery, which means businesses can transfer their Mtrack devices from one package to another, or one pallet to another with ease."

Mtrack, Deon Bayly, Tel: 011 616 5055,Email: [email protected], www.mtrack.co.za

Stealing Cellphones

Refurbished Trailers

Arthur Gwaku Warehouse Operations Director for Spar Zimbabwe

BLT SA distributes an efficient mobile container handling system, designed to efficiently lift loads onto and off trucks in warehouses and to safely carry containers around sites.

“An important advantage of this sys-tem is that it utilises all parts of the yard and operates on pavements and in restrictive areas where a forklift or heavy equipment cannot. This mobile container handler can turn in tight spaces and is also able to travel inside warehouses, under awnings and up to docks,” says Charity Gumede, marketing

director, BLT SA. “This flexible system requires very little maintenance, unlike conventional container handling equip-ment, where ongoing maintenance is necessary. Mobicon also eliminates the need for costly yard repairs. One of the biggest problems associated with using conventional equipment to load and unload containers, is damage caused to yards and pavements that are not suitable for carrying heavy weights.

BLT SATel: (031) 274-8270 Email: [email protected]

SPAR was delighted with the trailers and indicated it would buy further units from Serco. Arthur Gwaku, warehouse operations director at Spar Zimbabwe says, “The quality of the workmanship on the refurbished trailers we bought from Serco is world class and excellent value for money. We will definitely look to the company again for more of their products in the near future.”Serco, Clinton Holcroft, Tel: (031) 508-1000, www.serco.co.za

Around the site


http://www.mtrack.co.za

http://www.serco.co.za



MARKET FORUM

Apex General Purpose Strip Curtains are working well at Pick ‘n Pay’s Longmeadow Distribution Centre in the high traffic perishables warehouse. This is the second order for these general purpose strip curtains from the distribution centre, and they will replace the high speed vertical and horizontal sliding doors originally installed in this area of the facility.

In addition, Apex Strip Curtains has installed six Apex SR 9000 doors at the DC to control various entry points into the chilled warehouse area as an effective means of temperature insulation.

“We installed the general purpose strip c u r t a i n s because the original sliding doors were s imp ly no t performing to expectation,” Pick ‘n Pay’s

Longmeadow Distribution Centre maintenance manager, Thys Hartman, says. “As a barrier to keep temperatures constant and prevent dust contamination in these hygiene critical areas, this product is living up to its claims.”

With large volumes of pedestrian and vehicular traffic in warehouses, retail stores and food manufacturing facilities, the associated ingress of unwanted elements is a given. High quality strip curtains offer an affordable and viable solution for a number of applications and Apex Strip Curtains are an inexpensive way to protect a door opening. Its robust

thermal seal prevents the ingress of hot air, yet still allows easy passage for both personnel and vehicular traffic.

Apex Strip Curtains, Wim Dessing, Tel: (011) 452-8723, [email protected], www.apexstrip.co.za

Lives up to its Claims

to a centralised driven concept.

RollerDrive is the premium solution for retrofitting and updating old cen-trally driven systems. In many cases the gravity rollers can be transitioned from the old to the new equipment. Only one roller needs to be replaced by a RollerDrive in a zone.

Interroll SA, Hilton Campbell, Tel: (011) 281-9900, [email protected]

New Conveyors And Retrofits

Zebra ZT 200 desktop printers, a series intended for light industrial and com-mercial applications, offers advanced printer integration capabilities and complete device management.

From the design to the features, these latest offerings address the typical printing challenges faced by customers while providing them with a reliable platform that can be updated in the field. The ZT200 desktop printers allow organisations to improve efficiency in a variety of market segments. Some of the specific uses include: Manufac-turing (light work-in-process tracking, inventory management)

Transportation & logistics (order picking and packing,) shipping and receiving, and compliance labelling

Retail (warehouse logistics and back-of-store applications and healthcare (specimen labelling and pharmacy labelling).

Ntombi Gama Cell: +27(0)72 864 9674email: [email protected]

Design Features

Interroll RollerDrive EC310

The Interroll RollerDrive is a self-contained 24 VDC brushless motor drive for a wide range of application within conveyor technology. With its ZoneControl and DriveControl fam-ily of specialised interfaces, smooth integration into applications becomes very easy.

The basic idea behind RollerDrive is the decentralisation and modularisation of zero-pressure-accumulation conveyors.

Conventional conveyors are usually driven by 400 V gear motors.

These motors drive long flat belts which

basical ly run

The DriveControl 20

24/7 no matter how many boxes actually have to be conveyed. The individual conveyor zone is switched on and off by pneu-matic or electric actuators.

Conveyors driven by Roll-erDrives are decentralised, there is no central motor station anymore. The drives are located in every conveyor zone. This al-lows the controls to switch them on and off on demand and individually from each other. In the whole conveyor there is only motion if goods need to be conveyed. With typical throughput rates of 600 to 1400 boxes per hour and even higher, there is a huge po-tential of saving energy, reducing noise emission and reducing wear and tear on the equipment. On average, about 30% of energy can be saved compared


http://www.apexstrip.co.za




Worthy Com

This in an international competition so the stakes are high as the South African regional guys showed their mettle. Six local teams were invited to compete at the Southern Africa Regional Top Team competition held in Johannesburg on 16 February 2013.

The winners will be competing at the semi-finals in May 2013 in Sao Paulo, Brazil. From there, only two teams will progress to the ultimate Scania Top Team final in Sweden to compete for the Scania World Champion Team title.

