Conference E-Zine +27 11 023 6701 / 2019 ANNUAL SAPICS CONFERENCE LOOKING BACK at the 41ST ANNUAL SAPICS CONFERENCE

Oct 2019 / Issue 03 Post Conference E-zine +27 11 023 6701 / www.sapics.org.za 2019 ANNUAL SAPICS CONFERENCE LOOKING BACK AT THE 41ST ANNUAL SAPICS CONFERENCE

Building skills and partnerships

Thriving at the edge of chaos

Circular economy is saving the planet

Our high-tech future and political risk

The future of zero waste to landfill

Award Winners at SAPICS 2019 SAPICS E-ZINE SEP 2019 SAPICS E-ZINE SEP 2019

#Foreword

elcome to our second SAPICS Conference ezine in which we are pleased to share some of the highlights CONTENTS Wof this year’s 41st annual SAPICS Conference. Building skills and partnerships at 5 This was the first time that I welcomed delegates to Africa’s SAPICS 2019 leading event for supply chain professionals as the president of Bruce Whitfield’s guide to thriving at the 7 SAPICS. It was a proud moment. The 2019 SAPICS Conference edge of chaos saw close to 800 delegates representing 28 countries converge in Cape Town to learn, share knowledge and network. Technology is disrupting and transforming 11 the supply chain

If you were at SAPICS 2019, we hope that you will enjoy Circular economy is saving the planet and 15 looking back on some of the powerful presentations, videos boosting profits and photographs. Supply Chain Management is a powerful new 19 weapon in united nations peacekeeping missions If you were not there, this is just a small selection of what you A glimpse of our high-tech future and political risk 21 missed. We hope to see you next year. Alternatively sign up for Reality TV survives and thrives thanks to Supply 23 our many varied events throughout the remainder of 2019! Chain Management SAPICS 2019 was carbon neutral - thanks to CHEP 28 Kea Mpane The future of zero waste to landfill & the new carbon tax 29 SAPICS President Packing meals for vulnerable children 35 Award winners at SAPICS 2019 37

SAPICS event management and business administration professionally powered by Upavon Management since 1996.

1 2 With Grateful Thanks to the Sponsors of SAPICS 2019

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Watch the highlight video: https://www.youtube.com/watch?v=TaIwVV-v2FM Silver Sponsors think supply chain think SAPICS

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3 innovate, inspireandadvanceyourbusiness.” “Go backtoyourbusinesswithideasthatcanimprove, AT SAPICS2019 AND PARTNERSHIPS BUILDING SKILLS SAPICS E-ZINESEP2019 supply chainmanagement. is attheforefrontof drivetoprofessionalise and ongoingprofessional designationsinitiative, conference, itsskillsdevelopmentprogrammes Mpane addedthatSAPICS,throughtheannual stressed. accountable supplychainprofessionals,”she certified, professionallydesignatedandethically compete onaglobalscale.Weneedqualified, constantly evolvingandeverchanging.We every day.“Supplychainmanagementis touching virtuallyeveryaspectofindustry vital asitholdsahighlevelofresponsibility, regulation ofsupplychainmanagementis Mpane saidthatprofessionalisationandthe advised delegates. inspire andadvanceyourbusiness,”she business withideasthatcanimprove,innovate, and buildnewpartnerships.“Gobacktoyour to empowerthemselves,advancetheirskills internationally acclaimedSAPICSConference the mostofopportunitypresentedby economic growth.Sheurgedattendeestomake proficiency andcompetenceisacatalystfor S 5 SAPICS Conferencethatsupplychain in heropeningaddressatthe2019 APICS presidentKeaMpanestated

#inspire Kea Mpane

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#thriving BRUCE WHITFIELD’S GUIDE TO THRIVING AT THE EDGE OF CHAOS

This year’s keynote presentation by Bruce Whitfield highlighted South Africa’s current political and economic challenges and left

delegates with inspiring insights on “How to Thrive at the Edge Watch the video here: https://youtu.be/1vrFtA__sLM of Chaos”. Whitfield shared extracts from exclusive interviews with some of South Africa’s most successful and influential business leaders. What he called the “secret sauce” and chutzpah of some South African business icons was summed up in these inspiring quotes that he shared with SAPICS delegates:

