Supply Chain Today March 2010 

The beat goes on

The 2010 Soccer World Cup will offer
many challenges for the operations
management profession. But what
happens when it is all over? Supply
Chain and Operations Management
professionals must maintain a steady,
reliable beat as we continue to move
African industry forward to ensure our
sustainable footprint.

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 Supply Chain Today March 2010 www.sapics.org.za

Featured on the cover Cleaning Equipment
4 A Clean Sweep
Nissan 7 Ideal for Maintenance
www.nissandiesel.co.za
Racking and Shelving
9 Working Flat Out
Palletising
13 Three Options
Market Forum — Unit
17 Market Forum
Cover Story
21 Expanding Across Southern Africa
Trucking
23 Promise of Stronger 2010 Truck
Sales
Software
25 Credit Card Protection?
27 A Viable Option
Logistics
29 It’s Not All About Price
Copyright
All rights reserved. No editorial matter published in
Supply Chain Today may be reproduced in any form or
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While every effort is made to ensure accurate reproduc-
tion, the editor, authors, publishers and their employees
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whether arising from negligence or otherwise or for any
consequences arising therefrom. The inclusion or exclu-
sion 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.
Mar 2010
Contents
Green
31 Comply or Explain
Standards
35 Thirty New Entries
Market Forum — Supply
37 Market Forum
Endorsing Bodies
Afritag (div of Smart Card Society)
CGCSA (Consumer Goods Council of
SA)
CILTSA (Chartered Institute of
Logistics & Transport: SA)
SAEPA (SA Express Parcel
Association)
SAPICS (The Association for
Operations Management
of Southern Africa)
also mailed to:
CSCMP (Council of Supply Chain
Management Professionals)
The monthly circulation is 4 025
Proprietor and Publisher: Advertising Sales:
PROMECH PUBLISHING Tarina Kriel
Tel: (011) 781-1401
DTP: Zinobia Docrat and
Fax: (011) 781-1403
Sanette Lehanie
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supplychain@promech.co.za Printed by:
Website: www.promech.co.za Typo Colour Printing
Tel: (011) 402-3468
Managing Editor:
Susan Custers
Supply Chain Today March 2010 
CLEANING EQUIPMENT
A Clean Sweep
Although a good old Hoover may get the job done when
cleaning an office or small retail outlet, keeping a
warehouse dirt-free takes a little more elbow grease. Issues
such as floor types, gradient, safety requirements, square me-
terage, dirt type and hazardous materials all impact the type
of cleaning protocols used.
F
or this reason, Ricky Bodmer, MD, and
Alex Theodoridis National Sales Manager
at Goscor Cleaning Equipment, both em-
phasise the importance of doing a site
survey before recommending a cleaning system
or products for a particular warehouse. “Let’s
face it, the numbers for this type of machinery
are higher than for a simple vacuum cleaner,”
says Ricky, referring to pricing.
It’s an industry first in terms of sweepers and it’s stood
up to some pretty heavy trials
“The survey is imperative to provide the right
information such as the type of dirt (size, volume,
density) to be cleaned. The survey will also reveal
information pertaining to the floor type, coverage
frequency, and time constraints from a produc-
tivity perspective, power source, maintenance
requirements and environmental impact.
 Supply Chain Today March 2010
“All these factors need to be considered to ensure
the correct machine is selected for the job. “Our
8300 series sweeper/scrubbers used by Shoprite
DC have racked up 20 000 hours over seven years
of use, a testament to their impressive reliability.
Ultimately, the size of the facility does not nec-
essarily determine the size of the machine. This
is set by the frequency and standard of cleaning
required within the environment.”
On the floor
While Goscor’s products are used in a wide range
of commercial and industrial applications, Alex
admits they have enjoyed high market share in
the warehousing sector, with companies such as
Spar, Supergroup, DHL, Shoprite/Checkers and
Woolworths using their equipment. “Pick n Pay
just ordered R1,8 million worth of equipment for
the Perishables section in one of their centres,”
he tells us, raising the issue of specialised equip-
ment for specific areas.
“Not every machine can handle every environ-
ment,” Ricky continues. “Freezer units, which are
prone to ice build-up due to condensation, need
special attention since operating in temperatures
around the -30°C mark can pose challenges. Apart
from trouble running machinery, the cleaning
solutions literally freeze before they can be used.
Some clients will try to get around the problem
by shovelling the ice off the floors, but end up
damaging the surface.”
Dust busters
The real trick to a clean environment is not merely
sweeping dirt from one area to another, but
actually removing it entirely. “A filtered vacuum
system is necessary if you want to control dust
properly,” says Alex. “The dust controlled system
will ensure that .03 of micron is contained within
the machine and the air that passes through the
system is clean and dust free, obviates the need
for cleaning dust off products later, which is es-
sentially a double handling of dirt.”
The company has a number of cleaning products
that achieve this with considerable efficiency, a
couple of which are new on the market. “Our
cyclone rotates the air and dust through the
system, changing the direction and the airflow.
70% of the dust is re-directed back to the hopper
reducing the amount of dust accumulating on the
canister filter,” Ricky continues. “It’s an industry
first in terms of sweepers and it’s stood up to
some pretty heavy trials. We just tested it in a
cement plant and it was very successful.”
Combination station
The team is also particularly proud of its new
 CLEANING EQUIPMENT

M20/M30 combination sweeper/scrubber. “We Getting fast

basically reinvented the sweeper/scrubber,” says Also available as an addition to existing machines
Alex. “Sweeper / Scrubber are two machines bolted is the Fast system. “It’s a 2.2 litre box that fits
together on chassis to perform as one operational onto machines to deliver a predetermined chemi-
machine. The technology has improved whereby cal solution in foam form, which is more effective
the two independent components have been in removing dirt,” says Alex.
replaced by one system to give it both wet and
dry vacuum capabilities in one action. Admit that while it isn’t cheap the saving in cleaning
“It can handle any situation, from shopping centres fluids make it a cost-effective option
to car parks to power stations. It’s particularly
useful in bottling plants, for instance, where an “Since it uses precise amounts of cleaning fluids,
accident may involve broken glass and liquids it’s far more efficient in terms of chemical use.
that need to be cleaned up. Before you’d need Many employees utilise the ‘glug glug’ method
to clean twice; now the operation is handled in when measuring cleaning liquids: they simply pour
one step, saving time and fuel.
Green cleaning
While these new products are impressive in their
own right, two new developments in the company’s
stable will have further reaching impact, since
they can be attached to any other product in the
range for added efficiency. “Our Echo cleaning
system is going to make waves in the cleaning
industry,” says Alex. Echo is technology covert
normal tap water into a powerful cleaning de-
tergent. Water and oxygen and fused together
and then passes through a water cell charging
the water positively and negatively to create an
effective cleaning agent.
Within 45 seconds, the charge dissipates, leaving
dirt and chemical-free water to be removed im-
mediately. The system literally allows dirty water
to be washed down the drain, provided the dirt Ricky Bodmer, MD, Goscor Cleaning Alex Theodoridis, National Sales
removed is safe, which raises another issue. Equipment Manager

Overlooked
“Although there’s a lot of attention
given to the chemicals used in cleaning
products, very often the type of mate-
rial being removed is overlooked,” he
continues. “Obviously hazardous waste
gets special treatment, but people
sometimes disregard the fact that
they’re pouring oils and chemicals into
our water system when they dispose
of dirty water after cleaning the floor
of an industrial facility.”
Currently available as a hand-sprayer,
the unit is currently available as an add-
on to other cleaning equipment, allow-
ing it to operate either with chemicals
or without. The pair admit that while
it isn’t cheap the saving in cleaning
fluids make it a cost-effective option.
“The water has a sanitising quality, and
eliminates bacteria, mould and fungus,
making it useful in areas where food
hygiene is vital. The hand-held unit is
particularly useful in restaurants and
at check-out tills to clean surfaces,”
says Ricky.

