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Supply Chain Today July 2018 1 S UPPLY CHAIN T O D A Y July 2018 Endorsed by: CCF l CGCSA l CILTSA l CSCMP l SAAFF l SAEPA l SAPICS l SMART X l IMPRESSIVE MANUFACTURING FACILITY IN IRELAND WORLD’S BIGGEST VIRTUAL WAREHOUSE

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Supply Chain Today July 2018 1

SUPPLYCHAIN

TO D A Y

July 2018Endorsed by: CCF l CGCSA l CILTSA l CSCMP l SAAFF l SAEPA l SAPICS l SMART X l

IMPRESSIVE MANUFACTURINGFACILITY IN IRELAND

WORLD’S BIGGEST VIRTUAL WAREHOUSE

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Supply Chain Today July 2018 3

SUPPLYCHAIN

Omnichannel

26 World’s Biggest Virtual Warehouse Forklifts30 An Impressive Plant Indeed36 Good Quality-price RatioPort Handling39 Milestone Agreement

40 Market Forum

ENDORSING BODIES

Afritag (div of Smart Card Society)CCF (Cold Chain Forum) CGCSA (Consumer Goods Council SA)CILTSA (Chartered Institute of Logistics & Transport: SA)SAAFF (South African Association of Freight Forwarders)SAEPA (SA Express Parcel Association) Sapics (Association for Operations Management of SA) CSCMP (Council of Supply Chain Management Professionals)

Also mailed to RFA members

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

Proprietor and Publisher: PROMECH PUBLISHINGTel: (011) 781-1401E-mail: [email protected], www.supplychaintoday.co.zaManaging Editor: Susan Custers Advertising Sales: Louise Cresswell (071 886 1263)Production Manager: Anne RottegliaAdministration and Circulation Manager: Belinda SiegruhnSubscriptions: Please email us at [email protected] if you wish to subscribe to “Supply Chain Today”Printed by: Typo Colour Printing, Tel: (011) 402-3468FSC (Forestry Stewardship Accreditation)

ContentsCover Story4 Safeguarding the Bottom LineContract Logistics

7 Projected 20 Percent Growth in Turnover

Manufacturing Indaba8 Tackling Industry 4.0

Racking and Shelving12 How Long Should Mobile Bases Be?

Sustainability14 Suppliers Bear the Brunt

Streamlining17 Overcoming African Manufacturing Challenges

Future Focus20 How Fast Is the Supply Chain World Changing?

Transportation

24 Theft, Fraud, Corruption Up to Second Place

On the coverGoscor Lift Truck CompanyEmail: [email protected]

Cape Town it is!

Having spent some time in Cape Town mid-Jun at the Sapics annual confer-ence (more on that next issue), those in supply chain with an interest in freight forwarding and clearing will be packing the overnighter again to attend the SA Association of Freight Forwarders (SAAFF) conference being held late August, again in Cape Town.

Gauteng may be the acknowledged economic powerhouse of South Africa but Cape Town seems to be the go-to city for large conferences and expos. From what I understand this has a lot to do with attracting overseas speakers who see the Mother City as a drawcard. The same goes for some Gautengers too no doubt.

This year SAAFF has a lot of ground to cover what with SARS introducing penalties for RCG (Reporting of Con-veyances and Goods) non-compliance from 1 August 2018. Although it’s been mandatory to submit electronic reports from 2009, not too much happened in terms of policing.

In this time, companies should have got their act together but an additional three month grace period ending July 2018 was nevertheless granted. Now time is up and companies must comply.

And there’s more to come. RCG is just first in line as one of the three main pillars of SARS New Customs Act Programme (NCAP). The aim? Comprehensive requirements for reg-istration, licensing and accreditation.

On the international front, SAAFF has been granted the rights to host the FIATA conference next year, quite a feather in our cap! And you guessed it – it’s in Cape Town.

See you there.

Susan Custers, Managing Editor, BA.Comm

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4 Supply Chain Today July 2018

cover story

W e have all heard the phrase “time is money”. And for capital equip-ment operators – such as materials handling equipment owners – it has

never been more true. Today’s tough operating and economic conditions are putting a strain on already constrained bottom lines. If you are in the materials handling business, you probably, by now, know that maximising forklift uptime and efficiency is the foundation to keeping your business healthy and growing.

As fleet owners in Southern Africa seek to take control of their businesses and get the most out of their fleets, there is a growing reliance on ef-fective fleet management systems. To reaffirm the significance of fleet details in today’s operating environment, the uptake of GLTC’s fleet manage-ment system continues unabated. The Goscor Fleet Management System is a complete forklift fleet management product, which operates via the GPRS network. Data is sent via a corporate APN (Access Point Name), a point where a mobile device can enter an IP network.

More than trackingThere is a big misconception when it comes to what fleet management entails. The general un-

Managing a forklift fleet is a huge challenge, to say the least, but the incorporation of an effective fleet management system can make the entire process very simple

and efficient. With that in mind, Goscor Lift Truck Company (GLTC) offers its Goscor Fleet Management System to help its customers improve efficiency and protect their

bottom line.

derstanding is that a fleet management solution is merely a tracking device, however, tracking is only one part of it; fleet management includes many other functions such as forklift maintenance, driver management, fuel management and safety management, driver coaching, among others.

There are three fundamental goals of the Goscor Fleet Management System: optimisation of fleet productivity, creating professional driver behav-iour and monitoring equipment performance, explains John Valentine, national systems man-ager at GLTC. In optimising productivity the fleet management system measures the utilisation of forklifts over a predetermined period, providing a “utilisation snapshot” which establishes, among others, the optimum number of forklifts required in an operation.

A constant basisUptime is now the mantra, the figure of merit in the materials handling industry. Unexpected downtime can be extremely costly as loss of out-put has a direct, negative impact on revenues. Every fleet owner of capital equipment expects 100% equipment uptime. To increase uptime and maximise production efficiency, monitoring equipment performance on a constant basis is one of the key attributes of the Goscor Fleet Management System. This helps prevent engine damage by accurately monitoring overheating, low oil levels, among others, resulting in extended lifecycle of the vehicle and significantly reduced maintenance and running costs.

John says the driver cost is usually the biggest

Safeguarding the bottom line

There is a general school of thought that one can reduce fuel costs by up to 20-25% through taking advantage of fleet management systems

John Valentine,national sales manager at GLTC

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Supply Chain Today July 2018 5

cost on IC machines, followed by fuel, which ranges between 30-40% of total lifecycle costs, but application dependent. Driver performance improvement is quite staggering with the imple-mentation of the Goscor Fleet Management System. Driver performance is a key parameter when it comes to fuel efficiency, which is a key metric in running a profitable business. The system analysis driver behaviour and generates easy-to-read reports to allow for identification of potential areas for fuel savings and optimises accordingly, through driver training, for instance.

“There are also live alerts/reports from the system indicating which drivers/machines have the greatest incident ratios of excess idle for further interventions. Other features such as rpm, transmission protection and speed limiters also reduce fuel consumption. In essence, if the desired parameter is exceeded, the machine can be disabled (safely), or an alert sent indicating the guilty party,” says John, adding that the Goscor Fleet Management System can show a visible fuel usage graph, and has an Excess Idle Cut Out after three minutes.

There is a general school of thought that one can reduce fuel costs by up to 20-25% through taking advantage of fleet management systems. John agrees, saying that GLTC has found this assertion to be true, and customers have easily achieved 10-25% fuel savings where the interventions/management system is used correctly. “This can translate to a R1 500-R2 500 fuel saving per month, dependant on application.”

Growing baseMany customers are increasingly finding that delivering accurate data on fleet performance and all the important parameters on their operations speaks directly to productivity, total lower cost of ownership and ultimately the bottom line. “This is

part of the most vital services that we offer, and it all needs to happen swiftly,” John concludes.

For this reason, a leading South African value retailer recently took delivery of 33 Crown lift trucks from GLTC, all fitted with Crown’s Info-Link fleet management system, representing the largest ever InfoLink site in southern Africa. The fleet comprises 25 reach trucks and eight powered pallet trucks. “We were awarded the tender for 17 x Crown ESR5260-2.0 Super Duty reach trucks with 13 500 mm lift height and a camera system; 8 x Crown ESR5240-1.4 reach trucks with 9 450 mm lift heights; and 8 x Crown WT3020-2.0 Powered pallet trucks,” explains Dale Rosewall, Area Sales Manager, Inland at GLTC.

A key considerationDale says a key competitive edge for GLTC was the fact that the MHE specialist offered a total solution to the retailer, and Crown equipment also boasts the lowest total cost of ownership in the industry, which is a key consideration for any capital equipment operator.

“The machines have since been deployed in various tasks across the DC, based on required lift heights and travel distances. All machines will be used for stock movement within the new distribution centre,” he concludes.

www.goscorlifttrucks.co.za

A leading South African value retailer recently took delivery of 33 Crown lift trucks from GLTC

cover story

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Supply Chain Today July 2018 7

T he main drive over the last year is the company’s investment in training with a view to improving its BEE status. What they are not doing soon is going into the

forecourt business given the question of critical mass and cost to serve in this specific channel. This complex business requires careful consideration

Nor does ID Logistics have any short-term plans for the SADC region, other than perhaps ‘following’ a client into these areas, much as they partnered with Danone to start their South African presence in 2012 or providing a specific solution into the region for a customer.

