Logistics News September 2013

Logistics News September 2013

the independent voice of the

Supply Chain

industry

Warehousing and materials handling

ALSO:

• DC design • Printing and labelling • Demand management • Customer service • Retail planning • African consumerisation

JH B/E 10005382JB/

We know it takes a lot more than wheels and a chassis to keep things moving forward.

It takes a clear understanding of how your business operates. It takes expertly trained people who care about providing the best advice and the best service possible.

Hino prides itself on delivering cost-effectiveness and operational efficiency. It’s why every Hino is built for your business.

– SO NO MATTER WHAT YOUR BUSINESS, YOU CAN KEEP ON TRUCKING.

September 2013

CONTENTS

16

Demand management

Avoid warehouse strategies that cause losses Old habits can be hard to break, but when it comes to improving warehouse management operations, big rewards can be reaped if outdated practices and strategies are avoided and new ones are adopted that take advantage of the latest advances in mobile technology.

2 UNDERSTANDING DEMAND MANAGEMENT

… helps to dig deeper

Customer service 4

THE BASICS OF … true customer service

Retail 6

SUPPLY CHAIN STEPS TO ENSURE … merchandise plan execution

Workplace ethics

8 BUILDING A SOCIALLYRESPONSIBLE

… global supply chain

18

Consumerism

Successfully design and implement an automated DC

10 HEART OF DARKNESS: CHALLENGES

… in Africa’s consumerisation

Materials handling systems are complex and time consuming for companies, and quite often, the company has limited experience with these types of projects. This is especially true for start-ups or companies transitioning from a manual operating environment to a more automated environment.

Supply chain

20

MINDSET CHANGE NEEDED …for SA wine industry

Route scheduling 14

THE HOW OF GPS … navigation

Warehouse management 16

What to think about when thinking printing

AVOID WAREHOUSE STRATEGIES … that cause losses

Distribution centres

Distribution centres have a headspinning array of choices when it comes to printing and labelling systems. A number of factors must be considered before picking the right device for any operation.

24

13

18 SUCCESSFULLY DESIGN and IMPLEMENT

…an automated DC

Printing and labelling 20

WHAT TO THINK ABOUT …when thinking printing

Product 24

HUBTEX ON THE MOVE … in SA

COVER STORY Hubtex specialist lift trucks have made significant strides in the Southern African market in the short time they have been represented in the region by Goscor Lift Truck Company. The cover story shows how and why this has happened.

Regulars 22 27 35 36

BOOKMARK

NEWS

DIARY INDUSTRY ASSOCIATIONS & EDITORIAL DIRECTORIES

demand management

Understanding demand management helps to dig deeper Demand management has grown considerably in importance due to new ways to reach customers and new ways to analyse data about them. Intense competition for product companies and retailers and the squeeze on margins, challenge companies to become a lot better at planning.

By Ann Grackin

The web, mobile and big data accessibility have allowed us to directly better understand the elusive customer, rather than relying on inference or second-hand data.

Social Networking – Consumer engagement – directly communicating with customers, learning from them, motivating them and building their loyalty through social and mobile means – is critical, especially to brand holders and manufacturers who may not have direct reach to the consumer. Retailers also benefit, since they bear most of the burden of motivating customers to buy.

Crowd sourcing – Location-based services (LBS) is a growing field. GPS co-ordinates can help consumers to locate as well as be located. As a foundation, these co-ordinates aligned with consumer data can be used for demand shaping through crowd sourcing. Crowd sourcing is a concept to not only understand the ‘crowd,’ but also to create crowds or bring the crowds to you. Here the adjacent technology provider can partner with firms who provide location-based systems and social streaming and

2

September 2013 • Logistics News

blend them with the demand solution to create a world of interactive real-time processes with customers.

Mobile – Mobile is the platform of choice for a new generation of consumers and business people on the move.

This is direct engagement with the customer. We may have other information about the customer if they have signed up for a loyalty programme. The mobile platform is a rich source of data, but more importantly, it affords an opportunity for direct customer interaction. Promotions, locating, social networking and the promise of crowd sourcing for demand are all applications on the mobile platform. Mobile coupons and other options have high value for demand, not only to motivate customers, but to provide complete integration of the information chain.

Unlike paper or other media advertising, mobile couponing can be used to ensure promotions create the right kind of behaviour and partners are properly compensated for promotions.

Predictive demand analytics – Finding a more scientific

approach to understanding demand signals. Predictive demand analytics uses machine learning engines, other knowledge/AI and analytical approaches. Using history is a step forward for planners but, too often, history is driven by supply constraints. History tells us ‘this is what we had, so that is what we sold’. But it doesn’t tell what the customer wanted. So, the goal really is to understand demand streams, which are many and have various levels of accuracy. Intuition is good but can be enhanced with science.

Gamification – Launching a new product and want to know if consumers will like it? What features will they really want? What are they willing to pay for it? Engaging the consumer before a product launches or before buyers place risky bets on products can not only save companies from product obsolesce and markdowns, but can help them set the initial ticket price. Setting the right price initially can avoid markdowns and margin loss later.

Search and Big Data – Search and ye shall find, and be found. This is big business for marketing. Although the science behind tracking and offering ‘those who bought this also buy that’ or the new social version, ‘your friends like this’ has been around for a decade. Demand shaping is linking these specifically to forecasting but the implementation is still in its infancy.

High-performance servers – The use of memoryresident architecture is not new in supply chain. We have seen simulation systems since the early 1990s, but they really came into favour with the explosion of Advanced Planning & Scheduling software and inventory optimisation systems in the late 1990s. New analytics engines are on the market as appliances or accessible in the cloud.

Cloud platforms – Demand has gone to the cloud. Many players are providing hosted systems in the cloud for their customers. And some are providing multi-tenant solutions that are really useful for demand collaboration.

UI – Not to be underrated, the user interface (UI) is not just a screen or report design. It’s an effort to create a better module for users to deal with multiple data threads streaming and screaming at them, as well as the myriad of platforms they may use to access the data – whether mobile, tablet, web or desktop.

The evolution

That is all exciting stuff, but do a little homework before you play. It means ‘it is time to step up your game’ in the art and science of demand planning and forecasting.

Managing demand across the product lifecycle – Products behave differently in their early days than at a potential end of life. Modernisation of old brands has provided explosive growth in many product categories.

How can we manage that transition?

Promotional impact – What are the interactional impacts of multiple promotional programmes? Often companies look at ‘a promotion’ and try to finesse an uplift number.

But campaigns have a lot more complexity. What if a multiple promotional approach is used – mobile and TV vs social and TV? Or magazine coupon and web coupon vs newspaper? The old adage, ‘50 percent of my advertising works; I just don’t know which 50 percent’, can be

addressed to determine not only effective promotions, but the value of combining programmes. What is the value of one placement vs another? Insert vs back page? Upper right vs lower right? Many of these decisions are extremely costly.

And you want to know what is really going to work – you need to know what is really going to work.

Web analytics – This same discussion holds true on the web. What campaigns and web channels were most effective for you? Which drives the most traffic for you and your product?

Attribute-based forecasting – Attribute-matching technology looks at various product and demand/market characteristics. These traits can be features that can be used across different product families, colours, categories, or customer demographic information such as gender, age and geography. When examining attributes, products align in many ways. This approach becomes very useful if you are determining demand for features, add-ons and other attributes that traverse multiple products. These are incredibly important decisions. And tracking demand once a product is on the market to make changes up or down in your offering as soon as possible is essential.

Demand sensing – This is the domain of short-term demand streams. What is happening in the market now and how should forecasts, pricing, replenishment plans and shipments be adjusted to reflect the current multi-echelon distribution chain? Demand sensing/near-term forecasting allows firms to live with much lower levels of safety stock.

Demand segmentation – This looks at products based on their sales performance: fast movers vs slow, profit, or channels, for example. This approach helps planners prioritise which products need more attention, or group them according to forecast frequency, safety stock or purchase frequencies, for example.

S&OP multi-site, multi-functional alignment in the cloud – S&OP is an old story, but poorly practised.

The challenge is that people arrive with different versions of data. Integrating sales, marketing, manufacturing and executive revenue plans is challenging. Newer approaches of S&OP are smarter engines that sit on top of a variety of the ‘functional planning and operation engines’ (such as manufacturing planning, forecasting, pricing and others) to create an holistic way to synthesise the data and allow for simulation that can be reflected back into these functional systems.

Demand management now

It’s time to cast off cynicism about demand planning. Both large and small organisations do get important results from doing demand planning to constantly refine – evolve – their game.

Evolution vs revolution? Not every innovation needs to be revolutionary. Get to know your business better, analytically speaking. The numbers tell the real story about your business. How do your products behave? What impact do certain business decisions have on the numbers? The demand management players have been enhancing their solutions to provide deeper insights, and you probably can’t afford to miss learning how the markets and customers view your products. It is time to join the re-evolution. • September 2013 • Logistics News

3

customer service

The basics of true customer service All retailers face a day-to-day on-going drive to increase market share and same-store sales growth. While some are turning off customers, others are turning them on with true customer service.

By Robert Bruce, co-founder of VCC Associates Inc

Today retailers are offering customers products and services in multiple ways, trying to tap into social networks and dealing with a well-informed consumer. Additionally, information sharing and technology advances have given customers unparalleled opportunities to make quick price and value comparisons for informed purchase decisions.

This information and related purchase decisions are no longer being achieved by getting into the car and running down the street to the nearest competitor, but are accessed instantaneously through their smartphones and tablets. The word-of-mouth sharing of shopping experiences is now significantly compressed with a Facebook post or a Tweet.

With this new ability, the customer is now very smart and some of the old retail rules, techniques and marketing pitches no longer apply – but others do.

The fundamentals of customer service essentially have not changed, but there are new challenges to retailers and manufacturers as consumers have higher expectations in time, service, informational support, as well as expectations on price and value.

Customers expect products to be in-stock, make their shopping decisions on a much faster time horizon and sometimes possess knowledge of the competitive landscape better than the retailer does. Customers easily know products, prices and what is value – distinguishing what is true value, what is not, and what might be construed as deception leading to frustration, often leading to a potential disconnect with a particular retailer.

