Logistics News October 2014
the independent voice of the
Supply Chain
industry
Announcing the 2014 LAA winners
ALSO:
([FHOOHQ&( VNLOOV YLWDO 6& EDODQFH LV SRVVLEOH ,PDJH UHEUDQGLQJ ,PSURYLQJ GLVWULEXWLRQ 0DVWHULQJ H WDLOLQJ GHOLYHU\ FKDOOHQJHV
October 2014
CONTENTS
3 LAA 2014
Celebrating world-class excellence This year’s Logistics Achiever Awards mark the 26th year of recognising and rewarding logistics and supply chain excellence in Southern Africa. That the entries have again proven to be of exceptionally high quality highlights the sustainability of the awards project to encourage local supply chain executives to meet world-class standards.
14
3
Celebrating 26 years of rewarding excellence
4
Platinum Award winners
6
Gold Award winners
7
Silver Award winners
8
Bronze Award winners
9
Enviro Award winners
10
Previous winners
11
Social round-up
The unspoken trade-off
Skills application
Efficiency and effectiveness don’t always play ball; however, the best supply chains balance both, as demonstrated in the critical West African Ebola crisis.
Logistics
12
14
EXCELLENCE: A MIX … of different saws
THE UNSPOKEN … trade-off
16/17
Distribution 16
DO ONLINE BUSINESSES FAIL ... on same-day delivery?
Distribution challenges
17
A BETTER DISTRIBUTION … blend for coffee
The distribution industry is a tough one with many challenges. The main challenge is to contain operating costs and identify ways to ‘fix’ supply chain problems and become more efficient. In contrast, the new trend of e-tailing has emerged, with some e-tailers driving sales by offering sameday turnaround between a customer ordering their products and delivery of the package.
Materials handling 18
Vehicles 20
18 COVER STORY Over the past 10 years Goscor Lift Truck Company has worked on the integration of all the activities of the business into a cohesive customer-centric service machine. Through its extensive footprint of branches and service centres GLTC offers state-of-theart equipment and solutions to the entire warehouse and general materials handling industry.
GLTC NEW HEAD OFFICE … symbol of success
IMPORTANT NEW MODEL … in Hino truck range
Training 23
IMPERIAL LOGISTICS ACADEMY … to boost supply chain skills
Regulars 19 32
NEWS INDUSTRY ASSOCIATIONS & EDITORIAL DIRECTORIES
Logistics Achiever Awards 2014
Celebrating 26 years of rewarding world-class excellence This year’s Logistics Achiever Awards mark the 26th year of recognising and rewarding logistics and supply chain excellence in Southern Africa. That the entries have again proven to be of exceptionally high quality highlights the sustainability of the awards project to encourage local supply chain executives to meet world-class standards.
WHAT DOES IT MEAN to future-proof supply chains? The LAA has shown the evolution and strides made each year in the field of logistics and supply chain management. In the 26 years of LAA, remarkable changes have been witnessed in our industry as it matures, evidenced by a growing understanding and acceptance of the role and huge importance that logistics and supply chain management plays in the economics of SA. It is also reflected in the well-being of our industries, businesses, as well as in the daily lives of our people. From the pure scope, size, sophistication and impact of the entries in this year’s LAA it can be seen that many of the emerging trends are continually enhancing what is being done and achieved. It is about adding value, of trust and relationships, creativity and innovation. We are witnessing an industry and a commercial world maturing to the reality of the new global environment. We are seeing logistics play an increasingly important role in the economics of SA, creating the ability of SA and its industries and its individual business enterprises to create competitive advantage and sustainability. Achievement implies someone took the trouble to invest time, energy and commitment to accomplish a goal or objective set for them by management or by themselves. The best way to prevent mediocrity is to continually raise the bar and strive to improve, increase, progress, advance and expand into new territories. The long and illustrious history of the competition could be regarded as testimony to a successful initiative but it is at
the same time important to realise how much industry has contributed to the continuous professional development. It is important to realise and recognise development over time and we celebrate these achievements.
