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Contents
Featured on the cover: SAPICS Sustainability
Criterion Equipment 4 Good Turn Out 29 Functional Packaging
Tel: (011) 966 9700
www.criterion.co.za Cover Story Railways & Ports
5 Living Up To its Promise 31 Container Terminal leads in
CSCMP Productivity
7 2010 Conference Tour
Warehousing
Barcoding, Labelling, Scanning 33 Raising the Bar
and RFID
9 Smart Tags Get Smarter Market Forum — Supply
11 We Are Being Ripped Off 35 Market Forum
13 Food For Thought
Racking and Shelving Endorsing Bodies
15 Cashing In On Cash ‘n Carry Afritag (div of Smart Card Society)
17 Toughing it Out CGCSA (Consumer Goods Council of SA)
CILTSA (Chartered Institute of
Market Forum — Unit Logistics & Transport: SA)
20 Market Forum SAEPA (SA Express Parcel Association)
Warehouse Management Systems SAPICS (The Association for Operations
23 In for the High Jump Management of Southern Africa)
also mailed to:
Outsourcing CSCMP (Council of Supply Chain
27 Take the Market By Storm Management Professionals)
The Terry Smee Award for best speaker was The South African Brewries Award for the most The Sapics Award for best written paper from
awarded to Karl Manrodt innovative presentation was awarded to Abrie a practitioner was awarded to Mark Hunter
de Swardt of Imperial Logistics of Eskom
I
nteresting papers, a bus-
tling exhibition hall and
the usual festive and
social atmosphere cul-
minated in the Terry Smee
Award for the best speaker
at the Conference going to
Karl Manrodt of Georgia
Southern University in the
USA, whose presentation on
“Vested Outsourcing” inspired
delegates.
The South African Breweries
Award for the Most Innova-
tive Presentation was this
year awarded to Abrie de
Swardt of Imperial Logistics,
for his presentation entitled
“Greening Transportation in
the Supply Chain”.
The Sapics Award for the
best written paper from a
practitioner was presented to
Mark Hunter, of Eskom whose
paper addressed “Getting rid
of your clutter.”
Exhibitors ran fabulous com-
petitions during the confer-
ence, and prizes included a
Hyundai Atos from Imperial
Logistics.
C
riterion Equipment has traded
in South Africa for nearly 40
years as the sole distributor
of TCM forklifts and has sold
over 10 000 TCM material handling
products to the local market,” says
Shaun Collins, national sales manager,
Criterion Equipment.
“A particular focus of the new man-
agement team is to develop a national
workshop support facility and to sub-
stantially increase parts stock holding
for on-demand availability.
Safety features in- TCM steering axels have been strengthened for
clude an anti-roll enhanced durability in demanding applications.
mechanism during Mast supports, tilt cylinders and tie bars have
turning, a neutral been re-designed to construct a sturdier mast. Oil
safety mechanism filled lift cylinders have also increased durability
where the engine can- of this series.
not be started unless
the change lever is in Optimal positioning of the fan, radiator and muf-
the neutral position fler, has improved the airflow and reduced the
and high mounted operating coolant temperature for more efficient
rear combination operation.
lights that are easily
visible. Operator visibility has improved by 50%
Forklift
These environmentally friendly forklift trucks,
improvements
which conform with new emissions control and
The new fork landing
energy management systems, have been designed
mechanism encom-
for reduced maintenance requirements.
passes a fork lowering
speed that deceler- Comprehensive service
These environmentally friendly forklifts conform with new ates at a height of ap- TCM machines are available from a network
emissions control and energy management systems of Criterion Equipment branches and carefully
proximately 150mm
above the ground. selected dealers and agencies in most of the
This enables accurate placement of the forks major centres throughout Southern Africa and
onto the pallet. in neighbouring countries.