‘Take care of the consumer or someone else will’ is a lesson for all of us to remember. If you are going to have increased sales and profits it all starts with the consumer.

You must have your products in the right place, in the right amount, at the right time, at the right price and present the right value proposition each time you have an opportunity to interface with the customer. Today’s consumers are picky and they have a lot more choices than ever before. They are much more informed, demand consistent service and vote with their pocket books.

4

September 2013 • Logistics News

New times – new challenges New times, new challenges, and new technologies – are they changing the customers’ basic needs and values or just changing the way we meet them? Many believe the core fundamentals and drivers of customer service have not changed, but today’s environment and technologies have. The basic fundamentals and drivers of customer service remain constant, but the speed, transparency and methods by which we provide them are constantly changing.

In the past, customer service was principally delivered through brick-and-mortar stores with principle concerns for maximising customer service. Now we need to ensure all experiences consistently engage, facilitate and enhance customer satisfaction while leveraging unique capabilities that new technologies enable.

Great customer experience and service from a super employee who is fluid with all the sales support tools her company makes available in store from DC to website to her store network – all co-ordinated factors that quickly and comfortably will finalise the sale and satisfy the customer.

Achieving this requires great associate training and teambuilding combined with great behind-the-scenes systems and capabilities, such as inventory management, home delivery, and omni-channel management.

Customer service and enhancing the shopping experience are essentially focused on the same things; addressing old school customer service values with new school approaches, tools and techniques.

The old customer-centric fundamental values span generations, yet the tools, approaches and methods continue to adjust to satisfy and exceed today’s customer service expectations. Across retail formats and sectors, those that best satisfy customer expectations with flexibility, consistency, speed and value will win in today’s competitive marketplace. •

The movement

has begun

from fossil fuel to zero fuel Operating cost of your forklift: FUEL CONSUMING TRUCK

ELECTRIC TRUCK

Benefits of an electric

• Elimination of fuel costs • Less maintenance less downtime • Reduction of noise • Waste reduction • Toxic free environment

ELECTRIC TRUCK

• Zero carbon emissions

FUEL CONSUMING TRUCK

Toyota Forklift

TEL : +27 (0) 11 395 0600 EMAIL : toyotaforklift@eiegroup.co.za WEB : www.eiegroup.co.za

retail

Supply chain steps to ensure

merchandise plan execution Systematically identifying positive and eliminating negative supply chain performance related issues can help retailers mitigate events that put margin at risk.

By Richard Wilhjelm, Compliance Networks

Every year, retailers spend enormous amounts of money to create the perfect merchandising plan. Industry demographics are measured and focus groups created in an attempt to define the desired customer. Once the perfect customer and corresponding products are identified, sophisticated forecasting, planning and allocation systems are utilised to construct complex merchandise plans to achieve specific margin objectives.

Unfortunately the results, particularly during promotional or seasonal events, are often missed margin opportunities combined with damage to the retailer’s valuable brand because of out-of-stocks (OOS) at the shelf. While in-store execution issues often lead to OOS, the culprit is just as often supply chain performance. In truth, the retailer’s margin was in jeopardy from the beginning due to unforeseen but predictable supply chain risk factors.

The penalty for retailers is high, but is also segment dependent, because consumers react differently to an OOS depending on the product category.

But in total, research has shown that retailers lose a great deal of revenue in sales due to bad planning.

Margin risk Margin risk, from a retail perspective, is defined as the potential permanent loss of margin due to internal and external performance related events. Performance events can be internal, changed or late purchase orders or external, late or incomplete shipments and poor ASN accuracy. In whatever case, the margin opportunity may be lost for that fiscal period or may not return at all until the next year.

Margin has a shelf life Retailers are coming to the realisation that like their products, margin has a shelf life. In the past, the consumer was patient mainly due in part to believing their options were limited. If an advertised product was not in stock, often the consumer would take a rain check and return in two or three weeks when the product was back in stock. The need for expensive safety stock was not required and the

6

September 2013 • Logistics News

margin opportunity was preserved, the best of both worlds for the retailer.

But today’s consumers have more options. Whether it is increased competition from traditional brick-andmortar companies with an Omni-channel offering or pure e-commerce players like Amazon, or even mobile commerce, consumers no longer have to be patient. They have options and more increasingly are demonstrating the capacity to exercise them.

Opportunity for supply chain A common question we often hear is how supply chain can be viewed as less of a cost centre and more of a margin contributor. Within most retailers a tension exists between the merchant and supply chain teams. Merchants are perceived to be higher in the enterprise hierarchy because they are the generators of gross margin while supply chain executives are often portrayed as ‘cost of doing business’.

But with the new dynamic in the industry and an emphasis on speed and execution, supply chain executives play an ever-increasing role in merchandise plan execution and overall retailer profitability. By maintaining proper fill

rates, ensuring on-time deliveries, demanding ASN accuracy and minimising trouble deliveries, the retail supply chain executive can influence the overall performance of the supply chain and mitigate both internal and external factors that put margin at risk.

Critical steps ensure merchandise plan execution Where do supply chain executives start in their quest to influence margin performance? While opinions will vary where the best place is to start, most will agree the desired outcome is a more predictable and consistent supply chain.

In the presence of variability, there will be safety stock to mitigate margin risk. By eliminating the variability and providing merchant teams with actual performance related information, retailers can drive down their overall safety stock and improve profitability.

Supply chain executives can take some proven steps to ensure merchandise plan execution: • Focus on on-time deliveries and fill rate (increase sales) – the velocity and cadence of promotional events in the retail industry is greater than ever before. Ensuring orders are complete and on-time is critical to most merchants and fundamental in reducing margin risk.

• Monitor and reduce the purchase order lifecycle (reduce supply chain days) – continuously monitor the purchase order lifecycle for opportunities. A shorter purchase order lifecycle is more responsive to demand signals, less prone to out-of-stocks and requires less working capital to fund.

•M onitor ASN accuracy religiously – poor ASN accuracy can doom inventory integrity leading to poor merchandise plan execution. While it’s important to audit vendors for accuracy, it is also important to focus valuable audit resources on the lower performing vendors versus the higher performing vendors.

• Monitor transportation performance – ensure vendors are adhering to the routing guide for transportation requirements. The selection of a wrong carrier can result in additional supply chain days while multiple shipments during the same week can accelerate transportation expenses.

• Over-communicate with your vendor trading partners – provide vendors 24/7 access to key performance data. Immediately alert vendors to past supply chain failures, or if possible, alert them to upcoming execution opportunities. Over-communicating performance data to key trading partners will result in visibility for all parties involved.

Invaluable service The value of merchandise plan execution is critical to any retailer’s margin objectives. By systematically identifying and eliminating supply chain performance related issues, retailers can mitigate those events that put margin at risk. In a recovering economy where working capital still remains constrained, the SC professional who can run a predictable and consistent supply chain, influence margin performance, and increase operating cash flow will be invaluable. •

Linde Material Handling

September 2013 • Logistics News

7

workplace ethics

Building a socially-responsible global supply chain On a regular basis we are bombarded with news about atrocities perpetuated in workplaces around the world – from child labour to sweat shops to almost hard-labour situations where labourers eke out a living merely because they have to live and there is no other alternative.

By Roy Williams, managing director, Vendigital

As awareness of corporate social responsibility grows, businesses have come to realise that their supply chain and its management can say a lot about the kind of company they are and the values they hold. Consumers in the west have recoiled at the thought of well-known high street brands trading with suppliers that have allegedly shown such scant regard for the health and safety of their employees.

But should these businesses have known better?

Back in 1997, apparel manufacturer Nike, came under criticism when it was revealed that workers at a supplier’s factory in Vietnam were being exposed to toxic fumes well above permissible limits. Nike’s chairman responded by making a series of promises to change business practices across its global supply chain.

Even in South Africa and Africa in general, many work places could come under fire for less-than-desirable work conditions. Many workers believe they are being exploited by the capitalist system they work under. Whether these claims are justified or not is another matter, but the fact that they arise should cause concern.

To prevent ethical issues arising within a company’s global supply chain and potentially causing lasting damage to their brand, there are some basic principles that should be followed.

Keep it simple: Cost pressures mean there is often a tendency for supply chains to become more complex as companies try to trim overheads by switching suppliers.

But this extra complexity, which sometimes results in the use of tiers of sub-contractors and impacts on supply chain visibility, inevitably exposes the buyer to increased risk.

Make ethical considerations part of every buying decision: Most businesses have corporate and social responsibility objectives as part of their overall corporate strategy but are these being applied across the supply

8

September 2013 • Logistics News

chain? Do such criteria get overlooked when commercial considerations come to the fore? Ethical criteria should be a part of every buying decision.

Collaborate, but stick to your principles: When setting up a relationship with a new supplier it is important to be clear about what you expect from them at the outset. Businesses should emphasise any ethical expectations, alongside any commercial ones. If subcontracting is against the rules, make this clear and part of any contractual agreements. Tell the suppliers what will happen if they are found to have breached the rules.

Use the ‘how would it look to you?’ test: If you are unsure about whether activities conducted by a particular supplier should be tolerated or not, consider how you would feel if you could see it happening for yourself. The trouble with complex supply chains is that they distance us from what is happening so we feel one step removed and less responsible. In most cases, if business decision-makers could see it happening in front of their own eyes, they would probably feel differently about it.

Use your buying power to good effect: Thanks to market globalisation, modern corporates have significant power to exercise a positive influence in the countries they buy from and trade in. Recognising this is the first step to leveraging this benefit in developing economies. A big firm at one end of the buying chain shouldn’t be afraid of getting involved at the other end of the supply chain by being prepared to visit suppliers and operate with them to improve working conditions or contribute to the local community.