According to Steen Gram, After Sales Director of Scania SA,”The aim of the competition is to measure how ac-curately the teams can analyse problems in the workshop

“Supply Chain Today” enjoyed attending a media event with a difference recently. We were invited to see Scania mechanics at work. A strict competition, set to sort ‘the men from the boys’ at Scania, ensures that their ‘guys’ are on the ball when it comes to looking after customers’ vehicles.

using all the available tools and testing equipment in the short period of just 20 minutes.

“It is important that our teams offer a professional service level to our clients, by analysing the problems on our clients’ vehicles accurately the first time. A quick and complete service is offered to our customers in our workshops, en-hancing the Premier Brand of Scania,” Steen emphasises.

The worldwide aim of the competition is to test the knowl-edge, efficiency and the teamwork ability of the competitors.

After a gruelling day of analysing technical and electronic problems on two Scania trucks and a Scania Bus, at the

www.scania.co.za


The Winners were: Welwitschias (Namibia)

Team High Range (Rosslyn)

Rosslyn Boys (Rosslyn)

Harare Eagles (Zimbabwe)

Cheetahs (Bloemfontein)

Bulawayo Five (Zimbabwe)

Scania Parts Delivery Centre in Aeroton

petitors

www.scania.co.za

Gram has pledged to make additional resources available to the Welwitschias to prepare them for the semi-finals.

Scania started the competition in 1994 with just one team. “This year we have over 8 000 people from 60 countries competing for the World Championship title. The result is that both local and global customers are assured of top-notch skills and service from the Scania team.”

Scania Delivery Centre in Aeroton, the top team was an-nounced at the banquet held later that evening.

After much anticipation, the top team who will go on to compete in Brazil was announced by celebrity entertainer, Amore Vittone and Scania’s Corporate Relations Manager, Gideon de Swardt.

The winning team was Welwitschias of Namibia. Apart from the sponsored trip to Brazil, each team member received a trophy and a cheque for R7 500. The team comprised of Toivo Tangeni Shiimi, Lohmeier Angula Shipiki, Lipumbu Junias Shiningayamwe and Josua Gawanab.

Second place went to Team High Range who each received a cheque for R5 000. Third place went to Rosslyn Boys with Harare Eagles coming in fourth, the Cheetahs in fifth and the Bulawayo Five in sixth place.

The ‘cherry on top’ for the winning team is that Steen

Bulawayo Five receiving the best statement prize from Amore Vittone

Team members identifying the pre-planted problem on one of the Scania Trucks

A truck ready for the competition inspection

http://www.scania.co.za


www.ils.co.za


TRUCKING

Top Truck ExporterZambia and Zimbabwe.

“We believe our strength lies in the fact that we are able to offer southern African fleets the sup-port they need wherever they are in the region. In addition, we are focussed on balancing the cost involved in operating a fleet, with the products and service efficiency we offer,” says Jacques.

Marginal growth in 2013Looking at the year-on-year performance of total truck market, sales increased slightly by 3.9% to 27 747 units.

“Even though the market finished 2012 in the black, it was certainly a year filled with many challenges that placed a damper on domestic truck sales,” Jacques elaborates. “Macroeconomic factors like the ongoing Eurozone debt crisis, lower business confidence levels (at 94.1), as well as widespread labour unrest throughout the year, saw truck sales fall around four hundred units short of industry forecasts made at the beginning of 2012.

When compared with 2011, sales in the Medium Commercial Vehicle sector increased by 6% to 9 816 units, while the Heavy Commercial Vehicle sector grew by 5.1% to 4 945 units. The Extra Heavy Commercial Vehicle sector retailed 11 894 units, an increase of 1.2% compared with 2011.

UD Trucks Southern Africa saw a slight drop in sales to a total of 2 992 units, mainly due to the run in and run out campaign for the new Quon EHCV range launched in March 2012.

According to Jacques, total truck sales are ex-pected to continue to grow in 2013, albeit at a low rate of around 3.78%**, to 28 114 units.

“We expect the market to be down during the first six months of the year, with a recovery forecast for the latter half of 2013 due to the delayed positive effect of the re-election of President Obama in the USA and an increased local understanding of the Eurozone debt crisis,” Jacques adds. “By July, business confidence should settle down once again, if the various countrywide labour disputes are effectively addressed.”

All segments are expected to grow during 2013, with MCVs forecasted to retail around 10 100 units, a 7.8% growth on 2012’s results, HCV by 6.1% to 5 250 units, EHCV by a slight 1.2% to 11 614 units, and Bus sales by 5.3% to 1 150 units. (**AMH excluded in this forecast as they do not report segment details.)

Tel: (012) 564-9500, Fax: (012) 564-9532,Email: [email protected], www.udtrucks.co.za

UD Trucks Southern Africa was once again the country’s top truck exporter, claiming 23% of the market share with a total

of 245 units exported into Africa during 2012. Last year, total sales in the export sector grew by a significant 32.9% to

1 065 units when compared with 2011.

Jacques Carelse

We are focussed on balancing the cost involved in operating a fleet

T his is according to the latest combined results* released by the National Asso-ciation of Automobile Manufacturers of South Africa (Naamsa), Associated Motor

Holdings (AMH) and Amalgamated Automobile Distributors (AAD). *(Mercedes-Benz South Africa only reported aggregated sales data but Naamsa estimates based on historical trends and forecasting, are included here.)

“We are very pleased with the growth in the export market during the past year, as it is evidence of the great potential still lingering in the southern African truck market,” says Jacques Carelse, managing director of UD Trucks Southern Africa. “It is by now well-known that many of Africa’s economies are consistently growing faster than those of almost any other region in the world, and with that comes aspects like increased in-frastructural development which subsequently leads to a greater need for trucks.”