“If you looked only at the accounting, you’d never do a deal.” Brian Joffe, Bidvest “Don’t get too big “It’s not Armageddon, for your boots.” you should be building.” Raymond Ackerman, Adrian Gore, Discovery Pick ‘n Pay ell known broadcaster, journalist and writer Whitfield noted that “Failure is when “People must be allowed to we cannot control politics or the W you stop trying.” make affordable mistakes.” environment in which we operate. Despite Stephen Saad, the economic, political and social chaos Stephen Koseff, Investec Aspen Pharmacare that South Africa has faced for decades, our nation still has great business success stories that we can learn from, “We have no future... if we don’t create opportunities he contended, with many businesses for as many of our people as possible.” Patrice Motsepe started, growing and thriving in tough times.

7 8 TAKING BOLD STEPS TO MOVE YOUR BUSINESS GLOBALLY The body professionalising supply chain management in Africa

• Professional development • International certifications • Networking • Membership • Events • Annual conference For more information please contact us: • Professional designations [email protected] | +27 11 023 6701 | www.sapics.org.za WWW.BARLOWORLDLOGISTICS.COM WWW.BARLOWORLDLOGISTICS.COM SAPICS E-ZINE SEP 2019 SAPICS E-ZINE SEP 2019

TECHNOLOGY IS DISRUPTING AND TRANSFORMING THE SUPPLY CHAIN #most innovative

into the mass market. “Once the chasm Making Buying Easy is crossed, the innovations go from deceptive to disruptive, experiencing “Convenience is a major driver for an exponential level of diffusion and consumers, and the most inconvenient progress, driven by the competitive aspect of the shopping experience is need to keep up or be left behind. We usually the bit at the end – unpacking have experienced five waves since the the basket, repacking and paying. Industrial Revolution and are now in the Sainsbury’s, a UK based grocery chain, early ‘spring’ period of the sixth. opened the first checkout free store in Holborn Circus, London, which allows Watch the video here: https://www.youtube.com/watch?v=pdAkvOMTDU4 “When I started presenting on this people to scan the items they buy using topic back in 2012 and 2013, I showed an app on their phone, and then payment New waves of technology are disrupting and transforming the very nature exciting videos of radical new sixth is made electronically. The store is of the supply chain, according to world leading futurist, author and globally wave inventions such as warehouse Sainsbury’s response to Amazon and the recognised business transformation expert Sean Culey. He shared his insights robotics, autonomous vehicles, drones, introduction of their Go stores, which use collaborative robots and the like, only to a variety of radical new technologies such in an exceptional and award winning keynote presentation at SAPICS 2019. see little evidence of their materialisation as vision tracking, sensing technology, outside of these experimental and machine learning, and which have uley’s latest book, “Transition Point: communication mechanisms, which in turn organisations. been successfully trialled in the US and From Steam to the Singularity”, attract investors and their money, and this are currently being rolled out to 3 000 Cis the result of over five years investment creates whole new industries While the videos went viral, the locations over the coming few years. of research. One of the questions and large numbers of new businesses,” he innovations did not, constrained either by that he examines in the book is what explains. technological issues, a lack of supportive “Also in April, Walmart announced that drives technological progress, and why infrastructure, or legislation. However, in it had partnered with Google to enable advancement in these areas comes in Culey notes that the adoption of new April 2019, real evidence appeared that people to ‘order by voice’, where the waves rather than as a liner progression. technologies is slow at first, as many indicated that we had reached a tipping consumer can simply say out loud the “These waves are driven by the creation innovations fall into what Gartner calls point, at least in the retail industry, as a things they need, and Google Assistant of a cluster of new technologies that the “trough of disillusionment”, failing to series of demand capture and fulfilment will identify your favourite brands, check spawn new energy, transportation and cross the “chasm” from innovators and innovations started to cross the chasm. prices, look for deals and place the order.