Communicate your ethical achievements: Ethical consumerism is on the rise and buying decisions within every industry sector are increasingly influenced by ethical considerations. Make the most of this by ensuring that your customers and their markets know what you are doing and how your business is actively involved in supporting global development initiatives. •

Jointless SFRC ground bearing floor slab Jointless SFRC ground floor slab suspended on piles Jointless SFRC external yard

Jointless SFRC high tolerance floor slab

SFRC raft foundations

www.twintec.co.za

 � � � �  ­ € ‚ ƒ„ … †„ ‡ ˆ „ ‰‚ ƒ„ … †„ ‡ ˆ Š ‚ �‹� ŒŽ  � €‘€ ‘’

consumerism

Heart of darkness: challenges in Africa’s consumerisation The rainbow nation of South Africa continues to make strides in spreading opportunity, but for too many people on the continent real development is more a dream than a plan.

By Kevin O’Marah, SCM World

Nelson Mandela’s 95th birthday was cause for celebration, but it also motivated reflection on where his vision is headed. The most recent edition of Foreign Policy magazine, for instance, includes its annual list of failed states. The top five are all African.

SCM World’s executive advisory board recently set a task to learn more about Africa. The imperative is all about growth, especially for consumer products companies, many of which are stuck with low growth rates in the big markets of Europe and North America. Africa offers a billion consumers, but what is the plan for getting to them?

Some companies have current footprints that include all of southern Africa to the Cunene River and also most of eastern and western Africa, including the two most frequently discussed key markets for an African CPG strategy: Nigeria and Kenya. These two countries are relatively big, relatively rich and logistically essential to regional success. They are also both in Foreign Policy’s top 20 failed states – Nigeria ranks 16th and Kenya 17th.

Micro-stores as opportunity How does such a company manage to operate dozens of facilities and serve demanding customers like Reckitt Benckiser and Johnson & Johnson in such challenging places? By following the same demand-driven principles that work elsewhere: start with the customer and work backwards to define a supply chain. In Africa this means facing the fact that informal retail dominates traditional (aka ‘formal’) grocery and general merchandise retail by as much as 5:1 in volume terms.

For supply chains this includes dramatically smaller scale fulfilment all the way down to hand carrying individual cases into thousands of micro-stores. Some, like Coca-Cola and South African Breweries, have painstakingly built this capability in house. For most companies the question is how first-world consumer product fulfilment models need to change to suit local conditions.

Extensive academic research by Jan Fransoo at Eindhoven University of Technology in the Netherlands on what he calls ‘nanoretail’ in megacities, suggests that costs are higher and complexity greater but growth much faster.

Pan-African strategies won’t work The other critical insight pioneers offer is that Africa must be broken down regionally into clusters of logistically contiguous markets. For sub-Saharan Africa regions of near-term importance include:

10

September 2013 • Logistics News

Southern Africa – Easiest by far, southern Africa includes well-developed and essentially western consumer products markets in SA, as well as tiny but stable and easily accessible markets in Namibia and Botswana, and significant, if less developed, markets in Mozambique, Zambia and Malawi.

Traditional supermarket-style retailers like Shoprite, Pick n Pay and Woolworths may not be as sophisticated as Kroger, Walmart or Sainsbury’s, but familiar approaches to CPG growth will work here. Informal retail is meaningful and does require a different fulfilment system, but is not an absolute requirement to at least establish a beachhead.

The urgency is that brand-building, channel development and organisational preparedness won’t happen overnight. CPG companies that move too soon may get burned, but those that move too late will find the boat has sailed.

Phase two, or later This discussion has skipped a number of countries, including some big ones like the Democratic Republic of the Congo and Egypt. Those along the north coast have overriding political issues, which when solved leave a string of big, ancient cities easily accessed from the Mediterranean.

Those unmentioned, and largely central African, countries are probably too hard to even attempt for any purpose outside humanitarian goals.

To be fair also, this primer on opening Africa is certainly oversimplified and little more than a basis for discussion. The urgency is that brand-building, channel development and organisational preparedness won’t happen overnight. CPG companies that move too soon may get burned, but those that move too late will find the boat has sailed. •

19 September • Montecasino Ballroom

Eastern Africa – Kenya is critical, but expensive and plagued by corruption. It is, however, the best place to start and provides relatively easy access to solid market opportunities in Uganda, Tanzania and Rwanda. Kenya does suffer a bit from the ‘Zanzibar effect’, which means extensive mafia-like traders who sell smuggled product that is cheaper for having skipped the payment of duties and is readily accepted by the extensive informal retail channel. Companies should plan on reduced margins when competing here for market share. Also critical is a 5-10 year plan to access the very large Ethiopian market which, although socialist and still focused more on government-driven infrastructure projects, will likely grow fast upon opening.

Western Africa – Nigeria is the key, but not the whole story. As an oil-rich nation of 163-million people, Nigeria is a must-have for any African growth plan, but it is still corrupt, hard to navigate logistically, and complex and costly as an export platform. As such, many CPG companies will find Ghana an appropriate alternate market beachhead that is stable, accessible and English speaking.

Stanford University’s recently funded Institute for Innovation in Developing Economies is opening its first mission in Ghana shortly.

Adjacent markets include mostly French-speaking countries, some of which are substantial like Senegal, but also dangerous and difficult countries like Mali, Guinea and Cote d’Ivoire.

Celebrating 25 years of rewarding excellence in logistics and supply chain excellence. The Logistics Achiever Awards recognise outstanding achievements and innovation that have created market advantage today for a strong, sustainable foundation into the future.

September 2013 • Logistics News

11

Partner with the warehouse pioneers We provide everything necessary to achieve warehouse efficiency in cost, operations and capacity. We consider product profile, warehouse flow – from arrival to despatch – and the dynamics of monthly, daily and hourly volumes to design a tailored-to-yourneeds storage solution.

Our product range, extending beyond racking and shelving to include automation and material handling equipment, provides the capability to achieve otherwise unimaginable efficiency.

For a complete warehouse solution, contact us today!

0861 61 61 61 •

www.apcstoragesolutions.co.za

supply chain

Mindset change needed for SA wine industry A lack of supply chain awareness is hampering the competitiveness of South Africa’s wine industry. However, supply chain experts believe that with some changes made to the industry’s supply chains, SA wine will be able to compete far more effectively on the global market.

This belief is backed by a recent study conducted by Stellenbosch University*. The results will be presented at the upcoming Western Cape regional SAPICS conference for supply chain professionals on 18 September in Cape Town. “Many cellars are still thinking like fruit farmers who merely sell their produce to exporters. It’s a mindset that can and must urgently change if the SA wine industry is to be competitive,” says Joubert van Eeden, study author and senior lecturer at Stellenbosch University’s Department of Logistics. “Right now, increasing supply chain efficiency should also become a priority for struggling cellars to become more competitive in these tough economic times.”

Lack of SC awareness In perhaps the most alarming finding of the study, the authors found many of the cellars surveyed do not have detailed quantitative supply chain information available.

Supply chain management deals with getting the right product or service to the right place at the right time and cost to satisfy customer needs. “Many cellars don’t recognise the existence of several supply chains – and most that are engaged in supply chain management are in the very early stages of supply chain maturity,” he says.

According to Van Eeden, a lack of supply chain capability is the root cause of this lack of understanding. With this in mind, he has identified easy first steps for cellars to streamline their supply chains: Understand the segments The first step in streamlining a supply chain is to understand which segment of the market the cellar is serving, for example, whether the cellar is dealing with bulk, basic or premium packaged wines and whether the target market is international or local. “Next, the estate needs to understand how that supply chain works and figure out an appropriate strategy,” says Van Eeden. “For example, with bulk wine the focus should be on cost, but with premium packaged wine, reliability and responsiveness in terms of delivery become more important.”

Which channel/s?

Doing things the old way – because that’s how they’ve always been done – can spell doom for any business owner. “With an understanding of the demands of the

target market, combined with an awareness of the various channels available to deliver product to them, wine cellars must next select the most innovative and appropriate option to suit their customers’ needs,” he says.

Obviously, common sense is critical when it comes to determining the delivery cost per unit that a business can afford. “With a wine club for example, one’s unit cost of delivery is likely higher, but the trade-off is that you’re probably dealing with premium wines and customers that are willing to pay a premium for delivery. However, in the retail environment, delivering less than a full truckload becomes very expensive.”

Need for further research A major conclusion of the research was the need for an in-depth study into how the industry gets wine into the glasses of wine lovers both locally and abroad. “While researching the profitability of the wine industry, we discovered that literally millions of rands are spent on research related to growing grapes and making wine, but little if any research is being done to figure out how best to get the wine from the cellar to the table,” concludes Van Eeden. “We hope to secure funding in 2014 that will enable a detailed study to also establish appropriate benchmarking capability and to see how supply chain profitability of the wine industry may be improved.” • * Wine Supply Chain Survey 2012: Van Eeden, GoedhalsGerber, Louw – in conjunction with van Dyk (CSIR) and Kussing (PwC).

September 2013 • Logistics News

13

route scheduling

The how of GPS navigation The GPS is a marvellous device.

But have you ever considered how this nifty gadget actually gets you where you’re going? This August marks the 11th year of the death of mathematician Edsger W Dijkstra.

In this simple example, you can see the amount of space searched in blue from the starting position in green. The difference between Dijkstra’s Algorithm (left) and A* (right) is immediately apparent.

In light of this, I thought it would be interesting to revisit one of his contributions to operations research and how, 50 years on, you see that influence in the humble device need to explore the entirety of the search space. It’ll find sitting on your dashboard today. the most optimal path, but on a road network of thousands To begin with, let’s start with a simple question: how of turns and byways it’ll take an inordinate amount of time. does one find the shortest route between two points, when A*, one of the most popular routing algorithms, is a presented with a web of possible routes? Assuming you derivative of Dijkstra’s Algorithm with heuristics – rules didn’t know the distance of each strand, you’d probably that govern how the space needs to be searched. It’s a start by measuring the shortest distance from the starting goal-directed search, meaning that shortest paths should, point to its immediate neighbours; having found it, you’d normally, lead in the direction of the target. You can see repeat the process for that neighbour until you reach the the impact A* makes to a problem of the shortest route destination. between Point A and B with a barrier in figure 1.

