SCT: April 2010

Supply Chain Today April 2010 1

2 Supply Chain Today April 2010

Supply Chain Today April 2010 �

April 2010

ContentsCover Story4 Man Up

Forklifts7 Lifting Society

Barcoding, Labelling, Scanning & RFID11 Advances in Auto Inventory Control13 The Best By Far

Market Forum — Unit15 Market Forum

Procurement19 Active Buying20 Tackling Uncontrolled Maintenance, Repair and Operations Spend

Cold Storage23 The Effects of Cold

Featured on the cover

Masslift AfricaTel: (011) 786-8524Fax. (011) 887-1253Email: [email protected]/[email protected]:www.mitsubishiforkl i f ts.co.za

Report-Back31 Education Excellence Awards

Consumer Goods Council of SA35 Food Safety Audit

Market Forum — Supply36 Market Forum

Endorsing BodiesAfritag (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)

Proprietor and Publisher:PROMECH PUBLISHINGTel: (011) 781-1401Fax: (011) 781-1403E-mail: [email protected]@promech.co.za Website: www.promech.co.zaManaging Editor:Susan Custers

Advertising Sales:Tarina Kriel

DTP: Zinobia Docrat and Sanette Lehanie

Printed by:Typo Colour PrintingTel: (011) 402-3468

The monthly circulation is 4 025 CopyrightAll rights reserved. No editorial matter published in Supply Chain Today may be reproduced in any form or language without written permission of the publishers. While every effort is made to ensure accurate reproduc-tion, the editor, authors, publishers and their employees or agents shall not be responsible or in any way liable for any errors, omissions or inaccuracies in the publication, whether arising from negligence or otherwise or for any consequences 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.

� Supply Chain Today April 2010

COVER STORY

W ith 30 years invested in various divi-sions of Barloworld, the last three of which were spent in the UK, Geoff clearly has strong ties to the com-

pany. But when we ask why he chose to return to South Africa to a relatively small concern, he doesn’t hesitate when he gives his answer.

Sunny skies“Three things drew me back. Firstly, the weather,” he laughs. “Secondly, the opportunities available. South Africa is one of the few emerging countries

to have its act together and it’s just waiting to be developed. Finally, I was drawn back by my family. They stayed behind when I went to the UK and it was hard to be separated for so long.”

His feelings about Masslift are equally convinc-ing. “The company has a long history and offers a great product in the form of Mitsubishi’s lift-

ing range. I saw a chance to get back home and do something really exciting with a fantastic product and couldn’t pass up the opportunity,” Geoff continues.

“My aim now is to get out there and communi-cate the Masslift story,” he says. “With the help of Marco Caverni as Sales Director, I think we’ll get the point across.” With corporate overhauls being Geoff ’s speciality, this statement holds

The logistics industry is a small one and like many of the products shuttled around our shores, news travels fast. When “Supply Chain Today” heard that Geoff Tucker, previous MD of Barloworld UK, had taken on the

CEO role of locally based Masslift, the Southern African distributors of Mitsubishi Forklifts, we were curious to find out more.

Man Up!

We want to empower each of our staff members with the ability to help anyone who calls


considerable credibility.

Maintaining intimacy“We don’t plan to be the market leader because market leaders lose their customer intimacy,” he goes on to emphasise. “Big companies may have five layers of management that clients have to work through before they can solve a problem.

“We want to empower each of our staff mem-bers with the ability to help anyone who calls. Our company success must be built on service excellence that extends beyond uptime on the lift truck. It must also be based on ease of doing business with us,” Geoff says.

Future growth“Once we’ve established service levels, we’ll be looking at introducing new products. This may include big trucks, as well as large and small tow tractors. We’ll also be looking into various warehouse solutions, exploring means of elimi-nating the hassles of running lifting equipment in these areas. Expansion of rental fleets is also on the cards.”

While some companies believe that 95% avail-ability of equipment is an acceptable level of service, Geoff won’t settle for less than 100% as he believes lift trucks need to be available to customers when they need them. “The absence of vital equipment can result in shutdown of opera-tions and the non delivery of their promises to their customers. Nobody should be expected to tolerate this. When companies have worked out their schedules to the last minute, we can’t expect them to wait days for machines,” he says.

“Lift trucks are a grudge purchase and many cus-tomers resent having to spend money on them. We want to add value to this purchase, delivering what they need, so that they’re happier to make the investment.”

Strong valuesGeoff adds that he intends to apply strict values to the company’s operation. “Adding value will be fundamental,” he tells us, “as will honesty and ethical behaviour. Ultimately, we aim to provide something for all stakeholders, including the sur-rounding community and the environment.

“Our staff will be our primary concern since they’ll be crucial to the success of our service plan. Management can make all the promises in the world, but without the right team to back them up, they won’t be able to keep them. At Masslift, I’m able to speak to almost every staff member everyday, which is a luxury I didn’t have before.

Accelerating the upskilling process will make us globally competitive.

“I’m also looking forward to reconnecting with some of my old contacts. I know a lot of people in the industry and I have no doubt that there is much we can achieve together,” he says. With 30 years in the lifting business, Geoff ’s ‘little black book’ must certainly read like the Who’s Who of logistics.

As we end off our conversation, his enthusiasm remains unbridled. “I’m excited to be home,” he smiles. “One of the things I love about South Africa is our ability to see opportunity. We’re not happy to tread water and we can achieve anything once we set our minds to it. Who wouldn’t want to be a part of such a rewarding process?”

Mitsubishi Forklifts offer a full range of materi-als handling equipment including 1- 25 ton IC counterbalance trucks, 1- 5.5ton counterbalance electric trucks both manufactured in Japan and a full range of warehouse equipment manufactured in Finland.

Geoff Tucker, Masslift Africa, Tel: (011) 786-8524, Fax. (011) 887-1253, Email: [email protected]/[email protected], Website: www.mitsubishiforklifts.co.za

Our staff will be our primary concern since they’ll be crucial to the success of our service plan

COVER STORY

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FORKLIFTS

W hen “Supply Chain Today” speaks to Linde MD, Phil de Wet, he explains some of the contributors to the company’s success. “It has been a

challenge to overcome the massive decline in forklift sales but we’ve tackled the problem by introduc-ing innovative ways of selling our products,” he begins. “We’ve increased our Short Term Rental fleet substantially, by some 20%, to ensure more availability for customers. Market indications are that the rental option is the preferred choice and we have geared our business to cater for it.”

Strong salesA strong sales initiative can mean the difference between success and failure during lean times and Linde has paid particular attention to this. “We’re currently in the process of increasing our

sales representation and expanding our network,” Phil adds. “Our footprint has also extended into Africa – specifically Mozambique, Ghana, Zambia and the Congo.

“Service quality has been a major focus over the past 2-3 years, and this has played a significant role for Linde,” Phil tells us. “Insofar as the After Sales Division is concerned, we identified a need to increase and extend our force of technicians in the market to provide our customers with top-level service. Our service footprint was also increased in the North, South and Central region. Various KPIs that were introduced have proved useful in measuring the success of the quality of our service

Lifting SocietyWhile 2009 proved to a difficult year for most companies,

some took advantage of the crisis by plunging headlong into brave new ventures. For Linde Material Handling, the move has paid off, with the company gaining significant market

share during this period.

It has been a challenge to overcome the massive decline in forklift sales but we have tackled the problem by introducing innovative ways

Linde’s equipment gave client, Afripack, a firm handle on things

Phil de Wet, MD, Linde Material Handling

Buy any Mitsubishi FUSO truck between 23 March and 10 July and stand the chance to win an exclusive, all expenses paid trip

to the Brazilian Grand Prix in Sao Paolo. The prize includes VIP breakfasts at the track, Pit visits, tickets to the practice sessions

and the Grand Prix. You’ll also enjoy a sightseeing trip in Sao Paolo and a visit to a truck plant. So move at racing speed and

call 087 803 1015 or visit www.fuso.co.za. The game is on, enter now. Terms & Conditions are available on our website.

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and further continue to assist us in continually improving the same. Further to this, a healthy percentage increase in maintenance and service contracts is testament to this improvement.”

Internal focusInternal renovations have also been prioritised.

A recent upgrade to Linde’s Head Office facility is designed to provide a welcoming environment to visiting clients, while the revamp of Linde’s Used premises ensures that the facility now truly caters for used sales in various categories. “These will include warranties and other services not

normally offered in a used business,” Phil explains.

Administrative processes have received similar attention. “Our Parts Department has been streamlined in line with our expectations and the introduction of a Parts Management System ensures that we enjoy a 97% first pick,” he adds.

Growth trendPhil anticipates that their growth trend will continue and there are plans to broaden the company’s range; among others, a new product from Germany will be launched in South Africa during the 3rd quarter of 2010. Competitive pricing, however, will remain a priority: “We will continue to concentrate on ensuring that our prices are acceptable to our customers,” he assures us.

To make certain that value for money is balanced by viable profit margins, a

FORKLIFTS


Recently began the process of delivering a new fleet of H18D, 1.8-ton diesel forklifts

Part of the Linde family of lifting equipment

strong focus has been placed on finance. “Wer-ner Kilian was recently appointed to the Board as Finance Director to ensure proper financial controls are in place for a company our size,” Phil continues.