The front and rear stability has also been improved Criterion Equipment, Shaun Collins, Tel: (011) 966 9700,
for stable and more consistent cargo handling. The Email: shaun@criterion.co.za, www.criterion.co.za
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O
ther tags sions regulations, European certifications and has
have this ICASA approval.
a b i l - This advanced antenna system incorporates
ity, but complex mathematical algorithms and signal
they’re non-stan- processing techniques, similar to those that
dard, so they haven’t have been applied to military target acquisition
been used across the and tracking systems. In fact, Barry tells us that
board. RF Controls’ the system has already proved itself in several
Intelligent Tracking military applications. “Using ITCS, it’s possible to
and Control System complete a stock-take at a military encampment
(ITCS), overcomes in 20 minutes,” he says.
this problem. It’s the
reason I shot to the Managing costs
States to secure the According to Barry, the antenna plays a large role
agency as soon as I in minimizing costs, since the system requires only
heard about it,” he a single antenna to do the work of multiple con-
chuckles. ventional RFID reader systems. One ITCS antenna
Barry Bateu Using standard Gen- can cover two or three adjacent dock doors in a
eration-2 UHF tags, warehouse. In retail applications, its reach can
which already have a following among 70% of extend beyond the doorway of a store, providing
the global market, readers
can identify, locate and
track tagged items in real
time. The tags, which are
either passive or battery-
assisted, are inexpensive
and readily available. They
can be attached to clothing,
electronic equipment and
pharmaceuticals, as well
as to containers, in order
to track their contents.
Distance scanning
The system can also read
from further away. Wide
area zonal monitoring is
achieved using innovative
‘smart antenna’ technol-
ogy, which can pinpoint
an individual RFID tag to
within 30cm. The antenna
is compliant with RF emis-
We are Being
Ripped Off
Are South African’s, like the rest of the world, being ripped off when it comes to the price of toner and ink
cartridges? The answer is a definite Yes! In fact, South African’s are doubly cheated as the already-inflated
price of toner and ink jet cartridges is much higher here than the exact same product overseas.
S
upply Chain Today” phoned
local companies, searched The comparison he supplies speaks for itself
the internet and spoke to Example 1:
several end-users who are The total costs calculated over five years, 15 000 pages per
up in arms about the price of toner month, 20% density, A3 page, including initial price of printer
and ink replacement cartridges, es- and all consumables except paper.
pecially when they cost more than
the printer itself. And it seems that Line Printer (500LPM, 24hr duty cycle) cost = R39 768
printer manufacturers are not moved Versus
by the outcry about a product that Laser printer (50ppm, A3, mono laser printer) cost =
costs ten times more per gram or R589 444
millilitre than the most expensive
caviar or perfume in the world. Example 2:
The total costs calculated over five years, 5 000 pages per
Liquid gold? month, 20% density, A4 page, including initial price of printer
The Mnet actuality programme, Carte and all consumables except paper.
Blanche, delved into the matter
comparing the price of fuel at R8 a Dot Matrix Printer (80 column, 570cps printer) cost =
litre, or perfume at R4 000 a litre, R129 580
against that of printer ink that comes Versus
in at a staggering R20 000 a litre.
Laser Printer (28ppm, A4, mono laser printer) cost =
That’s what it costs if you buy an
R1 017 066
OEM product. And no, it does not
contain gold dust.
One journalist wrote: ‘Printer ink is one of the
most expensive thing in the world when you Making up the loss
break down how much it costs per millilitre. So The main manufacturers are not responding but
why does it cost so much? Simply put, because we found one comment on the internet trying to
they can.” justify the business model they all basically follow.
“The dynamics in terms of the cost of the cartridge
needs to be understood,” says one manufacturer.
“As a consumer, I wouldn’t be looking at it in terms
of what the cost is per litre or per gram, it’s about
the yield that it can deliver. We typically don’t make
money in terms of bringing the hardware to the
market and in some instances we are investing in
getting that printer there. So if the consumer after
a short period of time says, ‘I don’t like this,’ and
ditches it, it’s been an expensive exercise.”
Printer manufacturers argue they are pricing the
hardware at a loss so that the printer sells and so
they make up for it with cartridge sales. There are
generic replacement cartridges on the market at a
lower cost than the OEM’s, but everyone we spoke
to is reluctant to use substitute products because
they damage the printers by clogging the print head
on ink printers, or the drum on laser printers.