Since taking on increased responsibilities for the region, UD Trucks Southern Africa has expanded its footprint to now include more than 60 deal-ers in the southern African region, including Botswana, Burundi, Democratic Republic of Congo, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, Swaziland, Tanzania, Uganda,


http://www.udtrucks.co.za


Product shown in photograph is for illustration purposes only, and is subject to stock availability.

MSS

UD

MC

07

UD Trucks Maintenance ContractsWith a UD Trucks Southern Africa maintenance contract, you are sorted. From the day of purchase and for the duration of the maintenance contract, we will be there to support you every step of the way.

A UD Trucks’ maintenance contract ensures that your truck’s service requirements will be professionally managed, and that it will only be serviced by highly-trained technicians at fi xed monthly costs. This means maximum uptime, improved reliability and ultimately increased profi tability. Now isn’t that what we all want?

To fi nd out about a maintenance contract option that suits your business, contact your nearest UD Trucks dealership or visit www.udtrucks.co.za

Customer Care and 24 Hour Roadside Assist 0800 008 800

http://www.udtrucks.co.za


Forsyth Black, senior vice-president for Africa of Menzies Aviation, says the deserved bad rap that the country’s airports received in the past has all but disappeared as a result

of the breaking of monopolies and the introduc-tion of more competition some years back. This is not only good for the aviation industry, but also for South Africa’s image abroad.

“Pilferage cases, which used to be seen as the norm rather than the exception, have become rare. And each one is investigated fully. In the majority of cases, arrests are made,” he adds.

Poor disciplineMenzies OR Tambo is the first South African operation to be awarded the IATA ISAGO qual-ity accreditation, after passing an extensive and very stringent audit by IATA (International Air Transport Association). Forsyth says that 2008, the year in which Menzies was granted an op-erating licence, saw one of the biggest service switchovers ever in the airport industry.

“In March 2008, we took on 45 000 aircraft turnarounds (annualised) and 70 000 aircraft

cleans in one go. We inherited facilities and work practices from previous opera-tors which were poor and underinvested.

“At the time, South African airports were notori-ous for baggage theft, baggage mishandling, poor on-time performance, poor safety and security and poor customer service. Some of this was as a result of outdated infrastructure or overcapacity, which was solved with ACSA’s 2010 World Cup building programme. However much of it was down to the poor management and discipline of previous licensees.”

Menzies Aviation immediately set about im-proving the infrastructure necessary to bring service delivery up to world-class standards.

In the first year more than R200 million worth of specialist ground-handling equipment was imported, including a full set of A380 equip-ment, equipment for handling heavy freighter aircraft, and 15 air conditioned, low-floor pas-senger buses. It also proceeded to purchase a cargo company, handling 40 000 tonnes of airfreight in the first year

In addition, new procedures have seen on-time performance (which includes check-in, aircraft operations and aircraft cleaning services) remain steady above 99% at the eight airports that Menzies operates country-wide. It also moved its Africa regional office from London to South Africa, from where all the Africa, Middle East and South American business is run.

Complete mindshift“In the years since 2008, we have been able to engineer a complete mindset shift towards a

A Turn for the Better It has taken some time, but the reputation of South African airports is on the mend following years of damage inflicted as a result of baggage theft and unprofessional ground services.

AIRPORTS

In the first year more than R200 million worth of specialist ground-handling equipment was imported

www.menziesaviation.com


zero-tolerance approach to safety, security, quality and discipline. Incidences of baggage mishandling on our watch have come down substantially, while theft has become a rare occurrence.”

“We have been able to achieve the most secure and efficient cargo operations in South Africa,

following a comprehensive inter-nal audit programme to monitor and address quality issues. A significant investment into the improvement of staff facilities, operational facilities, opera-tions software in our cargo and ground handling businesses, our warehouses and offices, have borne fruit.”

Permanent staffForsyth remarks that the changed reputation of service at South African airports can be ascribed to the heavy focus on infrastructure investment and staff develop-ment. “More than 90% of our employees are permanent and

staff turnover has come down tremendously from the previous situation where handlers often used labour brokers and indulged in poor employment practices. A significant amount of knowledge and skills transfer to our South African staff (who makes up 99% of our workforce) is constantly achieved, and all members of staff are able to up-skill into better paid jobs.”

Menzies Aviation, Forsyth Black, Tel: (021) 408-8210 ,www.menziesaviation.com

AIRPORTS

Able to achieve the most secure and efficient cargo operations in South Africa

http://www.menziesaviation.com

www.zetes.co.za


INDUSTRIAL HUB

S asol ChemCity has aligned and integrated with the Metsimaholo and Fezile Dabi Mu-nicipalities’ Integrated Development Plans which aim to stimulate the local economy

through sustainable job creation opportunities and attracting investment into the area. The multi-million rand site will ensure the occupants receive the benefits of a conventional industrial park with an additional benefit of being environ-mentally friendly.

Business incubatorOne of the primary attributes, which sets the park apart, is its ability to minimise its carbon footprint with a long-term strategy to implement carbon reduction projects. Mechanisms are in place for entrepreneurs to utilise alternate build-ing technologies, solar geysers, solar panels and other eco friendly tools. By bringing revolution-ary thinking to the conventional buzz around industrial parks, the project hopes to promote a green building philosophy in other regions, in time to come.