Blue-chip clientsThe company’s approach to sales and service has won the approval of a number of big names. For instance, Linde Material Handling’s association with Afripack Ltd commenced in 2004 when a fleet of trucks was sold to it. During 2009, Afripack replaced its fleet of 13 trucks. The trucks are situated at five of its locations and are counterbalance trucks made up of 6 x 1.8-ton LP-gas; 4 x 1.8-ton diesel and 3 x 3.5-ton LP-gas trucks. The 6 x 1.8-ton LP gas and 4 x 1.3-ton diesel units were customised to fit Afripack’s drive-in racking.

Linde Material Handling recently began the pro-cess of delivering a new fleet of H18D, 1.8-ton diesel forklifts to Schnellecke SA (Pty) Ltd, a logistics service provider for Volkswagen South Africa (VWSA). This coincided with VWSA’s export contract to deliver R27-billion VW Polos over the next six years. Due to the urgency of this requirement, Linde sourced Short Term Rental Units as an interim measure until such time as the new fleet arrived. Delivery of the new fleet was completed by end January 2010. Schnellecke has a fleet of over 200 Linde forklifts which are backed up by a fully-fledged on-site workshop. The trucks range from 1.0-ton electric to 16-ton diesel forklifts.

Sweet dealIn another sweet deal, the first batch of Linde trucks was delivered to Nestle in 2003 and comprises a fleet of trucks made up of reach trucks, electric counterbalance trucks and power pallet trucks. These trucks are situated at various Nestle depots throughout the country. “In 2009, we commenced with the process of delivering a new fleet of trucks to Nestle; the first 10 being

FORKLIFTS

reach trucks for the Nestle Longmeadow depot. Nestle now has a fleet of over 40 trucks, which are backed up by an on-site technician,” Phil says.

Linde Material Handling is also proud to have enjoyed a mutually beneficial association with Vector Logistics (formerly I & J) for some 13 years. “There is a fleet of about 67 Linde trucks based at various locations throughout South Africa,” he elaborates. “Forty-one trucks are on Long Term Rental, the balance being made up of outright purchases and Full Maintenance Contracts. We commenced with the delivery of a further fleet during 2009 with 12 trucks, made up of reach trucks and counterbalance trucks being delivered to a number of Vector ’s locations.

Growth in difficult times“We’ve been recognised as the preferred supplier of several blue-chip companies in South Africa and are pleased with the opportunity to expand this by forming new alliances, necessitating the appointment of agents/dealers in the Rusten-burg, Polokwane and George regions. We will soon be expanding our network to Middelburg in Gauteng,” Phil smiles. “While many a competitor found themselves retrenching, closing branches or actually closing doors, Linde effectively expe-rienced growth in different environments during 2009.”

While many might see a forklift as simply a piece of handling equipment, for Phil it plays a far more important role. “If I could change the world with a forklift, I’d pick up the ruins created by mankind and uplift our society to where it deserves to be.” With Linde’s substantial forklift range, it’s likely that he has just the machine to do it, too.

Phil de Wet, Linde Material Handling, Tel: (011) 723-7000, Fax: (011) 608-1446, Website. www.linde-mh.co.za

10 Supply Chain Today April 201030 Supply Chain Today Jan 2010

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Are You Doing Your Bit?


W hile other forms of inventory manage-ment have been advancing, the field of barcoding and the intelligence it allows its users to access, has been

developing with remarkable new capacity.

A new level of capability has been introduced to barcoding with the introduction of multi-level barcodes otherwise known as PDF417s. “This is basically the code that is used on the back of your driver ’s licence,” explains Chris Meyer, National Auto-ID Sales Manager of Kemtek Im-aging Systems. “Information contained on your driver ’s licence can contain your height, colour of eyes, if you have any endorsements against your licence and its expiry date.”

More sophisticated barcodesHowever, barcoding has reached even greater levels of sophistication. Larger stores employ a more advanced technology known as the point-of-sale scanner. What this scanner does is scan five sides of the average six-sided object. This

speeds up the ‘ringing up’ process at the till, something which is a real boon in today’s mass stores which have to handle hundreds of custom-ers every day.

The point-of-sale scanner also has more ‘intel-ligence’ than its earlier counterparts. In large retail outlets, it is inevitable that some barcodes are accidentally damaged. Chris explains that, when a point-of-sale scanner reads a damaged barcode, it can often extrapolate what the missing information is, and enters the completed data in the system in a matter of an instant.

Margain for errorSays Chris, “If you think about pre-barcode days, every item had to be manually entered into a till. The labour involved was expensive and the margin for error much greater.”

The Achilles Heel of any hand-held scanner is the cord. With usage, this mechanical linkage inevita-bly breaks. Now, with new technology, hand-held scanners are cordless, and use Bluetooth instead of copper wire. In the past, very large items were a problem at fixed barcode scanner points. Cord-less scanners solve this bottleneck.

Increased intelligenceThe mobile scanner is a comparatively new in-troduction to the world of barcoding. This device has actual on-board intelligence. “It is not just a ‘dumb’ reader,” explains Chris. It is a small hand-held computer that connects wirelessly to a central host computer. By using the mobile scanner, the operator can be told where to go in a warehouse, for example. If he receives a stock item, he can scan its barcode, and the mobile scanner will check on the system to see if the code is valid.

“The warehouse checker will then be directed to the rack where this item should be packed. The reverse of this process also applies in that this system ensures that stock items do not get mislaid in today’s vast warehouses. With this system, the transfer of data and transactions

Advances in Auto Inventory Control

Barcoding is part of our lives. When we visit our local

store or garage shop, our purchases are whisked through the scanning

process in seconds. However, when goods are supplied to a shop or warehouse these arrive with a barcode which is applied by the supplier or manufacturer. When stock is taken into the shop or warehouse, the barcodes are scanned and this information is transferred to a stock-keeping database on a central server. And when we make purchases, this remarkable labour-saving system enables the stock to be taken off the

system in an instant update, as we pay for it.

BARCODING, LABELLING, SCANNING & RFID

Ensures that stock items do not get mislaid in today’s vast warehouses



can be ‘live’, explains Chris. The use of mobile scanners makes the business of stocktaking much faster and more accurate.

ReplayedThe latest development in the world of inventory management is the personal digital assistant (PDA). While the mobile scanner has its use mainly in the warehouse, the strength of the PDA is mainly in its applications outside the warehouse. In contrast to the mobile scanner, the PDA can be used for processing information.

For example, a delivery driver could use a PDA to record goods that have been delivered to clients. This would include preparing an invoice and capturing the client’s signature on the PDA screen as well as an image of the client on the PDA’s camera. This information can then be relayed by the standard cellphone network to a central server.

Using the PDA, the driver could also access the central server to download a route map or other information.

Space-age inventory controlThe latest technology in the world of inventory control is radio frequency identification (RFID). The cost of this new technology, which is in its early stages in South Africa, is still an important consideration. RFID requires the use of a com-puter chip, which is a comparatively expensive item to produce. RFID readers and writers are also substantial hardware investments.

To date, RFID has had successful applications in vehicle manufacturing and in automating the flow of traffic through toll roads, for example. It also has important applications in safety where a person or a machine can be tracked in hazardous situations such as in mines.

Major advantageA major advantage of RFID is that the technology can read the RFID tags from a distance. It is also possible to read many tags at one time. Theoreti-cally, it is possible for shoppers to walk out of a store with a trolley load of items without going through the usual check-out system. The RFID reader would record instantaneously all the items in the trolley. This data would then be used to bill the shopper ’s credit card automatically.

“RFID is a very exciting technology with great potential,” says Chris. “However, at present its application is limited to use on high value stock items. A possible application is where entire pal-lets of stock are tracked with RFID rather than individual items,” concludes Chris.

Chris Meyer, Kemtek Imaging Systems, Tel: (011) 624-8000, Fax: (011) 613-3230, Email: [email protected], www.kemtek.co.za

Entire pallets of stock are tracked with RFID rather than individual items

Supply Chain Today April 2010 1�

R odney Bartman, CEO, and Frikkie Koegelen-berg, MD of Roan Systems, tell “Supply Chain Today” that many of the projects they’ve been involved in are heading into

the roll-out stage. “We’ve moved beyond the pilot phase with a number of big ventures,” says Frikkie, and Rodney concurs, adding: “We’re no longer just talking about the possibilities. We’re now implementing these concepts.”

As a subsidiary of TrenStar, Roan and TrenStar have combined RFID capabilities and are in the process of rolling out RFID technology to approximately half a million of TrenStar’s rental assets. “This will provide the ability to achieve real-time manage-

ment of TrenStar ’s resources,” Rodney continues.

As a means of strengthening the RFID solution, the hard and software solutions have been combined into one division as part of TrenStar Services. According to Tren-Star CEO, Tap du Plessis, using Tren-Star ’s rental assets confirms that the solution is workable

on high volumes spread nationwide. In conjunc-tion with TrenStar, the solution is being trialled in various industries and is proving to be workable and very successful.

Bi-PharOne of the most exciting new developments ac-cording to Roan management is the improvement of Bi-Directional Phased Array RFID technology, or Bi-Phar. The term describes the phased array technology applied to the signals transmitted to (and received from) tags, which are energised by the transmitted RF energy. It’s designed to provide the simplest infrastructure to attain continuous, ‘real-time’ monitoring of large areas with passive UHF tags.