That, with some simplification, is Dijkstra’s Algorithm, Bringing the topic full circle is that A* is how many as proposed by the man in 1959. It sounds ridiculously GPS providers work out your travel directions. It’s also the easy – how could something so basic have taken so long to reason why the GPS occasionally acts up, or provides you be described in mathematics? While others may have been with answers you intuitively know are incorrect. While doing something similar, Dijkstra, in the words of one of faster than Djikstra’s, it’s mainly ideal for short distances. my colleagues, “proved that his implementation was the Planning a route from Johannesburg to, say, Cape Town, least computationally exhaustive, and would find THE purely using A* and a single-layered road network would optimal solution, for all given shortest route problems”. quickly make GPS give up the ghost.

Dijkstra, in an interview reflecting on his past works, Instead, it relies on a parcelling out of the routes into said he was surprised at its legacy. “What,” he continued, different layers – urban, arterial roads then highways and “is the shortest way to travel from Rotterdam to Groningen? freeways – and will typically route you up and down It is the algorithm for the shortest path that I designed in the layers to minimise the search time. So starting from about 20 minutes. One morning I was shopping with my your home, it will route you to the nearest arterial, then fiancée and, tired, we sat down on the café terrace to drink highway if necessary. Following that, it’ll try to get you as a cup of coffee and I was just thinking about whether I close to your destination as possible before shifting back could do this, and I then designed the algorithm for the down to the other layers.

In the area of vehicle and routing logistics, many shortest path.”

Part of its importance is not in its application, but fine algorithms that deviate hugely from Dijkstra’s in its use with other algorithms and as a baseline for approach have been created – but I think Dijkstra’s optimisation. Dijkstra’s Algorithm is a classic example of Algorithm remains the clearest and simplest expression of a greedy algorithm; greedy algorithms will take the best what we, as routing and scheduling experts, are aiming to path, regardless of long-term viability, and to do this they achieve. •

By Rick de Klerk

14

September 2013 • Logistics News

warehouse management

Avoid warehouse strategies that cause losses Old habits can be hard to break, but when it comes to improving warehouse management operations, big rewards can be reaped if outdated practices and strategies are avoided and new ones are adopted that take advantage of the latest advances in mobile technology.

Acknowledgement to Motorola

Organisations can benefit from introducing warehouse management operations that include better real-time material and inventory visibility, connectivity and control; improved decision making and accountability; competitive differentiation and stronger customer loyalty; faster response times to customer demands; and higher profitability.

•R eceive products manually and then have someone key the data into a fixed terminal – a slow and redundant process that is prone to errors and delays that will cost you, big.

I NSTEAD: Use mobile computers with barcode scanners or RFID readers at the receiving dock to immediately identify products on arrival. This helps move product off the dock quickly and eliminates nearly all the errors associated with manual receiving including identification, counting and data entry errors. With scanning and RFID technology, mistakes will be avoided that wreak havoc with inventory accuracy and eat up time and resources to fix. And that means warehouse staff can focus on processing customer orders more quickly.

•D on’t require your suppliers to provide barcode labels and Advanced Ship Notices (ASNs) for incoming materials. Without them it’s nearly impossible to unload and receive efficiently, and it’s also difficult to match items with orders.

INSTEAD: Require suppliers to provide barcode labels or RFID-tagged packages and ASNs for all incoming shipments. That way when materials arrive at the receiving dock, they can be proactively prioritised for unloading and receiving. By making it easy for staff to identify each item and associate it with a valid purchase order, the process will move more quickly and without excessive back-and-forth with the procurement department.

• Allow material handlers to put product wherever there’s an open slot and then write the location down on paper – it’s an outdated method that causes all sorts of problems.

INSTEAD: Track all material moves and ensure everything is put away in the correct spot, instantly, by scanning all destination locations including rack, shelving or in bulk. When coupled with system-directed functionality, locations can be assigned close to pick slots where

16

September 2013 • Logistics News

product is likely to be needed next. Place fast-moving items in prime locations that are easily accessible. In the end, the warehouse will operate much more efficiently than it would with a traditional manual system.

• I nsist workers manually perform cycle counts using paper forms – a labour-consuming process that produces lots of errors, and can even complicate and interrupt order processing.

INSTEAD: Use barcode scanning and RFID to capture inventory counts and update them on the spot. No more bringing in staff in the middle of the night: With a system that records and updates inventory in real time, staff can take inventory during normal business hours in a fraction of the time. No matter what gets put away or picked, inventory status will always remain up to date.

And when visibility is available into every area of the warehouse, workers can adapt to changing priorities to prevent bottlenecks and outages that can delay order fulfillment. To top it all off, staff should be able to shave off one-third of the time it takes to count all the inventory locations.

• F orce all tasks onto a single (possibly legacy) mobile device, even when that device has significant ergonomic and technical disadvantages. When devices are poorly suited to tasks, productivity, accuracy and morale suffer.

INSTEAD: Match the mobile device to the task. Use the most appropriate handheld, wearable or vehiclemounted device for all workflow and data capture requirements. Workers who spend eight hours a day, all day, in the warehouse shouldn’t have to suffer using awkward devices that slow them down just to save some up-front expense or streamline the IT function. Settle on mobile devices that are suited to each task and, where applicable, use ergonomic keyboards and easy-to-read screens – in colour with larger font sizes. It will actually prove to be more cost effective in the long run.

•U se printed reports to figure out which pick slots need to be replenished – unless you enjoy stockouts and order errors.

INSTEAD: Scan the product and location to make sure the right item is placed into the right pick slot. That ensures all pick slots remain adequately stocked with the correct items during replenishment. Stockouts and mistakes will be avoided, which are costly in terms of wasted man-hours and unhappy customers.

•M ake pickers juggle handheld devices and paper lists that clutter their working ability – while ignoring all the hands-free technology that can make life much easier for them.

INSTEAD: Consider hands-free, real-time technology to direct and confirm each pick. Equip pickers with handsfree devices, and they’ll no longer have to struggle with un-holstering and re-holstering a scanner while trying to pick and carry product at the same time. Not only will this allow them to do their jobs faster, but they’ll also work more safely and with fewer mistakes.

• Avoid equipping managers and workers with real-time voice communications and make them rely on inefficient face-to-face communications and batch processing.

INSTEAD: Utilise real-time technologies to optimise workflow. Leverage existing wireless local area network (WLAN) and voice-enabled devices to provide efficient communications between staff spread throughout the site. When everyone can communicate via voice and data at any time, there’s no more walking around the warehouse looking for workers to do a job. The WLAN can also be used as a conduit for mobile devices to ‘speak’ to the inventory system in real time, giving workers and managers the updated information they need to be more effective.

• F ail to invest in tools that can help proactively manage the infrastructure and mobile devices – and just deal with the downtime and frustration.

INSTEAD: Invest in tools to help secure, provision, monitor and maintain performance levels. Give IT the ability to better manage mobile devices, keeping device performance high and downtime low. Application software can be upgraded remotely, company-wide – thus avoiding the typical compatibility issues that arise when employees are using different software versions. IT can identify a problematic device before it fails, so its user doesn’t have to stop working to wait for a replacement. And don’t forget about the batteries. Manage battery charge cycles by choosing devices with battery information indicators and Webbased access to device metrics. This will prevent workers from having to stop what they’re doing to replace batteries during their shifts, sometimes multiple times.

•G ive workers consumer-grade instead of rugged or industrial-class devices – because who needs reliable devices tough enough to withstand the warehouse?

Savour a one-time savings in device acquisition and suffer months or years of operation disruptions and much higher costs over the long run.

INSTEAD: Spend a bit more for devices that are built to withstand the drops, dirt and environmental challenges that are typical of the warehouse environment.

Considering the relatively high rate of failure of consumergrade devices in this setting, and the resulting downtime and repair charges, it won’t take long at all for the lower total cost of ownership of the industrial class devices to pay dividends.

The way forward

Albert Einstein said that insanity is ‘doing the same thing over and over again and expecting different results’. So consider dropping these losing strategies once and for all and, instead, adopting the innovative alternatives that have been presented here. If you do, you can expect to see error rates and labour costs plummet while productivity, realtime visibility, inventory turnover, customer loyalty and profitability increases. And there’s certainly nothing crazy about that. • September 2013 • Logistics News

17

distribution centres

Successfully design and implement an automated DC Materials handling systems are complex and time consuming for companies, and quite often, the company has limited experience with these types of projects.

This is especially true for start-ups or companies transitioning from a manual operating environment to a more automated environment.

By Kelly Reed, EVP, Material Handling Integration

Even companies with automated materials handling systems may not have the level of expertise required to design and implement a new system in an existing or new facility. The unknowns and unexpected glitches can be traps that lead to a materials handling system falling short of anticipated results.

In today’s fast-changing world, systems must be designed for flexibility and be able to adapt as business conditions change. E-commerce has introduced even more uncertainty into the planning process.

Is automation the right answer? What is the right amount of automation? What is the right design? How do I manage the implementation? How do I measure success?

These questions and many others come up during every materials handling system project, and the answers are critical to the project’s success.

For all business improvements, especially those that require significant capital, there are hurdles that must be overcome. Knowing what the hurdles are and defining a plan to overcome them is the cornerstone to ensure project success.

18

September 2013 • Logistics News

Hurdle # 1: Planning The most certain way to undercut system success is to do a poor job of planning. The most common problems are planning: for the past or using data that does not represent future business requirements; too far into the future rather than planning for the flexibility to adapt to changing business requirements; for the average and not considering seasonal peaks, which can be significant; to use current operational processes when there are better ways; for all contingencies even when some contingencies occur very rarely; not fully investigating a wide variety of options under a number of potential scenarios; and not performing a sensitivity analysis on the design to understand the robustness of the solution and under what circumstances the design may not be valid.

It is only by understanding the future requirements of a system, defining a wide variety of alternatives, economically and qualitatively evaluating all alternatives, financially justifying and selecting the best alternative, developing an implementation plan and then communicating the plan to all stakeholders, that the planning hurdle can be overcome.