The objectives of the Logistics Achiever Awards are: [V YLJVNUPZL WYVMLZZPVUHSPZT HUK L_JLSSLUJL PU the effective application of strategic, tactical and operational logistics and supply chain management principles, concepts and practices in Southern Africa [V LUJV\YHNL HSS JVTWHUPLZ HUK VYNHUPZH[PVUZ PU Southern Africa to review, evaluate and upgrade their current logistics and supply chain management practices [V JYLH[L H NYLH[LY H^HYLULZZ HUK \UKLYZ[HUKPUN of the value of effective logistics and supply chain management.
Logistics News extends thanks to this year’s sponsors – CHEP, Standard Bank, and the Improvon Group, which sponsors the Enviro Awards. Logistics News also thanks the supporting bodies and their representative panel of judges for their invaluable input, and for volunteering their personal time to the WYVQLJ[ 2FWREHU /RJLVWLFV 1HZV 3
Logistics Achiever Awards 2014
Platinum Lebone Litho / Paarl Media / UTi for distinction in logistics and supply chain management in integrating the printing, warehousing and distribution of workbooks to public schools. The Workbooks Project is a state funded Presidential and DBE initiative whereby 60-million workbooks per year are printed, warehoused and distributed to 25 700 public and ordinary schools, 67% of them rural, with a total time for print, pack and delivery of 90 days.
MTN / RTT Group for distinction in logistics and supply chain management in developing a real time end-toend visibility solution for the entire supply chain. By adopting a proactive management approach across the full supply chain, and by integrating information, coupled to the INsite solution software solution developed by RTT, it became possible to improve processes and provide a far more efficient level of customer service.
4
2FWREHU ‡ /RJLVWLFV 1HZV
t TLJMMT BQQMJDBUJPO
Excellence: a mix of sharpening saws and self-sharpening saws One great solo performance is a real achievement, but it takes a succession of great or greater performances by many to achieve supply chain excellence. By Doug Hunter, doug.hunter@mweb.co.za
IN A TYPICAL DAY there is always something new, surprising, you’ve not seen before; annoying because you didn’t anticipate it. To miss these learning opportunities means your eyes are closed and your experience stagnating. As the saying goes: “The day you stop learning is the day you die”. Companies today strive for excellence in everything they do. Government even tempts us through Skills Development Levy refunds to pay for SETA-recognised training courses for operators and staff. This is good but just a start as there are several stages to reach excellence development. Training and education: Everyone must understand how to perform their role and function. So we create standards of education in what they do, why they do it, performance expectations, and who/what are affected by it. Employees are armed to execute. The danger is everyone performs differently, remembers different aspects and much of what was taught is forgotten.
nature to all of us, shop floor or top floor – productivity and innovation. Business coaching: Coaching staff accelerates the practical application of education and training, and leads to more effective working, increased productivity and even encouraging the seeds of innovation. Productivity relates to continuous improvement with business coaching being effective at reinforcing basic skills in most jobs to get the best from best practices. Evidence of coaching success is Marin Cilic who recently became the US-Open tennis straight-sets victor over Roger Federer. His coach is Czech countryman Goran Ivanisevic, a tennis star from the 1990s. We all know Federer and may know Ivanisevic but many had never heard of Cilic. Despite some equipment innovations, they still play the same game or processes. In a match, Cilic would beat his coach every game, but Ivanisevic showed him how best to use basic skills to beat the champion.