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The Architect of Disruption The Tip of the Iceberg LAST MILE DELIVERY Culey notes that the driver behind nearly “For those not in the retail trade, do not be all of these retail innovations – at least in complacent,” Culey cautions. “One thing the West - is the “disruptive behemoth that has been true to date is that these that is Amazon”. These developments new innovations do not respect industry are either being driven by Amazon, or as boundaries. Once the customer gets a a competitive response to Amazon, he taste of ordering by voice, stores without states. checkouts and automated, same day delivery, they will expect a similar level of Automating the Last Mile in late 2013 and announced that Amazon service in their industry,” he stresses. planned to deliver goods to customers by “Not only has ordering goods increasingly drone in the future. “Since then, people becoming easier and more convenient realised that this was more than a mere due to these recent announcements, but PR stunt, and a race to operationalise a series of delivery focused milestones these in order to drastically cut the cost were also achieved. The fulfilment of of last mile deliveries ensued. Drone demand has changed rapidly since the deliveries were successfully tested in rise of e-commerce and omni-channel the UK by Amazon and in Australia by ordering, and no longer does the Google, but it was the Chinese retailer consumer have to spend their weekends JD.com who was the first to use them travelling to the out-of-town hypermarket, for commercial deliveries, mostly to rural spending hours walking the aisles doing areas. the weekly shop. Now the consumer not the retailer decides when and where “In April, a trio of milestones were goods will be collected, creating an announced. Firstly, UPS and drone exponential level of additional costs and technology company Matternet initiated additional complexity for supply chain a medical-sample delivery system for The teams. To try and provide solutions hospitals in Raleigh, North Carolina. that increase the speed and flexibility Then, a California-based company leading while reducing the amount of manpower called Zipline launched the world’s (and significant labour costs), radical largest vaccine drone delivery network event new automated delivery mechanisms in Ghana, that is expected to be able in Africa for have been developed and they are now to conduct up to 600 daily, on-demand supply chain breaking cover. medical drone flights to 2 000 health care professionals facilities across the country. Finally, and “Earlier in the year, Amazon unveiled most importantly for the retail industry, a series of road delivery robots called in late April, the Google drone spinoff, ‘Amazon Scout’ which were rolled out for Wing, achieved the Federal Aviation a trial in Snohomish County, Washington.” Administration’s first certification for drone deliveries, followed almost immediately by Culey says that another last mile delivery Amazon who also received FAA approval, innovation – drone deliveries – created and who then declared that a new style excitement (and a little derision) when Jeff of delivery drone would commence Bezos first went on the 60 Minutes show commercial deliveries this year.

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CIRCULAR ECONOMY IS SAVING #insightful THE PLANET & BOOSTING PROFITS Organisations and governments are one such product. Designed to replace Shoes made from ocean plastics, packaging material made from investing in these initiatives because of Styrofoam, it is a mushroom-based the capabilities of the circular economy, packaging material that is now being mushrooms and a green partnership between Ford and Heinz to build car including profits, she said. used by furniture giant IKEA. “It grows parts from tomato fibre are examples of the circular economy in action. relatively quickly. It is cost effective; and it Challenging the misconception that decomposes in 30 to 90 days,” explained saving the planet always comes at a cost, Dull, adding that the global market for Dull reported that the circular economy sustainable packaging is expected g Sector clin cy D Re es ig n to reach more than USD140 billion in / is on track to add USD4.5 trillion to the M a n u f a r c i global economy by 2030 and create coming years. t a u

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s hundreds of thousands of new jobs. “I

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R The circular economy highlights the R argue that the true focus of circular is

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s first on the ‘economy’ part; on expanding importance of extending the useful