S
upply Chain Today” spoke to Yolandé van months is granted for implementation of the
der Riet, nutritional specialist within the majority of regulations. Until then, both sets of
Food Safety Initiative (FSI) division at Regulations (R2034 and R146) will be applicable,
Consumer Goods Council of South Africa in other words, “the old and new regulations will
(CGCSA), for some insight into the motivation run in parallel until 1st of March 2011, allow-
behind the new Regulations, and how it will ing companies time to get their ducks in a row.”
impact the local market. However, it should be noted that R2034 would
The FSI – under the auspices of the CGCSA – is still be utilised for the purposes of law enforce-
an industry associa- ment until 1st March next year.
tion which renders a Protecting the consumer
scientifically-based “A number of issues have been addressed, principally
service to its mem- for the protecting and informing of the consumer,”
bers on food safety Yolandé continues. “For instance, the existing
and nutrition mat- list of definitions has been extended, sections
ters. FSI members pertaining to allergens have been updated and
thus benefit from this stipulations in terms of nutrient content claims
expert knowledge, are more comprehensive. Every food manufacturer
along with the op- will now have to go back to their labels to see
portunity to attend whether they comply or not.”
events such as the
The intention of the new Regulations is to provide
recent series of train-
consumers with the means to make informed
ing courses address-
food choices, as well as limiting the potential for
ing the mentioned
misleading some consumers with information that
Regulations. These
is either accidentally or deliberately ambiguous.
courses are avail-
“The Department of Health wants to ensure that
able to anyone with
all claims on labels are truthful and have sufficient
an interest in the
substantiation” explains Yolandé. “The Consumer
Yolandé van der Riet subject.
Protection Act will most probably also drive this
and consumers will become more aware of what
There were various loopholes that needed to be closed they consume.”
Revised regulations
According to Yolandé, the updated Regulations
have been in the pipeline for some time. “This
is a revision of R.2034/1993 of the Foodstuffs,
Cosmetics and Disinfectants Act (Act 54 of 1972),”
she tells us. “It was implemented in ’93, but the
Department of Health has since realised there
were various loopholes that needed to be closed
in order to align it with international protocols
and scientific research.” Some of the provisions
in the new Regulations also relate to the World
Health Organisation (WHO) and Food Agricultural
Organisation’s (FAO) Global Strategy on Diet,
Physical Activity & Health – an international
initiative aimed at the improvement of human
health worldwide.
“Although the revisions were introduced on 1st
of March 2010, a commencement period of 12
Updated rules
According to information available
on the Department of Health website
(www.doh.gov.za), new labels will be
required to indicate “Use by” dates
to maintain food safety by avoiding
microbial growth due to decay. “Best
before” dates will be mandatory for
non-perishables to ensure optimum
freshness of these products.
The DOH adds that consumer health
will also be protected by the inclu-
sion of a declaration of common food
allergens. In addition to this, labels
will need to provide information
about the contents of the product,
such as colourants and preservatives.
If labelling information is checked
for correctness, for example by an
inspector, producers will be required
to support the validity thereof within
48 hours.
Saying that your brand of rooibos tea is
caffeine-free is confusing since all
rooibos teas are generally caffeine free
Cashing in on
Cash ‘n Carry
Finding a niche in a highly competitive market is no small feat, but Stan-
ley Aucamp is a determined man. The MD of E. S. E. Manufacturing (Pty
Ltd) has cashed in on a growing South African trend which is reaping rich
Stanley Aucamp
rewards for the company.
W
hen “Supply Chain Today” meets Stan Good design
at his Pretoria offices, he shows us Although bulk retail outlets may not immediately
a pile of paperwork for projects in spring to mind as examples of ground breaking
progress that would have any rack- design, Stan soon sets us straight in terms of the
ing and shelving specialist dancing with delight. importance of a well-planned outlet. “An organ-
“Cash ‘n Carry stores make up 30-40% of our ised flow of storage equipment makes it easier
business,” he says, showing us floorplans for a to sell volumes,” he assures us. It becomes clear
number of huge facilities. The stores are vast, with that intelligent shop fitting is about encourag-
ing shoppers to buy more items, with attractive
If they don’t get up to scratch, the guy next door will layout and pleasant colour schemes enhancing
take over their business the experience.
“Even high volume retailers can benefit from a
a recent job in Polokwane measuring 8000m2 and
modern look, and companies are realising that
boasting 86 till points. “We specialise in revamps
if they don’t get up to scratch, the guy next door
of existing installations, where we’ll respray and
will take over their business. Since racking can
repair existing equipment and replace outdated
be a costly purchase, many will invest in the
systems to give the facility a new look.”
process by upgrading a row per month. If they
Toughing It Out
Tough economic climates call for innovative thinking and very often, this involves reviewing existing processes
and refining the system. This approach has given many companies fresh insight into their own operations.