With Danone as an anchor customer, the client list has grown extensively by adding companies that are new to contract logistics, as well as those who have jumped ship to partner with ID Logistics. And here size does not matter. Among large customers are the ‘smaller players’ who are embarking on the contract logistics journey for the first time.

Eric Hamar, CEO of the ID Logistics Group points out, “We customise a solution for each client so that together we build up logistics expertise and help these concerns expand their markets. We do not enforce our systems but make it our business to learn about each customer’s unique needs and adapt accordingly. And this is not a one-way learning curve. We bring global exper-tise to bear while local companies have much to teach us too.”

New verticalsSays Etienne Juillard, MD in South Africa, “We added eighteen contracts in 2017 largely in the dairy, processed meat, convenience and retail sectors, some of whom have significant logistics needs. “This brings the number of clients to 36 from seven active customers in 2015. With just under 38 000sqm under their belts, the company has capacity up to 50 000 sqm. Most sites are chilled with around 20 percent being ambient but the company signed up Nestle for ambient food distribution in KZN earlier this year. This is a strategic move as is the company’s diversi-fication into flower distribution export as a new vertical, as is their pilot with the OK food division convenience suppliers across 38 stores over four months in the Western Cape.

The company’s energies have also gone into green projects with R7.9 million spent on pho-tovoltaics and a significant investment in brand new double-decker trucks which are projected to increase payload by 20%. The implementation of a secondary transport optimisation programme, which includes a TMS, will allow a projected 12% reduction in the number of drops.

The implementation of a centralised control tower will drive costs down for customers while employees are encouraged to make their voices heard when it comes to innovation especially as the demands of ECommerce increase.

Globally, ID Logistics employs 19 000 people at 300 locations worldwide in seventeen countries. The company aims to enter one country a year. Last year it was Rumania, we eagerly await 2018’s new addition.

Friedel Spies, Email: [email protected]

Projected

20 Percent Growth in Turnover

And this is not a one-way learning curve. We bring global expertise to bear while local companies have much to teach us too

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8 Supply Chain Today July 2018

D igitalisation is about the clash of two worlds and will either wipe out an industry or revolutionise it,” warns Roby Stancel from Virtual Consulting

International

He encourages manufacturing companies to ask, “What materials today might not exist in the future? How will the way we manufacture products change as new applications come about? What regulations and policies will this bring about? How will all of these affect your manufacturing business?”

Riaz Haffejee from Sumitomo Rubber says Industry 4.0 is a big challenge not only for companies but for the country. “We are not entirely sure what it means, and we are still grappling with Industry 3.0 or automation, which has brought about changes in factories.”

However, he believes when the Internet of Things (IoT) as well as cloud computing, robotics, and

The only way to ensure manufacturing excellence and have world class manufacturing companies is to create excellence,” Theo Sibiya, partner at AT Kearney, told delegates at the launch.

MANUFActUrING INDABA

Tackling Industry 4.0The theme of the last three Manufacturing Indabas has been the 4th industrial revolution or

Industry 4.0. This year’s indaba, held recently at the Sandton Convention Centre, was no exception as experts discussed both the opportunities and the disruptions that are coming.

“Supply Chain Today” went to find out more.

AI is added to the current mix, it will provide a much more efficient factory to meet the demands of the consumer globally. “However, this must be balanced against jobs, and the investment into skills and costs,” he emphasises.

Beyond 2020The fact is that manufacturers cannot continue to operate as they always have. “If you want to be on the same scale as Google and Facebook, now is the time to be courageous,” adds Craig Wing, FutureWorld International.

He encourages manufacturers to recognise that Industry 4.0 is different from the previous in-dustrial ages. “It does not require the physical but is a world characterised by decentralisation and a rapid rate of learning. In the words of Alvin Toffler: Learn, unlearn and relearn. This is not easy when you are used to doing the same thing for years.”

Think about smart production, such as robots/robotics which have implications for human labour replacement. “Will we protect jobs or create new industries?” he asks.

He believes that companies who collaborate and create ecosystems will be successful in this new future. “Think exponentially, unlearn linear fac-

The plenary panel on manufacturing the future comprises (l to r) Dr Tebogo Makube of the dti, moderator, Ally Angula of Leap Holdings, Thomas Schaefer, VW Group SA, Marc van Pelt, Pepperl, Riaz Haffejee, Sumitomo Rubber and Ayanda Mngadi from the Manufacturing Circle

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Supply Chain Today July 2018 9

tory processes of the past and learn to become the intelligent exponential factory of the future.”

Make experiencesIt is important for manufacturing to look at how we will play too. Craig uses the example of the lawnmower, invented in 1834. “It replaced the scythe and allowed for smooth lawns which led to lawn games such as tennis and soccer.”

The rise in big wave surfing rise has been enabled by three technologies: the wetsuit, a life vest and the jet ski. “Without these three, big wave surfing would not exist. Sport is becoming more extreme driven by the camera. For example, a wingsuit flyer, who is the real hero, films his manouevres to satisfy the growing numbers of Esports people who live vicariously through these videos. “

A changing Africa Guy Lundy, Senior Client Partner in Korn Ferry’s Johannesburg office, where he leads the Consumer & Retail sector across Southern Africa tackled the question of 4.0 specifically in an African context.

He says Africa is changing from a continent that experienced 60 years of tough times to one which is more stable and therefore more attrac-tive. “While still a risky place, democracy and macroeconomics are ramping up with investors coming in particularly on the infrastructure, ICT, banking and manufacturing fronts. He calls East Africa, the Indian Ocean belt, a hot spot for investment for manufacturing.

“But this growth continuum is circling around Africa and is not a once off effect; it is self-sustaining. Although it’s still early days, it is something that should be on your radar,” he stresses.

On home groundIn this scenario South Africa is somewhat of a mixed bag with a deep-rooted culture of corrup-tion but a legacy of good infrastructure.

“Manufacturing should remain the backbone of our economy and it is our responsibility to en-sure it remains so. The sector ’s contribution to GDP has gone from over 15% in 2008 to under 12% currently. These figures are even scarier if you think back to the 80’s when the sector ’s GDP contribution was 24%, double what it is today,” says Ayanda Mngadi, Group executive for corporate affairs, Hulamin Ltd and who sits on the national executive committee of the Manufacturing Circle.

Added to this is the loss of 400 000 jobs due to the 2008 financial crisis that the industry has not been able to regain. “The manufacturing sector has the potential to create the jobs the country needs so desperately because of its multiplier effect, but the opposite is being experienced,” she laments.

This sector is under threat. Contributing factors are economic uncertainty, price increases, labour and political uncertainty, international competi-tion and energy uncertainty. “The priority is to prevent further deindustrialisation in areas such as the Vaal Triangle and therefore arrest further job losses. Secondly, the Manufacturing Circle has put interventions in place to increase domestic demand and substitute international products.”

Ayanda adds that much more needs to be done, however, especially in terms of policy certainty and she emphasises the importance of being bold in driving industrialisation. “This challenge rests on our shoulders and it recognises our responsibility to contribute to the South Africa we all aspire to.”

Driven by the camera. For example, a wingsuit flyer, who is the real hero, films his manouevres to satisfy the growing numbers of Esports people who live vicariously through these videos

An exhibition was held in conjunction with the Manufacturing Conference

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10 Supply Chain Today July 2018

The Factory of the Year award was launched at this year ’s Indaba, sponsored by AT Kearney. Entries must be in by 20 August 2018 and the awards event will be held in early 2019.

A benchmarking competition that recognises manufacturing excellence, it is well-recognised and established in other parts of the world, with over 30 counties and over 2 000 factories com-peting since 1992. Countries include Germany, the United States and the UK. Winners include Bosch, Ford, VW, Mercedes, BMW, Siemens and Proctor & Gamble to name a few.

The competition measures manufacturing com-panies and benchmarks them against their local peers and global counterparts. Participants receive a report benchmarking their results and are given insights into how they compare with their com-petitors with a summary of their strengths and

SA Factory of the Year improvement potential. Organisations shortlisted receive a factory visit.

More recently a measurement on the 4th Indus-trial Revolution and how organisations are future proofing their business has also been included.

The local trophy has been 3D printed by the Council of Scientific and Industrial Research (CSIR). Its Africa look is aspirational as well as inspirational, with the cogs and elements of manufacturing represented.

The competition is judged by an independent jury. In South Africa it is presented in partner-ship with the Manufacturing Circle, the CSIR, Engineering News and the Manufacturing Indaba.

To register and participate go towww.safactoryoftheyear. co.za

Delivering the keynote address, the Director Gen-eral (DG) of the Department of Trade and Industry (dti), Lionel October says it is important that the Fourth Industrial Revolution be approached from two vantage points: technological and policy/regulatory.

“From a technological standpoint we can all agree that seismic advances are already and will in future have a massive disruptive effect on our economy across the mining, agriculture, manufacturing and services sectors. Think additive manufacturing, digital transformation, computing, the internet of things and massive advances in production capabilities and systems.”

Government has already put in place interventions to support 4.0. Lionel cites two examples. “The Product Life Cycle Management Facility has been put in place at the CSIR, and the dti has revamped and scaled up the National Tooling Initiative now called Future Production Technologies to support the foundry, tooling and other sectors.”

Competition issuesHowever, he says that the importance of a regula-tory and policy framework for Industry 4.0 cannot be ignored. “Already the European Union has moved with speed to ensure that issues of data security and competition issues are dealt with,” he comments.