Sasol ChemCity is also in discussion with various partner organisations to co-fund the establish-ment of a mixed-use business incubator. The incubator will provide a wide range of business

development support services, shared resources and infrastructure to support the establishment of new enterprises, and fast-track the growth of existing small enterprises. One of its main roles will be to facilitate business linkages between existing large companies and incubates, as well as host various training and capacity building programmes.

Tax holidayPhase one of the site has just over 100 stands available for sale, and together with the proposed business incubator, will be able to cater for the business needs of hundreds of businesses. Oc-cupants will also benefit from the location, as the park is in close proximity to other large in-dustries, has access to locally skilled labour force and existing road infrastructure to export/import hubs. But the cherry on top will be the 10 year rates and tax holiday until 31 December 2018 which is in place for all occupants.

Sasol ChemCity managing director, Bridgitte Back-man, says the site is an important step towards a greener and more effective business practice, for both the entrepreneurial and environmental community.

Sasol, Jacqui O’Sullivan, Tel: (011) 441-3202, Email: [email protected] www.sasol.com

Eco Industrial Park

Sasol’s enterprise development vehicle, Sasol ChemCity, recently launched phase one of their Eco Industrial Park in Sasolburg. Situated in the industrial hub of the Free State, the site will provide a reliable supply of utilities, support services and infrastructure, to ensure an environment that is conducive to successful

production, logistics and marketing.

Cherry on top will be the 10 year rates and tax holiday until 31 December 2018 which is in place for all occupants


http://www.sasol.com


energyEnergy Swiss Confederation

Federal Department of Economic Affairs FDEA

State Secretariat for Economic Affairs SECO

www.unido.org


SUSTAINABILITY

Fair Trade Gains GroundThe fairtrade model is catching on in Africa with coffee and cocoa consumers slowly demanding more

transparency in supply chains.

W ith the sounds and aromas of the bustling Bean There Coffee Company roastery in the background, “Supply Chain Today” chats to Jonathan

Robinson, founder and owner of this fairtrade business.

The concept“I’ve always loved coffee and was introduced to it at an early age. I discovered the fairtrade concept and loved the fact that you could have a business doing what you loved, while making a positive impact in the lives of coffee producers,”

says Jonathan. Eventually the Johannesburg Bean There roastery was born, as a retail roastery and coffee shop. Six years on, the company has just opened a roastery in Cape Town, is selling coffee through select niche retailers and going strong.

“We took the fairtrade model one step further. I source all the coffees myself, travelling to find coffee-producing communities that we can have direct relationships with,” he explains. ‘Fairtrade’ refers to farmers being paid a fair price for their goods and the company subscribing to the Fairtrade label, therefore undergoing stringent auditing and tracking of the goods to the original producers.

Bean There also works with an independent organisation to increase cooperative farmers’

Loved the fact that you could have a business doing what you loved, while making a positive impact

www.beanthere.co.za


yields through training. Producing only single origin African coffee, it sources from cooperatives in Ethiopia, Tanzania, Kenya, Rwanda and Burundi. However, as rewarding as the concept is, it doesn’t come cheap; the Fairtrade label, cost of certification and sourcing the coffee directly all adds up.

From farm to cupMany of the cooperatives truck the green beans from their farms to the ports, Djibouti for Ethiopian coffee, Mombasa in Kenya, or Dar Es Salaam in Tanzania. From there it’s handled by a third-party Swiss logistics company, a ‘green bean broker,’ that works with local exporters. “We believe in sticking to your core competencies. As such, we use the best people to get our coffee out as fast and reliably as possible,” adds Jonathan.

He explains that coffee leaving the continent is mostly headed toward Europe or North America

and so its general movement is to the ports. Shipping is cost effective and, packed in 40ft containers, the beans generally take about three weeks to reach Durban, depending on the vessel.

“Generally, getting the beans through customs isn’t a problem,” he remarks. Bean There contracts a company called Seven Oaks to handle its local logistics. They handle clearance through Durban port customs, transport them to Cape Town and Johannesburg and store them in green bean warehouses, along with the beans of other local roasters.

“It’s a very transparent process – I know exactly how many cents everyone along the chain is adding. We want transparency so we can ensure that the farmers get the most out of it,” explains Jonathan.

Better taste“Green coffee beans can absorb odours and aromas from other products, so it has to be stored carefully, preferably on its own. It’s also important that the beans are dry, but still have

SUSTAINABILITY

We want transparency so we can ensure that the farmers get the most out of it

www.beanthere.co.za

www.airlinkcargo.co.za


about 13% moisture content and are stored in a reasonably cool warehouse. It seems to store well in Johannesburg for some unknown reason and often when samples arrive here and settle at altitude they taste better,” he reveals.

The closer procurement is to harvest time, the better, as the beans lose moisture over time. “Roasting it within a year is fine but if you can do it in six months that’s better. The problem is that generally, the harvest season is once a year, so you might only get one crop and will be using it until the next is available. So, we try to stagger our shipments to catch the best crops just after the beginning and just before the end of the season and get two shipments,” explains Jonathan.

Perception changeThe company has experienced exponential growth since its establishment, which is now evening out. Bean There aims to consolidate what it has and grow its wholesale business. “Naysayers said, ‘You’ll never make a business from selling single origin African coffee - South Africans won’t drink it.’ But that’s changing – people are getting more excited about it,” he smiles.

We ask if fair trade is growing in SA. “It definitely is,” he answers. “When we started no one knew what it was, or confused it with freetrade – it was a constant uphill battle. Since then I’ve definitely seen a change and we’re especially noticing it now because competition between us and other so-called fair trade competitors is growing. However, this is ultimately good for the farmers.

“At the moment, we’re still the only roaster of Fairtrade certified coffee in South Africa, but that won’t be for long,” he concludes.