W
e’ve been exploring methods of
improving our current offerings and
the customer service sector has been
our focal point,” Ron Bonthuys of
Dexion Cape tells “Supply Chain Today”. As a
supplier of racking, shelving, mezzanine floors
and small parts storage, Dexion has witnessed
first-hand the fluctuations of the warehousing
market and has adapted accordingly.
Ron Bonthuys
It goes beyond simply installing shelving, storage or
conveyor systems
customers with whom we have built solid rela-
tionships with over the years,” says Ron. “One
“Networking and referrals have always provided the
such customer is Digistics, who warehouse and
bulk of our business, so it made sense to capitalise
distribute for two large, iconic fast food outlets.
on this. It’s a matter of fostering good associations
Digistics has a number of large freezer and am-
with existing clients,” he emphasises.
bient distribution centres located around South
Good relationships Africa, for which we have supplied high-rise pallet
“We are fortunate to have a number of loyal racking and drive-in racking.
WITH 100%
Green is gold
Serco, manufacturers of
truck bodies and trail-
ers, continues to make
impressive advancements
to reduce the weight of its
products so as to reduce Serco has recently completed the delivery of 26 dry freight truck bodies and 14 semi-trailers for
the CO 2 emissions. unitrans freight
W
hen “Supply Chain Today” speaks the ease of upgrade.” He explains that HighJump
to Richard Evans, MD of iWMS, is able to do this by using a customisable process-
the local distributor of HighJump driven approach to warehousing and a layered
Software, it’s clear we’ve come to software architecture.
the right person for insight. Having come from
a position at Microsoft in Seattle, Richard’s un- Implementation
derstanding of information technology is clearly “Once the deal is signed, we’ll meet with the cli-
a cut above the rest. When partner and former ent for a ‘define’ session,” he says. “Here we’ll
HighJump employee, Greg Robertson was picked get all the company’s experts into a room with
by HighJump Software to establish a South Af- our top technical guys to discuss and agree how
rican distributorship of the software in response all the processes should function in the ware-
to interest from Mr Price Group Limited, Richard house. Our technical team brings years of supply
was quick to get involved. chain experience and a deep upstanding of the
best practices that come standard in HighJump
An 80/20 split, where 80% of our design is standard while the company’s experts bring the in depth
best practices and 20% of the design is unique to the knowledge of their warehouse’s processes and
the vision of where they would like to take the
company warehouse.
“From day one I have been very excited about “We normally target an 80/20 split, where 80%
HighJump,” he tells us candidly. “It offers aspects of our design is standard best practices and
that I’ve never had available in my many years in 20% of the design is unique to the company.
the software industry, the main draw cards being The 20% is often where the company is looking
its incredible flexibility, the fact that HighJump will to use their supply chain to gain an advantage
support customer and partner modifications and over their competition.
Sponsors:
28 October - Durban
5 November - Cape Town
“Once we’ve determined the steps to take, we’ll Quiksilver, was able to improve output by let-
start the implementation phase, which can take ting HighJump take over the work of planning
anywhere from two and a half to nine months. warehouse management. From humble begin-
We have checkpoints along the way to review nings, the brand gained rapid popularity to the
and identify possible problems or improvements. point that demand was outstripping capacity.
Finally, we test the entire system, getting the The team had to receive hundreds of thousands
customer involved to fine-tune the process. of different items and ship them accurately and
“Efficiency and visibility are the key advantage on time to thousands of customers with varying
of a WMS,” he adds. “The workforce becomes order profiles – all in an industry where inventory
directed. Using RF devices pickers are given di- changes seasonally.
rections, with the programme viewing the entire
workload and, for example, setting optimum pick Now they expect a brand new picker to do 100 lines an
paths. The visibility benefits are available because hour
of the level of detail tracked by HighJump. For
example, the system tracks all movement in the “Installing HighJump not only allowed Quiksilver
warehouse and allows the user to see exactly to rationalise activities such as picking, put-away,
what has been done to each item and where inventory control and cycle counting, but also to
each item is, to the extent that it can tell you if improve output patterns that were specific to the
an item is in transit on a fork. company,” says Richard. Previously, inventory
“The programme architecture works in ‘layers’,” checks had been a costly procedure, taking up
Richard continues. “This allows users to upgrade valuable working hours. This has been replaced
specific areas without needing to change other by an interleave cycle counting process which
areas. You can upgrade the technology layer negates the need for physical inventories.
without changing your business processes and Catching a wave
vice versa. This also means that the upgrade is The company also implemented HighJump’s
easy to do and we have many examples where our wave planning solution to speed up high-volume
clients have implemented upgrades themselves order fulfillment, allowing Quiksilver to carry out
overnight or on public holidays and been ready
for work the next day.