Hurdle # 2: Accountability Make sure someone is accountable for the overall success of the project and that they can ensure the plan is executed properly. Also, know the answers to key questions: Who is responsible for each aspect of the planning and implementation activities? Does everyone involved have a common understanding of his or her roles and responsibilities? Are the right qualified people with the correct experience involved to get the job done?

If not, what is the plan to close this gap? What activities will the team accept responsibility for and what will be outsourced? Who are the right business partners to help drive success? Selecting the wrong business partner can be catastrophic to the project. Are the right communications channels set up to communicate activities and results?

Only by being sure that these questions are all answered can a company be able to define and execute the plan.

Hurdle # 3: Go-Live Go-live is not just something that occurs at the end of implementation; it is a process that requires clearing certain hurdles: Proceed go-live by a rigorous, hierarchical acceptance testing that is well thought out and deployed; for the go-live plan, consider hardware, software and change management, and incorporate training into go-live planning; ensure rigorous contingency and backup planning; identify and manage decision points and go-live ‘points of no return’; pursue a smooth, logical methodical ramp-up plan. By overcoming these hurdles, major disappointments, Murphy’s Law, and system shock can be avoided. Do not underestimate the impact of change management and training on the success of a materials handling system project. The cultural shock to people can be significant and proactive steps must be taken to make people proficient and comfortable in their new environment to have a successful go-live.

Hurdle # 4: People Complications with people always crop up with largescale implementations, and materials handling systems are not excluded. With the downsizing that has occurred and the hectic work pace, the people issue is often the tallest hurdle that needs to be cleared to achieve results.

The most significant people hurdles are: too much shifting of personnel can result in major losses of continuity. Secure a consistent project team from initial data gathering through to implementation; all people fear the unknown; implementing major change has a significant emotional and intellectual impact on people; make efforts to eliminate the mystery and help people grow comfortable with the new system; technology can be scary stuff, properly train people and provide them with hands-on experience so that they will be ready to use a new system; do not forget the maintenance people, without them buying in and understanding the new system requirements will come to a grinding halt. It’s a good idea to involve the maintenance staff in the planning and implementation to the maximum extent possible.

Hurdle # 5: Managing expectations A major hurdle in achieving real results is in the area of managing expectations. Establish system expectations and how success will be measured. Certain practices are very important to ensure the managing expectations hurdle does not result in systems failure: involve operations people with system evolution and have a clear mental image of their jobs after go-live; make sure executives understand the results that will be achieved and the timing for the realisation of these results; there is a learning curve to operating a new material handling system, and it can take time to achieve expected results; establish Key Performance Indicators (KPIs), and ensure they are explained, tracked and understood; make real-time communications to all parties involved a priority.

Hurdle # 6: Budget conformance Executives will expect budget conformance, so the only option is to clear this hurdle. The major challenges of the budget conformance hurdle are: trying to do a job even though inadequate budget exists to get it done properly; selecting vendors only based on low bid while placing less emphasis on equipment/system functionality, life cycle costs, adherence to schedule, experience in similar projects, and many other areas.

While cost is always an important consideration, it should not be the only factor. Not building adequate contingency into the initial project budget. Situations will arise that were not envisioned. Establish a contingency fund to cover these unexpected events.

Hurdle # 7: Schedule conformance Similar to budget conformance, executives demand that the plan and implementation conform to schedules.

By addressing scheduling hurdles, real results can be achieved: trying to meet an unrealistic timeline is a recipe for failure.

Implementing a materials handling system takes time and taking shortcuts often results in disappointment.

When milestones are missed be realistic and adjust the schedule. Not doing so will result in major difficulties latter. In some situations, adding staff can accelerate the schedule but there is a point of diminishing returns. Also keep in mind that more people require more supervision and co-ordination.

Missing a project schedule can often have major implications within the company and influence the view of the systems’ success. To ensure fewer headaches, implement the project on time and on budget.

By climbing over these seven hurdles a tremendous opportunity to improve the success of materials handling system projects presents itself. Following a methodical process of planning, design and implementation all the while emphasising quality communications will help ensure project success. Having the right expertise, the right schedule, the right budget, the right solution and the right justification for the systems will provide bottom line improvements and real results. • September 2013 • Logistics News

19

printing

What to think about when thinking printing Distribution centres have a head-spinning array of choices when it comes to printing and labelling systems. A number of factors must be considered before picking the right device for any operation.

By Peter Bradley

Printing and labelling systems in the distribution centre can sometimes cause indigestion for managers. They can be a bottleneck in the process of getting goods out the door. Labelling errors can cause shipping errors that result in unhappy customers and possible chargebacks.

Downtime can bring a whole line to a halt. But nothing can go out the door without a label.

Whether an operation uses inline print-and-apply systems or portable printing tools, the devices’ speed, accuracy, and uptime are crucial to DC productivity. What’s important is to determine what solution would work best for each operation. A few factors to consider in selecting a printing and labelling system include: Think about people first. The technical capabilities of staff to maintain and program the devices should be an important consideration in which one to select. Some systems, particularly automated print-and-apply systems, require a fair amount of in-house expertise.

Top companies examine both manual and automated printing systems. One of the drivers for that is what the workforce looks like. That applies as well for clients.

If a customer does not have a semi-skilled workforce that can correct any issues or troubleshoot problems, it becomes difficult to design a print-and-apply system for that customer. There will be times when the company has to interface with the system, reset the orders, or manually rectify issues that come up. If the DC’s operations or maintenance staffers do not have the skills to maintain an automated system, then a manual system may make more sense.

Get smart. While the skill of the workforce is important, printing system providers are building more intelligence

20

September 2013 • Logistics News

into the printers themselves. Although printers have been able to host applications for some time, manufacturers are now making the process simpler.

Clerks responsible for picking and shipping orders scan and weigh each item, prompting the printer to check the actual weight against the expected weight to ensure a match. It signals the clerk in the event of a mismatch.

Using the newer programs eliminate inaccurate shipments for the customer.

Consider the budget and the required throughput.

Automated systems are substantially more costly than manual systems but have a much higher throughput. If the goal is to limit touches or to label items at high speed, that argues for automation. But it’s important to note that opting for a print-and-apply system also has implications

for the design of the overall materials handling system.

The despatching company has to expect to have enough accumulation to support a print-and-apply system – an inappropriate accumulation of products will starve or overload the system.

Does portability have value? In the past, manual systems – with the printer in a cupboard or office for access to power and connections to the facility’s IT network – often required printing large numbers of labels at once, then bringing them to the floor to match up with shipments. No more. Portable, battery-operated systems with wi-fi connectivity allow for a great deal more flexibility.

Rather than have the printer at a fixed point in the warehouse, packers can take the printer anywhere it’s required. Coupled to a battery cart, the printer doesn’t need a power cord as it drives productivity in the despatch department. Some portable printers have their own batteries built in, eliminating the need for the cart.

each machine must take to lower, apply and retreat. But it requires some advanced skills to set up and manage that sort of system. This is where the technology skill of the workforce is important.

Uptime and maintenance matter. Not too long ago, a malfunction in a printer could bring despatch to a standstill. But the development of smart printers, with technology that alerts managers to an impending failure so preventive action can be taken, can sharply diminish downtime, especially when combined with more modular printer designs that make maintenance easier. Smart printers not only have the capability to print labels, but to do preventive maintenance based on predictive algorithms that are coming from the device management system.

Current printers’ warning systems offer screens that provide specific information on printer issues, as opposed to a simple warning light. And maintenance is simpler.

Operators are able to replace the print head without using a screwdriver, which changes what was once a 20-minute job to 15 seconds.

What is being labelled? Cartons? Totes?

Polybags? Do products vary markedly in size? Does despatch have a full-case picking operation or picking mixed cases? Those are all factors in the print-and-apply technology decision. Full-case operations lend themselves to automation. In mixed-case picking, where multiple products are picked into a single shipping container, manual systems are perfectly adequate as the picking and packing process is likely to be slower than the printing and labelling operation.

Can throughput be accelerated? A typical print-and-apply system can label 15 to 25 cartons a minute – including a packing slip with the label would cut that almost in half.

For print-and-apply systems, especially those handling cartons of varying heights, installing two print engines on the same line with advanced control systems would speed the process. That would come close to doubling the throughput speed, depending on product size, by having each head printing and applying to every other carton.

The biggest constraint in the whole print-and-apply system is the product mix. Most often, labels are applied to the top of a product for shipping. The print head has to move down to the carton to apply the label, and then move back up out of the way before the next carton comes through.

The time it takes for the print head to lower and rise again is the limiting factor in how quickly cartons can move along the conveyance system. If the height of the cartons varies markedly the print head needs time to lower and rise in each direction.

One way to improve throughput in a system with a broad range of carton heights is to assign each print head to a small range of carton heights. That limits the stroke

Bring the CIO on board

Going forward, logistics managers may find themselves having to check with the company IT department before deploying printers in the warehouse or DC. That’s because today’s printers are no longer simply tools for expediting despatch. As manufacturers build more intelligence into them, these devices are becoming important nodes in companies’ overall IT networks.

CIOs are becoming more powerful in device management. That doesn’t mean the CIO will be looking over a DC manager’s shoulder and trying to dictate what printer to select. What the technology people are interested in is ensuring that smart devices fit into the overall IT infrastructure. Their concern is network security and ensuring that smart printers comply with the rules and regulations that govern the company’s IT infrastructure. • September 2013 • Logistics News

21

bookmark

Negotiating agreements for highly collaborative relationships This book, ‘Getting to We’, is the latest from Kate Vitasek and colleagues on the important topic of developing and negotiating collaborative relationships.

Reviewed by: Gerard de Villiers gerard.devilliers@arup.com title: Getting to We subtitle: Negotiating Agreements for Highly Collaborative Relationships authors: Jeanette Nyden, Kate Vitasek and David Frydlinger publisher: Palgrave Macmillans edition: 2013 isbn: 978-1-137-29718-1 pages: 235-page hardcover price: US$21-00 at www.amazon.com

22

September 2013 • Logistics News

The title on the book cover drew interested attention from a fellow commuter on the Gautrain who asked me if this book was on marriage counselling. The comment made me think; the need for collaborative relationships can indeed equally well be implemented in relationships between spouses.