Jonathan Robinson, Tel: 087 310-3100 Email: [email protected], www.beanthere.co.za

SUSTAINABILITY


http://www.beanthere.co.za


scania

In 1881 a small Swedish company began making bicycles.

Over a century later, Scania is one of the oldest and largest suppliers of transport solutions in the world, with a million vehicles in over a hundred countries.

Our rich heritage is still reflected in our logo today.

www.scania.co.za


T he recent economic recession had at least one positive effect: It forced companies to take an intense look at their supply chains, question some of their assumptions, and

root out major inefficiencies. “Supply Chain Today” speaks to Masood Hassan and Jonathan Cawood from PwC, about what the changes mean and how to keep ahead of the herd. PwC helps organisations and individuals create the value they’re looking for. It is a network of firms in 158 countries with more than 180 000 people who are committed to delivering quality in assurance, tax and advisory services.

But southern Africa is differentAccording to Jonathan, the southern Africa region is a special case and has its own challenges. “It has weak logistics and distribution capabilities, sustainable utilities are a major challenge and the lack of continuity of supply create major disruptions in the ability to deliver on customer expectations.

“South Africa’s current role in the supply chain framework must move from a supplier of oil-based products (natural gas, petroleum), minerals (diamonds, gold), aluminium and metals, and agriculture products including cotton, textile fur-nishings, agricultural equipment to a supplier of raw materials, provider of supply chain services, and consumer of end-products. This will create

STRATEGIC ELEMENTS

Real Value and Competitive Advantage in SA

When times change, paradigms from the past frequently become obsolete, ineffective, or marginally correct as new

paradigms, architectures, operations, and metrics shift thinking and operational practices. In today’s challenging business environment, continuing to do “what has always worked in the past” can have catastrophic results. Just

because it worked in the past does not guarantee it will work tomorrow.

Masood Hassan

Jonathan CawoodThe failure to give the term “supply chain” a broad enough definition can cause a company to adopt a short-sighted approach to its operations

www.pwc.co.za


a sustainable market where people have higher purchasing power and operation flows within and outside the region.

“Expansion into emerging markets and growth is being seen by South African companies as a real opportunity as is cost management and partner-ship are essential to the use of the supply chain as a competitive advantage,” Jonathan explains.

But it’s not just about logistics and distribution. The supply chain consists of a broad network of partners who interact at every level of their organisations. The failure to give the term “sup-ply chain” a broad enough definition can cause a company to adopt a short-sighted approach to its operations. The supply chain is a network of companies that comprises suppliers, their sup-pliers, customers and their customers.

Many CEOs seeing supply chain as a high priorityIn the recent PwC 15th Annual Global CEO Survey

(2011), 66% of the CEO’s surveyed are expecting to introduce cost reduction initiatives, more than 60% of operations executives named supply chain assurance and flexible supply chain architectures as top priorities. CEO’s are asking more from their supply chains than ever before and are extremely concerned about demand volatility and say that uncertain growth insignificantly influences their strategy.

“Within Africa itself, countries vary widely in their supply chain capabilities; however it is clear that regardless of the business you are in, there are five key core strategic and distinct character-istics that define the supply chain, its maturity and performance. Companies in South Africa who can effectively align their supply chain operations with their

overall business strategy can create substantial competitive advantage – improving both the top and bottom line,” says Masood Hassan.

Don't wait for change to be forced on youBoth Jonathan and Masood are eager to explain that leading companies don’t wait for something to force attention to the supply chain.

“They stay ahead of their competition on an ongo-ing basis. They constantly look for ways to add value and push the boundaries of performance,” the two tell “Supply Chain Today” almost in per-fect unison. “They know that today’s competitive edge is tomorrow’s price of entry. They innovate for improvement—not for the sake of being in-novative,” adds Masood.

A good supply chain is an effective enabler of an organisation’s strategic imperatives, ie, the parameters the organisation needs to have to compete effectively. This idea isn’t new.

“But the truth is many executives have a hard time explaining exactly what supply chain man-agement is, or how they are using it to advance their organisation’s competitive position. Few

STRATEGIC ELEMENTS

CEO’s are asking more from their supply chains than ever before

Five Core Characteristics of Strategic Supply Chain Management

1) View your supply chain as a strategic asset.When your supply chain strategy is integrated with your product and marketing strategies, you can expect to generate additional revenues during the product lifecycle, deliver superior customer response, and operate from a lower cost base than competitors.

Many senior officers at leading companies already view the supply chain as a strategic asset, but for numer-ous organisations this still remains a great obstacle. How do you set the agenda required to reconfigure

supply chains for competitive advantage?

2) Develop an end-to-end process architecture.Excellent supply chains leverage a tailored set of processes that are derived from the business strategy and are adapted as the strategy evolves? How to develop simple and robust supply chain processes and the supporting infrastructure that can rapidly be adapted as business strategy evolves. The most important step organisations can take is to decrease supply chain complexity which is the single greatest cause of poor return on investment in supply chain management.

3) Design your organisation for performance. An effective supply chain organisation must have the skills

www.pwc.co.za


senior “non-operations” executives have extensive experience managing the supply chain and don’t understand its importance as a strategic enabler. At the same time, numerous business publications and industry experts tout the need to minimise costs, increase customer responsiveness, and maxi-mise asset utilisation—simultaneously— simply through the leverage of known “best practices” in supply chain management. The problem, of course, is that if these practices are offered in a vacuum, they aren’t designed to tie a specific company’s competitive strategies to its supply chain processes, infrastructure, and practices,” explains Jonathan.