Driving the industrial effortGiven the importance of this issue, the dti has assembled a task team, which is developing a policy and regulatory framework for Digital Trans-formation. “When this work has been completed, the dti will put in place a process to ensure that SA’s policy and regulatory framework is fit for purpose to maximise the opportunities and withstand the challenges and threats which will be presented by the Fourth Industrial revolution,” he explains. This will include engagement with the private sector and labour.

Black management Working closely with the private sector, govern-ment must secure and support investment in a modernised and competitive manufacturing and export sector. Investment must wherever pos-sible focus on the labour-intensive value chains that link the primary and secondary sectors of the economy: agro-processing; clothing, textiles, leather and footwear; component manufacturing for the automotive and metal fabrication indus-tries; and so forth.

Most importantly, it is vital to secure, strengthen and build black management, ownership and control in the economy and to ensure that em-powerment is enabled and advanced through the creation of decent employment.

Domestic demand Much of this rests on localisation of public pro-curement and intensified efforts to persuade the private sector to support local supplier develop-ment. The DG foresees very choppy waters in the global trading regime as over-supply in critical sectors will lead increasingly to aggressive and

Most importantly, it is vital to secure, strengthen and build black management, ownership and control in the economy and to ensure that empowerment is enabled and advanced through the creation of decent employment

MANUFActUrING INDABA

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Supply Chain Today July 2018 11

even cut-throat import penetration of the domestic market. Taken together with illegal imports this represents a significant threat to the domestic economy.

The DG points out that both the letter and spirit of the BEE codes do not mean that importers who are black owned should trump locally manufactured goods. “If a supply chain is not localised there will be no empowerment, no local job creation, no building of local industrial and technology capabilities and so forth.

Key exports“But we should also concentrate on key existing exporters, emerging export-ready firms and give strong support to new black industrial entre-preneurs with a geographic focus on emerging markets especially on the African continent.”

This requires intensified efforts to secure a streamlined, inter-departmental ‘clearing house’ to steer policy and programme alignment, deal with bottlenecks and ensure that all departments, SOCs and agencies are pulling in the same direc-tion and supporting the industrialisation effort.

“Barriers to entry for new start-ups should be

lowered and we must fully leverage our compara-tive resource endowment advantage into a global competitive advantage. On the energy front, there are significant opportunities emerging in fuel-cell manufacture but we have to address carbon issues while containing job losses. We must allow for systematic retraining and ‘switching’ to ensure we do not fall behind the sustainable production and technology curve.”

In conclusion, the DG stresses that we have to remain competitive in the global arena while mak-ing work for our people in an environment that promotes black empowerment and stability and one which addresses any threats to our manu-facturing economy. “We are currently engaged in an urgent effort to develop an appropriate policy and regulatory framework for e-commerce, the rapid of expansion of which presents both important opportunities and potential threats to the domestic economy.

If a supply chain is not localised there will be no empowerment, no local job creation, no building of local industrial and technology capabilities and so forth

Lionel October, the Director General of the dti gave the keynote address at the Indaba

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12 Supply Chain Today July 2018

rAcKING AND sHeLvING

S o let’s take a six pallet level high system with three pallets between uprights (1m side facing). This equates to 18 pallets on a single side and 36 on the double and at

1.2 ton per pallet its 43 tons per bay. Multiply that by 10 bays and you’re already at 430 tons and about 35m long at 3.5m upright centres.

At Barpro / Storax, mobiles are designed to handle up to 400 tons per mobile and a maximum of 10 or 11 bays long. Should there be a need for longer mobiles due to warehouse configuration, the company splits the mobiles in two halves and harmonises them to run end to end in tandem.

BenefitsThe benefits of this approach are increased life time of the mobiles, decreased downtime and lower maintenance costs over the long term.

In theory long mobiles should operate as affectively as short mobiles, but the operating environment affects mobile racking performance and has to be taken into consideration.

Factors: � housekeeping may not be ideal

� loading of the mobile base may be uneven

� forklift impacts do occur and maintenance may not be ideal

� floor settlement

How Long Should Mobile Bases Be?With reach-trucks now lifting to heights in excess of 12m and pallet weights increasing to 1.3 tons, mobile racking systems are now being designed to six and even sometimes seven levels high. These factors place

extra demands on mobile racking systems and more so on long mobiles than short ones.

Each of these factors places increased demand on the mobile base. The impact is greater for longer mobile bases. A longer mobile base carries more weight and it has more drive power, so the stresses on the mobile base structure are greater.

ResultsJams occur when housekeeping is not done properly and debris gets wedged under the wheel units. Repeated or prolonged jamming causes distortion of the mobile bases, fixings are loos-ened as bolts are smaller than bolt holes and wheel units become misaligned and don’t travel in line with the rails. This puts extra stress on the guide wheels as friction builds up between guide wheel and guide rails and places additional stress on mobiles. More so on long mobiles than short ones.

A mobile base that is not running parallel to the rails is likely to reduce the available aisle width for the fork trucks. A long mobile base will tend to reduce the aisle width more than a short mobile base.

Increased wear and stress of the mobile base can

In theory long mobiles should operate as affectively as short mobiles, but the operating environment affects mobile racking performance

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Supply Chain Today July 2018 13

also be caused by uneven loading of the mobiles ie, more or heavier pallets being loaded at one end. This affect is negligible on short mobiles but can be significant on long ones.

Even the most careful sites suffer from some dam-age, and planned maintenance can be delayed or missed. The effect can only be to add to the burden on a mobile rack. If a problem results in a section of mobile base dragging, then a long mobile base will be more severely affected than a short base.

Misalignment of photoelectric cells on long mobile bases is possible if mobiles bow (bend) in the middle. This can cause safety concerns.

Furthermore, if the leading edge of the mobile base is convex (bowing outwards), then there is also a risk that the straight line between transmitter and receiver units will lie underneath the base behind the leading edge, which means it may not detect objects in the closing aisle.

Differential floor settlement affects rail levels. A mobile rack will gravitate towards the lowest point, wherever it is. The guide rail system will restrain the mobile rack. However there will be increased side thrust, as the flanges of the guide wheels rub more heavily on the sides of the guide rail. This sets up the drag on the mobile base and again, a long mobile base will suffer greater force and greater drag than a short mobile base.

A further advantage of a split mobile base is that it allows the floor designer to use smaller floor slabs, since he or she can include a movement joint along the line of the split in the mobile bases. This results in a floor that is easier to construct, leading to a potential saving on floor cost.

Design featuresDirect geared drive, from motor to drive wheel There are usually more drive motors per mobile base with direct drive when compared with a

Misalignment of photoelectric cells on long mobile bases is possible if mobiles bow (bend) in the middle. This can cause safety concerns

shaft drive system. Consequently, a problem with one drive is less detrimental to a Storax mobile base.

A complete wheel unit fabrication on all wheel units

The wheel unit is the principal structural member on the mobile base. Storax wheel units are all single-piece fabrications. This results in a more rigid base structure, compared with a base where wheel units are split into two halves.

Side members

Storax bases have side members. These are dis-tinct from load carrying bottom beams (orange) and add extra strength to the base structure.

Diamond pattern bracing

The diamond pattern bracing is stronger and more rigid than cross pattern bracing, owing to its four short members, compared with the two longer members that are used in cross bracing. The bracings are strong hot rolled angle profiles.

Each side member/wheel unit connection is dowel pinned on assembly at the joints and ends

Unlike a bolt, a dowel is a dead fit whichprevents the mobile base from stretching.

Barpro has in excess of 250 systems in Southern Africa that have stood the test of time over a 25 year period. Systems are designed to max-imise storage capacity, equipment up time and availability, warehouse operational efficiency and minimise running costs over the long term.

Barpro Storage Sysytems, Email: [email protected]

High quality seats Large range Catalogue: WWW.TVH.COM > Downloads

TVH PARTS  SOUTH AFRICA (PTY) LTD 90 Electron Avenue • IsandoKempton Park 1600 T +27 11 281 [email protected]

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14 Supply Chain Today July 2018

SUPPLIERS BEAR THE BRUNT “ Both companies are already placed within

the top three based on market share and the merger will affect all areas of the UK grocery and FMCG supply chain as retailers

are forced to adjust their pricing to remain com-petitive,” comments David Gurr, Global Channel Manager at InfinityQS.

This despite Mike Coupe, Sainsbury’s Chief Executive, having gone on record to state the move will not lead to any store closures or job losses, with prices of many popular products expected to be reduced by 10%, which sounds like a great deal for UK consumers. However, big questions remain around where the savings are coming from and who is paying the difference.

Squeezing suppliersIn addition to singing about being ‘in the money’, Mike has claimed the merger ‘creates a great deal for customers, colleagues, suppliers and shareholders’, but if consumers are enjoying the benefits of lower prices, this must surely be at the expense of suppliers?

Mike has also reported that the expected outcome would save the new group £500m, with £350m

sUstAINABILIty

With rising production and import costs, suppliers are being squeezed from both ends

As supermarket giants battle for supremacy, retailers and FMCG suppliers of food and beverages will need to adapt

by becoming more agile and boosting their operational effectiveness. Sainsbury’s plans to merge with Asda have led to growing concerns around the financial impact on suppliers

and issues of monopoly and competitiveness.

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coming from ‘leveraging the buying power of the combined business’. In this context, ‘buying power’ can be interpreted as negotiating strength, as the new entity will be in a much better position to demand larger discounts.