Supply Chain Today March 2010 

CLEANING EQUIPMENT

fluids into the machine from 25 litre drums,

paying little attention to dilution ratios.
“Very often it’s not necessary to use large
amounts of chemicals to clean properly,”
he informs us. “A correctly planned cleaning
routine isn’t just about washing regularly with
litres of cleaning fluid. In some instances,
a thorough chemical clean should be
followed by a series of scrubbing or
sweeping jobs to remove residue.
Build-up of cleaning products can
actually trap dirt and exacerbate
the problem.”
Many employees utilise the ‘glug glug’
method when measuring cleaning liquid
Getting it right
Ricky adds that it’s also important to use the
right product for a particular application. “Take
perishables, for example,” he explains. “If a bag
of sugar breaks and is not immediately swept
up, the sugar will be repeatedly driven over by
forklifts until it hardens and can’t be removed
with ordinary cleaners. It has to be dissolved
with an emulsifier first.”
Alex chuckles at the mention of materials han-
dling
equip-
m e n t .
“Wherever
there’s a forklift,
we’re behind it, cleaning,” he
laughs. “However, just as the content
of a warehouse will determine the power supply
used for forklifts, so it affects the power source
of our machinery, since some emissions are
hazardous to foodstuffs.
“The variables involved in setting up a cleaning
programme are as numerous and diverse as the
countless applications you might encounter in the
commercial world. Which is why establishing a
thorough site survey is such an important aspect
of getting it right.”
Alex Theodoridis, Goscor Cleaning Equipment, Tel. 011
230 2600, Fax. 011 393 1310, email. alext@goscor.co.za,
www.goscorcleaning.co.za

 Supply Chain Today March 2010


Ideal for Maintenance
3
A premium quality floor M Building & Commercial
maintenance pad is ideal Services (B&CS) Product
for cleaning uneven and Manager Guinevere McLeod
fragile floors, across a broad says that while their Scotch-
range of industries, making Brite Brush ‘N Mop is a highly
some surfaces coming up niched product, it is expected to be
‘refurbished’ instead of just well-received by contract cleaning
clean. companies, facilities management
operations and even in-house clean-
ing services in large corporations.
“When used on a floor like a basketball court or
other soft flooring, the product will give a ‘refur-
bished’ appearance. Brush ‘N Mop is a specialised
floor pad which is placed on a single rotary disc
machine and generates both a scrubbing and a
cleaning effect in one - hence the ‘brush and mop’
title. The backing of the pad is also designed
for optimal adhesion to the machine, ensuring
effectiveness.”
Unlike anything currently available in the floor-
cleaning arena, 3M’s Brush ‘N Mop is used in
daily maintenance on delicate and uneven floors,
including rubber, ceramic and porous flooring
materials.
Fewer passes
“It’s ideal for maintenance,” explains Guinevere,
“and reduces cleaning time as it requires fewer
passes than a regular cleaner pad to get the same
cleaning effect.”
A further advantage is that the cleaning surface
of the pad is made from synthetic polyester fibres
with bristles that act as micro-brushes to clean
uneven floors and get into grooves. “In testing the
product at its own premises, the CSIR in Cape
Town was extremely pleased with the results after
cleaning its porous ceramic floor,” she says.
Neutral
The key feature for users is the two-in-one con-
CLEANING EQUIPMENT
cept which reduces labour while still producing
a high quality finish. “Brush ‘N Mop is effective
when using just plain water,” she says. “A neutral
detergent may be used, but there is no need for
harsh cleaning solutions which can damage certain
flooring materials or create a build-up.”
3M says the pads can be washed at 60 degrees
Celsius and will still perform at optimum levels.
“The company understands the importance of
cost savings on both materials and labour right
now in the contract cleaning market. Products like
this give our customers the competitive edge,”
adds Guinevere
With customers who operate in areas like facili-
ties management, food services, the hospitality
industry and hospitals, 3M continues to bring
innovative products to market that facilitate the
highest hygiene standards.
Slim design
“What’s more, 3M’s Ultraclean Mat is currently
being launched and will be another tool in the
hygiene arsenal of these industries. The mat
comes in four sizes and two different colours
– blue and white - and is placed at the entrance
to hygiene-sensitive areas such as hospital wards,
operating theatres, pharmaceutical laboratories
and vehicle body shops, where bacteria and dirt
can create huge problems,” she notes.
The Ultraclean Mat comprises an adhesive backing
layer and 40 adhesive sheets in a slim design that
can fit across an entrance way, but still allow the
door to open and close over it. “The adhesive on
the mat removes dirt from the bottom of shoes
or trolley wheels. The mat contains antimicrobial
particles that kill or inhibit the growth of micro-
organisms such as bacteria and fungi, as well as
helping to destroy viruses.”
Dust-free
Each Ultraclean Mat has 40 adhesive layers that
will last according to the traffic flow in the area.
Once a layer is used, it can be torn off to expose
a new layer. “The layers are numbered for quality
control and to allow customers to reorder before
all the sheets are finished,” Guinevere adds.
The mat’s antimicrobial properties make the
product ideal for the healthcare industry, as well
as food and beverage facilities, where hygiene
is of the utmost importance. In industries where
dust can create costly problems – like vehicle
body shops – having particles stick to the mat
rather than being swept into the air can affect
the quality of work produced.
3M South Africa, Russell Tandy, Tel: (011) 867-7763, Email:
russell@ngage.co.za
Supply Chain Today March 2010 
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Working Flat out
In the world of the distribution warehouse, the floor is king. With racking soaring countless metres into
the air, a floor which is uneven in terms of millimetres at base level can equate to teetering reach
trucks 16 metres up.
H
owever, when “Supply Chain Today”
speaks to Peter Norton, Director, and
Mike Stanley, Sales Manager at Con-
crete Laser Flooring (CLF), safe forklift
operation is not their only concern. “Floors take a
hammering at the best of times,” says Peter. “With
industrial space becoming increasingly scarce,
Bad joints can also lead to wheel damage on forklifts
Joint failure can lead to load tippage and product loss
RACKING AND SHELVING
warehouse facilities are taking a smaller footprint
while offering the same storage space. They’re
doing this by growing upwards. This means higher
racking with more sophisticated equipment for
materials handling.” When equipped with extra
length masts, reach forks and solid polyurethane
wheels, many of these can weigh more than a
standard forklift, putting additional
point load stresses on the floor.
Raising the roof
“Our work takes two forms,” explains
Peter. “Firstly we work on new instal-
lations using laser screed flooring ma-
chines calibrated to achieve excellent
levels and flatness. We had a boom in
this type of work a couple of years ago
when there was a big move to build
new distribution centres in the FMCG
sector. We did floors for Pick ‘n Pay,
Shoprite/Checkers, Woolworths and a
string of others.
Uneven in terms of millimetres
at base level can equate to
teetering reach trucks 16
metres up
“Our other focus is on remedial work,
where we’re seeing an upsurge lately.
Here we’re doing a lot of repair and
maintenance work on existing floors to
accommodate higher racking. In many
instances, facilities require an upgrade
but it’s not possible to move premises
or expand outwards. Raising the roof
and fixing the floor is the easiest option
and the best way to get more out of your
existing infrastructure,” he adds.
Take detours
According to both Peter and Mike, dam-
age to floors is principally seen around
joints in the concrete. These damaged
joints will affect the tyres of forklifts,
resulting in slower operation as drivers
reduce speed or take detours. Damage
to goods is also a side effect as forklift
accidents result in dropped products.
“We advise clients that repairing a floor
is actually an investment in productivity
optimisation,” says Peter.
Supply Chain Today March 2010 
RACKING AND SHELVING

Taking a knock not cheap, sensitive electronic equipment such as

At this point, Mike interjects, making reference to
materials handling equipment. “Apart from wheel
bearings, sensors and tyres, which are certainly
Exposed aggregate can be repaired with ABS410
barcode scanners and on-board computers also
takes a knock due to constant jarring,” he tells
us. “While this equipment is built to be robust, its
working lifespan can be compromised
by unnecessary impact.”
Floors are also subjected to abuse from
‘cowboy’ forklift operators, who may
often move pallets by simply shoving
them along the floor. “These pallets
can do a lot of damage to joint areas,”
warns Peter. “In other instances, small
objects such as screws, etc, may be left
on the floor and are repeatedly driven
over by forklifts, inflicting even further
injury. We offer basic training on how
to keep floors clear during operation to
avoid this. We also offer maintenance
contracts in which we repair floors on
a continual basis to keep them in top
condition.
Human element
Most importantly, the danger to human
life can be minimised by ensuring a
smooth work surface for equipment
to operate on. “We did an installation
for Telkom where they’d upgraded to