Racing stripes
“Adjusting the system is simple, for example
Fox Racing in the States, have procedures that
require regular adjustments. Fox rolls out a new
application every week, planning implementation
on Monday with changes going live by Friday.
“This has allowed them to streamline their
processes continuously since they started using
the software,” he says. “It’s useful that clients
are able to make their own changes and feel
confident that things will run smoothly. The best
part of this is that all documented changes will
be supported by both the iWMS and HighJump
support teams. You don’t generally see both this
level of flexibility and supportability in software
packages.”
A supplier of action sports gear, Fox Racing’s
facilities can handle up to 2 000 orders a day,
with many of its products being seasonal, requiring
fluctuating volumes of different lines throughout
the year. This calls for high-speed turnaround
time with no room for error. With HighJump,
picking rates have increased dramatically. “Before,
their best pickers were handling 40 to 50 lines
an hour,” Richard tells us. “Now they expect a
brand new picker to do 100 lines an hour, and
the time-consuming task of returning miss-picks
has been almost entirely eradicated.”
Surf’s up
In another case, outdoor clothing company,
The software has been extremely successful in the fast-paced garment industry
M
anufacturing is a highly complex for maximising
undertaking with many variables and of margins for
thus, it is important to choose a part- both parties,”
ner, not merely a “service provider” says Murison
that can produce your product cost-effectively, Ko t z é , w h o
to the highest standards and in accordance with heads up Tel-
your requirements, while providing expert guid- lumat Elec-
ance and advice. tronic Manu-
But first take a moment to consider your next facturing.
step carefully. Besides the design process, into Companies
which you’ve poured enormous energy and with limited
commitment, manufacturing is the most crucial manufactur-
stage of bringing a product to market. Making a ing or design
poor decision now could destroy your product’s capacity of-
chances in the market just as surely as a poor ten selective-
design would. ly outsource
some of the
Ranging from design, prototyping and sourcing to manu- production ac-
facturing, testing and even logistic services tivities, choos- Murison Kotzé
ing to retain
“When outsourcing, you are endeavouring to achieve the balance “in-house”. “More often than not we
the transference of risks inherent in the manu- find that an initially cautious approach leads to
facturing process to your manufacturing partner. the outsourcing of more business processes, as
Care needs to be taken to partner with a provider they experience the benefits for themselves.
that can successfully assume this risk, allowing All-round qualities
He goes on to say that a partner
with a full turnkey offer-
ing (ranging from design,
prototyping and sourcing
to manufacturing, testing
and even logistic services)
is first prize.
Regarding a choice between
a full turnkey manufacturer
and one who only offers
limited services such as
assembly only, Murison
points out that market conditions
and company strategies are
subject to change, and one’s
requirements with it. Will your
choice of manufacturer still be
able to accommodate you when
you decide to outsource another step
in the process tomorrow?
As an example of the need for a manufacturer manufacturers, but the truth is that South African
to accommodate variable volumes, he explains manufacturers can today provide the same or a
that a product’s pre-production phase typically better service at a comparable cost.”
involves low volumes, whereas full production “It is still possible to achieve manufacturing cost
escalates that requirement. savings in some cases, but these will often be
“It would be exceedingly disruptive to switch from eroded by the additional resources required to
one manufacturer to another halfway through manage production in the East, often necessi-
production,” he comments. It may also be that tating on-site personnel, researching production
your product is comprised of both high volume sites, and the logistics involved in shipping your
as well as low volume components and again, product back to South Africa. There is also the
making the right choice in a contract manufac- very real possibility of having your intellectual
turer would mean that these requirements are property compromised, and you can’t always be
well catered for. sure that only original, quality components are
used in making your product,” he adds.
A few other considerations to bear in mind when selecting a “In addition, while local manufacturers have
partner are: in the past struggled to source components at
competitive prices, the South African components
- Do they have a track record of ‘incubating’ new products?
distribution industry is improving constantly.”