“With rising production and import costs, sup-pliers are being squeezed from both ends and it will be imperative they ensure their industrial processes are streamlined and operating at full efficiency,” says David

Maximising efficiencyThere is great potential for cost saving throughout the FMCG manufacturing sector, he adds. “For example, according to the Waste and Resources Action Programme (WRAP), UK manufacturing accounts for approximately £1.2 billion of pre-ventable food wastage which equates to nearly one million tonnes of food. There are a variety of technologies and strategic decisions that can be deployed to ensure the reduction of excess material and improved sustainability.”

One of the most effective ways for suppliers to retain a healthy profit margin is by optimising their manufacturing processes to maximise efficiency by implementing manufacturing intelligence solutions that automatically identify areas of inefficiency.

“In addition to making substantial cost savings and enhancing operational effectiveness, implement-

ing cloud-based data monitoring and analytics technology gives manufacturers full visibility into each stage of their manufacturing process and supply chain,” David adds.

This enables operators to easily gather valuable process data that can be compared and contrasted in real-time across multiple lines, factories and regions to instantly identify bottlenecks and areas of improvement.

“Once inefficiencies have been identified, manu-facturers and suppliers can adapt their operational approach, make substantial cost savings through reduced Capex and Opex and regain their com-petitive edge. Together, these approaches can help offset any downward pressure on margins resulting from this merger,” he says.

“By investing in manufacturing intelligence and making the appropriate adjustments, suppliers and manufacturers will be in a stronger position to respond to market pressures and commercial demands by improving overall production effi-ciencies, enhancing sustainability and increasing their bottom line,” David concludes.

InfinityQS, www.infinityqs.com

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From labour unrest to an unstable electrical grid, water shortages, harsh conditions and asset risks, local manufacturers can face unique and

intricate operational challenges.

new items onto an existing stock take order, and so on. This makes transacting easy and efficient,” Heilet explains.

With these adjustments, user efficiency and experience is improved, overall operations are streamlined, and functionality is enhanced. “The key is to improve Application Link Enabling (ales) and distribution planning with a strong emphasis on warehouse controls and stock accuracy, incor-porating barcode scanning,” she adds.

Reduce risks and achieve benefits“By implementing intelligent management reporting with an industry-standard middleware layer and a common data repository, deployment can be phased in per division to reduce risk and achieve benefits as early as possible.”

Scanning outbound stock movements ensures the accurate dispatching of stock, correct loading of transport vehicles and reduces the requirement for credit notes. “With the right solutions, main-tenance is made easier, upgrades are simpler and standardised processes have best practice con-siderations and functionality built-in,” she says.

“Improved user efficiency with automated, streamlined system processes, and ease of data extractions and reporting, empower users to enjoy flexibility, configuration capabilities and exponentially increased management confidence,” she continues.

Systems should be scalable and be easily deployed to any new business units or ventures. The solu-tions should support the overall business strategy and promote lean, cost efficient operations.

Effective software solutions deliver key business drivers, while upgrading business process manage-ment, enabling effective process standardisation and automation, removing customisations, and leveraging new Enterprise Resource Planning (ERP) functionality, while enabling modern “Digital Manufacturing” principles.

Softworxwww.softworx.co.za

T here are various fac-tors to consider, and strategic manage-ment is essential, but

with the right technology, these challenges can be overcome

for a profitable, seamlessly run manufacturing plant.

Heilet Scholtz, Executive at Softworx, Infor ’s Master Partner in Africa, says

there are distinct challenges that con-tinue to affect the manufacturing industry.

“To succeed, manufacturers must aggressively simplify business processes and follow standard system procedures while eliminating functional customisations.”

Streamlining business To streamline business processes, warehouse and shop floor mobility, solutions should be deployed across manufacturing plants to increase visibility and automate outbound transactions and stock control within plants and warehouses.

“This will reduce the time it takes to do cycle counts and stock takes and manage warehouse inbound transactions. These solutions ensure the close integration production control and finished goods stock control,” she says.

When implementing solutions, flexibility is an integral consideration. Specific business require-ments must be addressed, without complicating deployment through customisations.

“Solutions must deliver parameterised configura-tion capabilities, such as scanning multiple stacks and accumulating the scanned quantities of the same product onto a stock take order; adding

“To streamline business processes, warehouse and shop floor mobility, solutions

should be deployed across manufacturing plants”

Heilet Scholtz, executive at Softworx

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20 Supply Chain Today July 2018

I guess in the future most of us will see a whole lot of robots manag-ing our warehouse and trucks whizzing around without drivers.

Anything that moves can quickly be automated, and in the warehousing industry most physical activities can be automated quite easily, and have been for the last 20 years. So, what’s the big deal?

The real difference in physical auto-mation of the future is going to be in the ability of the equipment to continually learn to do the job bet-ter. As each device does its job, it

continually ‘thinks’ – how can I do this better? There is also a new buzz that is going to become common which is ‘swarm intelligence’ where not only one device continues to learn but the different devices communicate with each other,

so the whole swarm continues to talk ‘among themselves’, improving the entire system overall.

Solving real problemsIt’s a science fiction writer ’s dream. Imagine lots of self-thinking robots that talk to each other? As they operate they get cleverer and more efficient. Now we just need to get them to maintain and repair each other and we are really migrating to a different world. I guess we then only need humans to consume the products we distribute.

Is this where the supply chain world is going? What’s it going to look like in 10 years? Is it going to be full of automated vehicles or are we going to move into a world completely different from what most of the industry expects.

We may have great automation that gets more and more efficient every day but how does that solve the real problems in the supply chain, ie, having the right levels of the best stock to fulfil our customer orders.

How Fast Is the Supply Chain World Changing?

While visiting a materials equipment manufacturer in Europe recently, their technical executive claimed that within 3 to 4 years, their automated guided vehicles (AGV’s) would be cheaper than buying standard forklift trucks. After all, other than the complex electronics (which are getting cheaper every day), AGV’s are a lot

simpler than manually driven machines.

Martin Bailey

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Supply Chain Today July 2018 21

Robotics process

automationTraditionally we have had all

sorts of demand planning software readily available from the major players

in the supply chain software industry. The problem is none of it works very well. Forecasts are always difficult. They are never very accurate and, without lots of manual interference, they tend to develop their own way of diverging further and further from reality.

However, there is a whole new wave of software coming at us. Generally, under the heading of ‘robotics process automation’ (RPA) or ‘cognitive automation’ or ‘machine learning’ which is self-learning automation for unstructured processes. This type of software learns as it completes each task, so next time it will do better.

As the environment changes, the system evolves. RPA enables you to react quickly, without recoding or reconfiguring software or interfaces. Already it is being used by auditors (see www.blueprism.com or www.kryonsystems.com). Imagine your audit being done instantly without any bother-some accountants? It’s only a matter of time before RPA migrates to the supply chain industry.

Companies such as www.kinaxis.com have already started marketing what they term ‘self-healing’ systems. The big guys such as SAP & Oracle are also now ‘playing’ in the machine learning space (see: SAP Leonardo Machine Learning and Oracle AI Platform Cloud Service or read about Kofax www.kofax.com).

Artificial intelligenceHowever, the more exciting stuff is going to come at us from real Artificial intelligence. Take a look at the South African company, dataprophet.com. We are at the beginning of introducing Artificial Intelligence (AI) in the supply shain and I predict in five years it will be the driving force behind real innovation in the industry. Just think! Someone out there continually learning, adapting and making instantaneous decisions to do it better every time.

Maybe we could use AI to help coach our soccer and rugby teams? We could then move from plan A to an infinite number of options based on real time learnings as the matches progress.

Clearly, there is also the anti AI group in the world. For example, Elon Musk warns that AI could create an ‘immortal dictator from which we can never escape’ and ‘destroy humanity’. Too many Terminator movies perhaps?

BuzzwordsThere are lots of other new technologies coming at us such as Blockchain and Big Data. Not sure I understand how Blockchain is going to

There is also a new buzz that is going to become common which is ‘swarm intelligence’ where not only one device continues to learn but the different devices communicate with each other, so the whole swarm continues to talk ‘among themselves’, improving the entire system overall

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A Showcase of Southern Africa’s Manufacturing Capabilities

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Who Will Exhibit? Manufacturers across a variety of sectors, including:

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Promote local manufacturing

The Local Manufacturing Expo Aims to:

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Supply Chain Today July 2018 23

So, until robots empowered with Artificial Intel-ligence take over our world, we should be able to use the new technology to improve our supply chains and create a better world for us humans.

Martin Bailey, Industrial Logistic Systems, www.ils.co.za

substantially improve operations. It may improve controls but may also simply add cost to the supply chain or how Big Data is any different from present data processes. But they are great buzzwords to bandy about and, because nobody else understands their use in the supply chain, they are not going to contradict you.

The Enterprise computer market is worth trillions of dollars per year and soon we are going to be flooded with AI technologies as each vendor claims better and better systems. Unscrambling their claims from reality may be a real challenge and we are likely to see lots of teething problems before reaching supply chain heaven.

At the end of the day our supply chains are still the same: we need to get the right goods to the right people, on time, in full and at the right cost. Only we need to do it faster, safely, more accurately, with fewer resources and in an environment where there is more and more product proliferation.

It’s only a matter of time before RPA migrates to the supply chain industry.

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24 Supply Chain Today July 2018

trANsPortAtIoN

T heft, fraud, corruption with 32% of re-sponses is in at no.2, up from no.3 in 2017. Cyber incidents (29%) and natural catastrophes (25%) are new emerging

threats. Changes in legislation and regulation are at 24%(no.5) and have moved down from no.4 in 2017.

