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Using decelerated globalisation in favour of your supply chain sourcing strategy

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How SA’s motoring industry is using it to their advantage – Bidvest International Logistics gives the inside take.  

JOHANNESBURG, 20 July 2022 –  The war in Ukraine and its impact on the world economy has once again exposed the risks inherent in globalisation.

The conflict has further disrupted global supply chains already strained by the Covid-19 pandemic, and according to Simon Geale, executive vice-president at supply chain consulting firm Proxima, the deceleration of globalisation is now a certainty.

Given all that’s transpired internationally in the past two years, businesses are now near-shoring their operations in an attempt to negate issues of cargo congestion and suspension of goods and services provision globally.

The shift to new strategies emphasising local sourcing has become critical.

In June, Business Unity South Africa (BUSA) reported that the continued spread of Covid-19’s Omicron variant, the ongoing effects of the war in Ukraine as well as other constraints had pushed cargo volumes in South Africa to their second lowest level in the past 12 months, despite freight rates remaining astronomically high.   

Shoring up local supply networks is vital if South Africa is to keep its head above water amid speculation that another recession is imminent.

Businesses would do well to follow the example of South Africa’s automotive sector, says Bidvest International Logistics’ Supply Chain Solutions Manager, Willem Bekker.  

“South African automotive manufacturers have been implementing local sourcing strategies for years – well before the war in Ukraine or even the pandemic.

“This has been driven by the automotive industry incentive programmes put in place by the Department of Trade, Industry, and Competition (DTIC), specifically the Automotive Production and Development Programme (APDP), called APDP 2 in its current form.

“In order to qualify for the significant incentives offered by this programme, the locally-based automotive original equipment manufacturers (OEMs) have had to implement increasingly high targets for sourcing locally produced content for manufacturing. This means that when it comes to local sourcing, our motor industry is in a far better position than other countries.”

The APDP is reviewed every few years. Its major impact, with its strong focus on localisation, is that it starts to create an entire value stream of locally manufactured goods and services linked to the automotive industry.

Newer versions of the policy stress activities outside of the direct manufacturing operations, such as second and third tier component suppliers, service provision, distribution and logistics systems and infrastructure.

Bekker also points out that because South Africa is  geographically isolated from major economic hubs, the cost of moving goods to the country from Europe or the US is far higher than moving goods within the US or Europe.

“This means that localisation has a significant logistics cost benefit, while also allowing far more flexibility in the supply chain through not being dependent on long global shipping lead times.”

Port and border congestion, which remains a threat to supply chains, further strengthens the case for localisation.  The BUSA report indicated that massive delays persisted on the busiest trade lanes, with an average of 17,5 days’ worth of delays on a full rotation between North-West Europe and the Far East.

According to Bekker, it is essential that clients are provided visibility into their supply chains through visualisation and tracking tools.

A May 2022 white paper by the World Economic Forum indicates there is growing demand for cross-border regional integration in southern Africa, with South Africa’s ports and borders playing a significant role.

South Africa has been proactive in this regard, introducing electronic supporting documents, a mobile application tool that allows inspection results to be captured, and a web-based platform for end-to-end processing of customs clearances.

The effect has been a reduction in the time needed for physical inspections from eight hours to two on average, a simplification of real-time customs declarations to as little as seven seconds, and halving the number of days to import goods.

Cargo scanners and electronic cargo tracking systems have also now made it possible to monitor goods in transit in real time.

The shifts occurring are all about building resilience, Bekker says. The traditional Just-in-Time model has become one that emphasises Just-in-Case as supply chains are redefined.

“You have to consider first-tier suppliers exposure to the risks you are trying to avoid. This works best by strong collaboration throughout the supply chain, building long term relationships and partnerships with key suppliers, and jointly understanding the macro-level benefits of realising a successful localisation strategy.”

Bekker says the localisation focus is likely to carry on as long as South Africa continues to assist in the development of a globally competitive motor industry.

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JC Auditors delivers another first in Africa

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SANAS-accredited certification body JC Auditors’ (JCA) commitment to enhancing audit processes has paid off, becoming the first company in Africa to offer a range of audits under one umbrella. The company’s integrated, cost-effective audit approach that allows for the evaluation of multiple standards in a single audit promotes safety, compliance, and efficiency in various sectors in South Africa. 