- Are they geared for efficient data-pack transfer, configuration
management and procurement? Proximity
“Companies sometimes base their decision almost
- Can they handle production in prototype, pre-production and solely on proximity, as this allows them to be
high volumes? able to spend time at the manufacturer to sort
- Do they have the ability to design test fixtures and soft- out problems when they occur. This reasoning is,
ware? however, flawed. Firstly, if there are many issues
- Would they be able to assist with design qualification, includ- that your manufacturer can’t resolve without your
ing environmental considerations? assistance, it probably means that they do not
have the appropriately skilled people and may
- Do they have experience in obtaining product type approvals mean that you have chosen the wrong partner.
and certifications?
Secondly, outsourcing entails relinquishing a non-
core business process. If you have to spend an
excessive amount of time at your manufacturer
It is important to choose a partner, not merely a “service
then you aren’t really outsourcing this business
provider” process, you’ve just moved your manufacturing
premises.”
New products
“At Tellumat we encourage our customers to Bottom line
engage with us during the initial stages of the One’s choice of contract manufacturer is a weighty
design process. This enables us to give vital input issue that ultimately comes down to being able to
with regards to design for manufacturability of check the boxes next to some key factors. Even
the product,” Murison says. in a country with good manufacturing credentials
like South Africa, it is important to ask the right
“Engineers who design in isolation are often only questions.
concerned about the functionality of the product,
Tellumat, Murison Kotzé, Tel: (021) 710 2241, Cell: 082
forgetting about ‘manufacturability’. Engaging
823 5924, Email: mkotze@tellumat.com
with the appropriate manufacturer during the
design phase will help customers design with
efficient manufacturing in mind. This will ensure
that a high ‘first-pass yield’ (low failure rate) is
achieved with no need for costly re-designs, as
well as a reduction of manufacturing costs and
time to market.”
Of course, this means having to select a manufac-
turer with engineering expertise and experience
and a good question to ask your prospective
manufacturer is ‘How many engineers do you
have?’ advises Murison.
Cost
Murison says cost is often cited as a major reason
why some customers opt for “Low Cost” Eastern
Functional Packaging
Intelligent packages that satisfy many criteria in addition to supplying the necessary consumer information are
on the advance, and not only where foods are concerned.
I
t’s flexible packages, ie, film packages, that is also spurring their growing use. Even today,
are in particularly strong demand because of plastic films meet about three quarters of global
the low cost of materials and production and demand for flexible packages.
their broad range of applications. Because of
Increased demand
their low weight, they help to conserve resources
According to a study by the US Freedonia Group,
and also offer good scope for recycling.
global demand for flexible packages will rise
by an average of about 3.5% per annum in the
By combining two or three different types of polymer, it
coming years from a good 16 million tonnes in
is often possible to save on material 2008 to ultimately almost 19.5 million tonnes in
2013. The market researchers expect the fastest
The use of flexible packages in the food and bev- growth in the developing regions of Asia, Latin
erages industry and in the pharmaceutical and America, Eastern Europe and Africa as well as
cosmetics industry is encouraged by the materi- in the Middle East.
als’ hygienic qualities and long shelf life. Further
development with breathable films, microwave- Industrial films usually 3-layer
and freezer-safe films, and biodegradable films Industrial film is the term usually given to those
films that are employed, for example, as shrink
film hoods, stretch films or as
packaging for industrial goods, and
films sold by the film producer to
industry as raw stock for convert-
ing. Polyolefins are mainly used for
the production of industrial films
and principal grades of PE.
The market today is dominated by
3-layer film composites. By com-
bining two or three different types
of polymer, it is often possible to
save on material while enhancing
functionality at the same time, an
important factor for a production
line’s cost-effectiveness.
Consumer habits
In the industrialised nations, the
reasons for the increasing use of
flexible food packages made of
plastic can also be found above
all in changing consumer habits.
There is constant growth in the
consumption of ready-to-serve
meals, the range of foods is fast-
expanding and, finally, the growing
desire for an appealing package
exterior is becoming increasingly
important.
Film composites have become
established for consumer packages
and particularly food packages.
5-layer films are standard, and
7- and 9-layer composites are by
no means rare today. Extrusion
The first blow heads for 11-layer films are already in operation line manufacturers are giving the
There is constant growth in the consumption of ready- Bio- and recycled materials
While grades of polyolefin combined with bar-
to-serve meals
rier materials such as polyamides and EVOH are
processor extra flexibility by enabling it to produce usually employed on a blown film line for the
as many different products as possible on a single production of food films, PET has long estab-
line without retooling, e.g. 3- and 5-layer films. lished itself as the “mass plastic” for cast films.