m u s n C o profits,” she stated. life of an item for as long as possible. This has increased “Product as a Deborah Dull during her presentation at SAPICS 2019. Sports brand Adidas is embracing Service” offerings across the market, circular economy principles in its such as Uber, US-based “Rent the n a traditional linear economy, approach to dramatically lengthen the partnership with “Parley for the Oceans”, Runway” clothing rental, and – for an materials flow in a line; they are taken lifecycle of the items around us”. an environmental organisation that is industrial example – “time on wing” for from the earth, made into an item in fighting environmental threats posed by airplane engines. Dull explained that I GE Aviation offers this time on wing an affordable way, and waste goes into “Circular economy is already well under ocean plastic pollution. “In 2017, Adidas landfills when we are finished using the way around the world and goes beyond sold one million pairs of its Parley brand through an “Outcome as a Service” product. Circular economy has been sustainability agendas,” Dull informed shoes, which are made with ocean offering to airlines, which means GE inaccurately referred to as “recycling delegates in her presentation. plastic. In 2018, five million pairs were Aviation is responsible for predictive on steroids”. It was shown to be much sold; and Adidas has announced that it and preventative maintenance. “This is more in an impactful presentation by “The circular economy builds on the will make 11 million pairs in 2019. These important, because assets are smart. United States based supply chain idea of industrial symbiosis where the are not inexpensive shoes, but they are in Machines are intelligent. The Industrial specialist Deborah Dull at the 2019 idea is that a series of factories are set demand,” Dull said. Internet of Things and Industry 4.0 are SAPICS Conference. She contends that up next to each other; the biproduct or bringing together sensors, advanced supply chain management - and the residual product of one factory process is Proctor & Gamble is making bottles from analytics, and machine learning. This circular economy - can save the planet. used as a resource by another. Through recycled plastic and ocean plastic. “As combination means that the engine tells In her current role as Principal, Supply local collaboration, public and private part of their ‘Ambition 2030 Initiative’, us when it needs to be serviced. And, as Chain Management, at General Electric enterprises buy and sell residual products they have taken nearly all of their you can imagine, this is very powerful.” subsidiary GE Digital, Dull works across from one another, both making money manufacturing facilities past zero waste Maintenance, Dull explained, is a key the supply chain community to accelerate and saving the environment. With new towards circular models and have saved enabler of the circular economy. the transition to a circular economy. Industry 4.0 technologies, the concepts over USD2 billion.” Her goal is to progress past a linear beyond the industrial symbiosis can be Dull finished her presentation by “take-make-waste” approach to one in stretched across digital supply networks, She revealed that there is growing exploring the impacts of the circular which supply chains around the world allowing for materials and byproduct emphasis on designing products for economy on the supply chain, asking are supporting a “make-reuse circular exchanges to happen at scale.” the circular economy. EcoCradle is delegates to imagine waste as something

15 16 IL SAPICS advert 148 x 209mm final.pdf 1 2019/05/15 13:30

SAPICS E-ZINE SEP 2019

of value that will be exchanged among longer used new, virgin materials,” she supply chains as input to products and challenged. processing. At circular economy forums around With materials exchanges starting to the world, supply chain professionals emerge across the world, Dull showcased are missing from the conversation. Dull early examples of “parts passports”, concluded by urging SAPICS delegates which record an asset’s details and to “invite yourselves to the discussions; history, including market analysis for supply chain teams find solutions to valuation, and pair up potential buyers impossible challenges across the world. and sellers. “We need to start thinking Now is the time to come together as a about waste as inventory. Consider how global community and create supply much of the circular challenge could be chains that can support circular business solved if everyone switched, tomorrow, to models”. C using recovered materials only - and no

About Tumelo Home CY

SAPICS is proud to announce that we have partnered CMY with TUMELO HOME: FOR THE MENTALLY AND K PHYSICALLY DISABLED.

We supported them as part of our CSI project for #SAPICS2019 and will continue to support them in the future. We are proud to be supporting a charity which is close to home for SAPICS and we are excited to get involved in making a difference.

Tumelo Home runs their day care as a 24 hour centre for children that require custodial care and some who may be left abandoned by their parents, at the centre. They rely heavily on funding and have developed over the years due to funding from a shack – like dwelling to a brick-face building that has foundation and is now dignified. This shows what an impact funding has for a charity of this kind.

Click here to visit their website

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SUPPLY CHAIN MANAGEMENT IS A POWERFUL NEW WEAPON IN UNITED NATIONS PEACEKEEPING MISSIONS

The scope and magnitude of United Nations peacekeeping operations, and the logistics challenges of supporting 100 000 peacekeepers in operations around the world, were highlighted in a riveting and award- winning presentation at 2019 SAPICS Conference.