The interruption of business operations by various factors such as fire and natural disasters, has a tremendous effect on revenue in transportation. In South Africa, this is often caused by high road and rail accidents.

South African roads are known to be high risk, especially over the festive and holiday periods. Although the 2017/2018 festive period deaths toll figures have decreased by 11% to 1527, the number is still very high, consequentially making the roads unsafe and transportation very risky. The complexity of ‘getting back to business’, is often underestimated by companies, and bottlenecks can also affect their emergency plans.

Rail networksThe Railway Safety Regulator that is heavily in-volved in investigating rail accidents reports that a majority of their accidents emerge from collisions and derailments. The regulator also points to the accidents as consequences of operational risks such as human error and disruption of opera-tions but nonetheless cost the operator millions

Theft, Fraud, Corruption Up to Second PlaceThe Allianz Risk Barometer 2018 reveals that business

interruption is a top concern for the transportation industry with 37% of responses from a record 1 911 risk

experts from 80 countries.

If hackers were able to take control of a large container ship on a strategically important route they could block transits for a long period of time, causing significant economic damage

AGCS Africa CEO, Thusang Mahlangu

If hackers were able to take control of a large container ship on a strategically important route they could block transits for a long period of time, causing significant economic damage

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Supply Chain Today July 2018 25

of Rands in operational losses. Vandalism has also become a common problem in the rail and road networks.

The maritime sector is no exception to risks as-sociated with the disruption of operations. Last year saw a further decrease in the number of piracy incidents recorded as only 191 incidents were reported globally, down from 246 in 2015. This is the lowest total recorded since 1998, and reflects the successful measures taken to contain the threat of Somali pirates in the Gulf of Aden and the Indian Ocean. However, other risk challenges remain, such as the rise in crew kidnappings in parts of West Africa.

Hijacking a shipTheft, fraud, corruption is a huge challenge across many sectors, however due to the large amounts of money circulating in transportation it makes it more susceptible to this risk. The threat of cyber-attacks continues to be significant. Most attacks to date have been aimed at breaching corporate security rather than taking control of a vessel. “The shipping sector doesn’t have a particularly heightened risk awareness when it comes to cyber. As no major incident due to a cyber-attack has taken place yet, many in the industry are still complacent about the risks,” says Captain Rahul Khanna, Head of Marine Risk Consulting at AGCS.

As many as 80 percent of offshore security breaches are estimated to be down to human

error. “IT security should not be put on the back-burner. If hackers were able to take control of a large container ship on a strategically important route they could block transits for a long period of time, causing significant economic damage.”

Costing millionsIn South Africa, changes in legislation and regula-tion may cause uncertainty for many industries particularly the airline industry that is compara-tively the most regulated. The airline industry contributes over R150 billion towards the South African economy. A slight discontinuation of cargo flights due to non-compliance could cost the sec-tor millions in a few hours. Such interruptions may also translate to increased costs of food in the same way that increased fuel levies and road tolls impact the cost of goods and services.

“Modern supply chains and multimodal distribution pose truly global challenges. It is important for businesses in transportation to have operational risk management support through risk consult-ing network, advice on worldwide infrastructure transport logistics (including delay in start-up), engineering, supply chain and logistics risk, as well as cargo security, packaging and industry best practices as part of their risk management plan,” concludes AGCS Africa CEO, Thusang Mahlangu.

Allianz, Lesiba Sethoga, Tel: (011) 214-7948Email: [email protected]

trANsPortAtIoN

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26 Supply Chain Today July 2018

W ith more than 3.5 million sqm of storage space at 271 operating sites around the world, the company is now closer than ever to its customers

and offers round-the-clock access to more than 150 000 products and services through its new omnichannel structure, enabled by a powerful, self-developed Artificial Intelligence (AI) solution.

“Due to our holistic approach in the digital trans-formation of our business model, over the last few years we have consistently and comprehensively created the important prerequisites to enable the launch of innovative solutions.

“By digitally connecting our global inventories of roughly 150 000 products we can offer our customers the widest possible selection of our various materials and services and optimum availability 24/7,” says Hans-Josef Hoss from the board of thyssenkrupp Materials Services.

From plastics, steel products and nonferrous

metals to diverse materials and supply chain management services, customers of thyssenkrupp Materials Services today want customised access to the entire range.

“In surveys and personal discussions we listened closely to what our customers want, and of key importance for more and more of them is the ability to order our products and services when-ever they need them. Our omnichannel solution guarantees direct access to us and our products, anytime and anywhere,” says Hans-Josef.

Tailored channelsProviding all required channels is key to the suc-cess of an omnichannel approach. Customers can place orders via individual customer portals, EDI interfaces, online shops and in the future also via external platforms.

“We digitise all our items and offer information in real time. Whether it’s just-in-time or just-in-sequence, customers will be able to order in line with their needs using the channel that’s most convenient to them. The focus is 100% on our customers and their requirements. That’s the basis for increasingly smart interaction in the future,” adds Axel Berger, Head of Digital Transformation at thyssenkrupp.

By digitally connecting our global inventories of roughly 150 000 products we can offer our customers the widest possible selection of our various materials and services and optimum availability 24/7

World’s Biggest Virtual Warehouse

thyssenkrupp Materials Services is making rapid advances with its digital transformation, with its materials experts digitising its entire range and consolidating it into what is claimed to be the world’s biggest virtual warehouse.

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Supply Chain Today July 2018 27

oMNIcHANNeL

Already a positive experience with first customers has been gathered during a practical trial.

A new B2B portal as part of the omnichannel approach is already in use and will go live in summer 2018. “After the official launch we will continue to make further optimisations and in-tegrate customer feedback. Work on our highly complex omnichannel structure is an on-going process as is the digital transformation of thys-senkrupp Materials Services,” says Axel, who de-spite this also stresses the central role of personal contacts, “Alongside the new digital channels, the human factor – personal customer support by our experienced sales staff – will always be a key success factor for our business.”

Holistic approach “To profit sustainably from the advantages of digitalisation, it’s important to take a holistic approach. In addition to new, smart solutions in procurement – such as our new cloud-based purchasing platform – and sales, which are now served via our omnichannel strategy and the vir-tual warehouse, the intelligent digitalisation of operating processes is also of key importance,” says Hans-Josef.

By starting to connect all its machinery last year with its (IoT) Internet of Things (IoT) platformme toii, the company has reached a key milestone in its digital transformation along the entire value chain.

“Toii is an in-house development that allows machines of different types and ages to com-municate with each other on a worldwide basis. In combination with our omnichannel approach this is leading to significantly faster and simpler coordination and planning processes,” explains Hans-Josef.

“This is an effect which is substantially enhancing the efficiency of all players in the supply chain and a goal we will continue to work on in the future with the aid of new digital technologies,” he concludes.thyssenkrupp Materials Services GmbHwww.thyssenkrupp-materials-services.com

Providing all required channels is key to the success of an omnichannel approach. Customers can place orders via individual customer portals, EDI interfaces, online shops and in the future also via external platforms

3.5 million sqm2

150.000 products271 operating stores

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www.transnetfreightrail-tfr.net

TRANSNET FREIGHT RAIL“THE LINK FOR AFRICAN TRADING”

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www.transnetfreightrail-tfr.net

TRANSNET FREIGHT RAIL“THE LINK FOR AFRICAN TRADING”

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30 Supply Chain Today July 2018

T he initial travel arrangements were seamless but nothing compared with what we soon realised was the scale of this ‘operation.’ The opening took

place over a full week with over 300 media and guests flown in from all over the world. In fact, Combilift had their own stall set up at Dublin airport to chivvy arriving guests to the nearby Radisson hotel, from where we were transported for 90 minutes, using a series of mini-vans, to Monaghan.

Having settled into our various hotels, the next day certainly didn’t disappoint. A three-hour guided tour of the plant at a steady pace just about covered it, to give an idea of the size of the facility. The building has been deliberately designed in an L-shape with admin and engineering in the middle of the ‘L’, so that all the functions of the business are centrally connected.

The two partners of Combilift, Martin McVicar and Robert Moffett, started planning their new premises three years ago on 100 acres of industrial land. One of the guests told us on the tour that their new building is like chalk and cheese, compared with their old one.

DifferentiatorHaving started out twenty years ago, Combilift was initially focused on handling long and over-sized goods as a differentiator consid-ering that there are over 200 producers of fork trucks worldwide. After the 2008/09 downturn, the company felt it was too ex-posed to the construction sector and entered the manufacturing and warehousing space.

The result is that they are now the largest global manufacturer of multi-directional forklifts. Side loaders, articulated forklifts, pedestrian stackers and trucks for the poultry and agricultural sectors complete the line-up as do straddle carriers. The company is

ForKLIFts

It’s not often we are invited on an overseas junket but “Supply Chain

Today” happily climbed on board for the official opening of Combilift’s new manufacturing facility in Monaghan,

just outside Dublin, Ireland.

Two carriers can also work in tandem with in-built features ensuring that safety is taken care of as two operators move in the same direction and at a co-ordinated speed

An Impressive Plant Indeed

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Supply Chain Today July 2018 31

particularly proud of their counterweight truck which is the smallest in the world to move in all four directions.

Also up there among their achievements is the fact that water-based paint is used to coat their products, and the facility is testament to other green initiatives such as lighting, space heating etc.