The original research for the development of new rules for transforming outsourcing was based on the mindset of changing ‘what is in it for me – WIIFMe’ to ‘what is in it for we – WIIFWe’. This is again fundamental to the successful negotiating for highly collaborative relationships in this latest book and provides the backdrop against which the authors share the roadmap for achieving a win-win relationship.

The book is divided into four sections that cover five steps to get to the desired outcomes. The first section starts with the initial step of establishing a foundation of trust, transparency and compatibility; the next section explores the second step of creating a shared vision and the third step establishing the essential relationship principles. Section three explains how to negotiate as ‘we’ in step four. The last section concludes with step five expanding on living as ‘we’.

The initial step covers the foundational elements of trust, transparency and compatibility and explains why these are the building blocks of a solid and stable foundation for the collaborative relationship.

Trust is the core quality and acts as an enabler that lowers transaction costs, fosters innovation and provides

the necessary space for the flexibility and agility needed to maintain the competitive advantage. Trust requires a high degree of transparency between the parties to provide the information needed for mutual benefit. Transparency is a prerequisite for negotiating sustainable financial benefits. Compatibility consists of behaviour and culture and it creates an atmosphere of trust because the parties can accept some alignment between behaviour and culture.

The second step stresses the importance to jointly agreeing on a shared vision for the partnership and how separate visions can and should be transformed into a shared vision that gives the parties purpose beyond a series of transactions.

Partnerships with a clearly articulated vision for the future have a much greater chance of reaching their agreed destination.

Some attributes that are common to successful partnerships include that it be developed jointly, attention should be on ‘we’, the focus should be on the future and on tangible results, the vision documented properly and finally, lived in practice.

The third step is probably most important as it discusses a set of principles that drives highly collaborative behaviour. The six essential principles that constitute the substance on which the relationship is based include reciprocity, autonomy, honesty, equity, loyalty and integrity.

These are equally applicable in relationships between spouses, hence my earlier comment that the book could well be used for marriage counselling.

Reciprocity refers to fair and balanced exchanges of risk, time, money and rewards. Autonomy ensures commitment to abstaining from using power to promote one party’s self-interest at the expense of the other.

Collaborative relationships also have to be based on honesty that obliges the parties to tell the truth about facts and their intentions and experiences. Equity refers to the fundamental social norm that requires the partners to look critically at the distribution of resources. Loyalty is needed to ensure commitment to the relationship and integrity implies consistency in decision-making and in actions.

Once the foundation of trust, transparency and compatibility is in place, a shared vision agreed and the essential principles followed, negotiating as ‘we’ can start.

The authors suggest four specific rules for negotiating and start with the importance of sitting side by side, rather than opposite each other. It means that the parties acknowledge that the relationship has its own interests. The second rule determines that the essential principles discussed in the third step should guide the behaviour. As example, by following the principle of reciprocity, the parties will make a fair and balanced exchange to ensure that all parts of the relationship are in accordance with the principle of equity.

Negotiating as ‘we’ is not easy and the next chapter covers some styles, strategies and tactics when negotiating successful relationships. Wrong styles can include muscular negotiating from a power base and a benign

approach that assumes ‘give and take’ that, in practice, often leads to passivity. ‘We’ strategies comprise joint design of services, optimal incentives for both parties and fair mitigation of risk.

The question of negotiating the monetary aspects for mutual benefit receives ample attention and the underlying philosophy of value allocation is discussed in the two dimensions of value creation and value sharing.

Value is negotiated by exchanging value, by creating value and then claiming value and finally to creating value and then devising value-sharing mechanisms for long-term mutual benefit. Value-creating actions include increased benefits, decreased costs, increased opportunities and decreased risks.

The last step in the getting to ‘we’ process is to transform the relationship into a true partnership by living as ‘we’. The relationship has to be managed to provide stability, agility and flexibility. People might transition in and out of the relationship but with good principles in place, long-term sustainability is possible. Clear roles and responsibilities should be defined and most importantly, communication protocols implemented.

There is no doubt that successful collaboration has become an order qualifier rather than an order winner and this book is a useful addition to this important topic.

I enjoyed the read and gladly recommend that you should get it for your collection. It is good value for money that will stay relevant for many years to come. •

ENERGISING THE INDUSTRY

BER 15-16 OCTO M U THE FOR URG JOHANNESB

Building sustainable business in the new normal

www.cgcsa2013.co.za REAL ISSUES · REAL CONVERSATIONS · REAL SOLUTIONS

ENGAGE WITH INDUSTRY LEADERS. ENERGISE YOUR TEAM.

CONFIRMED WORLD-CLASS SPEAKERS INCLUDE:

A dynamic and relevant programme: Skills Development – How to shape an optimal team Legal & Regulatory Issues – From compliance to competitive edge Customer & Shopper Marketing – Drive the Path to Purchase Field Sales & Winning at the POP – How to master the last 50 yards Supply Chain Success – Discovering new dimensions of efficiency

YOU NEED TO BE THERE! DON’T MISS OUT. BOOK NOW! Please note the agenda is subject to change

121542 CGCSA Advert-Meropa FINAL.indd 1

SPONSORS:

Powered by

2013/08/27 8:25 AM

September 2013 • Logistics News

23

product

Hubtex on the move in SA Specialist lift trucks, Hubtex, have made significant strides in the Southern African market in the short time that they have been represented in this region by Goscor Lift Truck Company (GLTC).

According to GLTC MD Darryl Shafto, “Even before our first Hubtex stock arrived we started receiving calls from potential customers interested in the specialist capabilities of these German-engineered machines. And the interest hasn’t abated.” Shafto adds he has seen many local companies, and especially timber companies, have taken note of how Hubtex lift trucks have helped improve efficiencies in well-known European companies.

One story that has generated a particularly positive response is that of German timber specialist Dauerholz AG. The company bought the first Hubtex electric multidirectional sideloader – the Hubtex MQ 60 2150 – to carry packs of waxed timber across longer distances at its production site in Dabel, a former military base.

With a process that was ‘green’ in nature, it was logical to acquire an environmentally friendly, ‘green’ stacker: “We had all but decided to invest in an additional three-wheeled four-way stacker,” explains Peter Weller, Dauerholz AG operations manager. “But as soon as we became aware of the MQ 60 2150, which is specially designed for internal and heavy-duty external deployment, I knew it was ideal for this particular application.”

Hubtex Electrical Multidirectional Sideloaders The Electric Multidirectional Sideloaders (EMS) are a signature Hubtex product. They are suitable for the versatile handling of long loads, stacks of metals sheets, chipboard, tools, cable drums, rollers, oversized pallets and round-bar stock. They also feature multidirectional steering to maximise manoeuvrability.

The three most popular Hubtex EMS series are the 2150 series (used at Dauerholz AG), the 2120 series, and the 2130 series. The 2150 series is a robust machine with extremely high-load capacities. It transports and handles long and heavy loads in combined indoor and outdoor applications.

The 2130 series machines are known for their versatility.

With multidirectional steering, they are the entry level for heavy load handling. With their soft plastic tyres, they handle long and heavy loads of up to 6 tonne in both indoor and outdoor applications. The heavy-duty 2120 series, also with multidirectional steering, is characterised by its robust design and high load capacities. With its large-sized Vulkollan (PU) tyres, these are mainly used indoors or in canopied outdoor areas.

Not for timber alone In many organisations timber is but one of the products out of several that has to be carried and the versatility of

24

September 2013 • Logistics News

One of Hubtex’s signature products, the Fourway Sideloader, is an extremely robust and compact vehicle developed for indoor and outdoor use. their specialist lift trucks is crucial. One such company is Stark AG. Based in the Swiss town of Altstätten and managing some 3 000 extremely diverse products, including timber, they face significant logistics challenges on a daily basis. Their primary solution? Six Hubtex units. “Hubtex units, combined with the new IT infrastructure and electronics enabled Stark AG to increase its productivity by 30 percent,” the company reported.

Shafto says he is pleased to be partnering with a company that makes trucks of such outstanding quality.

“As the examples illustrate, Hubtex has really made an indelible impression worldwide for their quality, ingenuity and service,” Shafto says.

Lars Beuel, Hubtex sales manager material handling, says he is optimistic about the new venture in South Africa. “We saw very quickly that GLTC is a consummately professional company and that our products will add strategic value to their current range. I look forward to working with Shafto and the Goscor team and to building a memorable partnership in that country,” he says.

Goscor Lift Truck Company has established a powerful reputation in SA as the sole local distributor of Crown, Doosan and Bendi products and has, since 1984, offered a world-class sales and support service in the materialshandling equipment industry. •

Diarise 18-27 October 2013 JHB EXPO CENTRE, NASREC

www.jhbmotorshow.co.za In association with

Endorsed by:

Accredited by:

Show Hours: 09h00 – 18h00 Costs: Adults R100*, Children 6-12yrs R20, Children 13-16yrs R50 *Right of Admission Reserved MSS JMS 002

More volume

less packaging

Nampak Megapak, Africa’s leading manufacturer of plastic trays, crates and drums now offers a 1 000 litre Intermediate Bulk Container (IBC) that substitutes five 200L drums with a footprint of only four more liquid product with less packaging in less space!

Our IBCs, made under license from Mauser, include three component parts: a container, blow-molded from UV-stabilised high-density polyethylene, a zinc-coated steel cage and a pallet of heat treated wood, plastic or steel composite.

Nampak Megapak IBCs: • are designed for the bulk transportation of all liquids.

• are translucent for better visibility and easier inspecting of filling levels and contents. * have a shorter unloading time than drums • have a unique range of valves and closures that aren’t welded in and are easily replaceable.

• include optional additional top openings, special gaskets and venting.

• don’t require time consuming strapping for moving from storage to filling • are filled with 1000 litres quicker than 5 drums • meet all international packaging regulations.

In partnership with National Container Group we offer a reconditioning programme for our IBCs anywhere in the world, as well as a service that includes collection, cleaning, removing dents, inspection, testing for leaks and return for use.