10 Supply Chain Today March 2010


CLF’s Roadware concrete mender can have cracks filled within ten
minutes
Concrete Laser Flooring’s system ensures superflat floors for maximum warehouse efficiency
RACKING AND SHELVING
high-racking with 13 metre man-up
forklifts,” Dave says. “The machinery
is completely automated, running on an
underfloor wire guidance system. It was
imperative that the floor be superflat
and free of any type of obstruction to
avoid danger of the equipment top-
pling over.”
Peter explains that the project required
injection grouting to stabilise rocking
joints along with the addition of a su-
perflat screed over the entire surface.
“Many of our projects involve repair of
new floors that don’t make the grade,”
he says.
“Builders are installing floors that may
have been acceptable 20 years ago,
but now they’re not good enough.” The
pressure of the construction boom also
took its toll, with floors being laid quickly
and without proper care. “There aren’t
a lot of specialists in this industry,” he
adds. “We’re often called in by engineers
to advise on technical details.
Right start
“We believe that it’s best to get it right
from the start. If your roof leaks, or
your aircon packs up, it’s possible to
repair these without too much impact
Supply Chain Today March 2010 11
RACKING AND SHELVING

on your operations. However, fixing a floor can

literally bring work to a halt,” Peter warns.
“Fortunately CLF’s system is fast and relatively
unintrusive. We can fix a floor in ten minutes
and dust emissions are exceptionally low. Our
equipment and materials can also be used in
temperatures as low as -32°C, so freezers don’t
need to be switched off in order for us to make
repairs. In fact, we’re often called in to level
freezer floors on which ice has built up.”

A damaged joint in need of repair Builders are installing floors that may
have been acceptable 20 years ago, but
now they’re not good enough

According to Peter, the real beauty of the service

offering is that we are a one-stop shop for their
clients. “The service idea is simple, but effective.
As all good ideas are,” he smiles in conclusion.
Peter Norton, Concrete Laser Flooring, Tel. 011 323 2700,
Fax.0 11 823 2103, email. peter@concreteflooring.co.za,
www.concreteflooring.co.za

The joint repaired and ready for work

12 Supply Chain Today March 2010


Three Options
In many cases, a corrugated carton that has been correctly
designed and specified for a particular product can fail at the
palletisation stage if incorrect methods are used.
T
here are basically three methods of pal-
letizing a carton. These include column
stacking, brick stacking and half column
or half-brick stacking. Each has its own
set of considerations to bear in mind.
Column stacking
Using the column stacking method, the cartons
are placed directly on top of each other. Each
layer of successive cartons is placed squarely on
top of the carton below. The advantage of this
method is compression strength. A pallet that has
been built in this way ensures that the weight
of the cartons above are transferred directly to
the load bearing area of the carton below it - the
corners.
Normally a good place to start is with a half/half split in
the pallet
The disadvantage of this method is that columns
of cartons may lean once the pallet has been
PALLETISING
finished or while it is being transported.
Brick stacking
Using the brick stacking method, each successive
layer of cartons is swung around, allowing the
cartons to bind together. The advantage of brick
stacking is that when the pallet is finished, the
load is stable and does not have a tendency to
open outwards.
The disadvantage is that the compression strength
of the cartons is reduced by as much as 40%.
The reason for this is that the weight of the car-
ton above pushes into a non-load bearing area
of the carton below, causing this carton to bulge
or even collapse under the weight.
Brick stacking cannot be used where the carton
features stacking tabs and other such elements.
They will be damaged by the brick stacking process
and not function correctly. Additionally, cartons
that have stacking tabs are designed specifically
to be column stacked. The stacking tabs are used
to increase the stability of the pallet load.
Half and half
Both colum and brick stacking have advantages
and disadvantages. However, it is possible to
combine the two methods on
one pallet into a half-column/
half-brick style.
By column stacking the bottom
layers of the pallet (normally
at least the bottom half of the
pallet) it is possible to maximise
the compression strength of
the cartons at the base of the
pallet - where the most weight
is focused.
By brick stacking the top layers
of the pallet (normally the top
half) you increase the overall
stability of the pallet. The ratio
of column- or brick-stacked
cartons can be altered according
to the specific demands of the
product. Normally a good place
to start is with a half/half split
in the pallet.
This method cannot be used
where the carton features stack-
ing tabs and other such features.
They will be damaged by the
brick stacking process and not
function correctly.
Increasing effectiveness
Depending on the specific ap-
Supply Chain Today March 2010 13
PALLETISING

plication of the carton, it is possible to make use
of a number of pallet stability devices to increase
the overall effectiveness of the pallet load. If you
are experiencing palletisation problems there are
various products to increase the pallet stability.
Angle boards are stiffened strips of paper or plastic
that are placed on the edges of the pallet. Using
strapping (normally nylon-based strapping), you
can tighten the nylon strapping around the pal-
let. The strapping has the effect of pulling the
pallet-load together, forming a solid block. The
angle boards are used to stop the nylon strapping
from cutting into, or damaging, the corrugated
cartons and their contents.
Securing strips
Securing strips are pieces of corrugated board
or reinforced paper that are placed between the
layers of a pallet. These securing strips can only
be used where a carton has stacking tabs as part
of the design. The securing strip has cut-outs that
locate exactly over the stacking tabs of the carton,
according to a specific pallet pattern layout.
These strips or sheets have the effect of pulling
the layers of cartons together at strategic points
in the pallet thereby increasing the overall stabil-
ity of the carton.
There are various products to increase
the pallet stability
Most types of shrink-wrap plastic have a higher
slip-coefficient than that of corrugated board.
This means that two pieces of plastic are less
likely to slip off each other than two pieces of
corrugated board, making it more difficult for the
cartons to slip off the pallet. Be careful, though,
about specific environmental considerations, such
as cartons intended for export. Many countries
do not accept plastic easily. Also, shrink-wrap-
ping of cartons requires heat tunnels, which are
expensive.
Binding together
Many different products are available for stretch
wrapping a pallet. Essentially, you are wrapping
the pallet load in a stretchable plastic shroud,
which has the effect of binding the pallet together.
These products are expensive as well as being
an environmental concern. Consider using angle
boards and nylon strapping first – it’s generally
cheaper.
There are a number of products available such
as pressure-sensitive glues that can be applied
to the top of a carton. When another carton is
placed on top of the carton with glue on it, the
glue is activated, bonding the cartons together.
There are specialised types of glue available with
different strength characteristics, but the most
important feature of these glues is that they
have high shear strength (sideways) and a low
bonding strength (lifting the carton upwards).
These glues always require an applicator of some
sort, which can cost tens of thousands of Rand.
So glue generally more suitable for high speed

14 Supply Chain Today March 2010

 PALLETISING

production lines.
Carton styles
There are thousands of corrugated carton de-
signs from which you can choose. Many of these
cartons are standard (such as a regular slotted
carton - Rsc) which are the most cost effective
packaging options.
However, there are also just as many highly spe-
cialised corrugated cartons which are specifically
designed for specific functions, like wrap-arounds,
machine assembled cartons, and trays.
To choose the most appropriate design, the best
does this, the wood fibres (which are hollow,
method is to first ascertain the requirements,
like macaroni), will absorb the humidity from
namely: what is the compression strength require-
the environment, and through capillary action,
ment of the corrugated carton; what protection
the moisture spread throughout the piece of pa-
does the product require; what special features
per. This has the effect of weakening the bonds
are required such as hand holes, ventilation and
between the paper fibres, causing the strength
stacking aids, to make the carton easier to use;
of the carton to be weakened. The opposite is
what are the critical dimensions required; and
also true. Should a carton be exposed to an
what methods will be used to erect, fill and seal
environment where the humidity is lower, the
the carton?
carton will begin to release the excess moisture
Humidity and moisture in its wood fibres.
There are numerous studies that have been con- These glues always require an applicator of some sort,
ducted over the years on the effect of moisture,
which can cost tens of thousands of Rand
humidity and temperature have on the perfor-
mance of corrugated cartons. Moisture refers to The speed of the transition between different
direct moisture or water, such as may be found environments is also critical to the performance of
in a dairy, where water is used to wash up in a corrugated carton. If the environment changes
the production process. When a piece of paper slowly, the carton will be given time to adjust
comes into direct contact with water, the fibres to these changes slowly. However, should these
of the paper are loosened, causing the strength
of the paper to deteriorate.
Disintegration is not limited to water only. In
deep freeze cold rooms, it is common for ice to
form on corrugated cartons. The carton will
not deteriorate immediately, but should
the carton be moved into a warmer
environment, where the ice melts, the
paper fibres will be loosened.
Humidity is more commonly referred to as
relative humidity (RH). Relative humid-
ity refers to the percentage of water in
a specified volume of air. Basic sci-
ence dictates that as air is warmed, it
expands. The converse is also true – as
air is cooled, it contracts.
Therefore, as the temperature of the air
changes, the volume of the air either
increases or decreases. Because relative
humidity is expressed as a percentage
of the volume of air, this means that
as the temperature changes, so the
relative humidity does as well.
Vice versa
This is particularly important in the performance
of corrugated cartons. A corrugated carton will
assume the same temperature and relative hu-
midity as the surrounding environment. As it