“Someone finally invested the money to make a reality of what everyone has known RFID can do,” laughs Frikkie. “Luckily for us, they’ve also chosen Sirit readers to implement the system, which we believe are the best in the world.”

One of the expectations of passive UHF RFID has been its ability to reveal where things are at any given time by virtue of automatic data capture. In the past, several limitations have restricted implementation of the technology, for instance, the potential for false readings from reflections or other nearby tags, or the inaccuracy of read-ings due to nearby materials that may distort RF. Avoiding these issues could only be solved by installing multiple readers, or portals, to facili-tate accurate reading, which became a financial limitation in itself.

Active tagsWhile some have overcome the challenge by using active tags, this is not an ideal solution, particularly for the continuous tracking of ‘one-way’ disposable items, which far outnumber returnable assets.

Bi-Phar allows the necessary continuous vis-ibility of passively tagged objects, resulting in a number of benefits. These include reduced loss of materials or products, timeous replenishment orders, elimination of ‘out-of-stocks’, optimised forecasting and more effective operational de-cisions. Ultimately, this all leads to improved product availability, increased sales and happy customers.

No quick-fixHowever, the system is not a miracle cure. “It’s important to understand that RFID is not a quick-fix,” emphasises Rodney. “A lot of customers don’t understand that it’s a complicated system requiring middleware and portals, checking of radio waves and building shrouds to enclose these

The Best By Far


While the widespread use of RFID technology has yet to be-come a reality, the good news is that many of the promises

made in the past few years are now coming to fruition.

Someone finally invested the money to make a reality of what everyone has known RFID can do

Rodney Bartman, CEO, and Frikkie Koegelenberg, MD of Roan Systems

1� Supply Chain Today April 2010

waves. Establishing a system based on barcoding is easy by comparison.”

Frikkie adds that RFID can actually exacerbate existing problems. “If you lack an efficient business process, don’t expect RFID to fix things. It’s an enabler, speed-ing up systems that are already well-established. If there was a hole in the paper or barcoding system, it’ll be there in the RFID system. And you’ll have made a significant investment which is not being efficiently utilised.” Rodney agrees. “You can do a stocktake at the click of a button, but you need the systems in place first.”

In-house testingNot satisfied with simply marketing a wide variety of products, the Roan team insists on using their ranges in their own offices before adding them to their stable of solutions. “The only way you can get a good work-ing knowledge of a product is to actually work with it,” says Frikkie. “Also, we won’t represent a product or service without having full representation and dis-tribution rights. We want to keep our destiny in our own hands.”

Considering the time and effort the company invests in its ranges, this is understandable. “The new RFID Division offers everything from developing tailormade products, to implementing technology, to managing company data and providing weekly or even daily reports,” continues Rodney. “It’s an intensive process and we have to have an in-depth understanding of the technology.”

AffordabilityThe RFID Division has also invested a lot of effort into making this technology available to its client base. “You’re not limited to outright purchase of the hardware. This applies not only for barcoding, printing and RFID technology, but also for handheld scanners and read-ers,” adds Frikkie. “We offer “pay per use” options to make these systems as accessible as possible.”

“This approach allows customers to engage RFID technology without large upfront capital investment,” explains Rodney. “RFID is not the solution to every process. In some cases, barcoding would be a better option.”

Website. www.roan.co.za & www.trenstar.co.za

You can do a stocktake at the click of a button, but you need the systems in place first


Market Forum

Indian Ocean opportunityGen Tech Trading Ltd is based in Mauritius and operates into the Indian Ocean Islands in the private sector as well as with the governments in Mauritius, Reunion, Madagascar and the Seychelles..

The company is mostly involved in special projects such as energy, industry, sea hub, and cold stores. Its aim is to keep on the watch for new projects and, when oppor-tunities arise, to include the right partners locally and from overseas.

Gen Tech is seeking suppliers who may offer services around the cold storage/industry/logistics/warehouse management/ and niche services. Any company which would like to offer such services/consultancy or related products, please contact Gen Tech.

Patrick Desmarais, Gen Tech Trading Ltd, Tel: 230 698-8433 / 8869, Fax: 230 698-0287, Email: [email protected]

Dedicated truck outlet“We are very pleased to have filled a very important gap in our dealer network with the appointment of Hino George,” comments Hino vice president Dr Casper Kruger on the opening of the brand’s 54th dedicated truck outlet at the beginning of February 2010.

“We have been looking to fill this gap for some time after Loerie Toyota relinquished the truck franchise to concentrate on passenger vehicles,” explains Casper.

Hino George is headed up by dealer principal Andre Duvenage, who has a financial background and became in-

The Hino George management team (Left to right). Front: Marinda Duvenage (Financial Manager and Company Director), Ansie Smit (Sales), Nicolize Olivier (Administration and Secretary). Rear: Louw van der Westhuizen (Sales Manager), Willie Leslie (Workshop Manager), Rynnardt Vorster (Parts Manager), Andre Duvenage (Dealer Principal and Managing Director)

volved with an all-makes truck workshop in George in 1991. He subsequently sold this business two years later and switched to selling used truck compo-nents and refurbishing trucks.

“This was at the time when the Certificate of Fitness (COF) was introduced which enabled us to buy used trucks at keen prices that we then refurbished or else we sold used components to companies that rebuilt their own trucks, so it was good business,” says Andre Duvenage.

A new truck franchise was obtained in 2001 and Duvenage’s George dealership sold more than 40% of these trucks in the Southern Cape, which gave him and his team valuable experience in the new truck market.

“I was delighted when offered the Hino franchise and see great potential for this brand, as there are many Hino and Dyna trucks operating in our area despite the fact that there has not been a dealer here for years,” adds Andre. “We have already picked up several strong leads which I am sure will lead to sales.”

Andre says the focus now is to get his team fully trained on Hino products and systems as soon as possible so he can provide his customers with top level service in keeping with one of the country’s leading truck brands.

Ignatius Muthien, Hino, Tel: (011) 809-2064/2255, Fax: (011) 809-9064, Email: [email protected]


Market Forum

Preggie Govender & Phumlani Bayeni of Serco with a newly fitted p-eye tyre pressure monitor

Tyre pressure-monitoring deviceA revolutionary heavy vehicle accessory which monitors tyre pressures on trucks, trailers and buses is playing a significant role in improving safety on roads in South Africa.

Marketed under the brand name P-Eye, the device replaces the tyre valve cap monitoring preset minimum tyre pressure – if the pressure drops more than 5% below the required setting, an LED lamp starts blinking. This makes it a rela-tively simple task for commercial operators to establish tyre pressures on their fleet, as a visual check on any vehicle fitted with the device quickly reveals whether tyres are all correctly inflated.

The system is thus both safer and more cost effi-cient than manual checks as it is not necessary to check every single tyre, with action necessary only when the LED’s are blinking.

Research has shown that about a quarter of all com-mercial vehicle tyres are not sufficiently inflated, increasing wear by about 15% to 20% and fuel up to 7%. It is also com-monly known that many blow–outs and tyre strip-ping are caused by under inflated tyres, sometimes with devastating and fatal consequences.

Add to that the fact that under-inflated tyres have a greater rolling resistance Lightweight aluminium loading ramps

and hence burn more fuel and money and emit more carbon emissions into the atmosphere, and P-Eye’s road safety, cost-saving and environment-friendly qualities become abundantly clear.

Serco, Clinton Holcroft, Tel: (031) 508-1000

R u g g e d l i g h t w e i g h t ramps A range of light weight aluminium loading ramps for the safe loading and unloading of wheeled, rubber and steel track vehicles is now available from plant equipment

specialist, Bobcat Equipment South Africa (Pty) Ltd.

Manufactured from exceptionally high-strength alloys by Italian company, CLM, the meticulous design of the ramps incorporates double-T profiles which keep the weight to a minimum and further add to the ramps’ unrivalled strength; a very small surface guarantees the highest bending strength with the least weight. In addition, the rugged structure and thick beams easily withstand dents and knocks, eliminating the risk of cracks or splits in the ramp structure.

Ramps for wheeled and rubber track vehicles, available in


Market Forum

New-generation handheld computerUPS, the world’s largest package delivery company, and Honeywell, a diversified technology and manufacturing corporate, are teaming up on a new-generation handheld computer for UPS drivers that will further improve communications links. More than 100 000 of the Honeywell computers will ultimately be deployed.

Known internally at UPS as the Diad V (Delivery Informa-

tion Acquisition Device V), the Honeywell mobile computer features innovative cellular tech-nology that provides on-the-fly switching between cellular car-riers, meaning the computer can auto-matically jump to another cellular car-rier if the preferred carrier ’s signal is lost. This industry-

leading technology, when combined with

Honeywell’s sophisticated 2D imaging capabili-ties, will further ensure the package tracking and reliability that customers expect from the world’s largest delivery company.

At approximately half the size and weight of the Diad IV, the new, more durable mobile computer will feature: a state-of-the-art colour display and microprocessor with substantially expanded memory – all to support driver training and future applications like navigation. For example, the Diad V will enable maps to be displayed to help a driver avoid a traffic jam.

A colour, auto-focus, flash camera enhances

lengths up to 5 metres, handle load capacities from 200kg to 14 000kg while ramps for steel tracks are designed to support weights ranging from 2 500 kg to 28 600kg. Ramps are supplied with and without edges and different connections are also available.