We also offer technical support in terms of filling, closing, warehousing, transporting, storing, shipping, load-securing and much more.

Contact us on :

+27 (0)11 206 1200 +27 (0)31 701 1581 +27 (0)21 505 4900

www.nampak.com

Commercial vehicle sector in the spotlight

expo

The 2013 Johannesburg Truck and Bus Show takes place from 16 to 27 October and co-locates with the Johannesburg International Motor Show. The show features product updates and new product launches in the commercial sector including trucks, trailers, buses, body builders and utility vehicle specialists.

An impressive list of exhibitors has committed to the Truck and Bus Show and visitors can expect to see the latest technology and developments in the commercial sector.

An extensive media launch programme takes place over the two media preview days on 16 to 17 October before the show opens to industry visitors and the public.

A new addition to the programme is the Truck and Bus Industry Conference sanctioned by the NAAMSA Heavy Commercial Vehicle Division with an impressive line-up of topics and speakers. Topics the attendees will debate include: • SA Truck and Bus Industry: Performance Review and Medium-Term Prospects • Heavy Commercial Vehicle Fuel Standards and Specifications • Sub-Saharan Africa Cross-Border Transport Challenges • Transnet/Portnet Logistics: Integration of Transport Modes in Sub-Saharan Africa • SA’s BRICS Membership: Implications for the Truck Industry • Managing the Influence of Strategic Operational Cost Variables: E-Tolls, Fuel Standards, Portnet and Transnet Operations.

With the first half of 2013 now a matter of record, the SA truck market has grown by 6,8 percent when compared to the equivalent six months in 2012. Given the widespread concerns that had been expressed over conditions in the local economy during this period, together with the continuing difficulties that were experienced by a number of the country’s most important trading partners, the positive nature of this outcome was somewhat surprising, but welcomed by participants.

The market performance in the first half of 2013 was particularly noteworthy given the prevailing macroeconomic scenario. Although there had been some signs that the slide in rand foreign exchange values may have slowed down, the recent announcements of steep increases in local fuel prices, despite the apparent stabilisation of the international oil price prior to the Egyptian crisis,

still presented a serious short-term challenge to the transport community, and provided strong rationale for updating fleet technology with the latest in products and management systems.

It has also become apparent that, despite the difficulties being experienced in the country’s traditional overseas export markets, business between SA and its neighbours north of its borders has been expanding rapidly, and this has undoubtedly added weight to the local demand for commercial vehicles.

While the performance of the SA truck market has been surprisingly strong during the first half of 2013, there is a possibility that some element of pre-emptive buying may have been present in the market, with operators having pulled their procurement forward to avoid the full impact of vehicle price increases stemming from the recent decline of the rand versus the US dollar, Chinese yuan and euro.

However, the relative performance of the local currency, against other important commercial vehicle sourcing currencies such as the Brazilian real and, particularly, the Japanese yen, has been considerably stronger during the period from the beginning of this year up to the end of June, with important potential implications for the competitive balance within the market.

If the pre-buy theory turns out to be valid, however, monthly volumes may soften somewhat during the second half of the year, making the 29 000 unit final market total outcome that has recently seemed likely, more difficult to achieve. Some negative impact can also be expected from the motor industry strike that commenced in the third week of August. The reported results of the months immediately ahead will, therefore, be important in determining the ultimate magnitude of the 2013 truck market.

A visit to the Johannesburg Truck and Bus Show will provide commercial vehicle sector fleet owners and operators a one-stop shop to view the latest vehicle models and trailers, and to keep abreast of current technology and developments. • September 2013 • Logistics News

27

news

Building commences at Serco’s Gauteng facility

Serco recently bought property in Johannesburg with the intention of increasing capacity, improving production efficiencies and giving customers better service. Graders have cleared the new 13,4 ha site near Boksburg and the installation of municipal services are almost complete with upgrades to electrical, water and sewer capacity being undertaken to accommodate the expansion. Concrete has been thrown for Phase 1 of the development. Construction is expected to be completed by the end of this year and will include 12 undercover bays (1 745 m2) for repair services and a further 3 480 m2 for new body manufacturing, which is double the size of the present facility in Jetpark. The present facility has been stretched to capacity and the additional space will facilitate room for growth and is expected to be ready for business early in 2014.

On the construction site are (from left): Johan Oberholzer, Trevor Holcroft and Donavan Brent of Serco, with Stuart Johnston of Formwork Construction.

Fast beats slow Effective warehouse design means short routes for goods and staff. Using containers in conjunction with intelligent conveyor systems speed up and optimise logistics operations. We show you how to become fast, flexible and efficient. Contact us, we will gladly advise you.

P: +27/11/707 2600 · info@ssi-schaefer.co.za · www.ssi-schaefer.co.za

Logistics New_130X210_3_en.indd 1

28

September 2013 • Logistics News

1/22/2013 3:19:06 PM

news

New SARS system at Mozambique border SARS has rolled out its new Interfront Customs Border Solution (iCBS) at the SA-Mozambique border posts. This is an important step in SARS Customs Modernisation Programme. It is the culmination of years of development and testing by SARS and Customs service providers and has been a major technical undertaking for all parties concerned.

Extensive parallel testing has been performed with the new automated system, which has been running concurrently with the legacy systems that it replaces.

This has demonstrated how the new management system will operate in the operational environment.

The system changes will be introduced over a period when the volumes of import declarations are at the lowest levels to minimise disruptions to commercial trade. SARS is confident that sufficient contingency measures will be in place to assist traders who encounter problems.

Shipping operations return to normal at Port of Richards Bay Shipping

o p e r at i o n s

returned to normal at the Port of Richards Bay as s t r o n g winds and heavy seas subsided after forcing the coal-carrying ship MV Smart to run aground in August. Salvage crews, one f rom the SA Maritime Safety Association and two from marine services group Subtech, had boarded the MV Smart to make an initial damage assessment.

September 2013 • Logistics News 1166_CP50 Ad (255X90)NEW.indd 1

29

2013/08/23 1:08 PM

news

TransAfrica: the Transport, Infrastructure and Investment Expo Launching its inaugural event in October, TransAfrica, a new transport, infrastructure and investment expo, will bring together thought leaders and market players within the African transport industry for deliberation around topics of growth and development. “We’re proud to announce the launch of an expo that brings together key stakeholders and addresses the future growth and investment of transport and related infrastructure in Africa,” says Gary Corin, director of Umthombo Exhibitions, Events and Promotions.

With South Africa’s transport infrastructure being one of the most developed in SubSaharan Africa, the world is watching Africa as a promising opportunity with the potential for exponential growth. This has made South Africa a conduit for international trade.

TransAfrica will be held at the Expo Centre, Nasrec, Johannesburg, from 1-4 October. The event has received full support from the Department of Transport and the

30

September 2013 • Logistics News

Minister of Transport has been invited to provide a keynote address at the opening ceremony. The three-day TransAfrica Conference, themed ‘Revitalizing the transport sector on the African continent’ will feature senior experts from transport operators and recognised authorities – including various government bodies, financiers and recognised consultants.

Hino performing well in export markets

news

Hino, the leading Japanese truck and bus manufacturer, has performed particularly strongly in export markets with a 3,8 percent increase in sales for the first quarter of the company’s 2014 financial year compared to the corresponding quarter a year previously. Total Hino sales for the first quarter amounted to 37 960 units, which was an improvement of 2,5 percent year-on-year.

Sales in the Japanese domestic market, at 8 719 units, were down 1,5 percent, but sales in overseas markets totalled a record 29 241 units, which was an increase of 3,8 percent on the previous first quarter and indicates how well Hino’s strategy to sell far more of its trucks and buses outside Japan is working. Central and South America showed the highest rate of growth, improving by 15,2 percent to 3 420 units. Asia was up 2,3 percent at 19 046 units and had record sales in this first quarter of FY 2014. Europe and Africa showed an improvement of 6,9 percent with sales of 2 162 units. Hino remained a major player in the Japanese truck and bus market, with an overall share of 26,9 percent in a total market of 32 444 units. It had a 31,3 percent share of the heavy truck market, 39,3 percent of medium trucks and 20,5 percent of light trucks. There was a huge improvement in Hino’s profit over this first quarter period, with it more than doubling as it increased by R1,7-billion to R3,3-billion.

Appointment Emirates SkyCargo, the award-winning cargo division of Emirates Airline, has appointed Kuben Pillay as cargo manager for its Durban operations. Pillay has a wealth of experience in the airfreight industry, having honed his skills on the operational side of the cargo business for many years. His previous experience includes stints at both King Shaka International Airport in Durban and OR Tambo International Airport in Johannesburg.

September 2013 • Logistics News 1166_CP50 Ad (255X90)NEW.indd 2

31

2013/08/23 1:09 PM

news

Ctrack improves driving behaviours to lower risk Excluding external and uncontrollable risk elements, experience has shown that typically 60 percent of a vehicle’s risk profile is attributable to the vehicle’s usage patterns, while the remaining 40 percent relates to the driver’s behaviour, attitude and motoring habits. Those are the views of Nick Vlok, chief executive officer at DigiCore, supplier of Ctrack. With more than 28 years in the fleet management and telematics industry focusing on vehicle and driver management, Ctrack has proved that by providing feedback and incentives to drivers to improve their driving behaviours, leads to lower risk.

Ctrack’s technology and electronic division designs and develops a robust range of asset management and monitoring systems using GPS satellite positioning, GSM cellular communication systems and other advanced communication and sensory technologies. The company promotes skills development, safe driving and low-risk motoring habits. Ctrack has a long-standing vision for insurance telematics with solutions that measure and identify trends, patterns and events in vehicle usage, and driver behaviour that impacts the risk profile of the vehicle. Supported by short-term behavioural change programmes designed to enforce positive change, it translates to direct benefits for the insurance company

and the insured. Ctrack’s latest innovations for insurance telematics focus on pinpointing driver behaviour monitoring and analytical capabilities.