Heavy dutyThe second arm of the Combilift business is their straddle carriers. These are not off-the-shelf items but are mostly customised for clients and form around 30 percent of the company’s business. This equipment continues to find use when mov-ing large, heavy objects.

Able to lift items at the centre of gravity and straight up, two carriers can also work in tan-dem with in-built features ensuring that safety is taken care of as two operators move in the same direction and at a co-ordinated speed.

LogisticsThe third arm for Combilift is its move into pro-viding solutions rather than just product. The company will help its clients to re-design and reconfigure their warehouse space. This focus on logistics is less about sales and more about partnering with their customers to get the very most out of their facilities.

The staff talks about space, safety, speed, service and solution. Getting a six-metre aisle down to two, advising a client in Brazil to change their cold storage facility from north to south-facing – these are some of Combilift’s recommenda-tions as they work with clients to achieve the best results.

Good farming stockAnd results are top of mind for Combilift manage-ment. Martin McVicar advises that he and Robert started the business twenty years ago with two staff members and now employ over 500 people. They’ve made a point of employing people from the neighbouring area with 60 percent of the workforce being ex-farmers.

Says Martin, “These men and women are excel-lent at finding a solution to a problem coming as they do from an agricultural background where they learn to be hands-on from an early age. In fact, many of our staff still go home to feed the livestock at the end of a hard day. Pretty much nothing defeats them.”

These men and women are excellent at finding a solution to a problem coming as they do from an agricultural background where they learn to be hands-on from an early age

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Supply Chain Today July 2018 33

This can-do attitude is reflected in the com-pany doubling its turnover in the last five years to €250 million and an expectation to double again in the next five. In fact, we are told that €1 billion is the aim through organic growth rather than acquisitions.

Not having saturated the Irish market, there is still plenty of scope on home ground and much business to be done internationally. Combilift exports to 85 countries worldwide and is watching the outcome of Brexit with interest.

South African presence“Supply Chain Today” asked Martin about their presence in South Africa. He says, “Although currency fluctuations are hard on South African clients, your country has a strong manufacturing bias which is good for us. Of the BRICS countries, you are the most open to importing from Ireland.

“Also as money is tight, assets are sweated which is a good advertisement for us par-ticularly as our products go the distance. For example, one of our first units sold was to Columbus Stainless which after 30 000 hours is still going strong. A nice order has also come in for a brewery in South Africa who are particularly interested in the green credentials of our trucks.”

No article on one of Ireland’s top five manufacturing plants would be complete

ForKLIFts

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34 Supply Chain Today July 2018

without a short note on the press lunch, scrump-tious food, awe-inspiring Irish dancers and rousing traditional music. An over-riding final impression, apart from the size and scope of the plant is the warmth, openness and professionalism of the entire Combilift staff.

www.combilift.com

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Supply Chain Today July 2018 35

Smart Containers Group, the Swiss-based manufac-turer of the world’s safest temperature-controlled containers for food and pharmaceuticals, has announced a strategic partnership between its FoodGuardians division and Schoeller Allibert, one of Europe’s providers of reusable and Re-turnable Transit Packaging (RTP) and a world-leading manufacturer of shipping containers and packaging products.

The partnership will bring to market an overnight delivery box for food and groceries, catering to both individual consumers as well as the hospi-tality industry.

The collaboration between FoodGuardians and Schoeller Allibert is aimed at creating an innova-tive container solution for the online delivery of groceries, which is more environmentally friendly and offers fresher produce to consumers than current market solutions.

In developing an overnight delivery box for food and groceries, FoodGuardians, whose containers are super lightweight, highly robust, and cost-efficient, will benefit from Schoeller Allibert’s experience and expertise in the mass-manufacturing of reusable assets for the food industry.

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F o o d G u a r d i a n s , meanwhile, will extend cool-ing and data m o n i t o r -ing capa-bilities in Schoeller Al l iber t ’s e x i s t i n g service offer-ings, enabling food suppliers to monitor a containers’ performance and the integ-rity of the products shipped.

“Our work together will go a long way in address-ing the wasteful, throw-away solutions which currently characterise the online deliveries mar-ket, which is growing more popular by the day.

‘We want to ensure it costs less than €1 per day to protect the products that come to people’s homes when they shop online,” Richard Ettl, CEO of Smart Containers Group concludes.

www.smartcontainers.ch

Fresh groceries guaranteed

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36 Supply Chain Today July 2018

K I O N Baoli has launched the KBD 50-60-70 and 100 forklift trucks onto the EMEA market. They bring together German technology and engineering at a competi-

tive cost compared with those manufactured in the Far East. This combination results in an exceptional quality-price ratio.

KBD is the perfect choice for companies looking for a sturdy and good quality product without the need for a super-equipped lift truck. These forklifts can be used in outdoor areas such as construction sites or yards and are available in a Diesel version both for the EU market (CE compliant), equipped with Cummins engine, and for the extra-EU market, provided with an Isuzu engine.

The load centre is 600mm and these forklift trucks are designed for heavy duty ensuring safety, comfort, manoeuvrability and good performance.

The large, spacious and easily accessible cabin is designed to guarantee great visibility, even for the highest loads, while the steel engine compart-ment of the KB+ guarantees not only strength and functionality but also maximum simplicity for servicing and maintenance operations.

Broad range of optionsCustomers can choose from a broad range of op-tions such as the full cabin with windscreen wiper, internal fan, heater and air conditioner, vertical exhaust, fifth valve for the hydraulic system and the electronic driving direction selection.

The radiator is fully made of aluminum and the automatic transmission is first class. Moreover, KBD 50-60-70 and 100 forklifts are equipped with a reduced diameter steering wheel (300mm) that provides excellent maneuverability in all operational conditions.

Also ergonomics have been taken into account thanks to a spacious driver ’s seat, a very large

ForKLIFts

Good quality-price ratioAvailable in four versions with load capacities of 5 000kg, 6 000kg, 7 000kg and

10 000 kg both for the EU and the Extra-EU markets, KBD lift trucks utilise technology and quality to offer a product that ensures safety and comfort to the driver.

Perfect combination between the engineering and technology of a major global group and the pragmatism and attention to costs which is typical of products manufactured in the Far East

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Supply Chain Today July 2018 37

operator footboard and lifting cylinders cushioned during the descent guaranteeing maximum safety when handling more delicate loads. KBD 50-60-70 and 100 forklift trucks are distributed in the EMEA area by a network of carefully selected dealers, just as for all the KION Baoli products. The commercial network is one of the strongpoints of the brand, as it guarantees knowledge of the territory, spare parts ready for delivery, pre and after-sales support.

Global presenceKION Baoli is a manufacturer of forklift trucks and warehouse equipment which operates in over 80 countries around the world. The company forms part of Kion, the European market leader and the world’s second largest manufac-turer of warehouse technology. It is also famous for brands such as Linde, Still and Dematic.

KION Baoli is the perfect combi-nation between the engineering

and technology of a major global group and the pragmatism and attention to costs which is typical of products manufactured in the Far East. The company is directly present in Europe, the Middle East and Africa, with a dedicated structure serving 26 markets.

Baoli EMEA manages all the sales and after-sales aspects and has a vast warehouse located in Italy, which acts both as the centralised distribution hub, with a stock of more 100 forklifts ready for delivery, and as a spare parts area, which is one of the largest in Europe with an area of over than 10,000 m2.

www.baoli-emea.com

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Your boutique business destination

Surrounded by lush gardens in the hub of Johannesburg’s northern suburbs, The Peartree in Craighall Park caters for groups of two through to 100 guests in nine well-appointed and equipped business suites.

Breakfast meetings, working lunches, indoor or outdoor dining, half-day and full-day packages including all welcome refreshments, teas and lunches are offered in Standard, Gold and Platinum packages.

Secure parking, business centre, fibre optic broadband AV, lockable space, all underpinned by highly qualified and helpful staff dedicated to ensuring your event is a success, make The Peartree a destination of choice.

www.thepeartree.co.zae-mail: [email protected]: 011 781 140141 St. Albans Ave, Craighall Park

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Supply Chain Today July 2018 39

reseArcHForKLIFts

Partnering with a global brand such as CVS Ferrari show tremendous faith in our ability to

provide superior services to important customers such as Transnet

K wane Capital is a wholly owned subsidiary of Ritam Holdings (Pty) Ltd.

Signed in Johannesburg in early 2018, it is estimated that the distribution and localisation

agreement’s capex investment in Operation Phakisa will exceed R1 billion - with an initial market offtake of R3 billion in the first year – which will also lead to significant job creation and skills investment in the ports and handling industry.

“Our agreement with CVS Ferrari represents an important milestone not only in the ports and handling industry but in our own business opera-tions,” says Mcebisi Mlonzi, Chairman and CEO of Ritam Holdings

A show of faith “Partnering with a glob-al brand such as CVS Ferrari shows tremen-dous faith in our ability to provide superior ser-vices to important cus-tomers such as Transnet as well our commitment to growing this crucial industry through job creation and skills investment. We look forward to a mutually beneficial and fruitful relationship with CVS Ferrari,” Mcebisi continues.

Colin Clegg, Regional Manager – CVS Ferrari adds, “CVS Ferrari will, through our agreement with Kwane Capital, support the localisation of our product range in South Africa which also means we will be supplying specialist skills and training to support the programme.

“Also, with a dedicated distribution in South Africa we can significantly improve our after-sales support and services to our current and future customers.”