Supply Chain Today March 2010 15

PALLETISING
The transition between different environments is also
critical to the performance of a corrugated carton
changes occur rapidly, the carton will be forced
to adjust rapidly, normally with negative effects
on its overall performance.
Into water
Imagine a carton that has been in a cold storage
facility for a number of weeks at temperatures
below zero, and a relative humidity of about 95%.
It is then moved out of the cold room, for load-
ing. However, as it reaches the loading dock, the
temperature outside the cold room is in excess
of 30º Celsius and a relative humidity of 35%.
The carton is left on the loading dock for an hour,
because it is lunchtime. By the time the loaders
16 Supply Chain Today March 2010
return to load the carton into the refrigerated
truck, the carton will be sopping wet. The rapid
transition from a cold high humidity environment
to a warm, dry one causes the carton to rapidly
release moisture trapped inside the wood fibres.
This moisture is released so quickly that it con-
denses on the side of the carton, turning into
water. As this happens, the water breaks apart
the bond between the wood fibres, causing the
paper to disintegrate. The carton fails.
Number of factors
Why is it so important to understand the effects
of moisture, humidity and temperature on cor-
rugated cartons? Very simply, these factors will
have an impact on practically every corrugated
carton at some point in its lifecycle.
The rate of strength reduction is influenced by a
number of factors including: type of paper used
for liners and fluting; the speed of changes in
environmental conditions; the contents of the
carton; the structural design of the carton; the
location of the carton in a pallet load; the stack-
ing pattern used; and any coatings or additives
that may have been added to the carton during
manufacture.
Mondi Packaging, Website: http://www.mpsa.co.za/techni-
cal/advice.htm
Market Forum
Any type or
size
The lightweight Mo-
bicon system has a
33 tonne lift capacity
and is able to carry
any type or size ISO
specified container,
without the need
for modifications
or additional lifting
equipment. The low
centre of gravity of
this system enhances
stability, preventing it
from rolling over.
The container is lifted
from the bottom,
which allows the
operator to easily
handle flat beds, The new Mobicon container handler from Big Lift Trucks weighs 12 tonnes unloaded. This load is evenly spread across
tank containers, half eight wheels, which means the wheel loadings are less than six tonnes when carrying a 30 tonne container. This makes
heights, over heights the Mobicon a light and safe solution for container handling in warehouses
and curtain sided
containers. The two tower design provides the flexibility to and heavy duty rear bumper sections.
be able to operate on slightly sloping or uneven surfaces, Herkie Britz, Vector’s National Transport Manager, ap-
as well as compacted gravel yards, bitumen or standard proached Serco to review design options to increase payload. 
lightweight concrete. Gert van Rooyen, General Manager of Serco Cape says,
The simple design of the low maintenance Mobicon unit “We introduced a new floor design, which does away with
includes an economical 60 hp diesel engine, coupled the need for the existing subframe cross members thereby
to a hydrostatic drive system, for reduced fuel costs. offering a substantial weight saving. This new design is
Consumption is 5 litres an hour compared to 22 l/hr for now in the process of being made the new standard across
other machines. Serco’s three manufacturing sites.
Enhanced safety has also been criti-
cal in the design of this machine. The new floor design
The operator now has a clear view which does away with
of the working area and does not the need for the existing
have to travel with a container 3 subframe cross
members
metres in the air, as with conven-
tional systems. Instead of staff
having to work at a trailer height
of 1,5 metres, they are now able to
work safely at ground level.
Clinton van den Berg, Big Lift Trucks, Tel:
(031) 274 -8270, Email: clinton@biglift.
co.za, Web: www.biglifttrucks.com

Freezing out the opposition

Vector Logistics, has ordered 32
refrigerated truck bodies from
Serco’s Cape Town branch in a
multi-million rand deal.
The huge order involves 12 and 16-pallet
refrigerated bodies with single side doors

Supply Chain Today March 2010 17

Market Forum
“The truck bodies will also contain Serco’s unique new
high strength aluminium floor. The process involves alu-
minium floor sheeting which is bonded onto the floor using
a vacuum process to ensure a strong and even adhesion
to the composite floor construction,” Gert continues.
Herkie Brits, National Transport manager for Vector Lo-
gistics, said  his company has done business with Serco
for many years.  “Serco provides high quality, long-lasting
products, and the people there are good folk who give us
excellent service.”
Serco, Clinton Holcroft, Tel: (031) 508-1000
Bulk warehouse
It was a case of “local is lekker” when Transnet Port
Terminals (TPT) chose local heavy machinery manufac-
turer, Desmond Equipment SA, to supply a R1.1 million
front-end loader for the Agriport terminal in Durban. The
Dezzi 2300 articulated front end loader with 5m³ bucket
was delivered to the terminal recently, and will be used
at Agriport’s new 80 000 tonne bulk warehouse.
The new warehouse will be used for the storage of soya
meal, most of which enters the country via Durban.
Ernest Bell, Commercial Specialist in TPT’s Procurement
Department, said the supplier’s delivery within tight
deadlines bore testament to the capacity of local manufac-
turers. “Our technical managers have already visited the
manufacturing plant on two separate occasions and have
Pictured onboard the new Dezzi 2300 front end loader: (Left to right): Sipho Dube, Fleet Manager of TPT’s Agriport; Harry Dickinson, Project Manager
for TPT; Ron Stroebel of Desmond Equipment SA; Robert Teale of TPT, Ernest Bell of TPT and Desmond Gutzeit of Desmond Equipment SA
18 Supply Chain Today March 2010
confirmed that the standard and quality of the equipment
satisfactorily meets Transnet’s standards,” says Ernst.
Robert Teale, Project Manager at TPT, says the estab-
lishment of the bulk warehouse formed part of several
investments aimed at realising capacity and generating
new business at the Agriport terminal.
These include the establishment of bio-directional conveyor
routes enabling TPT to load and offload at the same berth,
extension of the rail structure, and investment in a new
pneumatic ship unloader to offload wheat.
Transnet Port Terminals, Lunga Ngcobo, Email: Lunga.ngcobo@
transnet.net
Local installation
EM Shelving Storage Solutions with their 20 years expe-
rience in the racking field have supplied, delivered and
installed another drive-in racking project to International
standards.
Drive-in racking can utilise up to 80% of the available floor
space and 75% of the volume, taking into consideration
airflow and the aisle space for loading.
This system is still the most cost effective storage system
available for bulk storage and E.M Shelving Storage Solu-
tions have further developed and perfected this system to
international standards.
This installation of 800 pallet positions of drive-in rack-
Market Forum
ing with catwalks after every 2nd
lane, allows the client to access the
lanes for stock counting purposes. Due
to the fact that the client wanted to
store various types of fruits per lane,
it was imperative to install catwalk
levels for manual stock-taking to be
performed.
This installation, standing an impressive
8100mm high consisting of 4 blocks
each 3 levels high, was installed ac-
cording to SEMA Regulations within
a month of the material arriving on
site.
The structure contains built in ladders
in the frame to allow the staff to climb
to the next level, floor guide rails, row
entry pillar protectors, formed rails
to guide pallets into position, top
tiae beams, top and back bracing as
standard.
EM Shelving, Tel: (021) 386-2151, Fax: (021)
386-2526, Email: andy@emshelving.co.za or
vaughn@emshelving.co.za, www.emshelving.
co.za