The ramps undergo rigorous testing, all parts are certi-fied and all CLM manufactured products comply with the highest internationally-adopted quality standards.

Bobcat Equipment SA (Pty) Ltd, Deryck Jordan, Tel: (011) 908-2377/ (011) 389-4400, 0860 BOBCAT, Email: [email protected], www.bobcatsa.co.za

proof-of-delivery and helps resolve customer claims more quickly. Faster Wi-Fi support (600 mbps) enables larger and richer content downloads such as training videos to 90 000 drivers simultaneously.

An aggressive 2D imager can decode many symbologies, including existing UPS linear barcodes and the UPS Maxi-code, and thus speed the upload of additional package information at the time a package is first picked up. The 2D imager will also make it even easier to “capture” a clear view of a recipient’s signature.

UPS, Thore Saether, Tel: (011) 922-9200, Email: [email protected]

Maximum efficiencies with RF devicesUnited States Cold Storage (USCS) has begun a nationwide implementation of new Psion Teklogix’ ruggedised mobile devices in over 30 sites.

USCS first implemented radio frequency equipment from Psion Teklogix in 1997. Currently, the company has over 1,000 ruggedised mobile devices deployed, ranging from handhelds to vehicle mounted computers, helping to keep the supply chain moving with maximum efficiency. The devices are in the field from receiving to picking and stack-ing to shipping, and are tasked with managing inventory and orders wirelessly in real-time.

“Psion Teklogix’ rugged mobile devices are built like tanks,” said Terry Groff, IT RF tech specialist at USCS. Many of the units initially deployed in the 1990’s are still working extremely well today.


Market Forum

Refrigeration Technologies

GEA Project Solutions Grenco19 Chain Avenue, Montague Gardens, 7441 Tel: 021 555 9000, Fax: 021 551 4036 www.geaprojects.co..za

Efficiency in Food and Energy processesEfficiency in Food and Energy processesEfficiency in Food and Energy processes

GEA Project Solutions, the project management division of GEA Refrigeration Africa has a dedicated team of engineers who specialize in the design of new and modifica-tion of existing refrig-eration facilities.

In partnership with our clients, we develop, implement and manage developments from conceptualizationthrough to completion.

Versatile hoistsCondra has reported a good order intake for its hoist range, which comprises two main ranges: the veteran K-Series and the

As we phase out the older narrowband units and convert to the 802.11 technology standard with Psion Teklogix’ 7530 G2 flexible, rugged handheld and the 8525 G2 wireless vehicle mount computer, we look forward to getting the same type of exceptional results.”

Psion Teklogix rugged mobile devices are able to perform all functionalities in temperatures as low as -15° Fahrenheit. With rugged mobile devices and a battery life that can last through the whole day without recharging, USCS is able to keep the business efficient and accurate.

Psion Teklogix, Michelle Hollis, Tel: (011) 805-7440, Fax: (011) 805-7444, Email: [email protected]

newer Titan range, the latter divided into the Titan Short Headroom (SH) and Titan Compact sub-ranges.

Titan-SH hoists are designed to make maximum use of expensive factory space – headroom as well as floor. Based on the proven K-Series, this newer design has reduced the size of many K-Series components to take height out of the final crane assembly. Hoist profile is some 20% less than the K-Series.

The reduced height can deliver huge savings during factory construction by lowering the entire roof. Alternatively, the extra lift height delivers an ability to take on projects that other factories cannot.

The Titan-SH series has a maximum capacity of 16 tons, and incorporates refinements such as automatic rope tensioning, smoother travel, a built-in load limiter, stan-dardised direct drive and universal carriage.

Condra’s sister sub-range, the Titan Compact series, delivers all the modular capabilities of the earlier K-Series in any application, but in a refined and more compact design.

Allowing a lifting capacity of up to 32 tons, the features on all models include electromagnetic DC disc brakes; standard frame-size motors with parallel rotors; double-acting limit switches; solid bronze rope guides and totally enclosed, splash-lubricated gearboxes.

For lifting capacities larger than 32 tons, there is the K-Series, which Condra has manufactured since 1972. Open-drum K-Series hoists provide lifting capacities in excess of 250 tons.

Condra (Pty) Ltd, Josef Kleiner, Tel: (011) 021-3712, Fax: 086 669-2372, E-mail: [email protected]


and if they want to buy from me they must pay upfront. This really cast a cat among the pigeons. Five months later I was paid upfront and I supplied

the goods. The suppliers who push their products are the ones who have little to offer. The suppliers who do not push are the ones whose products are bought on their own virtue.

So how should purchasing be done? Whoever needs the product should take full responsibility for it and buy it. If it works, he or she should get the credit and if not he must suffer the blame. Under these circumstances, corrup-

tion cannot thrive.

A neat tipOpen tenders are good, provided all suppliers get the enquiries. It is a pity that customers don’t send enquiries to all the suppliers. “Active buy-ing” is where the customer goes out and looks for the appropriate product. Unfortunately this only happens in small and medium-size companies.

Here’s a neat tip; if you want to sell anything to the mines, just give your card to the guy who needs the product and tell him since the mine does not have an account with you, he must choose an agent himself to represent you.

Watch the miner smile! Your business is in the bag, and at your price too!

Tel: (011) 412-3261, Fax: (011) 692-1232, Email: [email protected], Website: www.keramicalia.com

Active BuyingI see one of the greatest problems of the corporate world as being their buying systems. I call it “Passive

buying”. Procurement is centralised in a department in which the staff have no specialised knowledge of the products.

Just give your card to the guy who needs the product and tell him he must choose an agent himself to represent you

T he technical guy, who needs a product,

requisitions it. It goes out on tender and gets bought from the cheapest supplier or the one who manages to buck the system. The product pur-chased may have little in common with the requisitioned item. We all know that money changes hands under the table, but the responsibility for purchasing is so diffuse that nobody can be pinpointed as guilty.

Double the priceI have a large cor-porate company that has been buying a small item off me for many years. I don’t really want the business, I don’t even manufacture the product, I just outsource it. Then one day I had to tender for this business. I sighed, doubled the price and tendered. Mine was the only tender. Then they lost my tender. I said “that’s fine; I don’t want the business anyway.”

Now I suddenly had this huge corporation begging me to sell them a product. I was most amused. I told them I reject their conditions of purchase,

PROCUREMENT

This caused great consternation. If I don’t supply it, where will they get it? I said I was sure they could get it for a quarter of the price in India; all they have to do is look for it. Look for it? What a concept! They have never looked for anything before. All they do is wait for people to come and beg them to buy their products.


PROCUREMENT

T his typically has the following conse-quences:

A lack of technical knowledge for some procurement items

An expectation from internal customers to stock all items all the timeLow level of integration with maintenance planningExcessive inventoriesHigh volumes of purchase orders for low valuesHigh risk of obsolescence for many itemsLow first-pick-availability

•

•

•

••••

These problems highlight the trade-off between cost, (both price and transactional cost) and availability of the items to internal customers who are often not concerned with cost.

In order to understand the problems associated with MRO, it is useful to analyse the physical characteristics of the procurement items according to demand type and volume characteristics.

Typical categories include the following (in fig1, the characteristics of the demand type are de-tailed on the left, the procurement and inventory management drivers on the right):

Tackling Uncontrolled Maintenance, Repair and Operations SpendMaintenance Repair and Operations (MRO) Stock Procurement can represent as much as 50-60% of external procurement spend, and represents a particularly high portion of total spend in asset-intensive supply chains. While the value of the spend may be large, the number of stock keeping units (SKU) procured can have a diz-zying array of characteristics, from large and infrequent commodity purchases, such as coal, to small frequent purchases of low value items such as bolts and milk. In many organisations, the Procurement department is disempowered by insufficient technical knowledge, insufficient demand visibility/understanding and/or insuf-

ficient authority to manage these commodities.

Fig1: Procurement demand profiles


The benefit of differentiating different types of procurement is to highlight what the minimum cost driver of that process may be and to man-age it appropriately. For example, transactional cost can frequently exceed the value of small and frequent purchases such as milk or bolts.

Bulk items of high value should be sourced through a robust process focused on price. Regular consumption makes the management of stock relatively easy, assuming good supplier delivery performance. Key measures for this category are cost and delivery against schedule.

Planned MRO and Routine MRO are the same items procured for different reasons; the higher the level of planned consumption, the higher the level of availability that can be expected from procurement. The key focus for procurement is lead time, as the risk of down-time or additional maintenance work frequently outweighs the cost of the part.

Critical items are capable of stopping a plant. They typically have long lead times. There is usually a small number of SKU’s that must be held, usually for OEM machinery. The criticality of these parts is known and adequate stock is kept to cover breakdowns.

Diagnosing the problemSome of the ways of telling that there is a problem are by measuring the following:

A large number of suppliers with a small spend may highlight opportunities to consoli-date either to one supplier, or to consolidate orders. The reduction in the effort of placing orders by the use of catalogues or contracts creates procurement capacity to concentrate on high-value sourcing projects. The key is to reduce the administrative burden, usually by effective use of technology (see graph 1).

A symptom of the administrative problems affect-ing procurement is shown in a typical profile of order values in graph 2.