erbert Pechek, who is the supply under the UN flag in more than 70

chain management principal at peacekeeping operations. More than 100 Click on the image above to see the presentation of Herbert Pechek, as presented during SAPICS 2019. the United Nations Support Office 000 military, police and civilian personnel H Pechek shared remarkable statistics to roughly 90 000 SKUs (stock keeping in Somalia, was the main architect of from 125 countries currently serve in 14 the transformation of the organisation’s peacekeeping operations. illustrate the importance of transforming units), including 29 000 SKUs of spare complex, multidimensional peacekeeping the organisation’s approach to supply parts. operations into an efficient horizontal Despite operating a large, complex chain management. “In terms of its supply chain. He shared his insights supply chain network consisting of aircraft and aviation services, the UN’s Food, rations and catering supply chains and experiences with supply chain processes and activities to procure, peacekeeping operation would be serve more than 400 UN cafeterias and professionals representing 28 countries produce and deliver materials and ranked in the top 20 in the world if it was field kitchens globally. United Nations who attended this year’s SAPICS services that include fuel, rations, water, an international airline,” he revealed. peacekeepers consumed some 28 000 Conference. equipment, modular camps and other “Water and sanitation, power and energy, tons of fresh food in 2018, along with 50 items to field missions around the world, vehicles, field technology and fuel must 000 tons of dry food and more than 2 000 The United Nations celebrated the 70th the UN did not use the words supply reach the most remote areas of the world. tons of combat rations. anniversary of UN peacekeeping last chain management before 2012, Pechek In 2018, UN peacekeeping produced The medical support provided for UN year. Over the past 70 years, more than informed SAPICS Conference delegates. almost five billion litres of drinking peacekeeping missions last year included 1 million men and women have served “The shift from ‘business as usual’ and water and treated 2.2 billion litres of 487 tons of medicines and medical a focus on what we deliver to thinking of wastewater.” supplies for more than 722 000 patients the entire end to end supply chain started and 768 UN-operated clinics. around 2014, when we discovered the Pechek said that fuel supply is one of the SCOR tool (supply chain operations organisation’s main supply chains, and “Our supply chains are life critical,” reference model) and began the revealed that in 2018, 28 million litres of Pechek stressed. “The effectiveness mammoth process of aligning UN supply diesel fuel and 10 million litres of jet A-1 of peace operations depends on the chains with industry standards. Our vision fuel were supplied for peacekeeping operational support received. If our was to have a well-managed and agile missions. More than 61 million kWh of supply chains don’t succeed, lives are at supply chain to support UN field missions power was generated by over 220 power risk. We have to get it right the first time.” with effectiveness and efficiency. This generation stations operated by UN represented the kick-off for the paradigm peacekeeping, he said. Inventory held While transforming its supply chain shift.” by UN peacekeeping last year included strategy, the UN also rolled out an ERP

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(enterprise resource planning) system. successfully for nearly 70 years. In Pechek says that while the change January 2019, our success was reflected has been challenging, and change in the appointment at UN headquarters of management was critical, there is an Assistant Secretary General for Supply growing recognition in the organisation Chain Management. of the importance of supply chain management. “This fundamental change “Ultimately, better supply chain of approach in supporting field operations management will contribute to better represented a clear paradigm shift that mandate implementation for UN not everyone understood immediately. peacekeeping, special political and other Many voices questioned the move from field missions,” he concluded. something that has served us quite

A GLIMPSE OF OUR HIGH-TECH FUTURE AND POLITICAL RISK

APICS 2019 featured diverse Culey gave delegates a glimpse of keynote presentations by world our high-tech future while Besseling S leading futurist, author and examined the political risk that business transformation specialist impacts supply chain management in Sean Culey and risk expert Robert Africa. Besseling.