Supply Chain Today March 2010 19

 CIPS Pan-African Conference
and Awards Dinner 2010
Kick off - playing the procurement game
19/20-21 April 2010

LAUNCH OF A NEW ENTITY, A NEW START

See http://www.cips.org/southernafrica/conference/
or email pvision@netactive.co.za
or telephone ProVision Marketing +27 (0)827 787649 (08.00 – 17.00)

20 Supply Chain Today March 2010


Expanding Across
Southern Africa
Nissan Diesel South Africa, one of the leading truck manu-
facturers in the country, will change its name to UD Trucks
Southern Africa later this year.
A
t the same time, its parent company,
the Nissan Diesel Motor Company Ltd
in Japan, will be renamed as the UD
Trucks Corporation. As the UD Truck
Corporation, the company will also remain part
of the world’s second biggest trucking group.
Locally, the new name and brand campaign will
Take responsibility for the company’s activities in the
entire Southern African region
The new UD 300WF which was recently released to the South African market
COVER STORY
peak during the last quarter of 2010, whereafter
the dealer network roll-out will be completed
within a period of eight months.
“We believe that evolving from Nissan Diesel into
UD Trucks provides the company with a clear
vision and dedicated path going into the future
- matching customer business insight with our
global expertise,” says Johan Richards, chief
executive of Nissan Diesel South Africa.
Fully evolve
The company currently has more than 50 deal-
ers and service agents in Southern Africa, with
a dedicated manufacturing facility situated at
Supply Chain Today March 2010 21
COVER STORY
their head office in Rosslyn, Pretoria. “Part of
the company’s vision will continue to focus on
Ultimate Dependability: a message that has over
time become part of the company’s DNA and
the way our customers relate to our services
and products.”
Johan continues by saing that the brand change
now allows the company to evolve fully as a
leading and dedicated trucking company, after
the company’s separation from the Nissan pas-
senger operation in 2002.
We don’t believe in merely ‘dumping’ sub-standard
products and services in Africa
“The brand UD Trucks will also be a symbol of
this process and will distinguish us from our
competitors in all aspects of the business. And
our trucks will continue to carry the well-known
UD topmark, albeit in a more dynamic and modern
guise,” Johan adds.
Building partnerships with customers
Extensive research by Nissan Diesel has revealed
that customers are increasingly looking for a
truck provider that can be a true professional
partner. The company is therefore committed to
continue building closer professional relation-
ships with their customers to offer dependable
transport solutions.
Nissan Diesel South Africa has always adopted
an evolutionary rather than a revolutionary ap-
proach in their dealings with their customers.
22 Supply Chain Today March 2010
As a result, the company remains committed to
provide products and services that are not only of
world-class standards, but are also appropriately
suitable to the local environment and operating
conditions.
Twenty countries
As the country’s top truck exporter, Nissan Diesel
will also continue to develop its footprint in the
Southern African market wherever fleets can
benefit from its efficient design, state-of-the art
technology, quality assembly and dependable
support.
“As part of a new strategy adopted by the Nissan
Diesel Motor Corporation in Japan, NDSA will
from now on take responsibility for the company’s
activities in the entire Southern African region - a
total of 20 countries,” says Johan. “We strongly
believe that there are a number of untapped op-
portunities to provide quality products and services
to transport fleets across the region, especially
in countries like Nigeria and Angola.”
Same Standard
NDSA already has dealers in the SAF Economic
Zone which includes Botswana, Lesotho, Ma-
lawi, Mozambique, Namibia, Nigeria, Zambia
and Zimbabwe.
“We don’t believe in merely ‘dumping’ sub-stan-
dard products and services in Africa. We are in
the process of establishing dealerships all across
the region who all have to adhere to the same
stringent quality requirements we have here in
South Africa. As a result, we are
able to deliver the same quality
services and products to our cus-
tomers, no matter where they are,”
states Johan.
UD Financial Services
launched
NDSA has also announced the launch
of UD Financial Services as part of
a joint venture with Wesbank, in an
effort to enhance customers’ access
to vehicle finance.
UD Financial Services will offer a
range of products and services to
customers as part of their aim to
provide a complete and convenient
service throughout a vehicle’s lifes-
pan, which includes sales, vehicle
financing, fleet planning, training,
parts and service support.
These vehicle financing products
include instalment sales, financial
and operating leases, financial
rentals as well as full maintenance
agreements.
For more information, visit www.nissand-
iesel.co.za
 Promise of
Stronger 2010
Truck Sales
South African fleet owners can look forward to August 2010,
when Man Truck and Bus (SA) will introduce the TGS WWW
truck to the South African market.
S
ays Man Truck and Bus (SA) CEO Thomas
Hemmerich, “While the TGS WWW looks
similar to the earlier TG models, under-
neath the body it is a completely new
truck. Changes to the engine and drivetrain have
resulted in an even higher reliability factor.”
Surviving the downturn
While the global economic crisis plunged the
global truck industry into its worst crisis in years,
severely punishing Man and its rivals, in Southern
Africa the market has remained relatively buoy-
ant, compared with Europe and the other parts
of the world.
In January, we almost doubled our sales figures
In 2009, Man acquired 25 +1 share of Sinotruk,
the market leader in heavy truck manufacture.
Thomas explains that the main reason for the
25 +1 purchase, which gives Man a veto right
Thomas Hemmerich
in major decision-making on the supervisory or
advisory board, is because the company brought
Man technology into this deal. As part of this
deal, Man licensed its TGA truck engine, chassis
and axle technologies to Sinotruk.
In 2010, various measures are being taken to
ensure the company operates at a moderate profit.
In 2009, Man SE divested itself of its majority
shareholding in Man Ferrostaal. Since then, the
company has focused on building its two major
business areas, Commercial Vehicles and Power
Engineering.
The Workshop business also showed an improve-
ment over 2008. Thomas comments, “The eco-
nomic engine is still running here in South Africa
despite 2009, which has been described as the
worst year for business in the past century.”
The Spare Parts business also performed well.
Supply Chain Today March 2010 23
TRUCKING

Says Thomas, “You can build the best truck on
the road but without the right backing and spare
part support, it will not be able to continue to
perform.
Those are the big markets where you can really put
volume in
Exciting start
“In 2010, the year has kicked off with truck sales
that are very exciting,” says Thomas. “In January,
we almost doubled our sales figures, and in terms
of market share in the extra heavy segment, we
increased our position from No 5 by the end of
2009 to No 2 in February 2010. This is a most
exciting time with sales in January being up
about 100%.” In February, Man Truck and
Bus (SA) sold almost 200 units.”
Thomas is confident that Man Truck and
Bus (SA) will increase its business in 2010
compared with 2009 by 20% to 30%.
“In 2009, we launched the MAN CLA truck,
manufactured by our joint venture with Man
Force Trucks in India, in all the right hand
drive countries in Africa. At the beginning
of this year, we achieved homologation in
America, in Germany, and in Egypt – those
are the big markets where you can really put
volume in – so sales have been excellent so
far, and we expect to sell three times more
than last year,” concludes Thomas.
MAN Truck & Bus South Africa, Tel.: (011) 928-6800,
Fax: (011) 974-3241, Email: info@za.man-mn.com