Many small orders are concentrated in a very small area of spend. Typically, large orders get the required attention. The missed opportunity is in orders in the middle bands that are typically going to the same supplier and represent ripe opportunities for sourcing. Initial formalisation of contracts with the primary objective of reducing supply risk can yield benefit through improved performance and supply a baseline for a sourc-ing intervention.

The product of small orders is also readily ap-

•

parent in distorted stock holding patterns as seen below.

Current stockholding profiled by currently in stock and is-sued in the last year

Stock No StockIssues No. of SKU’s 20 - 30% 10%

Item value Consumed

90% 10%

Value of Stock on Hand

50 - 60% 0%

No Issues No. of SKU’s 20 - 30% 40 - 50%Item value Consumed

0% 0%

Value of Stock on Hand

40 - 50% 0%

The table above shows the scale of different problems, first that a few SKU’s account for the majority of the spend. These items need to be planned and/or forecast to more accurately understand the timing of their demand. An em-phasis on inventory management policies and

PROCUREMENT

The Procurement department is disempowered by insufficient technical knowledge to manage these commodities

Graph 1

Graph 2


Leveraging of scale. High volume orders can be devolved into the business through the use of catalogues and enabled through technology, either through the ERP, or through desktop solutions provided by suppliers e.g. stationery.

Business Intelligence. Visibility of what is requisitioned and consumed is paramount in highlighting the risks of ordering items that have not been planned or forecast.

These interventions can be planned as a complete project or individual projects. The current state of the procurement function in terms of internal service provision will determine the scale of the intervention required. Current inventory stock holding profiles will also identify the need to dispose of currently redundant stock and lower the risk of obsolescence.

Process differentiation benefitsThe proposed process interventions above have the following benefits:

Increased capacity within the procure-ment department to focus on high-value sourcing initiatives

Increased value from suppliers through price negotiation and improved delivery performance

Increased availability of stock to internal customers

Reduced risk of obsolete stock

Reduction in procurement spend can be in the region of 5% – 35% for the complete MRO spend and stockholding reduction in excess of 50% is common.

Grant Blair, Volition Consulting Services, Tel: (011) 259-4380, Fax: (011) 259-4399, Web: www.volition.co.za

4.

5.

1.

2.

3.

4.

The key focus for procurement is lead time, as the risk of down-time or additional maintenance work frequently outweighs the cost of the part

forecasting (where appropriate) will also reduce the potential for out of stock. The bottom quadrants represent risk of obsolescence (stock already held) and potential risk of ordering stock items that are redundant. These items should be inactivated.

Processes interventionGenerally, the following interven-tions yield excellent results

Definition of commodity structure (Group, Category, Item etc). After analysis of maintenance and rou-tine stock items the engagement of an internal subject matter expert

for individual commodities can lend credibility to decisions regarding categorisation of items and associated inventory management and sourcing strategies

The definition of procurement lead-times, preferably at a supplier and item level. Pro-curement of routine items is dependent on the lead time and is a major objective of the sourcing decision. Fixed lead times increase availability to end customers and lower stock holding requirements.

Integration of the inventory management function with the maintenance schedule and combined with a good supplier management can give the procurement function the ability to commit to internal service level agree-ments. Better notification from maintenance must be negotiated into a higher availability, rather than availability being assumed. This can reduce inventory levels AND increase service levels

1.

2.

3.

PROCUREMENT

Grant Blair, Procurement Consultant at Volition Consulting Services


COLD STORAGE

H umans have an optimum “core body temperature” which ranges between 36.8°C and 37°C. Outside these lim-its, the human body will experience

stress.

But, one must be careful with the term “core body temperature.” This will vary as the organs of the body operate at slightly different temperatures. It is clear, however, that when subjected to a cold environment, the trunk of the human body will unconsciously attempt to maintain a constant core or deep body temperature of around 37.3°C.

Begin quicklyThe onset of hypothermia occurs when the core temperature drops below the minimum to maintain homeostasis in an individual. There is misunder-standing that it takes freezing temperatures of below 0°C to achieve this but it can happen at temperatures well above this point depending on the conditions, which include wind chill.

“Goose bumps”To maintain temperature when exposed to an absence of heat, humans can produce more heat through shivering, physical exertion and metabolic activity. They can also minimise heat loss not only through increased insulation but also via vasoconstriction where the blood vessels narrow in the skin and subcutaneous fat acts as an insulator.

One mechanism to reduce heat loss is rudimentary, “goose bumps.” These are the body’s attempt to straighten our “furry coat” away from the body to improve insulation. However, unlike cats and dogs, our body hair mass is no longer sufficient to make much difference. Teeth chattering is really the spasms of the facial muscles working overtime to produce heat for the brain. These initial bodily reactions may actually be sufficient to increase the core temperature above 37°C for a short time, but the body’s energy reserves will be rapidly depleted. Shivering can increase the body’s metabolism by a factor of four!

Metabolic rateThe body has a number of temperature sensors which feed information to the hypothalamus

in the brain. Where sensory information suggests that there is a general chilling of the body, then the hypothalamus raises the body’s metabolic rate. Raising the metabolic rate is like taking heavy exercise. The heart rate goes up, so does blood pressure, oxygen intake increases and heat is produced by muscle action.

There may also be certain chemical changes within the body to produce heat. If the feel-ing of cold is not addressed quickly, then vasoconstriction starts, which can be within minutes of entering a cold store. Vasocon-striction is where heat is preserved in the human trunk by reducing blood circulation to the peripheries ie, the hands and feet. Having a high surface to volume ratio, the hands and feet loose temperature quickly and the blood returning from them to the heart is relatively cold.

The Effects of ColdUntil quite recently, there appeared to be a general lack of interest in South Africa about the effects that cold can have on the human body. To some degree this is understandable as excessive heat is perceived

to be a greater danger. However, there are many situations, apart from working in cold and freezer stores, where hypothermia, or abnormally low body temperature, can easily occur.

Lapdogs were popular in the days before electricity was to provide additional heat to their elderly owners

A full face balaclava which reduces the exposed skin to a minimum

Insulated hardhat for cold conditions together with insulated liner. The face can also be covered with a mask


COLD STORAGE

Start to go blueCutting off circulation to these areas keeps the trunk warmer. In extreme cases, the hands and feet will start to go blue and become extremely painful as the blood circulation is reduced to about a third of the normal flow. As a total lack of circulation would be harmful to these extremities, vasodilation also occurs for short periods initially to allow sufficient blood back into these areas.

When this happens, a person’s hands can suddenly feel warm. It has also been noticed that keeping the face warm can reduce vasoconstriction in the hands and feet. The wearing of balaclavas or insulated hard hats in cold stores is therefore advisable.

The hunting reactionVasoconstriction interspersed with periods of vasodilation at the extremities is known as the “hunting reaction” possibly because it was first noticed by hunters. The hunting reaction has been extensively studied and helps to prevent localised cold injury. It seems to operate via blood vessels called AVAs which are present in those parts of the human body most at risk of localised cold

injury such as the ears, nail beds, lips, cheeks and nose as well as the insides of the hands and feet. It also appears that certain genetic groups have a less effective “hunting reaction” than others although it can be improved through acclimatisa-tion and the taking of vitamin C.

Africans, for example, have a relatively poor “hunt-ing reaction” and are more prone to localised cold injury than Caucasians. For this reason, they need good protection when working in cold rooms.

Cold diuresisOnce vasoconstriction begins, the body has to make further adjustments as there is now more blood in the body trunk than was previously the case. This increases blood pressure. Although reduced blood temperature will reduce blood volume somewhat by itself, it is insufficient and the renal system starts to remove plasma from the blood. The rate of plasma removal depends on posture, and will be greater for someone who is seated, such as a reach-truck driver, than it will be for someone who is standing upright. This process is called cold diuresis.

The kidneys are put under stress resulting not only in increased levels of urination but also in the loss of chlorides from the body. It was originally thought that increased urination was due to the body not having to perspire at cold temperatures. However, this is incorrect as per-spiration and moisture loss from the respiratory tract still occur at low temperatures as any cold store worker knows. It appears that the process of cold diuresis is regulated by hormones excreted by the pituitary gland.

These are the body’s attempt to straighten our “furry coat” away from the body to improve insulation

Racking damage in a cold store


Mental confusionSuperficial cooling can increase vigilance and brain activity. However, in the first stages of hypothermia, down to a core temperature of 35 C, brain activity will decrease. People become confused which can make their situation worse. Even small variations of brain temperature can cause confusion as also happens with a mild fever.

There is some argument that this mental confu-sion in cold conditions can be partly caused by a lack of oxygen, or anoxia. This is one reason why physical stock counts in freezer stores can be inaccurate. It also accounts for some of the dam-age to equipment in this type of warehouse.

ShiveringShivering generally starts after the onset of vaso-constriction although the initial muscle tension may not be noticeable. Shivering is the body’s way of creating heat and is caused by muscle action. There are two major types of shivering: normal shivering and deep shivering. Deep shivering is the body’s last method for creating heat which is very frightening for anyone who has experienced it. It normally does not happen until the rectal temperature has begun to fall. The body’s muscles contract in violent spasms which are uncontrollable. This uses up the remaining energy reserves and, thereafter, the body trunk continues to cool until the heart stops beating at a temperature of around 29°C.