Front and centreMasood jumps in to explain further, “Interestingly, CEOs are frequently involved in decisions that fundamentally alter the structure of their com-pany’s supply chain - decisions about whether to partner with an OEM, shift production to a contract manufacturing partner, or seek a relationship with an ODM. But the CEO’s role all too often ends there: in his or her view, the implementation of those decisions is a job for the operations person. Strategic Supply Chain management explores how to make the supply chain front and centre as a company’s strategy is developed.

Those that have understood this have developed ‘operational’ strategies that change the game and create strategic advantage in the market place. PwC believes that Supply Chain Operations will play a significant part in business development in South Africa.

Although many view their supply chain as unique, in essence PwC believes that there is a common set of characteristics that exist in all Supply Chain Operations. The five core characteristics can help even a “non-operations” person design a highly effective supply chain. They also provide a means for supply chain practitioners to communicate their ideas and opinions in considering how the answers to the following questions impact sup-ply chain design.

Impetus for changeLeading companies, say Jonathan and Masood, don’t wait for a problem, specific event, or an emerging trend to trigger a decision to make major changes to their supply chain operation. They proactively and constantly tune their sup-ply chain to set themselves apart from their competition. They understand the implications business strategy has on the supply chain and actively seek to understand their organisation’s current maturity within each of the five core characteristics.

An enduring competitive advantage in any mar-ket, domestic or global, comes not from assets, which competitors can replicate or erode, but from a clear strategic direction and differentiated core capabilities. What is certain is that rapid growth will require lower-cost business models and capabilities for the future.

“Now is the time to act. South African companies should focus on:

finding end-to-end supply chain opportunities, as opposed to just logistics;

continuing to develop supply chain capabilities across functions and integrating those capa-bilities with those of suppliers and customers;

developing supply chain talent by investing in training;

preparing for global competition by finding market niches that are suitable for export, while optimising the cost-to-serve of the do-mestic customer base within Africa.”

Masood Hassan, Jonathan Cawood, PwC, Tel: (011) 797-4000, www.pwc.co.za

The truth is many executives have a hard time explaining exactly what supply chain management is

required to develop and manage a complex and rapidly changing supply chain. You also need to understand how the organisation will be built—will skills be acquired or developed? How much should you outsource? These are a few of the critical questions that must be answered.

Success in supply chain management depends on put-ting the people in place who have the next generation of skills required by supply chain management. The business management focus required of today’s supply chain managers points the way towards implementing a high performance organisation.

4) Build the right collaborative model. To successfully leverage the skills of outside partners, you

need a solid management framework, a clear understanding of the commitments being made on both sides, and a realistic assessment of the underlying economic assumptions.

Supply chain collaboration - where the skills and talents of outside partners are leveraged to create benefits for all involved - has in many cases failed to deliver on its promise.

5) Use metrics to drive business success. The right set of metrics can provide information about the health of each core supply chain process and identify prob-lem areas on which to focus. Effectively use measurement as a management tool by describing how to choose metrics that truly enable your business strategy and drive desired behaviours.

STRATEGIC ELEMENTS

http://www.pwc.co.za


6 Questions you Need to Ask of your ERP Solution

replace menus to provide a view of this function-ality by role and function, providing a ‘picture’ of the business process flow. “This not only shows the immediate task that is being performed, but also provides context up and down the process.”

Context, says Immo, is important as it provides

ERP that Teaches People How to Use it

Probably the biggest difficulty that companies face in achieving full value from their investments in ERP systems has nothing to do with the capabilities of the technology itself. Rather, the limitation lies in the propensity and ability of the people using the technology to understand and take advantage of what the

system has to offer. With the advent of a concept called Visual Processes, ERP vendor Sage is ushering in an era where the system itself shows users what it can do and walks them through how to do it.

Nobody likes to perform what can be perceived as meaningless tasks

SOFTWARE

1. Functionality, not complexity?We’re looking for less complexity, but not at the expense of functionality. Does your prospective system deliver deep and broad first-class func-tionality, while remaining simple to implement and to use? Does it deliver all the requirements but all within a simple, integrated design?

2. Integrated or interfaced?A sure sign that the system is getting old is when all kinds of extras are bolted on. Software integration no longer means applications that work together. They should also exchange real-time information, share a common database and user interface and, more importantly, they should evolve together. Many ERP systems hide functional gaps by in a ‘modular design’, which

often requires custom interfaces and complex maintenance. Users should look for fully-integrated functionality for accounting and financial man-agement, purchasing, inventory, sales, customer relationship management and manufacturing.

3. To scale or add-ons?Evolution means the ability for, the ERP system to grow with the business, without requiring costly upgrades or module add-ons. Modern ERP solu-tions offer an integrated design which provides all the functions a company needs now and into the future with no additional licence charges. The system should simply activate the functions as needed, with it all there from the beginning. A flexible system can be easily configured to fit organisational changes as the business grows to

It’s a revolutionary development, says Immo Böhm, MD of Sage solution provider Afresh Consult – but not an unprecedented one. “Technology today has to be easy to use if it

is any good. That’s as true for an ERP system as it is for a smartphone handset. If it isn’t user-friendly, there’s a design problem.”

Most complexIt is this level of user friendliness which he says Visual Processes brings to arguably one of the most complex software systems likely to be found in the business environment. “You cannot oversimplify ERP; it is by necessity a complex system. However, what Visual Processes does is to provide insight, context and demonstration of how and why certain processes and actions are taken with the system.”