The endeavors of many companies to efficiently
recycle PET have come to fruition. One obstacle,
however, continues to be the approval of grades
of so-called rPET (recycled PET) for repeat use
in direct contact with foods.
Already established are many processes for the
production of multi-layer film composites in which
rPET is employed as the middle layer. Thanks to
ongoing improvements in machine technology,
rPET made of processed post-consumer PET
wastes and ground bottles is now in use for food
packages and for the packaging of deep-frozen
ready-to-serve meals.
Across the board, biomaterials have been on the
advance for some time now, but only recently in
connection with food packages. For instance,
carbon-neutral film products made of PE and
from renewable resources have been attracting
attention. The main reasons for the expanding
use of biomaterials can be found above all in
resource conservation, compostability and sus-
tainability. However, a biodegradable material
or a material based on biological raw materials
is not necessarily greener and more sustainable
than a conventional plastic. All the same, growing
environmental awareness and the discussion of
the pros and cons of various categories of materi-
als have initiated a multitude of innovations to
conserve resources.
Eva Rugenstein/Desislava Angelova, Email: RugensteinE@
messe-duesseldorf.de or AngelovaD@messe-duesseldorf.
de
Container Terminal
Leads in Productivity
Better planning and streamlining of operations has given Cape in force majeure disruptions caused by inclement
Town’s container terminal the lead in productivity among the weather, as well as improved employee skills as
five container facilities operated by Transnet Port Terminals operators become more proficient in handling the
(TPT) in South Africa new equipment procured as part of the terminal’s
five year capacity creation project.
W
The equipment includes new Super Post Panamax
ith an achievement of 24 gross crane
ship-to-shore (STS) cranes and rubber tyred gantry
moves per hour (GCH) on average
(RTG) cranes. Decreased stack congestion in the
during July 2010, the Cape Town
terminal has encouraged a smoother operational
Terminal enjoyed a 9% improvement
flow. Velile says, “We have managed to strike a
from June’s recorded average of 22 GCH. The
balance in the availability of resources to meet
overall Transnet target is 26 GCH.
operational demand and have also systematically
Truck turnaround time was 26 minutes on average improved productivity in our RTG crane opera-
against a target of 30 minutes maximum tions.”
New cranes
Improved performance The new STS cranes give the terminal a competi-
Velile Dube, the new Regional Terminal Executive tive edge because they are faster than the older
for TPT’s Western Province operations, attributed cranes and boast twin lifting capability, where
the improved performance in July to a reduction two six metre containers are handled simultane-
ously. This minimises the crane cycle time and
increases the cycle frequency. Also contributing
to improved productivity in July was Ship Work-
ing Hours (SWH), which were maintained at an
average of 41 moves on all vessels. Ship Working
Hours is the number of containers moved by the
cranes working on a vessel in one hour.
Better housekeeping
Truck turnaround time was 26 minutes on average
against a target of 30 minutes maximum, while
stack occupancy was an average of 46% against
a ceiling figure of 65%. Further plans to improve
landside operations are advanced and even greater
productivity is expected. Greater emphasis has
been placed on housekeeping compliance, which
ensures conducive landside operations.
The terminal’s ongoing refurbishment has extended
the quay wall by 10 metres and increased the
draft by 15.5 metres on the high productivity
Berth 601 and the first 40m of Berth 602.
Equipped with four of the latest Super Post Panamax
ship-to-shore cranes, the terminal is now able to
service 305 metre vessels along Berth 601 and
the first 40 metres of Berth 602. In addition,
the increased berth and increased height capacity
of the cranes allow for the efficient handling of
Super Panamax vessels.
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S I N DIS T
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NAME : ______________________________________________________________________________________________
32 Supply Chain Today August 2010 Advanced Materials Today September 2007 39
WAREHOUSING
L
ongmeadow, the company’s blueprint “Our decision to move to centralised distribution
centralised DC, currently services 284 was motivated by changes in South Africa’s retail
stores. Building on this success, a sec- landscape which had seen us fall behind our com-
ond inland grocery distribution centre petitors, who were investing significantly in their
is planned, as well as facilities in the Western supply chains and in improved service to their
Cape, KZN and Eastern Cape regions. In addi- stores through centralised distribution systems.
tion, a perishables inland distribution centre is Throughout the world, the most successful retail
scheduled, the total investment coming in at a groups have unlocked massive value from their
cost of over R2-billion. supply chains, and most of them have moved
away from direct-to-store delivery distribution.