24 Supply Chain Today March 2010


Credit Card Protection?
Companies who offer their products online, with
credit card payment facilities have little or no
protection from the banks. This is according to
Buy247 sales director, Wayne Behrmann.
B
uy247 has invested significantly in pro-
viding a wide range of high tech, secure
payment facilities on its online shopping
website to ensure that its customers are
protected from credit card fraud. However, it
seems that even with all these security measures,
there are fraudsters breaking the system, and
the banks are playing a culpable role in these
transactions. Buy247 is a “bricks and mortar”
company that has over 15 years experience in
the IT industry.
Unless the merchant gets the customer to sign the credit
card voucher, they have no leg to stand on
They have an extensive distribution network that
can deliver orders throughout South Africa on a
24hour/48 hour basis. Their warehouses and
distribution hubs are
situated in Johan-
nesburg, Durban
and Cape Town.
Assumed to be correct
A recent transaction with American Express has
shown that even when an online merchant tries
to mitigate all risks, the transaction can still be
reversed if a cardholder disputes the purchase.
An online merchant has no way of validating
SOFTWARE
customers’ personal details without conducting
lengthy detailed credit checks that result in long
delays. The information given by the customer is
assumed to be correct, but ultimately the mer-
chant relies almost entirely on the credit card
payment technology.
“We use an M-Web payment technology called
Safeshop. This payment gateway gives us real-
time credit card authorisation with 3D secure
encryption,” says Wayne. “This process is ex-
actly the same as a traditional retail credit card
transaction, with the only difference being that
the actual card is not presented. The customer is
also not seen by us until we receive an approved
Safeshop credit card transaction.”
Risk profile
“It also provides us with a customer risk profile. If
it is shows a high risk rating, we do not expedite
the transaction without further security checks.
However, we cannot prevent a fraudulent trans-
action from happening if the card holder fails to
report their card stolen. This is when we have
charge back issues with the various banks.”
American Express is of opinion that, unless the
merchant gets the customer to sign the credit
card voucher, they have no leg to stand on. An
online merchant has no way of doing this and
therefore is 100 percent reliant on the cardholder
being legitimate and honest.
Eliminate fraud
“This policy seems to fly in the face of global
online banking policy. Most banks will honour all
transactions that are approved by a site that uses
3D Secure technology. Furthermore, most banks
have really dragged their heels on the issuing of
the new Smart Credit cards, with 4-digit pin code
validation that will totally eliminate fraudulent
credit card transactions,” says Wayne.
Wayne says this will really make a
difference to both online traders and
customers alike. “But until such time,
online merchants will always be poten-
tially liable for fraudulent online transactions.
As a result, Buy247 has decided to withdraw
American Express from its store until there is a
change of policy. It is a shame as Amex is uni-
versally accepted. Due to the low profit margins
on our products, we cannot afford to risk losing
any money through fraudulent transactions,” he
concludes.
Buy247, Alisha Lennox, Tel: (011) 723-7573, Email:
AlishaL@introstat.co.za, www.buy247.co.za
Supply Chain Today March 2010 25
26 Supply Chain Today March 2010

A Viable Option
Today’s business management solutions, particularly enter-
prise resource planning (ERP) solutions, are evolving from a
focus on transactions and data entry to one that places people
and usability at the centre of solution design. This includes
attention to varying work styles, role-based perspectives on
information and tasks, and the need to extract information in
the context of business processes.
S
trategix Business Solutions managing di-
rector Jaco Stoltz says this shift is being
driven by workers’ dissatisfaction with rigid
solutions that fail to integrate cross-busi-
ness processes, adapt to changing global markets,
or address the needs of individuals in different
kinds of jobs. “This inflexibility results in poor
usability, both for the individual worker and for
the solution’s fit with company-wide business
processes and requirements.”
Only 15 percent of employees are licensed to use their
company’s ERP solution and 46 percent of ERP licenses
remain unused
Untrapped
According to a recent study from AMR Research,
SOFTWARE
on average only 15 percent of employees are
licensed to use their company’s ERP solution
and 46 percent of ERP licenses remain unused.
Because a limited portion of the organisation is
using the solution, the potential for productivity
benefits and growth remains untapped.
Microsoft Dynamics AX 2009 is a leading example
of a business management solution designed to
optimise usability, improve user productivity and
meet the needs of people in a variety of roles to
drive business success. The solution’s user-friendly
navigation, familiar interface, visualisation aids,
and self-service business intelligence (BI) tools
are prime examples of highly usable features that
are designed for the people who use them.
Creativity
Jaco says a business management solution can
only increase efficiency through process speed
and automation. “It takes people, their ideas,
collaboration, and decisions to envision products
and services, create value, and drive business
forward. Therefore, any system that prioritises
information processing over people and their
needs limits the potential of those people and
the success of the business.”
Supply Chain Today March 2010 27
SOFTWARE

He says rigid business management solutions force

people to abandon their creativity, and ultimately
result in poor user adoption, frustration, and lost
business opportunities. “After hearing customers
describe such limitations, we made a commit-
ment to place people, and their ability to add
value, at the centre of solution design.”
This approach better positions organisations
to meet the challenges of a fast-changing
world. It is designed to help people, an
organisation’s most agile and creative asset,
to achieve maximum productivity.
Easy to use
”Make business management solutions as
easy to use as mass market products. The
design elements in Microsoft Dynamics
solutions have a similar look and feel
to those used in other Microsoft applications
such as Microsoft Office 2007 and Windows Vista,
which capitalises on the knowledge of millions of
consumers who already know how to use these
products,” he explains.
Using separate spreadsheets because
using a centralised system is too
Jaco Stoltz
complex and time-consuming
He says their solution that is accessible and rel-
evant to a variety of people and can contribute
significantly to business success. “Although the
usability of a business management solution is only
one aspect of productivity, it is critical because
it can constrain or magnify all other productivity
benefits of the solution.”
Separate spreadsheets
A 2007 Forrester Research report concluded that
“poorly designed user interfaces can profoundly
affect the bottom line. The expenses associated
with a bad UI, over the course of the application’s
lifetime, may end up being many times the cost
of the application itself.”
Jaco says the negative impact of low usability can
include increased training times, a lack of user
adoption, and a decrease in workplace produc-
tivity. “When people don’t use the ERP system,
mission-critical processes can be compromised
because there is no access to or enforcement of
standard operations and best practices. Further-
more, individuals often track pertinent business
information using separate spreadsheets because
using a centralised system is too complex and
time-consuming.”
”Empower your people with a business manage-
ment solution that places them at the crux of
business operations and frees them to exercise
the creativity, agility, and collaboration that can
drive success,” he urges in conclusion.
Strategix Business Solutions (Pty) Ltd, Jaco Stoltz, Tel:
(011) 805-1023, Email: jacos@strategix.co.za

28 Supply Chain Today March 2010

 LOGISTICS

It’s Not All

The answer is no
We have asked ourselves: “Is there value in being
the cheapest transport contractor?” says André
Jansen van Vuuren of Cargo Carriers  Our
answer is no and we drive the added-

About Price
value proposition much harder than
cutting costs for our customers. By
adding value, we reduce cost. The
result is that our customers stay with
us for very long periods, primarily
because they appreciate the value
The first man to set foot on the Moon, Neil
and benefits that we invariably bring
Armstrong, was asked what he had feared
to their businesses.
most before getting into the Apollo 11 space
capsule. It was not the fact that that he was “Such value derives from
sitting atop one million litres of highly flam- backward integration
mable rocket fuel; nor was it because he within our customers’
was going where no man had supply chains and Cargo
Carriers’ commitment
been before.
to delivering a very
high service level at all
times, without fail!

H
is biggest fear? That “In support of this we
the two million have implemented a
separate compo- branch best practice
nents installed in system within all
the Apollo 11 space craft our contracts that
were manufactured by the focuses on each
lowest bidder! Armstrong customer and the
obviously had gathered specific needs of that
previous experience of low- customer.”
est cost not equating to Non negotiable
best value! The results, when
Hardest hit compared with in-
Today, more than 40 years ternational standards,
later, mankind continues show significant im-
to regularly encounter and provements. The com-
debate the topic of lowest cost parison against the total
and value for money so neatly acceptable levels of service
highlighted by Neil Armstrong’s and complaints in, for ex-
simple retort. The current interna- ample, the chemical industry, 
tional downturn and credit crunch shows improvement by leaps
is prompting new pre-occupation and bounds.
with low cost, and manufacturers “Exceptional service levels,
and suppliers have become more however, come at a cost and
cost conscious at all levels within we regard this cost as a non-
their organisations. negotiable issue. Our focus on
There is an impact on the logis- improving and increasing our
tics industry. Logistics, sitting levels of service has differenti-
at the end of the supply chain, ated us from our competitors and
is invariably hardest hit when it this, together with our innovative
comes to cost cutting, despite the approach to the supply chain of
fact that logistics in many cases each customer, is the foundation
contributes less than 10% of stone of our competitive edge,”
the total cost in the manu- André adds.
facturing and supply chain. Resources
Come what may, its Cargo Carriers subscribes to the
status as a cost POOGI (process of on going improve-
focus point seems ment) approach as detailed within
permanent. André Jansen van Vuuren, Divisional Director: Marketing the concepts of the Theory of

Supply Chain Today March 2010 29

LOGISTICS

and the constraints within their supply chains.”