Watch the video here: https://www.youtube.com/watch?v=YAtUlRiubzg

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who has been involved in the supply Tebbutt notes that one of the biggest chain field for 15 years, there were times challenges was getting the gear to the REALITY TV SURVIVES AND when I just stood back and was amazed locations over Christmas and New Year. by the logistics of it all while I was out “We all know how tricky this time of the THRIVES THANKS TO SUPPLY there starving,” she quipped. year is in the world of logistics,” she commented. CHAIN MANAGEMENT The logistics challenges start with location decisions. “The producers fly Building sets – for challenges, rewards The terms reality TV and supply chain management rarely appear to different island locations and scope and “Tribal Councils” – was also a together. The reality is, however, that the production of popular shows out the area. Season 6 was filmed Survivor logistics challenge. “There are in the Philippines due to the current no hardware stores down the road, so like Survivor is only possible with the most efficient supply chains. infrastructure and knowledge of the planning for these builds, procuring locals there who had worked on the US materials and getting them to the version at that location some years ago.” right place at the right time had to be meticulous to ensure that the tight Transport is vital in the Survivor supply production schedule was not delayed.” chain. “In the Philippines season of The supply chain was impacted by Survivor SA, a problem was the distance a number of cyclones which brought between the various islands. There were construction to a halt for a time, she islands that the different tribes lived reveals. on and also the various islands where challenges took place. You could only A new logistics angle featured in this get from one place to another by boat. A season of Survivor when South African fleet of eight speedboats and two bunker quick service restaurant brand Steers boats for equipment and materials was made an appearance in the Philippines. #survivor used. They used 720 litres of fuel daily.” When the different tribes merged, a celebration feast was set up for In addition to the contestants, there contestants. “It was a Steers feast, and his is the contention of Antoinette just finished filming their 39th season,” were 120 South African crew members they even shipped in their ice cream Tebbutt, a supply chain education Tebbutt informed SAPICS attendees. and 160 Filipino crew members working machine for us,” enthused Tebbutt, who specialist who develops content “The concept has been adapted by on the show. Some of the statistics said it was a memorable moment as she T that Tebbutt shared in her SAPICS had not eaten for four days. for training and skills development other countries, making it an international programmes for supply chain reality show phenomenon that continues Conference presentation included that professionals. In 2018, she was the to attract viewers year after year.” a total of 426 flights were booked for the In keeping with the growing global drive outspoken contestant known as Toni duration of filming. for greener supply chains, Survivor on Survivor South Africa, spending 30 What struck her when she was a follows a strict policy of ensuring that days living on different islands in the contestant was the logistics feat that the “Gear, including cameras, was flown all activities have zero impact on the Philippines. Tebbutt shared her Survivor show represents, Tebbutt said. “People in from South Africa to Manilla. From location and environment. Reverse experiences and reality TV insights do not just appear on islands. Cameras Manilla, they were put into a container logistics came into play, with some with delegates at the 2019 SAPICS do not just fall out of the sky. Props on a boat and shipped to El Nido – since materials having to be sent back to Conference in Cape Town. do not just materialise from coconut the planes to the island are too small. South Africa. “The place that I had called trees. I think it is safe to say that this From El Nido they were taken to the crew home for a month suddenly looked as “Reality show Survivor started in 2000 show thrives and survives thanks to the by car or speed boat. All audio gear was though I had never been there at all,” in the United States, where they have seamless supply chains. Being someone airfreighted in from the United States.” Tebbutt concluded.

23 24 Save the date! SAPICS 2020 Annual Conference 21-24 June, Century City, Cape Town The leading event in Africa for Supply Chain Profesionals

www.sapics.org | +27 11 023 6701 25 26 SAPICS E-ZINE SEP 2019 Maximising your on-shelf SAPICS 2019 WAS CARBON availability. NEUTRAL - THANKS TO CHEP Enhancing your SAPICS was delighted to the Meru and Nanyuki Community in-store visibility. Reforestation project in Kenya. This once again collaborate with community project based in the foothills conference sponsor and of Mount Kenya combines hundreds of Inspiring individual tree planting activities and exhibitor CHEP to make the customers to enables local communities to improve access to food and create additional buy more. 2019 SAPICS Conference a carbon neutral event. sources of income beyond subsistence farming. In addition to generating revenue CHEP’s innovative from the sale of carbon credits, the project provides training and facilities to platforms and his means that all emissions improve crop production, grow trees as solutions are a associated with the event, sources of food and medicine, and use game changer for Tincluding attendees’ travel, energy wood more efficiently as fuel. both retailers and consumption, waste emissions and other manufacturers. carbon impacts, were offset through The competition that CHEP ran at its the purchase of carbon credits. Carbon stand was also a resounding success, offsetting enables companies to reduce creating awareness of the importance of and measure the emissions associated reducing our carbon footprint. Delegates with their products and services. Carbon were asked to enter their travel details on Please visit us at Credits are purchased from a variety an IPad in a dedicated area on the stand. Stand no’s. 26 & 27 of global, emission reduction projects, They clicked on a website calculator or contact us on: offsetting remaining emissions to net zero. that CHEP developed specifically for the These projects also deliver economic, event. Each time details were entered, the 0800 330 334 social and environmental benefits to the CO2 emission savings were updated and local communities. displayed on a TV screen. On day two of the conference, CHEP had a lucky draw The 2019 SAPICS Conference was made for an iPad Mini. It was won by an ecstatic carbon neutral by CHEP supporting Ayanda Nteta, a student at UKZN.