Renowned for its pioneering efforts, JCA is the only organisation in Africa to offer accredited certifications for Road Transport Management System (RTMS), ISO 9001, ISO 14001, ISO 45001, ISO 22000, ISO 3834 and ISO 13485.

“Continuous improvement in audit quality is a priority at JCA that has steadily expanded its service offering, recognising the need to benchmark South African businesses against global norms,” says Managing Director Oliver Naidoo. “For our economy to be globally competitive, we need our supply chains to operate at a world-class level. These standards raise the bar and keep the flag flying – despite the significant challenges faced by the industry including protest action, criminality, and overall poor safety culture.”

The company most recently achieved SANAS accreditation for ISO 3834 Fusion Welding and ISO 13485 Quality requirements for medical devices. Increased accreditations for standards has allowed the company to steadily diversify into various sectors, including the health industry, liquor industry, engineering, mining, construction, waste management and information technology, with some big names now listed as clients.

The company, however, remains conscious of the difficult trading conditions in South Africa and is committed to introducing cost-effective solutions. “Our one-stop solution is proof of this,” says Naidoo. “It is a strategic approach to ensure we can offer the South African market all the standards needed under a single umbrella.”

According to Naidoo, the team at JCA has made remarkable progress in awarding certification to a host of transport operators that have successfully implemented international standards in their business, particularly the world’s three most popular standards ISO 9001, ISO 14001 and ISO 45001. These include leading industry players such as Unitrans, Reinhardt Transport, Crusade Logistics and Premier Logistics.

There is increasing momentum for other international standards such as ISO 22000 Food Safety, recently awarded to Tanker Services Food and Chemicals, as well as Onelogix United Bulk and Imperial Fast n Fresh.  Onelogix United Bulk has also become the first dangerous goods transporter in South Africa to be awarded ISO 39001 Road Traffic Safety certification by JCA.

JCA recently received the outstanding achievement award jointly with the RTMS NPC at the inaugural African Supply Chain Excellence Awards (ASCEA).

“We are proud of our African excellence model with global acceptance which provides our clients with peace of mind that all our accredited certifications are recognised globally in terms of the International Accreditation Forum’s (IAF) multi-lateral agreement,” concludes Naidoo.

The Anderson Engineering team proudly receiving their ISO 3834 certification.
The team at First Medical Company were all smiles with their dual certification for ISO 13485 and ISO 9001
Probe Mining Technologies celebrate their ISO 9001 and ISO 45001 certifications.

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Boost for women in logistics, transport and supply chain through candidacy programme graduation

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nternational logistics and transport professional body the Chartered Institute of Logistics and Transport: South Africa (CILTSA) celebrated another milestone, with the recent graduation of its second Candidacy Programme for women, funded by the Transport Education and Training Authority (TETA). Thirteen ladies graduated with the International Diploma in Logistics and Transport and the prestigious, globally-recognised “MILT” designation.

The following ladies successfully completed the intense programme:

  • Molly Baloyi – Transport Manager: Poseidon Logistics
  • Abigail Graaff – Operations Supervisor: Imperial Logistics – Cape Town branch
  • Khothatso Ngwenya – Global Key Account Support Executive: DHL Express Regional Office
  • Sekao Magodiele – Customer Experience Manager: Parcelninja
  • Mpho Mbuli – Ocean Freight Controller: Senator International
  • Mpho Sylvia Keitumetse Molaolwe – Key Account Co-ordinator: Samsung Electronics
  • Martina Mothapo – Senior Finance Manager / Projects Chief Financial Officer: Energy Infrastructure Management Services (EIMS)
  • Lerato Mudzielwana – SCM Traffic Analyst: Ford Motor Company
  • Busisiwe Nkosi – Assistant Manager, Outbound: Samsung SDS
  • Lerato Nonyane: Warehouse Manager: Imperial Logistics 
  • Sagree Packree – Ocean Freight Manager:  Imperial Clearing and Forwarding JHB
  • Pumeza Rhayi – Director: LoadMore Logistics Pty Ltd
  • Zenobia Van der Westhuizen – Customs Field Support Manager for SSA: DHL Express

“The CILTSA Candidacy programme offers our graduates the opportunity to not only gain an internationally-recognised qualification, but also achieve a portable designation that elevates their standing in the logistics, transport and supply chain industries,” explaied Elvin Harris CMILT, President of CILTSA. “Our designations are recognised in the over 40 countries in which CILT operates – and are a differentiator for transport, logistics and supply chain professionals as the drive to professionalise our industry intensifies.”