When the core temperature is lower, there is no detectable heartbeat and the need for oxygen is reduced. Death however, is not inevitable and people have been resuscitated from core tem-peratures of as low as 13°C.

ResuscitationAssuming that the person is removed from the cold environment in time, care must be taken in the resuscitation process. This is because moder-ate heating, will cause vasodilation on the body surface which is colder than the core. Relatively cold blood will then return to the heart increasing the risk of heart failure.

Understanding insulationThere are several kinds of heat loss. Body tis-sues conduct heat outwards from the core, and more importantly there is convection of heat via the blood. Finally 20% of human cooling occurs through evaporation where there is a heat ex-change between the water vapour and the colder external air. Of this 20%, two thirds is caused by perspiration and one third by water vapour exhaled from the respiratory tract.

Even at cold temperatures, the body continues to exhale water vapour, and to perspire when excess heat is being produced via work and also when the person is under mental stress. In the latter situation, perspiration is largely confined to the

palms and soles of the feet.

A thermal breakIn the absence of fires, shelter and other forms of external heating, a human must rely on the insulation provided by his or her own body and clothes.

The thermal insulation of clothing is proportional

It also appears that certain genetic groups have a less effective “hunting reaction” than others

COLD STORAGE

Lewis Pugh finishing his swim at the North Pole


COLD STORAGE

to the amount of dead air that has been trapped. There are now several types of insulation which have been developed to trap air efficiently in lightweight garments. If the dead air space is thicker than about 25mms, then air currents can develop within the insulation greatly reducing its ability to stop the movement of heat.

The outside fabric layer must be windproof to prevent the ingress of cold air. Curved surfaces like glove fingers increase surface area and can, in certain instances, reduce the level of insulation. This is one reason why it is difficult to keep fingers warm.

PerspirationFinally perspiration, although uncom-fortable, does not necessarily destroy the thermal insulation of clothing unless it compresses the structure of the insulating fabric thus preventing it from trapping air.

Working in cold climates makes the body produce more heat. Indeed the weight and bulk of the insulated cloth-ing itself raises the metabolic rate. It is therefore quite possible for those working hard in cold stores to overheat

inside insulated clothing. As far as possible, the clothing must effectively insulate a person when they are standing still.

When they are working, the clothing should allow a sufficient loss of heat to more or less balance what is being produced. Additional heat produced with hard work can be almost three times what is produced by the body at rest. While it is advis-able for people working in cold temperatures to work methodically so as to keep additional heat generation to a minimum, sweating will occur and the clothing must be able to “wick” the dampness away from the body while retaining it within the clothing.

A Clo unit?The clo unit was defined in 1941 to help military commanders understand what type of clothing soldiers required in different climatic conditions. One clo unit represents the insulating value of a man’s underclothes and lightweight suit which allows him to be comfortable when he is sitting in an office with an ambient temperature of ap-proximately 21°C, an airflow of 10cms/sec and an air humidity of less than 50%.

The number of clo units required by a cold store worker at an air temperature of -20°C depends on the amount of heat his body is generating. Without a heated cab, a reach-truck driver whose metabolism is at rest will require about six clo of insulation whereas a picker engaged in heavy work will only need two clo. When specifying cold store protective equipment, managers should not look only at price but consider the clo value of the clothing and match it to the prevailing condi-tions in the store.

Medical implicationsThere are several problems that arise when people work in cold stores. First off, people who

Mental confusion in cold conditions can be partly caused by a lack of oxygen, or anoxia

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A Siberian Husky can survive comfortably at sub zero temperatures due mainly to his insulated coat, and his metabolism which will only start producing additional heat at around -10°C


are not correctly equipped will quickly become uncomfortable and unproductive. Allowing them to warm up for ten minutes in every hour does not provide a solution as this moderate heating only serves to further drive down core tempera-tures, in effect making the worker less productive when he goes back into the cold store than he was when he came out. As already mentioned, mental activity will quickly decrease, increasing the chance of accidents and mistakes.

Workers will also be prone to catching colds and flu as the human immune system can be some-what suppressed and any bronchial infections can become worse when working in cold stores. Apart from colds and flu, there are other long term health risks which can affect those who work in cold stores especially if they are not properly protected. These risks will vary depending on age, fitness and underlying health problems. It must also be stressed here that there has been no research done in South Africa, as far as we can tell, on long-term health problems associ-ated with working in cold stores and it is an area where research is required.

In the UK, a report was commissioned by Birdseye Walls in the late 1970’s. This report resulted in substantial improvements to cold store protective clothing and the way in which it is used. Today one is simply not allowed to enter a cold store in the UK without proper protection.

Dietary changesPeople’s diets can change when they are exposed to cold temperatures regularly. First of all they will eat more, although with acclimatisation, intake levels may reduce. There will also be a tendency to eat a greater percentage of fat. Indeed, in some tests conducted in the Arctic, a craving for fat was noticed. The consumption of carbohydrates, although not as effective as fat, is also likely to increase and can sometimes be noticed in high levels of sugar consumption, especially as this is the quickest way to get an increase in body heat. A high protein diet does not seem to be effective for those working in the cold.

When dietary changes are considered from a health perspective, there are several aspects that should be borne in mind. Increasing the intake of fat will tend to raise the level of ‘bad” cholesterol. Increased consumption of sugars may increase the risk of type 2 diabetes. In a South African cold-store medical screening done in the early 1990’s unusually high levels of hypertension and diabetes were found among the employees of one facility.

Whether this was due to the cold temperatures was not proven as they may simply have been the result of common eating habits. But the high incidence of these medical conditions among cold-store personnel was somewhat suspicious.

Thermal shockHowever, it is not only the cold temperatures themselves that can put a workers’ health at risk. The long-term danger of moving from ambi-ent temperatures of up to plus 35°C to those as low as minus 25°C almost instantaneously are frequently overlooked. The shock to the system from this sudden temperature change can only be imagined. Cold-store personnel can make this

transition many times a day. Proper cloth-ing and the presence of airlocks reduces the intensity of this thermal shock.

It is also known that the risk of heart at-tacks rises as the ambient temperature falls. In France, tests showed that a 10°C drop in temperature increased the risk of heart attacks in males by 13% and in the US the rate of heart attacks in the winter months is over 50% higher than for the summer months. These figures were compiled from gen-eral statistics. If one looks at the possible added dangers that come from work-ing in cold stores, ie, thermal shock and possible dietary changes, then it is likely that the inci-dence of heart prob-lems will be higher among cold-store workers than among the normal working population.

AsthmaPeople suffering from asthma experience problems when they breathe in cold dry air as it narrows the airways by thicken-ing the mucous lin-

COLD STORAGE

Salopette worn with a full jacket. This arrangement gives double insulation to the body trunk

Africans, for example, have a relatively poor “hunting reaction” and are more prone to localised cold injury than Caucasians


ing which makes breathing more difficult. This problem can be partially solved by covering the nose and mouth with a scarf or by wearing a face mask. However, cold-store conditions are not favourable to asthmatics.

Joint pain including arthritisThose suffering from arthritis also need to take

added care as exposure to cold temperatures tends to exacerbate joint pain. This is why those whose work includes kneeling on cold-store floors at operat-ing temperatures should have insulated pads on their knees. A study has shown that cold-store workers have more complaints regarding joint pain than those working at ambient tempera-tures. This has been attributed to the fact that the temperature of the synovial fluid which sur-rounds the joints decreases in the cold increasing the risk of joint damage.

Raynaud’s diseaseA lack of proper protection can

also increase the chances of Raynaud’s disease which seems to be caused by working at low temperatures with inadequate protection. The hands and feet are subjected periodically to spasmodic episodes of vasoconstriction which are far more intense than the body’s normal reaction to the cold.

Immersion foot and chillblainsImmersion foot is caused when the feet are ex-posed to cold temperatures for long periods in damp conditions. Chilblains are a milder form of immersion foot. The temperatures do not have to be below freezing and perspiration alone is quite sufficient to cause the condition.

Common signs of immersion foot include a swollen waxy appearance. The feet feel cold and walking is difficult with complaints like “it feels like walk-ing on cotton wool”. This is followed by periods when the feet are gorged with blood becoming red, hot and very painful. Immersion foot, like Raynaud’s disease, seems to have its basis in damage to both the nervous and vascular system and can persist for considerable periods.

The best way to prevent immersion foot is by keeping the feet dry, normally achieved by chang-ing socks more than once a day. Immersion foot does not appear to be common in South African cold stores but fungal infections are. Changing into dry clean socks more than once a day should also prevent this.

Many are not aware that cold-store floors are extremely cold and that proper cold store boots are essential to reduce heat loss from the feet.

Renal stressAs has already been noted, the body removes plasma from the blood when it experiences cold, a condition known as cold diuresis. This places stress on the kidneys. While we have no direct evidence that this can damage the renal system, we understand that renal failure can accompany

Why many sailors died after being rescued from the North Atlantic during the Second World War

Chilblains are not confined to the fingers and toes. The nose, ears and face can also be affected

Cold store worker using bubble wrap to keep his feet warm

COLD STORAGE

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heat stroke. As cold diuresis is caused by low rather than high temperatures, we feel that it should also be avoided if at all possible especially as it also results in dehydration.