This  focused approach based upon expert knowledge has
led to Cargo Carriers being widely accepted as a logistics
leader in the industries within which we operate.
“The wheels fall off”
Low cost logistics services and solutions simply cannot
deliver the required depth of experience and industry
expertise. They invariably require short cuts that result in
unforeseen costs being incurred elsewhere through late,
lost or incorrect delivery, inadequate storage, vehicle ac-
cidents, damaged loads and product loss and liability.
Company experiences the real costs of low-cost
logistics when “the wheels fall of
The real value of expert logistics services and solutions
usually becomes apparent only as a company experiences
the real costs of low-cost logistics when “the wheels fall
off ”. Major contracts can be compromised or cancelled
and essential product may not reach its destination on
time, invoking heavy financial penalties. There are many
other variables that can go wrong if a low cost approach
is adopted. Simply stated, low cost is often very high
cost.
Cargo Carriers, Andre Jansen van Vuuren, Tel: (011) Tel: (011) 485-
8700, Fax: (011) 485-8781, www.cargocarriers.co.za

Constraints (TOC) published by Eli Goldratt, a

renowned Israeli physicist and business guru
who also developed, among others, the concept
of OPT (Optimised Production Technology) and
Critical Chain Project Management, which em-
phasise the resources required to properly plan
and manage projects.
The way South African commercial and industrial
enterprises do business changes on a daily
basis, and even more so in the current
challenging economic times.
“With POOGI and TOC woven into
our business culture and meth-
odology, we understand this
and embrace the challenges
associated with change, at
the same time being commit-
ted to continuously extract
value for our customers and
shareholders,” says André
Deep knowledge
The Cargo Carriers group
has traditionally operated in
clearly defined vertical mar-
kets, namely steel, chemicals,
powders, fuel and sugar.
“We have industry experts with
deep knowledge of these verticals so
that we can walk the talk and clearly
understand the needs of our customers

30 Supply Chain Today March 2010

GREEN
Comply or Explain
As consumers’ demand for sustainable busi-
ness practice gains momentum, the global
focus on sustainable development is rapidly
increasing.
I
n these changing times, sustainability re-
porting is rapidly gaining credence. Equally
important, however, is understanding the
legislation around it.
According to Etienne Swanepoel, corporate and
commercial law specialist and partner at Webber
Wentzel Attorneys, determining the legal require-
ments applicable to sustainability reporting is a
mechanical process. The first question to ask is
whether the company in question is listed. Dif-
ferent provisions apply to listed companies and
unlisted companies.
Intricate and complex
“Legislation around sustainability reporting is
relatively intricate and complex,” says Swane-
poel. “Broadly speaking, there are three sets of
legal requirements. These are: the JSE Listings
Requirements, the Companies Act, and the King
III Report. The latter replaced the current King
Etienne Swanepoel Report on 1 March 2010.”
Etienne adds: “The JSE Listings Requirements
stipulate that, in order for a company to become
listed, amongst other things it needs to comply
with the Companies Act. In turn, the Companies
Act requires that companies prepare annual fi-
nancial statements in compliance with generally
accepted accounting practices.
The JSE Listings Requirements further state that,
in order to be listed, companies must be aligned
with the current King Report, until the third ver-
Graham Terry
sion takes effect.”
‘Comply or Else’ approach to legislation, as followed in
the United States. In South Africa, and most other
countries, a ‘Comply or Explain’ model is applied
From Etienne’s explanation it is clear that com-
pliance requires an integrated approach to all
three sets of requirements. In addition, the King
Report is supported by additional guidelines, such
as the Global Reporting Initiative (GRI) and the
Institute of Directors Practice Notes.
Slow process
Graham Terry, of the SAICA (SA Institute of Char-
tered Accountants) and author of the recently
published book “Green, why corporate leaders
need to embrace sustainability to ensure future
profitability”, says the King III Report is specifi-
cally aimed at corporate governance and highlights
the concepts of integrated sustainability as well
as social transformation.
“This leads to a strong focus on the effects that
businesses have on society and the environment.
There is also a strong emphasis on sustainability
reporting. South African companies are starting
to realise its importance, but it’s a slow process.
When it comes to legislation around sustainability
reporting, it is becoming abundantly clear that
the King III Report may have a substantial impact
on the way businesses are managed and a clear
understanding of the Code is a necessity.”
Fair share of risk
According to Etienne, there are two models for
corporate governance. “The first model is a ‘Comply
or Else’ approach to legislation, as followed in the
United States. With this model, non-compliance
may have legal consequences. In South Africa, and
most other countries, a ‘Comply or Explain’ model
is applied. This means that, while guidelines such
as King III exist, it is not law and if businesses
can give a valid explanation for not complying,
they cannot be held legally responsible. He notes,
however, that the JSE Listings Requirements are
currently under review.
Etienne says that non-compliance (apart from pos-
sible breaches of the JSE Listings Requirements
in the case of listed companies) does hold its fair
share of risk as companies might very well end
up with egg on their faces if they choose to ignore
these guidelines – not only from their peers, but
from the consumer as well. He adds that legal
regulation in this area is certain to increase in the
future apart from the obvious moral and business
imperatives to do so sooner.
‘Go green or go home’
“A public that is increasingly well-informed on
‘green’ issues will increasingly demand businesses
Supply Chain Today March 2010 31
 GREEN

to make more responsible choices, and those who

comply will be rewarded with their patronage.
More and more businesses of all sizes are finding
ways to make their operations more sustainable
and environmentally friendly,” he says.
He adds that green business is no longer just a
buzzword. “It has a strong business case in today’s
marketplace and not only adds value, but reduces
risk. The consumer’s drive for more responsible
business is felt in almost all spheres of the econ-
omy – the government is under pressure to put
measures in place that will reduce our country’s
carbon footprint, which, if passed, will filter down
to the business sector and severely affect their day
to day operations.

Comply or Else’ approach to legislation,

as followed in the United States. With this
model, non-compliance may have legal
consequences. In South Africa, and most
other countries, a ‘Comply or Explain’ model
is applied

Not going to disappear

“Simply put, the credo for today’s business world is
‘go green or go home’ – those who choose to ignore
the consumer demand will simply find themselves
without customers in the not so distant future. The
green movement is not going to disappear and will
only strengthen as the environment continues to
deteriorate.
In a changing business era, who should then step
up to lead the South African business community
into the future?
Pivotal role
According to Terry, Chartered Accountants [CAs(SA)]
have a pivotal role to play in this new era of busi-
ness. “CAs(SA) are ideally positioned to provide
unique insight into the dynamics of sustainability
reporting. In an environment where the consumer
will act as the judge and jury, and the international
community is demanding stronger legislation, there
has never been such an important time for both
accountants and business leaders to get to grips
with the importance of sustainability reporting.”
Thando Pato, Communications Coordinator: Corporate,
The SA Institute of Chartered Accountants (SAICA), Tel:
(011) 621-6898, Email: thandop@saica.co.za, Website:
www.saica.co.za

32 Supply Chain Today March 2010

 Are You
Doing
Your
Bit?

Green This prestigious award recognises

Supply
people, projects and products
that have gone above and
beyond the call of duty to
enhance the environment in which

Chain
they operate.

The inaugural awards in 2009

Awards
enjoyed a wonderful response
from the supply chain community
and everything is on track to make
this year’s event one of the indus-
try’s most prestigious accolades.

Come and see who walks away

with the coveted trophies and
enter your product or project for
this year’s event.

Entries for this year’s event close in

June and the awards ceremony is
being planned for 26 August 2010.