Our decision to move to centralised distribution was “We were also driven by the realisation that our
motivated by changes in South Africa’s retail landscape current distribution operations are running over
capacity and have become inefficient, resulting
Improving efficiency in stores being overstocked and in deterioration
Pick n Pay CEO Nick Badminton says, “Pick n Pay’s in customer service levels as a result.”
move to centralised distribution is pivotal to the
Late adoption
group-wide transformation programme which we
Nick says that Pick n Pay was the last of the major
launched three years ago as part of a fundamental
supermarket groups to commit to a streamlined
review of the way we do business.
supply chain. “While this inevitably compromised
The purpose of this project has been to improve our efficiency in the short term, it has enabled us
the efficiency of our core retail business, reduc- to learn from the experience of others and to build
ing the cost of doing business, simplifying our a world class distribution centre, deploying the
organisational structures and enhancing the way most up-to-date and state-of-the-art warehouse
we use information technology. management software solutions.
“It was no light decision, as it has required con- ment and integrated planning environment, as
siderable capital investment and represents a well as standardise operating procedures across
significant change in the way we’ve done business the company,” she says.
for more than four decades, with the investment in
Longmeadow to date totalling R628-million”. The retailer has completed its supply chain vision
and strategy, with early success at the Longmeadow
Benefits facility which has resulted in a streamlined opera-
Nick continues by saying that beyond technologi- tion and significant improvements in efficiency.
cal advances and the logistical achievements, it Product availability to stores has risen by 20%
is the benefit to its customers that remains top due to more efficient supply chain processes and
of mind. robust business practices.
“For the hundreds of thousands of shoppers who “We are constantly re-engineering our technology
pass through our doors every day, the most sig- and business practices within the supply chain
nificant benefits of centralised distribution have to ensure increased productivity and reduced
included the improved availability of stock, lower costs. The implementation of SAP within Pick n
prices and a streamlined ordering process which Pay has allowed the development of an enhanced
has freed up our store staff to spend more of their demand planning competency, taking into account
time concentrating on shopper engagement. All a full range of information to accurately manage
the latest independent surveys confirm that over demand. This has improved the stock availability
a basket of goods, Pick n Pay is quite clearly in the supply chain resulting in improved delivery
cheapest of all the major retail chains.” to stores.”
In conjunction with the SAP implementation, SAP
The most significant benefits of centralised distribution warehouse management is also used to manage
have included the improved availability of stock the distribution facility, which has enabled the
enhanced functionality resulting in efficient use
of resources, such as mechanical equipment and
Competitive advantage people, accurate management and tracking of stock
Director of Supply Chain, Bronwen Rohland, says and visibility of the status of the operation.
that the vision of Pick n Pay is to establish the
supply chain as a key competence and competi- “Pick n Pay is now able to hold stock centrally
tive advantage, build capacity for centralisation of rather than at individual stores, helping to elimi-
supply to support improved product availability, nate congestion at the back door of our stores,
increase efficiency and the capability to deliver cut down on storage space at individual shops
on the Group’s customer promise and reduce its and ensure that we stock the right product at
environmental impact. the right time and at the right price. We have
estimated that storage and other non-trading
“In order to achieve this, a programme manage- space can take up 50% of a shop area, and rent
ment structure has been put in place to manage must be paid for this area where no trade takes
the supply chain programme over the next five place,” she says.
years to design a robust supply chain network that
will handle future requirements across all Pick Pick n Pay, Dani Isaacs Tel: (083) 308 6260, www.pick-
n Pay divisions, deliver an automated replenish- npay.co.za
Maximum efficiency
Parmalat South Africa has announced its intention to
outsource the dairy company’s regional distribution
planning functions to VSc Solutions, a locally-based
supply chain technology and consulting company. The
continuous world class operating success achieved at
Parmalat’s Gauteng Distribution Centre has paved the
way for further development using similar solutions
in other regions.
VSc Solutions has re-engineered the planning function
by utilising technology and skills in order to create a
competitive advantage for Parmalat in the distribu-
tion environment.
The result is an integrated, innovative solution that
has successfully reduced costs and improved ser-
James Hammond accepting the Award on behalf of Damco Logistics South vice levels, creating added value for customers and
Africa shareholders.
From:.........................................................................................
Title: ..........................................................................................
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