FrostbiteFrostbite should not occur among cold store workers as they do not spend enough time at low temperatures to actually freeze body tissue. However if people are working in cold stores with the evaporator fans running, then the wind chill factor can negatively affect exposed skin, especially on the face. For example, in a room running at minus 25°C an air flow of 10kms per hour will reduce the effective temperature to minus 33°C. This temperature level can cause frostbite on exposed skin in just over 30 minutes.

There have also been cases of frostbite recorded among fishermen who have handled frozen tuna in the holds of sea-going fishing vessels. Frostbite needs to be distinguished from injuries caused when exposed skin comes into contact with cold steel or concrete. Hands can acclimatise to this sort of situation within reason by reducing of water

COLD STORAGE

present in the outer layers of skin, but care must still be taken. Ironically, the lack of sensitivity in cold hands can also prevent a person from feeling how hot an object is, resulting in burns.

ConclusionWorking in cold conditions affects the human body in a number of ways, and places it under stress. Worker productivity in South African cold stores is low when compared to the US or Europe. Productivity could be more than doubled if employee comfort was taken seriously and properly-designed protective wear worn. There is also little interest in exploring what the possible long term health risks may be of work-ing in these conditions. To improve productivity as well as to manage the risks at-tached to working in cold store conditions, the wearing of properly-designed cold-store clothing is absolutely essential.

James Cunningham, Barpro, Tel: (021) 552-9190, Fax: (021) 552-9170, Email: [email protected]

People have been resuscitated from core temperatures of as low as 13°C

�0 Supply Chain Today April 2010

What’s red, blue, yellow,and white...

...yet surprisingly green ?

In this increasingly environmentally sensitive time, the advantages of using a forklift truck, powered by Easigas,

become ever more obvious.

For example, diesel forklifts used in fresh produce warehouses actually cause fruit to ripen more rapidly due

to exhaust gases.

Easigas is cleaner burning with lower toxin emission.

Both petrol and diesel engines require more frequent maintenance due to carbon build-up.

And, both petrol and diesel driven units require dedicated filling points which are subject to spillage and soil

contamination whilst Easigas is a closed system and a non-pollutant.

LPG driven forklifts run with less vibration as the fuel is easier to atomise than both petrol and diesel allowing

for better combustion.

For any further information or a free energy audit: Tel: (011) 389 7700 Fax: (011) 864 3800

Toll Free: 0800 001 504 [email protected] www.easigas.co.za

So, in addition to the considerable cost savings resulting

from longer service intervals, buying or converting your

existing forklifts to Easigas helps to make our world a good

deal cleaner.

Supply Chain Today 6539/2009

Supply Chain Today April 2010 �1

What’s red, blue, yellow,and white...

...yet surprisingly green ?

In this increasingly environmentally sensitive time, the advantages of using a forklift truck, powered by Easigas,

become ever more obvious.

For example, diesel forklifts used in fresh produce warehouses actually cause fruit to ripen more rapidly due

to exhaust gases.

Easigas is cleaner burning with lower toxin emission.

Both petrol and diesel engines require more frequent maintenance due to carbon build-up.

And, both petrol and diesel driven units require dedicated filling points which are subject to spillage and soil

contamination whilst Easigas is a closed system and a non-pollutant.

LPG driven forklifts run with less vibration as the fuel is easier to atomise than both petrol and diesel allowing

for better combustion.

For any further information or a free energy audit: Tel: (011) 389 7700 Fax: (011) 864 3800

Toll Free: 0800 001 504 [email protected] www.easigas.co.za

So, in addition to the considerable cost savings resulting

from longer service intervals, buying or converting your

existing forklifts to Easigas helps to make our world a good

deal cleaner.

Supply Chain Today 6539/2009

T he first award to be given was the CPIM Top Scorer Award (Certified in Production and Inventory Management). The CPIM program has been operational since 1973.

During that time more than 90 000 manufacturing professionals have been educated on essential terminology, concepts and strategies related to demand management, procurement and sup-plier planning, material requirements planning, capacity requirements planning, sales and opera-tions planning, master scheduling, performance measurements, supplier relations, quality control and continuous improvement.

This award is based on the top scores achieved in Africa in a CPIM examination during 2009. The winner was Douglas Nel for Basics of Sup-ply Chain management, while the runner-up was Churchward Mucheki for Material Planning Resources

This was followed by the CSCP (Certified Supply Chain Professional Top Scorer). Based on the

top score achieved in a CSCP examination in Africa, this programme is a new industry educa-tional certification programme created to meet the rapidly changing needs of the supply chain management field.

Effective integrationThe CSCP program takes a broad view of the Supply Chain Management field extending beyond internal operations to encompass all the steps throughout the supply chain from the supplier, through the company, to the end consumer. The CSCP provides students with the knowledge to effectively manage the integration of these activi-ties to maximise a company’s value chain.

The runner up was Colin Seftel and the winner was Henricus Verhoef, who achieved one of the highest exam scores achieved in the world to date.

Perseverance The next award category was the Student of

In recognition of outstanding achievement in various areas of education in operations management, Sapics holds an annual gala award evening. Opening speaker, Deon Greyling of BTS South Africa com-

mented that the growth of Sapics has been to an extent mirrored in attendance at the Supply Chain Ed-ucation Excellence Awards. At the first awards evening four years ago, attendance was about 60 people.

However, at this year’s function, some 150 were present.

Education Excellence Awards

Runner-up for Material Planning Resources, Churchward Mucheki, receives his award from Abrie de Swardt, Managing Director of Imperial Logistics

The winner for the CSCP program, Henricus Verhoef, pictured here with Samantha Bannatyne, of Tech-Pro Personnel

REPORT-BACK


the Year Award. This award is presented to an individual who has shown true commitment to a course or programme and has demonstrated perseverance to achieve against all odds.

Student of the Year Award winner, Rolindi Theart, received her award from Chris Boshoff, Managing Director of Supply Chain Management Solutions

REPORT-BACK

Here the winner was Rolindi Theart with Leslie Locke the runner up. Rolindi proved to be an outstanding PPIM (Principles of Production and Inventory Management) student. She assisted her fellow students by writing a summary that would assist them in studying for their mid-term exams, and even went into work on Saturdays to assist the students who were struggling. She persevered with her studies and excelled in spite of the odds.

Student of the Year Award runner up: Leslie Locke

Supply Chain Today April 2010 ��

REPORT-BACK

Liezl Smith of Sapics, presented the Lecturer of the Year runner up award to Burnie Adonis

The Lecturer of the Year winner: Reuben Badana, pictured here with Liezl Smith of Sapics

Annually, Sapic presents an award to an individual who is studying through a Higher Education and Training institution for outstanding com-

The Corporate Educator of the Year award was won by Imperial Logistics

The Higher Education and Training Student of the Year run-ner up: Mukovhe Ravhandalala, shaking hands with Liezl Smith of Sapics

The Higher Education and Training Student of the Year winner: Quintin Joubert, pictured here with his very proud father, Colin

The Sapics Authorised Education Provider award runner up was Bizzpro

�� Supply Chain Today April 2010

honours class and graduated cum laude.

Acknowledging the teacherSapics does not only present awards to students but also acknowledges the role of those who teach. The Lecturer of the Year award is presented to a lecturer who diligently sup-ports his or her students in a manner that extends beyond the call of duty, shows true commitment to the students and has true enthusiasm for supply chain education. Here the runner up was Burnie Adonis and the winner was Reuben Badana.

Reuben is described as a dedicated lecturer who has shown excellent understanding of the knowledge required and his lectures are of the highest quality.

The winner of the Operations Management Pro-gramme of the Year was the company Volition for its programme ‘Devolition’. The runner up was the Transnet Procurement Academy with ISAPA

Continual developmentThe award for the Sapics Authorised Education Provider which has shown commitment, significant contribution and continual development during 2009 went to Kent Outsourcing. The runner up was Bizzpro.

The Corporate Educator of the Year award was won by Imperial Logistics, with the runner up being Transnet

A “Special Award” to Vicenda was presented for initiative, in promoting education in a new format, which it calls “Workshop in a Box”. Working with leading lecturers in the field of Operations Man-agement, this company has recorded workshop DVDs which are marketed to those students who do not have the time or resources to attend a live workshop.

Sapics, Heidi Lamb, Tel: (011) 023-6707, Fax: 086 575-2979, Email: [email protected]

mitment, remarkable performance and overall achievement.

From Stellenbosch University, Quintin Joubert was the winner of the Higher Education and Training Student of the Year with the runner up being Mukovhe Ravhandalala of Vaal University of Technology. Quintin was the top student in the

REPORT-BACK

The Corporate Educator of the Year award runner up was Transnet


T he commitment to provide safe food to the South African consumer, along with the CPA has driven the need for enhanc-ing food safety among all players in the

food industry. In May 2009, the food directors of a number of retailers and wholesalers, met at CGCSA, with the intent of developing a single, harmonized food safety audit at an appropriate level. This audit would be applicable to suppliers

of food to participating retailers and wholesal-ers. We have identified the following associated benefits to suppliers:

• Saving of costs due to the reduction in the number of food safety audits conducted, for which the supplier pays;

• Saving in time with respect to staff members being allocated to shadow auditors on supplier premises; and

• Affording suppliers the choice of competent food safety auditors (certain conditions will apply).