Contact: Catherine Larkin on

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

30 Supply Chain Today Jan 2010 Supply Chain Today March 2010 33
34 SupplyHANDLING
BULK Chain Today MarchMarch
TODAY 2010 2008

Thirty New Entries
SANS 10228, The identification and classification of dangerous goods for transport forms the basis of all dan-
gerous goods standards. Because this classification standard also determines how dangerous goods are to be
packaged, SANS 10229-1, Packaging and large packaging for road and rail transport. Part 1: Packaging has
also been revised.
A
s both these standards are referred to
in legislation, they are required reading
for all involved in transporting danger-
ous goods. The publication of the latest
editions of SANS 10228 and SANS 10229-1
is therefore important news for all involved in
this field.
Daleen Fourie, the dangerous goods specialist
responsible for these standards, commented on
the key changes as follows:
What are the key changes that have been
introduced to the latest editions of SANS
10228 and SANS 10229-1?
“To align with the revised UN Model Regulations,
about 30 new entries were added to the danger-
ous goods list in SANS 10228. A number of the
entries deal with fuel cell cartridges contained
in equipment, and those dangerous goods that
contain water-reactive substances, corrosive
substances, liquefied flammable gases and hy-
drogen in metal hydride. Provision for ethanol
and petrol mixtures containing more than 10 %
ethanol has also been made in the list.
STANDARDS
“A new clause on Excepted Quantities has been
introduced to SANS 10229-1. The term is ap-
plicable to dangerous goods of certain classes,
except articles, that are packed in quantities
ranging from 1 mL or 1 g to 30 mL or 30 g in
inner packaging and outer packaging ranging
from 300 g to 1 kg. A special mark has been
assigned that should be depicted on packages of
dangerous goods in excepted quantities intended
for transport.
“Consequently, a new column has been added
to the dangerous goods list in SANS 10228,
indicating the quantities allowed for each entry
in the list by means of alphanumeric codes E0
to E5”, Daleen concludes.
SABS, Tel: (012) 428-6883, Fax: (012) 428-6928, Email:
sales@sabs.co.za. The standard can also be downloaded
from www.sabs.co.za/index.php?page=standardspurchase
on entry of a credit card number. Elmarie Steyn, Tel: (012)
428-6777, Fax: (012) 428-6869, Email:steynecm@sabs.
co.za, Chris Meyer, Standards Communicator, SABS, Tel:
(012) 428-6732, Fax: (012) 428-6869, Email meyercm@
sabs.co.za
Supply Chain Today March 2010 35
36 Supply Chain Today March 2010
Market Forum
Continues to advance
Imperial Logistics is delighted to announce its improved
level four (4) Broad-Based Black Economic Empowerment
(B-BBEE) rating received from the Nera Verification Agency
in December 2009. IMPERIAL Logistics also qualifies as a
Value-adding Supplier offering its customers an enhanced
On the Move
Procurement Recognition Level of 125%.
“We continue to be committed to our B-BBEE journey.
Significant transformation has taken place since we started
the process in 2007,” says Marius Swanepoel, CEO Imperial
Logistics. “We
focus strongly
on Employ-
ment Equity
and Preferential
Procurement, Neil Wilson Francois Otto
while we are
passionate to
continuously
improve Skills
Development
within the or-
ganisation.”
In 2007, Im-
perial Logis-
tics gained
Anton Bothma Jasen Smallbone
a B-BBEE
Recogni-
Changes are afoot at Goscor as Neil Wilson has been
tion status
appointed CEO and Francois Otto is group financial
of level five
manager of the Goscor group of companies. Anton
(5) with a
Bothma has been appointed MD of Goscor Power
100% Pro-
Products.
curement
Recognition UPS South Africa is pleased to announce the recent
level. This was appointment of Jasen Smallbone as the company’s
improved upon in 2008 with an enhanced status four (4) country sales manager.
rating and a 125% Procurement Recognition. During 2009 With over 10 years experience in the industry and
serious efforts were directed at improving the Human various achievements for excellence and performance,
Capital and Preferential Procurement elements, as the there is no doubt that Jasen will be an asset to the
company strongly believes in developing Entrepreneurial UPS team.
Leaders.
Jasen says, “I am excited to join forces with one of
Imperial Logistics, Abrie de Swardt, Tel: (011) 821-5500, Email: the world’s leading logistics brands and I look forward
abrieds@il.co.za to not only sharing my knowledge and skills with the
UPS team, but also to expanding my understanding
of the logistics industry as a whole.”
“My goal for the coming year is to maintain the growth
UPS South Africa has enjoyed so far.  At the same
time, I will also endeavour to continue our focus on
investment within the sales force, thereby ensuring that
we remain our clients’ first choice,” he concludes.
Auto logistics
Following the award of new contracts for logistics services
for BMW in Germany, South Africa and Japan, Kuehne
+ Nagel has now also been selected as their logistics entire range of logistics operations to support production,
partner at the modern production site in Leipzig. As of including receiving, storage, sequencing, set-building and
January 2010, Kuehne + Nagel assumed responsibility production line delivery.
for the entire supply chain for final assembly of BMW In addition, Kuehne + Nagel will be responsible for the
automotive products. supply and return of empty containers and for the execu-
At the site, which comprises 44 000 sqm of warehousing tion of pre-assembly operations, and will cooperate with
and handling space, Kuehne + Nagel will manage the the automobile manufacturer in various supply concepts,

Supply Chain Today March 2010 37

Market Forum
such as Kanban and supermarket models.
During a three-month implementation phase, a dedicated
Subscription
team of automotive logistics experts from Kuehne + Nagel
are supporting BMW in process planning, value creation
flow analyses and improvement initiatives in close col- Please fax us if you wish to subscribe to “Supply Chain Today” at
laboration with the customer in order to ensure a smooth R375,00 (incl postage and VAT) per year; R875,00 per year for Af-
transition.
rica/Overseas. We will post you an invoice on receipt of your fax.
“We are currently working for BMW at ten locations in
five countries,” says Jens Wollesen, member of the Man- PROMECH PUBLISHING Fax No: (011) 781-1403
agement Board of Kuehne + Nagel Germany. “We are
very pleased to have now also been entrusted with this From:.........................................................................................
challenging logistics project at the Leipzig site, one of
the world’s most modern automobile production facilities.
(insert your name)
This is a further highlight in the successful development
of our automotive-related activities.”
Title: ..........................................................................................
Robert Cathomas, Tel: +41 (0)44 786-9515, Fax: +41 (0)44 786-9690,
Email: robert.cathomas@kuehnenagel.com
Company: .................................................................................

Address: ..................................................................................

Flow of goods ....................................................................................................

Manhattan Associates announced in February that the
Foschini Group, has deployed Manhattan Associates’ ......................................................................Code: ..................
Warehouse Management solution (WMS) at two adjacent
distribution centres (DCs) in Cape Town. Manhattan and
Telephone: ( ) ....................................................................
local partner Supply Chain Junction collaborated on
the project to provide Foschini with an order fulfilment
platform. Fax: ( ) .................................................................................

Email:........................................................................................

Foschini plans to roll-out the Manhattan solution across
the remaining two distribution centres, also in Cape Town,
in the coming months. These additional DCs comprise
another 17 000 square metres of warehousing space. Col-
lectively, the four warehouses serve 14 trading divisions
and 1500 stores across South Africa’s nine provinces as
well as neighbouring countries Namibia, Botswana and
Swaziland.
Explains Jan Tukker, group logistics director, Foschini, “We
reduced volumes for the switch-over to the new system
in case we needed to iron out any problems - but there
weren’t any and within five days we were shipping greater
volumes of goods than before.”
Supply Chain Junction, Tel: (021) 426-1703, Fax: 086-617-6525,
Email: info@scjunction.co.za, www.scjunction.co.za
Index to Advertisers
Afzelia 34
Barpro 30
Bar Trans S&N 24
Chorus Call 28
CIPS 20
Engineer Placements 32
Green Supply Chain 33
Hako Inside Back Cover
ILS 26
Imperial Bank 36
Interroll 12
Kemtek 16
Mercedes-Benz 10
Mitsubishi Fuso 8
Nissan Outside Front Cover
Polydex 14
Proscan Outside Back Cover
Sapics Inside Front Cover
Toyota 19
Universal 6

38 Supply Chain Today March 2010

Optimized cleanliness is our GOAL!!!

Hako. You don’t have to compromise.

Please contact for local representative
for machines, parts, service and support:
+ 27 11 552 8760 · Fax + 27 11 397 8012 · www.eip.co.za
Eqstra Industrial Power ”I want more.
P.O. Box 380, Isando 1600
3A Hargan Street, Hughes, Give me Hako!”
Jet Park,
Gauteng, South Africa www.hako.com
Supply Chain Today March 2010 39
40 Supply Chain Today March 2010