AN EXCLUSIVE, NEVER-TO-BE REPEATED PROGRAMME! Lisa Ellram

Martin Christopher

Silvia Rossi

MEET THE GURUS Global Supply Chain Update 2013 Programme to Include: • Global Mega-trends and their Implications for Logistics & Supply Chain Management • Strategic Sourcing • Collaboration for Freight Logistics • The Journey to Supply Chain Excellence • Strategic Value Management

22 October 2013 – Cape Town 24 October 2013 – Johannesburg

3 Gurus, 2 Cities, 1 Opportunity!

You’ve read their books, perused their articles and now you can meet them in person!

These undisputed and world-renowned thought leaders in supply chain management, are coming to South Africa this October to share their knowledge and industry expertise!

CILTSA – YOUR LIFE-LONG CAREER PARTNER IN LOGISTICS & TRANSPORT!

S00u00 y0u0 0000 000! S0PICS 000 CIL0S0 0000000 0000000 0 00000u0000 00000000000 000!

R300000000000000000000R34000000000000000000 000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000000000 32

September 2013 • Logistics News

World-class warehouse for Gauteng brewery

news

New drive-in, conventional and live racking installations from APC Storage Solutions SA have helped an international beer manufacturing partnership to double its pallet storage space within its raw materials warehouse in Gauteng. This overhaul has drastically lowered the costs associated with storing large pallet volumes and eliminated the need for acquiring additional warehouse space off-site – along with saving on the associated warehouse and logistics costs. “To accommodate these pallet densities, we designed a narrow-aisle pallet racking system with 20 aisle spaces of just 2 000 mm. This is ideal for warehouse operation using our Artix articulated, narrow-aisle forklift, which uses a tilting mast action to place and remove pallets in abnormally narrow aisles,” says Fred Albrecht, APC’s managing director. In addition to the narrow-aisle and forklift solution, APC designed, manufactured and supplied a drive-in pallet racking system that consists of 41 lanes – capable of storing more than 2 650 pallets and increasing total storage capacity to more than 6 000 pallets. Racking systems were arranged and designed by APC in association with the customer’s health and safety team to accommodate safety, health, environmental and quality regulations by leaving some pallet positions open for emergency escape routes, along with some passageways in the rear of the system.

September 2013 • Logistics News 1166_CP50 Ad (255X90)NEW.indd 3

33

2013/08/23 1:09 PM

news

3M promotes reflective road safety

3M, a global leader in reflective technology, recently uncovered a counterfeit conspicuity sheeting ring that was about to flood the SA road safety market with underperforming products. To eliminate the risk of these 3M-branded counterfeits, which don’t feature patented tried and tested reflective and adhesive technology, from entering the market and risking the safety of other road users, 3M, together with the SAPS and SARS, seized and destroyed a 472-box shipment, and has since offered the public some advice on selecting the right reflective technology for every purpose. “Cheap counterfeits do not provide the same quality of retro-reflective performance obtained from original 3M tape, which can lead to low visibility of the vehicle to other road users when they need it most,” said Cynthia Bulekiwe, sales executive, 3M Traffic Safety Systems. “Original 3M tape complies with SABS ECR 104, which is legislated by law to be fitted onto all vehicles with a gross mass exceeding 3 500 kg, or longer than 7 metres, as well as trailers, caravans, minibuses, and some other vehicles. Using counterfeit material renders the vehicle or caravan non-compliant, which is a finable offence,” explains Bulekiwe.

Don’t bring a knife to the

Tand T gunfight!

Tampering and Theft are serious problems, so you need serious solutions. Talk to us about our wide range of top quality security sealing solutions.

Genuine products. Genuine service. Genuine solutions.

Specialists in Security Sealing Solutions Johannesburg (011) 825 3648 Cape Town (021) 555 2170 Durban (031) 709 3120 www.aluvin.co.za

34

September 2013 • Logistics News

Vikela T&T ad Logistics News.indd 1

7/23/12 2:45 PM

Ngqura has world’s fastest growing terminal - again The Ngqura Container Terminal (NCT), operated

by SA port operator Transnet Port Terminals (TPT) is the world’s fastest growing terminal according to a Drewry Maritime Research Company study averaging container throughput across an estimated 120 ports globally. As African container volumes increased 6 percent year on year in May, NCT volumes nearly tripled compared to the same month last year at a throughput of 86 000 twentyfoot equivalent units (TEUS) compared to 32 000 TEUS in May last year. This is the second time in 2013 that NCT has topped world charts at a 167 percent year-on-year growth rate for overall volumes handled. In February 2013, the terminal’s volumes more than doubled, peaking at 129 percent year-on-year thanks to an upsurge in transhipments. Also featured in the report is TPToperated Port Elizabeth Container Terminal (PECT), which placed at number 10 with a year-on-year volume growth of 23,6 percent. TPT chief executive Karl Socikwa said infrastructure investment at NCT and TPT’s 13 terminals across SA would ensure continued efficiency. The investment is underpinned by Transnet’s market demand strategy of which R33-billion is planned across all TPT terminals in the form of equipment purchases and capacity creation projects.

Forthcoming Events SAAFF

Event: SAAFF Annual National Conference Date: 8-9 October Venue: Hilton Hotel, Sandton Contact: Nadine 011-894-2767

Book your LAA table now

CGCSA

Event: Energising the Industry Date: 15-16 October Venue: The Forum, Bryanston Contact: Bookings www.cgcsa2013.co.za

CSCMP

Event: CSCMP Annual Global Conference Date: 20-23 October Venue: Denver, Colorado, USA Contact: Madeleine Miller-Holodnicki, ABC, mholodnicki@cscmp.org

CILTSA

PMAESA

Event: Port Management Association of Eastern and Southern Africa 40th anniversary conference Date: 4-5 November Venue: International Conference Centre (ICC), Durban Contact: Conference organiser Landy Blake Tel: 021-462-5793, email: landy@ pmaesaconference2013.co.za or visit pmaesaconference2013.co.za

The South African Association of Freight Forwarders

FF A 3 A 01 lS 2 ua ess nn r A ong C

Event: ‘Meet the Gurus’ Global Supply Chain Update Date: 22 October / 24 October Venue: Mount Nelson Hotel, Cape Town / Maslow Hotel, Sandton, Johannesburg Contact: Bonnita Becker at CVLC, email: marketing@cvlc.co.za Tel: 011-789-7327/011-7879127 or visit www.ciltsa.org.za

Logistics Achiever Awards Event: 25th Annual Logistics Achiever Awards 2013 Date: 19 September Venue: Montecasino Ballroom Contact: Dianne Holton Tel 011-784-7697 www.logisticsnews.co.za

Shaping Global Economies Through Freight Forwarding Innovation

The South African Association of Freight Forwarders (SAAFF) Annual Congress, presented by Lombard Insurance Group will be a melting pot of debates, trends, opinions, issues and opportunities facing today’s evolved freight management logistics providers.

Date: 8 – 9 October 2013 Venue: Hilton Sandton – Johannesburg Cost: 2-day Package 1-day Package

SAAFF Members R4,300-00 R2,300-00

Non-Members R5,100-00 R2,800-00

Bookings: Please contact Nadine on 011 894 2767 or nadine@tscommunications.co.za

September 2013 • Logistics News

35

industry

Directory of supporting

industry associations CGCSA Consumer Goods Council of South Africa 0861-242-00 • www.cgcsa.co.za CILTSA Chartered Institute of Logistics and Transport SA 011-789-7327 • www.ciltsa.org.za CIPS Chartered Institute of Purchasing and Supply Southern Africa 012-345-6177 • www.cips.org/southernafrica CSCMP Council of Supply Chain Management Professionals SA Round Table 011-678-1820 • www.cscmp.org RFA Road Freight Association 011-974-4399 • www.rfa.co.za SAAFF SA Association of Freight Forwarders 011-455-1726 • www.saaff.org.za SAEPA SA Express Parcel Association 0861-106-402 • www.saepa.org.za SAIIE Southern African Institute of Industrial Engineering 011-607-9557 • www.saiie.co.za SAPICS The Association for Operations Management of Southern Africa 011-023-6707 • www.sapics.org.za

Logistics News

Celebrating 30 years as the independent voice of the Supply Chain industry

Publishing Editor: Dianne Holton Editorial & advertising: 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 Deputy Editor: Michael Brandt Consulting editor: Gerard de Villiers Advertising: Juanita le Roux Tel: 082-494-6592 juanita@logisticsnews.co.za Subscriptions: www.logisticsnews.co.za Design & DTP: Kerry Dimmer – Directions Tel: 011-792-1930 Repro and Printing: Paradigm Print Tel: 011-683-1911 The publisher is not responsible for the opinions expressed by individuals. © No part of the publication may be copied or reproduced by any mechanical or electronic means without the written permission of the publisher.

Thirtieth year of publication.

ISSN 1025-0492

Logistics News September 2013

the independent voice of the

Supply Chain

industry

SCC Supply Chain Council 011-918-7518 • www.supply-chain.org

Subscribe online

www.logisticsnews.co.za

36

September 2013 • Logistics News

Warehousing and materials handling

ALSO:

• DC design • Printing and labelling • Demand management • Customer service • Retail planning • African consumerisation

Enter the 2014 Logistics Achiever Awards

Documentation available on www.logisticsachieverawards.co.za

/41< ¼ <^Q_Q^bUZS `TQ QZbU^[ZYQZ`

MZP e[a^ Na_UZQ__

;ZQ \MXXQ` M` M `UYQ

DVaU aUR URY] \S Va` Pb`a\ZR_` V[ \[R fRN_ NY\[R 052= dN` NOYR a\ `NcR % a_VYYV\[ /AB¹` \S R[R_Tf A\ `RR Wb`a U\d N[Q a\ PNYPbYNaR U\d 052= PN[ R[UN[PR f\b_ _RcR[bR `a_RNZ N[Q R[cV_\[ZR[aNY ]_\SVYR cV`Va 052= P\Z \[R]NYYRa Â&#x2022; % 052=B@. .YY ?VTUa` ?R`R_cRQ @abQf Of 3_N[XYV[ .``\PVNaR` /N`RQ \[ $ a\aNY 052= [Rad\_X c\YbZR cR_`b` \[R dNf dUVaRd\\Q