Explaining how it works, Immo says the func-tionality of ERP systems is often contained deep within menus and sub-menus. Visual Processes

Immo Böhm

www.afreshconsult.com


the oft-absent ‘why’ for people performing tasks. “Nobody likes to perform what can be perceived as meaningless tasks; all of the tasks performed in an ERP environment have a specific reason, but this reason is often not obvious. Visual Pro-cesses directly addresses that.”

Answers questionsImmo adds that Visual Processes allow the user to click on any step in the process to launch the related application - such as placing a purchase order, entering a receipt, processing a sales order. “The system shows the user what needs to be done, how it needs to be done and why.”

More than that, he says the requirement for pro-cess documentation falls away. “Traditionally, it is necessary to maintain records and descriptions of business processes. And while recognised as essential, documentation is broadly regarded as painful and is often neglected. Visual Processes builds the necessary instruction and detail into the system.”

Something else that Visual Processes does ef-fectively, Immo continues, is role-switching. “If a user goes on leave or is unavailable, it is straightforward to put another person into their role without having to create a new user, provi-sion him or her and provide access. Because the system shows the relief worker what they need to do, it becomes a simple process of moving a user into the role for the short term.”

Some intelligenceWith a system that requires reduced training – in particular, practically eliminating the need for ‘refresher ’ courses to ensure that staff take advantage of the full functionality of the system – Immo moves on to another advantage offered by Visual Processes. “The system allows for a level of flexibility to customise views depending

thousands of users.

4. Web-native or just web-enabled?Web-native means the system should be acces-sible the same way in both client/server and Web modes. Some ERP software systems may offer a customised web connection to dedicated functions, but few provide the ability to operate locally or through the web in the exact same fashion. Think of the advantage when expanding the business over multiple sites, or as the user develops relationships with premier suppliers, partners or customers…

5. Multi-country by design?We’re working in a global village now. Does the system natively support a multitude of languages,

SOFTWARE

allowing users to access the system in their own language wherever they are but with country-specific parameters, such as legal and market requirements?

6. Cost of ownership Is the system designed for rapid implementation and customisation, while still providing advanced features as a standard? And what is the cost of maintaining it, after all these years?

When the answers to these questions are consid-ered honestly and openly, the facts may start to emerge: it could be time to consider retiring the hard-working, but now over-the-hill ERP system of the 1990s. And replace it with something able to provide sharper answers in the more connected, always-on world of business today.

on the role of the user. It also allows for pro-cesses to be adjusted and customised to suit the particular way of doing things in any one organisation,” he explains.

This directly addresses the commonly-encountered issue of a mismatch between the ERP system and the business processes of specific companies, which can often differ.

At present, Visual Processes is available in Sage ERP X3, but Immo believes this is a step forward to the future of enterprise software. “Systems which are easier to use and which have some intelligence in terms of showing the user what, how and why they need to perform certain tasks will help companies to get the full value from their software, just like a smartphone which shows you how to use it does. It’s just a better way of using a complex system effectively.”

Afresh Consult, Immo Böhm, Tel: +264 81 124-7515, Email: [email protected]

It’s just a better way of using a complex system effectively



www.acrow.co.za


MARKET FORUM

Concor Civils, a Murray & Roberts Construction company, is making rapid progress on a multi-million Rand contract awarded by Transnet Capital Projects at its City Deep Container Terminal. The terminal is currently being upgraded as part of Transnet’s rolling capital investment programme.

The container terminal at City Deep is known to be the largest "dry port" in the world and the City Deep area has been declared an IDZ (Industrial Development Zone) by the Gauteng government.

The contract is scheduled for comple-tion in May 2014 and includes the removal of 36 500 cubic metres of

City Deep Container Terminal

existing concrete paving, 110 000 cubic metres of earthworks, the instal-lation of a new drainage system and all service ducting and manholes for lighting, fire mains, CCTV equipment, 360 tonnes of mesh reinforcing and the placing of approximately 146 000 square metres of concrete paving.

Although the client originally made provision for a 27 month project dura-tion, Concor ’s existing resources will allow the company to complete it in 21 months.

Murray & Roberts Construction, Stephanie Swanepoel, Tel : (011) 590-5833Email: [email protected]

The contract includes the removal of 36 500 cubic metres of existing concrete paving

Concor Civils is making rapid progress on a multi-million Rand contract awarded by Transnet Capital Projects for the construction of new concrete paving, civil services and electrical lighting at its City Deep Container Terminal

At this year’s Sapics conference, Tom Bonkenburg will take an in-depth look at developments in robotics and the drivers that will affect the extent to which local and international sup-ply chains will adopt robotic technologies. Tom, director of European operations for St. Onge Company Inc, an international supply chain engineering and consulting firm, will be using a wide range of examples to illustrate his points.

In the past century, he says, labour costs have increased fivefold, fuel tenfold and land 40 times. These increases should have driven greater use of mechanised solutions, including robots, but in fact around 80% of the supply chain remains manual. “Automated and mechanised solutions have, until fairly recently, been expensive and inflexible—and people are very good at doing a range of complex tasks. We’ve also be-come good at helping people to enhance their skills,” Tom observes. “However, robotic technology is improving by leaps and bounds.”

This improvement in technol-ogy, coupled with business’s constant need to balance land, equipment and space expenses to achieve the optimal profit mix, could change the status quo. For example, sophisticated hybrid guided vehicles are vi-able in today’s vast warehouse and distribution centres, as are robotic pickers.