Premier range of forkliftsThe agreement will see Kwane Capital distribute

CVS Ferrari’s premier range of forklifts, empty container handlers and reach stackers. The

company’s reach stackers for example can lift equipment exceeding 45 tons while

its forklift range has a lifting capac-ity of 48 tons. Kwane Capital will

provide sales and after-market support to CVS Ferrari’s South African customer base.

Importantly, the agreement pro-vides for the transfer of intellectual

property and designs from Italy to South Africa enabling significant

product localisation. This will include the assembly of partially assembled or

pre-fabricated parts as well as the local manufacture of specific equipment such as

the container straddle carrier through the TFM Group in which Kwane Capital holds a 63.7% stake.

The TFM Group specialises in the manufacturing, sup-ply and support and import of specialist truck bodies.

CVS Ferrari has been a supplier of port handling equipment for over 20 years in South Africa, with an unblemished record of quality, reliability and service. The company currently has port handling equipment actively operating in 250 ports worldwide.

Kwane Capital, www.ritamholdings.com

Port HANDLING

In a first for the South African ports and container handling industry Kwane Capital signed a distribution and localisation agreement with Italy’s CVS Ferrari S.p.A, one of the world’s leading suppliers of port container handling equipment.

Milestone Agreement

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40 Supply Chain Today July 2018

Abland, together with partners Giflo Developments and SOM, have com-menced work on a new mixed-use precinct called Irene Boulevard in the heart of Irene, South of Pretoria. This site will become the new home to Barloworld Logistics, a division of Barloworld who will be vacating their Sandton offices to occupy this new site.

“What started as a retail centre deal has now evolved into mixed-use precinct, where we will be integrating retail and

commercial offerings. The mixed-use precinct came to life after we shared our master plan with Barloworld who were impressed with the offerings of the precinct and immediately bought into the bigger concept,” says Thinus Delport, Development Director, Abland.

The precinct will bring a bespoke lifestyle and a 16 000m² shopping centre to the Irene market with the Barloworld Logis-tics headquarters comprising 5 500m² of the property.

Breaking ground “We broke ground mid-March 2018 and are aiming for completion of the Barloworld Logistics headquarters in April 2019. We are extremely excited to see the precinct come to life so quickly. Barloworld Limited is a partner in the Barloworld Logistics development and we are privileged to have one of their headquarters become a showpiece of what the rest of the precinct will look like,” Thinus concludes.www.abland.co.za

A British team of scientists at TLX Cargo Ltd have invented the world’s

first cargo cover/thermal blanket that incorporates Phase Change Material (PCM) into its structure, solving the problem of hot lane temperature excur-

sions on the tarmac.

The covers combine an outer surface that reflects 97% of ther-mal radiation over the measured spectral range with TLX PCM Fibre-Flex technology within the structure of the cover that remains flexible even when frozen and can be moulded around corners, while being thin, light and easy to handle.

In its liquid state the PCM fibre will hold the PCM in any orien-tation, which means TLX Fibre

Flex can be used for walls as well as the top of the cargo cover.

TLX sales director, Thomas Hunt says, “TLX PCM is designed to remove the problem of the temperature spike seen on most pallet data loggers in air cargo when the pallet is off-loaded on to the tarmac at hot locations. It’s a game-changer in the temperature controlled logistics sector solving problems such as:

excursions on 15-25°C routes, power outages on 2-8°C routes, upgrading and reducing the size of parcel shippers along with controlling temperatures of ULD’s for perishables.”

TLX Cargo Ltd, www.tlxcargo.co.uk

A WORLD FIRST

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Supply Chain Today July 2018 41

The productivity-enhancing features of the Tennant T500e scrubber-dryer, distributed exclusively by Goscor Cleaning Equipment (GCE), provides for the highest performance on almost any hard-floor surface conditions.

GCE National Sales Director, Peter Es-

terhuizen, explains that the T500e represents an upgrade of the T5, including new scrub head sizes, avail-able in five different configurations. “The

new model offers un-matched versatility and

consistent results, while lowering total c leaning costs, due to its

no-nonsense, easy-to-use design.”

The machine’s redesigned squeegee and integrated P-trap reduce the risk of slips and falls, while also improving water pick-up and preventing water from dripping onto floors after clean-ing. The optional flow-control valve decreases the risk of contact with

No Nonsense

dirty recovery water, which mitigates the need for secondary cleaning in the event of any spillages.

Peter notes that the T500e provides for faster scrub and transport speeds, thanks to a high-speed transaxle that increases productivity. It also has longer run-times, in addition to new daily maintenance yellow touch points. The new easy-access front bucket fill location makes it easy to fill the ma-chine as well.

The T500e’s 85 l solution tank is easy to clean, which prevents the build-up of mould, bacteria, and other contami-nants. The propel direction switch and speed settings are easy-to-reach due to improved operator ergonomics. Goscor Cleaning Equipment, Debby MarxTel: (011) 230-2600Email: [email protected]

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IDL SCT 130x180mm.indd 1 7/4/18 8:44 PM

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42 Supply Chain Today July 2018

The perfect choice

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All Traigo80 forklift trucks ordered from April 2018 come fitted with Continental solid tyre SC20+ as standard. “The decision to change the tyre came in response to feedback from the market requesting more resilient and high durable tyres for the electric counterbalance range,” says Giorgio Polonio, General Manager Toyota Material Handling Manufacturing, Italy. “This applies in particular to the Traigo80 range as it is meant for more intensive applications indoors as well as outdoors.”

“The SC20+ merges the best of two worlds. Not only does it offer durability and mileage, it also saves valuable energy even on abrasive grounds.”

The tyre comes with a new compound that com-bines high mileage with low rolling resistance. It is hard-wearing and puncture resistant and particularly shines in highly intensive appli-cation indoors as well as outdoors on uneven surfaces such as paving slabs or cobble stone pavements.

Email: [email protected]

Imperial Logistics has opened another Supply Chain Lab (SCL) in Cape Town. The logistics service provider will support its clients in developing their own digital strategy at a co-working complex in the restored port district. The service provided at the new SCL ties in with the success of the first Supply Chain Lab, which Imperial Logistics set up in Berlin 18 months ago.

IT experts from Imperial Logistics working with logistics experts, IT specialists and IT students will develop structured solutions that are tailored to individual client requirements.

Michael Lütjann, Chief Information Officer (CIO) at Imperial Logis-tics says, “Digitalisation is changing the way that we operate our business in a fundamental manner. Companies that wish to remain competitive should make the best possible use of disruptive tech-nologies and new trends, redesign long-serving business models and establish new ones.

“We’ll continue in Cape Town what we started in Berlin, that is, pursuing flexible, open and innovative approaches. We have to break loose from traditional thought patterns. The SCL in Berlin has opened the doors for new projects for the company. We have already worked with a number of international clients there,” Michael concludes.

Imperial Logistics, www.imperiallogistics.com

Creative Environment

Shamrock Handling Concepts, a wholly-owned subsidiary of Invicta Holdings Limited, has appointed Kobus Cronje as regional sales manager for the Gauteng region.

Shamrock Handling Concepts is the sole distributor of Moffett truck-mounted fork-lifts and also supplies other leading brands including Combilift, Innolift and Agrimac all-terrain forklifts, as well as Multisweep sweepers.

Shamrock Handling Concepts reports into Cri-On th

e Mo

ve terion Equipment (Pty) Ltd, sole supplier of TCM forklift trucks in South Africa and certain neighbouring countries.

Kobus joined Criterion Equipment in December 2009, initially as parts manager and was later appointed into the position of business development

manager, also with responsibility for the management of certain key accounts.

Email: [email protected]

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Supply Chain Today July 2018 43

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Due to an increasing demand for cost-efficient transportation man-agement solutions from small and medium-sized enterprises (SMEs), Kuehne + Nagel Integrated Lo-gistics has developed the new KN ControlTowerDynamic.

The tower will allow SME custom-ers to benefit from a scalable and efficient supply chain management solution with faster time-to-value and a revolutionary pricing model. The KN ControlTowerDynamic has been designed to fulfil all major SME requirements especially for

Offering for SME’scustomers in the industrial, consumer and high-tech industries.

Gianfranco Sgro of Kuehne + Nagel for Contract Logistics says, “Small and medium-sized enterprises are of special importance to us. They face the same challenges as the big corpora-tions in terms of requiring advanced end-to-end visibility solutions and harmonised reporting and analytics. KN ControlTowerDynamic is the first product in the logistics market that is specifically designed for SME’s around the world.”

www.kuehne-nagel.com

Area Sales Manager for Linde Durban, Leverne Poisson (centre) recently vis-ited one of Amcor Flexibles branches in Durban, to hand over a R14 and E16C truck for use in their warehouse. With all the safety features that the Linde products provide, the decision to add to their existing Linde fleet was an easy one. Seen with Leverne taking deliv-ery of the trucks is on her left, Rafiq Peerbhai, Production Supervisor and on her right is Lesley Govender, Supply Chain Supervisor.

Linki de Jongh-Brownwww.linde-mh.co.za Sa

fety

fea

ture

With Cummins being one of the largest genset manufacturers worldwide, it is able to provide customers with a broad range of power solutions. Moreover, it differentiates itself from many of its competitors due to its robust distribu-tion network.

Cummins owns its distribution channels in many key African markets, or has very strong joint venture (JV) partners. What this means for customers is a ‘one-stop shop’ not just for products,

African distribution network

but also for service provision. Cum-mins Africa Distribution Sales and Business Development Director Vivek Malapati explains, “Many of our com-petitors mostly use independent dealers, meaning customers often have to deal with multiple companies, even for the smallest issue, which adds red tape and slows down turnaround times.”