The following companies have already committed their full participation in the initiative:

• Massmart

• Metcash

• Pick n Pay

• Shoprite-Checkers

• Spar

Woolworths has committed their participation in this initiative only for branded goods and not for their own private label. The CGCSA will be engaging the companies who have not yet com-mitted their participation.

In order to level the playing field and to create consistency in the industry, the following major decisions have been made since May 2009:

The Pick n Pay audit document has been adopted as the South African Food Safety Audit (SAFSA) and will be managed by FSI (CGCSA);

A database will be developed by the CGCSA, which will house all the results of food safety audits conducted; this information will be made available to all participating retailers and wholesalers.

The envisaged date of implementation is sched-uled for the 3rd quarter of this year. This date is subject to the full participation and co-operation needed for the successful implementation of this initiative.

Further, more detailed communications will be sent to interested and affected parties as the CGCSA progresses in this regard.

CGCSA, Tel: (011) 789-5777, Fax: (011) 886-4966, www.cgc-sa.co.za. Massmart, Tel: (011) 517-0000, Fax: (011) 517-0020, Email: [email protected]. Metcash, www.metcash.co.za. Pick n Pay, Customer Careline: 0800 11 22 88, www.picknpay.co.za. Shoprite-Checkers, Tel: (021) 980-4000, Fax: (021) 980-4050, www.shoprite.co.za. Spar, Tel: (031) 719-1900, www.spar.co.za

1.

2.

Food Safety AuditThe Consumer Goods Council of SA (CGCSA) and its members have realised the far-reaching impact of the Consumer Protec-tion Act (CPA). The CGCSA is developing solutions and will be undertaking a number of initiatives to assist its members and

the entire industry.

CONSUMER GOODS COUNCIL OF SA

Saving of costs due to the reduction in the number of food safety audits conducted


Market ForumOptimisation logis-tics processesKühne + Nagel will imple-ment a business pro-cess automation platform (BPAP) in cooperation with Software AG in or-der to further optimize and harmonize its lo-gistics processes. This platform will increase process efficiency and provide management with a clearer view of opera-tional processes. Various escalation levels enable fast counteractive mea-sures in the event of error. The BPA platform will be realized with Software AG’s webMethods BPM Suite.

The platform automates processes for business operations such as those which deliver services to customers. Fur-thermore, through business activity monitoring, process data can be evaluated based on pre-defined KPIs (key performance indicators). Warnings are issued immediately if a process deviates from a defined standard.

The project will begin next year with a pilot stage and is expected to be completed with a worldwide roll out by 2014. All products in the webMethods BPM Suite will be implemented. The combination of the Suite and CentraSite creates a considerable added value and is particularly well suited for global implementation.

Software AG SA, Dominique Zuma, Tel: (011) 317-2910, www.soft-wareag.com.de

Safeguarding hydraulics specialistHydraulic and pneumatic systems and equipment spe-cialist, Hydra-Quip has contracted mid market ERP and business software specialist 4most, a member of the Logic Group, to supply, install and commission a SAP Business One solution.

“We hold 8 000 different line item part numbers and each has variations so the total inventory amounts to ap-proximately 40 000 spares and components. Tracking and traceability of pumps, hoses, seals, metal pipes, clamps and other fittings were a critical requirement for us, says Hydra-Quip managing director Bradley Flynn.”

Bradley adds that the SAP Business One system has been live for almost a year and fully available since switch-on. “Initially it can be a little intimidating to new users and as laypeople we are probably using only 20% of the system capability. That will increase as time goes on but in the

Dynamic ERP solutionAccording to Strategix Business Solutions managing director Jaco Stoltz, many hosting and managed service providers have experienced tremendous expansion in both their service offerings and customer base but are still us-ing the same systems, laden with heavy customisations, to support a demanding service.

“Microsoft Dynamics AX provides us with a single system that handles ordering, billing, inventory management, tracking, purchasing, and support, giving us a strategic advantage over our competitors,” he explains.

Managing the customer lifecycle with an ERP system enables each employee to reach across multiple depart-ments within an organisation to effectively manage the customer experience. This is accomplished with a real-time information flow from Sales to Operations to Billing to Finance. Sales and Marketing are able to work together to tightly manage marketing campaigns segmented by

meanwhile our auditor is getting the right information first time, every time.

“Debits and credits are totally accurate, debtors are properly managed and creditors are easier to deal with. It works for us the way we want it to.”

With inventory ranging from a small brass seal to a com-plex hydraulic pump worth more than R12 000, Flynn finds the “drag and relate” function in the SAP software extremely useful as it enables items sold to be tracked instantly. This brings up who the item was sold to and when, who Hydra-Quip sourced it from originally as well as the original purchase price and the sale price. It also simplifies re-ordering.

4MOST, Colleen Bellas, Tel: (011) 234-3000, Email: [email protected]


Market Forum

Transhipments drive Ngqura volumes The new Ngqura container terminal is enjoying a busy start to 2010 as transhipment volumes from the Far East, South America and the rest of Africa began arriving at the facility for the first time in January, bumping total vessel calls up to 43 and total cargo volumes up to 35,403 TEU’s since the terminal’s operational launch in October 2009.

January alone saw 18 ships arrive at the terminal, com-pared to an average of seven over the months October to December.

Says Siya Mhlaluka, Transnet Port Terminals’ Divisional Executive Manager for the Container Sector, “Our strategy was always to position Ngqura container terminal as a potential transhipment hub because of its position midway between the Americas, Far East and Asia.

“We are seeing a good response now, with vessels com-ing in from the Far East to drop off containers that are then picked up by vessels heading to South American locations.”

Lunga Ngcobo, Transnet Port Terminals, Tel: (031) [email protected], www.transnet.co.za

customer profile, on-demand industry services, or on-hand inventory allowing quicker to market and provisioning turnaround times.

In addition to the marketing function, sales has access to all prospecting data, faster sales cycles, in-depth knowledge of service offerings, intuitive quote building tools, and access to real-time provisioning estimates. As the customer moves through the sales process, the sales group is capturing valuable server environment and setup information, which will be available to the provisioning and support group during the setup phase.

The ERP system allows the provisioning and support group in-depth views of the customer’s environment including detailed technical specifications, role specific contact information, billing cycles, payment type, and payment status. Billing information is used by the support and billing group to maintain tight controls on slow-paying and aging customer pay cycles.

Strategix Business Solutions (Pty) Ltd, Jaco Stoltz, Tel: (011) 805-1023 Email: [email protected]

Fat profits from lean supply chainKeith Fenner, Sales Director, Softline Accpac, says cost-cutting continues to dominate business decisions, including those related to IT investment. However, struggling busi-nesses are realising that the only way to improve profits is to put the right systems in place.

He says those who already have sys-tems in place should be looking at better ways of using these to help them be-come more produc-tive, which means optimising inven-tory levels. “Agile supply chains are critical in meeting today’s challenges of demand and sup-ply uncertainties, cost reductions, and complexity.”

While solutions like Business Process Management, Quality Management and ERP have all addressed only the inner workings of an organisation, Supply Chain Management (SCM) aims to integrate the company’s internal systems to those of its suppliers, partners and customers. Technologies such as the Internet, electronic data interchange, transportation and warehouse management software, including software that manages plant scheduling, demand forecasting and procurement, make SCM a versatile strategy to adopt.

By understanding what customers demand and what goods are being marketed to stimulate demand, it would make sense to then integrate directly to the supply chain in terms of purchasing goods. This would typically be a purchase order projection module that understands the dynamics from usage, minimum levels, lead times as well as mar-keting data. Combine this with a view into the supplier in terms of packaging, shipments and delivery times, and the business can obtain huge cost savings when it comes to delivering these goods to store locations.

“Supply Chain Management is one of the most powerful engines of business transformation and one of the leading cost saving and revenue enhancement strategies,” Keith

concludes.

Softline Accpac, Tel: (011) 304-2000, Fax: (011) 304-2030, www.accpac.co.za

Keith Fenner


Market Forum

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SubscriptionNew HeadJohn Sims – former General Manager of Magister Africa, Goodyear South Africa’s distribution business in Africa – has been appointed General Manager of Trentyre. In his new role, Sims, 58, will oversee Goodyear ’s distribution activities throughout South Africa and Africa – where it currently trades in 13 territories.

“Historically, Goodyear ran two separate distribution operations – Magister Africa, for distribution in Africa and Trentyre, for distribution in South Africa. There has been a move to consolidate the two.”

John, a qualified Chartered Accountant, has spent the past 30 years working for either Goodyear or Trentyre.

Lize Hayward, Goodyear Tyre & Rubber Holdings (Pty) Ltd, Email: [email protected], Tel: (041) 5055400, Fax: 086-614-0368

John Sims

Engineer Placements

When the business world lights up again, and the clarion call for skills is heard once more, will you

be on our database for us to contact you?

www.engineerplacements.com or email us at:

[email protected]


The beat goes onThe 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.

25 - 28 July 2010 Sun City

The SAPICS Annual Conference is the Leading Event in Africa for Supply Chain and Operations

Management Professionals.

32nd Annual Conference & Exhibition

T 011 023 6707, F 086 575 2979 or [email protected]. www.sapics.org.za

With the participation of: Principal sponsor:

Silver sponsor: Gold sponsor:

Platinum sponsors:

SCT: April 2010

Documents

Transcript of SCT: April 2010