Aptly entitled Design for change, the Sapics conference will take place on 2-4 June 2013 at Sun City. SAPICS, Tom Bonkenburg, Tel: (011) 023-6707,www.sapics.org

Robotics and the Supply Chain?


http://www.sapics.org


www.nkosishaven.org


MARKET FORUM

Barloworld Logistics has concluded a transaction which results in the merger of its Dedicated Transport Ser-vices division (DTS) with the Manline group, a diversified logistics provider that specialises in transport and other logistics solutions.

The merged business, called Barlo-world Transport Solutions, becomes a 50.1% held subsidiary of Barloworld Logistics. The transaction involved the disposal of DTS together with a cash contribution, in exchange for shares in Manline. The Manline, Manline Energy and Timber24 brands will be retained within the Barloworld Transport Solu-tions group of companies.

Martin Laubscher, CEO of Barloworld

New Transport Powerhouse

Automotive and Logistics, says this transaction is a logical fit. “It aligns perfectly with our strategy to build a leading, integrated logistics business and gives Barloworld Logistics an ex-panded platform to grow its transport business across southern Africa.”

Combining the resources and expertise of the two entities allows Barloworld Logistics to provide new and existing clients with a complete basket of trans-port services, says Steve Ford, CEO of Barloworld Logistics. “We can now offer dedicated, general freight, cross-border, hazardous goods, timber and other specialised services across sub-Saharan Africa,” he confirms. “This is in line with our vision to deliver ‘smart’

supply chain solutions, supported by Manline’s impressive track record of service excellence and the power of the Barloworld offering, which includes international standards of governance and risk management.”

Barloworld Transport Solutions will be headed up by Neil Henderson, current CEO of Manline. Neil, who founded Manline in 1998 with five trucks and a single customer, has grown the busi-ness into one of the leading transport providers in southern Africa. “Our new, merged business employs over 1 800 people and has a fleet of 800 vehicles. Barloworld Logistics, Martin Laubscher, Tel: (011) 445-1600, www.barloworld-logistics.com

http://www.barloworld-logistics.com

www.universal-storage.co.za


Index to AdvertisersOn The Move

MARKET FORUM

David Buchanan, an all-round pro-fessional in freight forwarding and logistics has been appointed as National Sales Manager for Savino Del Bene. David, previously Strategic Accounts Manager, has been with

the company for five years.

He says the company will focus resources on the develop-ment and introduction of a strong platform to deliver a fully-integrated supply chain management service and more.

“Tailor-made logistics solutions have been designed to play a crucial role in supporting customer’s business deliverables.

They can expect high efficiencies and cost control facili-tated by Savino to translate into bottom line benefits and a competitive advantage in the marketplace.

Nedbank Corporate Property Finance has announced the con-clusion of a R53 mil-lion loan agreement with the developers of a 7 000 square metre agricultural parts distribution centre in Pomona in Gauteng.

According to Ken Reynolds, regional executive of Ned-bank Corporate Property Finance in Gauteng, the de-velopment is a significant one for both the property and agriculture sectors in South Africa as the sole tenant Agco South Africa (Pty) Ltd intends using this location in Gauteng to launch itself into South Africa and the rest of Africa.

“Agco SA Ltd is a subsidiary of the Agco Corporation, a NYSE-listed global manufacturer of agricultural equip-ment distributed across 140 countries worldwide. The group has specifically established Agco South Africa to secure a foothold in the SADC region and serve as a springboard for its operations to expand into sub-Saharan Africa,” explains Ken.

Agco has already signed an initial 10-year lease agreement on the property, which comprises 6 249m² of warehous-ing space, 405m² of offices, a 160m² showroom and 75m² for ablutions. The loan agreement also includes an allowance for an additional mezzanine level of 640m² and expansion space of 2 000m², both of which have been requested by the tenant.

“The convenient positioning of the new Agco parts distribution centre in Pomona, with its easy access to OR Tambo airport, makes this an ideal location from which the company will be able to give effect to its national and African expansion plans, which will

almost certainly deliver broader-scale benefits for a variety of South African industries and the country’s economy as a whole,” says Ken.

He points to Agco’s existing brand presence in Africa for the past 50 years as proof of its commitment to agriculture on the continent.

“The organisation has already set aside around US $100 million for investment into sub-Saharan Africa over the next 36 months and is planning two training centres in Zambia and South Africa.”

Nedbank Corporate Property Finance, Ken Reynolds, Tel: (011) 294-1649, Email: [email protected]

INVESTMENT INTO AFRICA

David Buchanan

Acrow 42

Airlink Cargo 34

APC Storage Solutions SA 14

Bartrans 12

CSIR - IEE 32

Eskom 20

Goscor 6. Outside Back Cover

ILS 26

Outside Front Cover

Linvar 13

Nampak Inside Front Cover

Sapics Inside Back Cover

Scania 24, 25, 36

SSI Schaefer 10

Zetes 30



Partner Associations:

design for changeSupply Chain Solutions for a Dynamic World

The economy is becoming increasingly globalised and, as a result, innovative supply chain management is central to commercial survival. Change in the way supply chains are managed, is both necessary and inevitable. Delegates at the 35th Annual SAPICS conference will be offered solutions to manage their supply chains more effectively. The Annual SAPICS Conference is designed to offer practical and relevant information by providing delegates with outstanding world-class educational presentations, the highly collaborative Africa Café, select meet the speaker sessions, real world case studies and interactive workshops.

Sponsors:

T: +27 (0)11 023 6701 | email: [email protected] | www.sapics.org.za

The Leading Event in Africa for Supply Chain Professionals

35th Annual Conference & Exhibition


http://www.sapics.org.za


LIFT TRUCKCOMPANY

www.goscorlifttrucks.co.za

Documents

Supply Chain Today Mar 2013