Mentoring natural talent and lateral thinking: Natural talent and looking at how to do things differently is a spirit What Educate Coach Mentor not shared by all. It leads to step change and radical Learning Guided application of Advice on broader improvements, and innovation How + acquiring knowledge + practice business roles/skills in our processes and thinking knowledge => skill development => career development – not just improving the status Good Experienced Mature quo. Who teacher operations manager executive Top Formula One racing drivers don’t use coaches. In DĂŬŝŶŐ džĐĞůůĞŶĐĞ Ă ,Ăďŝƚ their early career they improve by watching and learning from the top driver in their team – Practical experience: Beyond aptitude and motivation, their mentor. But once at the top, driving is a different job, performance variation comes from timing and practical combining rapidly changing engineering understanding, experience of the theory, learning on the job. Take driving. radically different car design, and a requirement for You pass the test then hit the road an ‘expert’. No. It took risk. They must ‘discover’ the new best way round the me one drive to realise what I still had much to learn – track. And they rely on their whole support team having road sense, recognising traffic patterns, anticipating other innovators so the team stays at the top. Money helps but it driver actions, planning my route. It was much more than must be spent on the right activities. working the clutch or ‘mirror, signal, manoeuvre’. Some skills are never forgotten once learned or rather practised, For supply chain excellence one must coach skills but some although taught, if left un-practised too long, application, fostering a team results attitude. Technology must be learned again. and constant learning must be applied, plus having a few Once trained, many employees are happy doing the same inspired dreamers to drive innovation in customer-focused job well the same way for years. If these standards are and profitable service. yours then excellence is beyond your reach. Two further Then maybe a Logistics Achiever Award could be in dimensions need to be embraced, or become second `V\Y ZPNO[Z ¯
12
2FWREHU /RJLVWLFV 1HZV
JOEVTUSZ
Directory of supporting
industry associations CGCSA Consumer Goods Council of South Africa t XXX DHDTB DP [B CILTSA Chartered Institute of Logistics and Transport SA t XXX DJMUTB PSH [B CIPS Chartered Institute of Purchasing and Supply Southern Africa t XXX DJQT PSH TPVUIFSOBGSJDB CSCMP Council of Supply Chain Management Professionals SA Round Table t XXX DTDNQ PSH RFA Road Freight Association t XXX SGB DP [B SAAFF SA Association of Freight Forwarders t XXX TBBGG PSH [B SAEPA SA Express Parcel Association t XXX TBFQB PSH [B SAIIE Southern African Institute of Industrial Engineering t XXX TBJJF DP [B SAPICS The Association for Operations Management of Southern Africa t XXX TBQJDT PSH [B SASC SA Shippers Council
t XXX TBTIJQQFST PSH [B SCC Supply Chain Council t XXX TVQQMZ DIBJO PSH
32
2FWREHU ‡ /RJLVWLFV 1HZV
/RJLVWLFV 1HZV Celebrating 31 years as the independent voice of the Supply Chain industry
Publishing Editor: Dianne Holton ,KP[VYPHS HK]LY[PZPUN! Tel: 011-784-7697 Fax: 086-515-5247 info@logisticsnews.co.za P O Box 784621, Sandton 2146, South Africa www.logisticsnews.co.za www.supplychainonline.co.za +LW\[` ,KP[VY! Michael Brandt Consulting Editor: Gerard de Villiers (K]LY[PZPUN: Juanita le Roux Tel: 082-494-6592 juanita@logisticsnews.co.za Subscriptions: www.logisticsnews.co.za Design & DTP: Kerry Dimmer – Tel: 011-792-1930 9LWYV HUK 7YPU[PUN! Paradigm Print Tel: 011-683-1911 The publisher is not responsible for the opinions expressed by individuals. Š No part of the publication may be copied or reproduced by any mechanical or electronic means without the written permission of the publisher. 31st year of publication. ISSN 1025-0492
Logistics News October 2014
the independent voice of the
Supply Chain
industry
Announcing the 2014 LAA winners
ALSO:
([FHOOHQ&( VNLOOV YLWDO ‡ 6& EDODQFH LV SRVVLEOH ‡ ,PDJH UHEUDQGLQJ‡ ,PSURYLQJ GLVWULEXWLRQ‡ 0DVWHULQJ H WDLOLQJ GHOLYHU\ FKDOOHQJHV ‡