Cummins’ distribution network is extremely well-run, comprising highly-skilled staff, allowing it to cater for

all customer needs, from acquiring a 17 kVA unit to installing a 20 MW power station. “We are not only able to

provide upfront application engineer-ing support, but project execution from start to finish, in addition to aftermarket service,” Vivek notes.

The company is currently investing significantly in its African distribution network. “If you look not only at power generation, but many of our other end markets, one of our key strengths has been our investment in tooling, technicians, and stockholding, both for products and spare parts,” Vivek concludes.

Deepa RungasamyTel: (011) [email protected]

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44 Supply Chain Today July 2018

MArKet ForUM

Emirates SkyCargo, the freight divi-sion of Emirates, has signed an MoU with Cainiao Smart Logistics Network Ltd. (“Cainiao”), the logistics arm of the Alibaba Group, to jointly facilitate the delivery of cross-border parcels as Cainiao looks to expand its global logistics infrastructure with Dubai as a hub.

It is a landmark agreement for both Emirates SkyCargo and Cainiao to leverage each other ’s strengths in cross-border e-commerce trade and airline cargo operation. It will also support Cainiao’s recently unveiled plans to develop six global hubs in six cities around the globe with Dubai being one of them.

Under the terms of the MoU, Emir-ates SkyCargo and Cainiao will work closely to manage e-Commerce ship-ments in the Middle East and other neighbouring regions through Dubai. Further details of the tie-up will be announced progressively as they are developed by the two parties.

Using Dubai as a hub

E-commerce is one of the strongest growth areas for the air cargo industry globally. Emirates SkyCargo has been exploring opportunities to collaborate with players in order to offer value-added services over and above cargo capacity between airports, using the strategic advantages of Dubai as a hub.

Dubai is well positioned to help the

Nabil Sultan, Emirates Divisional Senior Vice President, Cargo with Xiaodong Guan, General Manager of Cainiao Global Business at the MoU signing

company achieve their goal of 72-hour global delivery.

Emirates SkyCargo offers cargo capac-ity to over 155 global destinations on a modern all-widebody fleet of 267 aircraft including 14 freighters, 13 Boeing 777-Fs and one B747 F.

www.skycargo.com

ExxonMobil has signed a new distributor agreement with Zestcor, an experienced sales, procurement and supply chain management company in South Africa. The agree-ment is designed to support an efficient and reliable supply of high-quality base stocks in South Africa and the sub-Saharan region.

Zestcor has a local business footprint in the South African petrochemicals industry as a Broad-Based Black Economic Empowerment Company. This commercial relationship will expand ExxonMobil’s global presence and provide local customers with additional access to base stocks capable of meeting a broad range of blending needs.

Distributor Network Says Julia Ruessmann of ExxonMobil, “Zestcor not only complements our position in South Africa by providing local supply chain solutions, but supports our long-term commitment to meeting customer demands in the country.”

Zestcor is uniquely equipped to receive bulk ExxonMobil shipments and handle both truck loading and delivery, as well as pipeline transfers, with their strategically-placed bulk onshore tank storage facilities at Bidvest Tank Terminals in Island View, Durban.

www.corporate.exxonmobil.com

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Supply Chain Today July 2018 45

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Babcock’s commitment to delivering to the highest standards was again highlighted recently when, amidst stiff competition, DAF Trucks was awarded the International Truck of the Year 2018 for its new XF and CF series. Named as making the greatest con-tribution to road transport efficiency, the DAF XF and CF trucks set new standards of driveline effectiveness and overall performance. Babcock is the sole distributor of DAF Trucks in southern Africa and has successfully grown the brand in the country over the past eight years.

The annual International Truck of the Year award is presented to an individual vehicle or model range introduced into the market in the previous 12 months, with the winner chosen by an inde-pendent jury of leading road-transport journalists from 23 European countries.

The award is considered the most prestigious honour in the European truck industry and is judged on sev-eral criteria including technological innovation, driver comfort, road safety, drivability, fuel economy, environmental ‘footprint’ and total cost of ownership.

Innovations in DAF Trucks’ new XF

Truck of the Yearand CF series such as completely new powertrains with highly efficient transmissions and rear axles, compact after-treatment systems, and sophis-ticated software and aerodynamic optimisations result in reduced CO2 emissions and a fuel consumption improvement of an outstanding 7%, compelling the jury to declare the new DAF XF and CF trucks as leading the way in transport efficiency.

BabcockMark [email protected]

Home Depot (USA) has announced it is spending $1.2 billion to overhaul its supply chain for faster delivery to consumers and businesses.

According to a Walker Sands’ “2018 Future of Retail” report: To compete with Amazon, Home Depot should not only focus on the speed of delivery, but transparency as well. Only 30% of consumers rate retailers’ communica-tion with them about the status of their online order as ‘excellent,’ compared with the 42% who say the same about Amazon.

Home Depot should also consider third-party delivery. One-fourth (25%) of consumers say they would trust a third-party delivery service to deliver tools and home improvement products they ordered from a retailer.

Automated processesHalf of shoppers specifically hunt for retailers and brands with free shipping while 63% of shoppers consider free shipping highly important when purchasing online, and 19% of shoppers are dissuaded from online purchases when the shipping time frame is unknown.

More than 8 out of 10 buyers (83%) would choose a supplier with excellent eCommerce and customer portal capabilities, even if the supplier ’s product was moderately higher priced than a competitors.

When reflecting on past purchasing habits, nine out of 10 B2B buyers (89%) say they make more purchases online today compared with just a year ago.

www.homedepotstores.co.za

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46 Supply Chain Today July 2018

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CounterfeitingAdama, one of the world’s leading crop protection companies, has selected Zetes to improve the traceability of its end-products throughout its plants based in Israel. As a result of increasing global regulations and respond to market demands, Adama is optimising its packaging lines to fight counterfeiting, maintain product integrity, strengthen supply chain security and ensure customer safety.

After reviewing the solutions of a number of providers, Adama selected Zetes’ packaging execution solution, ZetesAtlas. The solution will introduce fully automated serialisation, identification and traceability on Adama’s packaging lines and ensure it adheres to increasing local and global regulatory standards.

ZetesAtlas increases the performance of pack-aging lines and ensures secure identification and traceability along the entire process. The solution also enables organisations to maximise overall operational efficiency by minimising manual activity, mitigating the risk of errors and saving staff valuable time.

The system will enable Adama to establish and maintain a secure and efficient supply chain with real-time reporting between its ERP system and the packaging line. The first phase of the project started in 2017 with the implementation of ZetesAtlas on 10 packaging lines. During the second phase (in 2018-2019) the remaining lines should be equipped with the solution.www.zetes.com

A new black-owned logistics company servicing the KZN and inland fuel depot route is being aided by some of the newest tech in logistics, as it goes toe-to-toe with big transport companies.

Using drones to create their niche in the complex business of fuel distribution, Crusade Logistics plans routes and monitors driver safety, provid-ing customers with two-hourly updates on the estimated arrival time to the depots, ensuring that they are ready to receive the fuel.

Currently bridging fuel for Chev-ron South Africa and the Caltex brand in Kwa-Zulu Natal, the 51% Black-owned and 30% Black female-owned fuel hauler recently secured Enterprise and Supplier Development (E&SD) funding from Chevron South Africa to expand its business.

Crusade Logistics has received industry accolades for driver safety, fuel efficiency and reli-

Pay it forwardability. “We mark out the routes first with drones to give drivers visual cues and familiar landmarks on an electronic journey plan. We have seen a marked improvement in driver safety and it also reduces the risk of trucks getting lost with a full load of fuel onboard,” says co-owner of Crusade Logistics, Wesley Naidoo.

He adds, “The interest free E&SD funding and the fuel bridging con-tract with Chevron South Africa have boosted our cashflow and improved our access to additional credit, al-lowing us to expand our fleet from two to 14 trucks.”

He concludes, “For us, one of the biggest benefits has been receiving mentorship from Chevron South Africa and integrating their best practice standards and culture into our busi-ness. We have been so inspired by how this programme has assisted us, that we are now helping other small black-owned businesses. In our own way, we are paying it forward.”

Crusade LogisticsSuzanne [email protected]

Global partner of the yeariWMS, an independent global software developer, innovator and team augmen-tation partner, has been named 2017 Partner of the Year by global provider of supply chain solutions, HighJump.

The award recognises iWMS for out-standing growth in leading the adoption and integration of HighJump’s unique suite of supply chain solutions into warehouses in Africa, Australasia and India. These solutions have enabled

companies in these regions to become automated and connect with a ‘platform for the future’.

Over the past nine years, iWMS has assisted companies in Africa and Australasia to sustainably grow their businesses through the automation of their supply chains. This has enabled companies to be flexible enough to meet continuous business changes and diverse customer needs easily, at

a relatively low total cost of ownership.

iWMS’ head office is in South Africa and their expansion into Australasia, India, and America puts the group in a unique position of having teams around the world, giving companies access to the best IT expertise worldwide and the ability to provide support 24/7.

iWMSwww.iwms.co.za

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THESE BRANDS SUPPORT RESPONSIBLE RECYCLING OF USED OIL

Support brands that care for the environmentUse ROSE approved collectors and recyclers to dispose of your used oil. 021 448 7492 • [email protected] • www.rosefoundation.org.za

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