LOGISTICS WG MEETING

www.ecaif.co.za

ECAIF LOGISTICS WORKING GROUP MEETING

Date: Friday, 01 April 2016

Time: 08:00 – 10:00

Venue: Shatterprufe

1 Armourplate Road, Struandale, Port Elizabeth

AGENDA

1. Welcome & Introductions

2. Transport and Logistics Project

3. Cost Comparison

4. BBBEE

5. Cost Savings

6. Resource Utilization

7. Contingency Planning

8. Review of Previous Meeting Minutes

9. General Discussion and Q/A’s

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MINUTES OF A MEETING – LOGISTICS WORKING GROUP

Title: ECAIF Logistics Working Group

Date & Time: 01 April 2016, 08:00 – 09:15 Venue: Shatterprufe (Struandale), Uitenhage Road, South Africa

Meeting Number:

LWG Meeting 06

Members Present (See Attendance Register attached):

Andre Nel - Shatterprufe Stanton Furter – Hansens Engineering Dr Anthony Albers – Kyle Business Projects (KBP)

Harold Scharneck – TENNECO Ride Control Clyde Erasmus – Steelbest Manufacturing Karla Vermaak – Kyle Business Projects (KBP)

Chetna Doolabh – Lumotech Carmen Trimalley – Corning Products South Africa Claire Satchwell – Kyle Business Projects (KBP)

Apologies:

Malcolm Bailes – Bosal Africa Henry Welgemoed- MW Wheels SA Werner Grobler – BASF Holding SA

Michelle de Klerk – Shatterprufe Claire Meintjes – Schaeffler Auto Theunis Lombard – Federal-Mogul Motorparts

Lerato Ramadiro – Goodyear Dean Wegger – Hellermann Tyton PE Maryke Muller – Federal-Mogul Motorparts

Deon Naidoo – CRH Africa Tertius de Ridder - Bridgestone Theunis Van Huyssteen – Johnson Control

Monika Wates - Goodyear Robert Lee - Dana Thercia Senekal - TENNECO Ride Control

Elfrieda Pretorius – Goodyear Gcobani Mkoto – Lear Corp Colin Korkie – Borbet SA

Evan Froneman – Autocast Jermyn Leander – SJM Flex SA Chantal Bower – Schaeffler Auto

Rayhaan Liberty – MAHLE Behr Janice Coetzee - Benteler

Item Discussion Action / Resolution Responsible Person Timeframe

1. Opening Andre Nel welcomed the members to the Logistics Working Group meeting.

2. Apologies Apologies were recorded as noted above.

3. Transport and Logistics Project

Andre updated the members with regards to the progress on the project. The Project Scoping Workshop took place on Wednesday, 30 March 2016. Eddie Kitching and Larry Martin will draw-up a template for completion by members. Andre Nel invited members to participate as the first phase has been funded. He asked the members to provide volumes if they don’t feel comfortable with giving rates. Eddie and Larry will combine the information so that members will be able to already see where they could potentially benefit.

Dr Albers highlighted that from the project scoping workshop members felt unsure with regards to participation as they wanted more clarity on whether this initiative is in line with competition regulations. He will be enquiring whether NAACAM and ASCCI have

KBP send letter to Dave Coffey, Andy Dealtry, DTI and

KBP

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had any instructions / direction in this regard, and will also consult with DTI / DEDEAT for possible guidance. It was noted that the cluster approach to cooperative development is the preferred model promoted (and funded) by DTI.

DEDEAT with regards to legality of Transport and Logistics Project

KBP will complete the Project Scope and distribute to members. Members need to send through their list of companies they think should also participate in the project.

4. Cost Comparison Database

Andre Nel mentioned that the cost comparison database has already flagged a potential saving for Shatterprufe of R165,000 per year. This is the benefit of having this database.

Andre Nel requested that consumables be added to the lists. Members should list the consumable used with the specifications. Members can still add to the list products they feel will be of benefit to them and other members;

Add products to list and source other member’s costs

Members / KBP

KBP will send list for updates to members on a monthly basis as prices change. Send list for updates of costs.

Members / KBP

5. BBBEE Suppliers Database

Andre Nel feels that they have already used the BBBEE suppliers database as they are chasing % ownership.

Companies must continue to list suppliers and their BBBEE levels, but that they should only put suppliers on the list that they would recommend to other components manufacturers;

Members to send list of BBBEE suppliers to KBP for inclusion;

Members / KBP

Andre Nel reminded members of the VWSA Black-Owned Supplier’s Day, and gave the members a bit of a background with regards to what is happening and that they will be attending.

Dr Albers will request the list of manufacturers from VW to distribute to members. KBP request list of manufacturers

KBP

Stanton Furter mentioned that he received an email with regards to the changes in the BBBEE and will send it to KBP for distribution if it is necessary.

Stanton Furter send email to KBP for distribution.

5. Cost Savings Members are requested to measure their Cost Saving, Best Practice Shares and BBBEEE. The ECAIF needs to record the benefits achieved by members from the Forum – this could be cost in transport as a result of combining shipments, reducing expenses through the cost comparison database, or other measurable benefits.

Members log cost saving with KBP for consolidation

Members

KBP will request the information from the members within the following week. KBP request cost saving information from members

KBP

5. Resource Utilization Resource Utilisation was discussed to open the potential for members to find synergies between waste streams and bought-in supplies. Members should send their list of waste / surplus items which other could use to KBP for distribution.

Members send list of waste / surplus items which others could use for KBP to distribute

Members / KBP

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Andre Nel felt that this would be best achieved through factory tours. Federal-Mogul is possibly hosting the May meeting, and KBP will request a factory tour. Steelbest Manufacturing indicated that they will host the June meeting with a factory tour.

KBP confirm with Federal-Mogul for hosting the next meeting and possible providing a factory tour.

KBP

Shatterprufe has waste products, for example glass cullet, that other companies would like to obtain, but the cost of transporting it is greater than the cost of disposal to landfill. Hansens use Green Cycle for which they separate cardboard and plastic. The scrap wood from Hansens Engineering is collected by Lallas Dry cleaners at their cost (they utilize it for fuel). Tenneco has boxes available that they are investigating for possible reuse.

5. Contingency Planning A discussion on contingency planning took place. Capacity for storage is one of the main problem. Stanton Furter suggested that speaking to customers to discuss what they can stockpile. This would all hinge on what they can get from suppliers. .Andre Nel suggested speaking to the OEMs and making it clear what the company is able to do and what costs would be involved.

Members share ideas Members

Andre Nel requested that the topic is kept on the agenda and that any member who has some information should share or update the Working Group.

6. Review of Previous Minutes

Items in the previous minutes were largely covered in the topics discussed above.

8. General Discussion KBP have published the cost comparison, cost saving and BBBEE database on the ECAIF website in a members area, and will send the members their credentials for secure log-in within the next week;

KBP send log-in credentials to members.

KBP

Dr Albers went through the functionality of the website with the members to show them how they would be able to get the information required.

A customs specialist – members would like to have information in order to audit their service providers with regards to the knowledge they have on the regulations needed. They would like to be able to audit their service providers. Possibly go through a checklist. Dr Albers mentioned that SAIT is doing a webinar and members could join in on if they are interested. KBP will forward relevant information to members. Freight Training is able to provide their service, but it would be at a cost. Andre Nel is speaking to their service provider who might be able to assist in providing information for a customs specialist at Sasfin.

KBP provide members with options.

KBP

8. Closing The meeting closed at 09:15.

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Attachments 1. Attendance register