Representivity of women in the sector

Commenting on the partnership between CILTSA and TETA, Kgatile Nkala – Executive Manager: Corporate Services Unit at TETA – called on CILTSA and the broader transport industry to expand opportunities to leverage transformation in the sector and expedite the transitioning of women into credible positions in logistics, transport and supply chain.

Nkala highlighted the Quarter One: 2022 Quarterly Labour Force Survey, which indicated that more men were employed in the transport sector: however, there was a higher quarter-to-quarter change amongst female employees (7,4%), but a quarter-to-quarter decrease in male employees (-0,4%). Moreover, while the figures showed a higher year-on-year increase in the number of male employees (33 000), the percentage of the year-on-year increase in female employees (16,6%) was far higher than that of male employees (4,4%). “This shows that the transport sector has been making a concerted effort to employ more women each quarter, as well as annually,” said Nkala.

Top Achievers

The top three women in the CILTSA Candidacy programme were recognised for their exceptional achievements:

  • Abigail Graaff – Operations Supervisor: Imperial Logistics – Cape Town Branch
  • Martina Mothapo – Senior Finance Manager / Projects Chief Financial Officer: Energy Infrastructure Management Services (EIMS)
  • Zenobia van der Westhuizen – Customs Field Support Manager for SSA: DHL Express

Structured learning pathways

The year-long Candidacy programme funded by TETA, included both theoretical and workplace experience.  The Programme was implemented by CILT-accredited training provider Commerce Edge.

International Education Strategy and Business Development Lead for CILT International, Jon Harris FCILT, added that women who choose transport, logistics or supply chain as a profession could use CILT’s programmes to further make themselves competent to take them to any level in these industries.  “We do not impose a one-size-fits-all approach to our certifications, but rather blend best practices and customise each programme to meet local requirements and needs,” he explained.

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Rhenus Warehousing Solutions South Africa addresses the demand for warehouse space in KwaZulu-Natal

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One of the leading globally operating logistics service-providers Rhenus Group has launched a new storage warehouse in Durban, South Africa. This strategic addition expands the Rhenus warehousing space to more than 24,000 square metres, strengthening its local capabilities significantly and creating new jobs.

The new Rhenus facility measures 7,700 square metres – growing the company’s warehousing capacity in Durban by more than 50 percent in just two years. This facility plays an integral role in serving the Port of Durban, which handles 32 percent of all South Africa’s ships. The additional premises are set to attract new clients from various industry sectors – including ones that Rhenus currently services like automotive, healthcare and food and beverages.

The warehouse is strategically located at Northfield Business Park in the north of Durban, just 21 kilometres from the King Shaka International Airport and 24 kilometres from the Durban Container Terminal.

The facility offers a range of solutions such as loading and offloading, packing, cross-docking, picking, as well as the capability of handling food graded items. With its new cross-dock area, the warehouse boasts high efficiency and quick loading and unloading turnaround times.

According to Kishore Kanayelal, Regional Director KwaZulu-Natal at Rhenus South Africa, increased demand for warehouse space, as well as more service offerings, have been driving strong growth. With KwaZulu-Natal having experienced many challenging circumstances, the launch of a new warehouse comes as welcome relief to a community in need of good news.

“We are proud that we have created more than a hundred new jobs to service the demand in our area. These additional 7,700 square metres strengthen our local capabilities significantly,” Kishore Kanayelal explains.

The offering of cross-docking means more efficient goods handling, reduced labour costs and accelerated delivery times – which are real benefits to Rhenus clients. “The launch of this new warehouse marks an exciting time for us as a business. It showcases our commitment to delivering innovative solutions that meet our clients’ transport and warehousing needs,” concludes Kishore Kanayelal.

By this expansion, Rhenus Warehousing Solutions is enlarging its portfolio of individual solutions and value-added services for the South African automotive, healthcare, food, and beverages sector.

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