CHEP is a proud sponsor of SAPICS 2019. A Brambles Company www.chep.com

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THE FUTURE OF ZERO WASTE TO LANDFILL AND THE NEW CARBON TAX

South Africa is fast approaching a situation of running out of landfill space; the inevitable “day full” is on our doorstep. The roll-out of the country’s carbon tax – which is geared towards reducing carbon emissions by 34% by 2020 and 42% by 2025 - will change the way that companies do business.

adopt low carbon alternatives. Additional “Once the carbon tax has been tax-free allowances include an additional calculated, it will be paid to (and allowance of up to 10% for process administered by) National Treasury, emissions; an additional allowance for which will determine any further tax trade exposed sectors, to a maximum allowances, based on trade exposure, of 10%; and an additional allowance business performance, etc. At this of up to 5% based on performance point the process could become quite against emissions intensity benchmarks. abstruse and bogged down by litigative These benchmarks will be developed complexities, and you’ll need some in due course. There is also a carbon expert assistance,” he cautioned SAPICS offsets allowance of 5 to 10% per cent, delegates. depending on sector, and an additional 5% tax-free allowance for companies “We would recommend getting experts participating in phase 1 of the carbon to help you navigate the tricky terrain of budgeting system. As part of the tax, tax law.” He stated that there were things his was the message from over time to ensure a smooth transition,” the carbon offset mechanism also allows businesses could do now to anticipate Wasteplan CEO Bertie Lourens in he explained. companies to participate in a market- this burden and reduce their waste to T a presentation at the 2019 SAPICS based approach to reduce emissions. landfill so that less of the business is Conference. Lourens noted that, year Lourens summarised the carbon tax exposed to heavy carbon taxability, after year, South Africa, which is the roll out for SAPICS delegates: “Phase Ensuring Right Reporting including investing in renewable energy, world’s 169th most populous country, 1 will run from implementation up to cool carbon projects and biogas has ranked as the 17th dirtiest energy December 2022. The initial marginal “Carbon emissions are submitted to the digesters, and reducing waste to landfill. producer on the planet - out-polluting carbon tax rate will be R120 per tonne Department of Environmental Affairs the UK and France. “The carbon tax is of CO2e (carbon dioxide equivalent). (DEA) through legislation known as the “Africa is uniquely poised to leapfrog an attempt to mitigate this consumer With the below thresholds in mind, the National Greenhouse Gas Emission fossil fuel, carbon heavy systems and behaviour and reduce high greenhouse effective tax rate is much lower and Reporting Regulation (NGER). Here, adopt wind, solar and water energy on gas emissions while stimulating investor ranges between R6 and R48 per tonne. companies that rely on energy generation sustainable, large-scale levels,” Lourens appetite for low carbon alternatives. As A basic percentage-based threshold from their own equipment are obligated to asserted. of June 1, 2019, South Africa started (up to 60%) applies for the first phase of report on all business-related activities for rolling out the Carbon Tax Bill, which will implementation that is not tax payable, in tax purposes. “The tax will take all your activities into be implemented in stages and phased in order to help businesses transition and account, including the activities related to

29 30 SAPICS E-ZINE SEP 2019 your waste disposal on site,” he informed can assist in the development process Transforming Freight Logistics SAPICS attendees. from start to finish,” he advised. THROUGH TECHNOLOGY, As a means of offsetting their carbon Lourens said that the Western Cape PARTNERSHIPS AND COLLABORATION footprint, he recommended that Government has implemented legislation companies invest in effective and that will completely ban organic waste environmentally sustainable projects to landfill by 2028, which will force that come in under the marginal carbon companies to implement solutions for the Transnet… tax rate of R120 for every tonne of waste. CO2e. “These partnerships are not only financially incentivising; they help support “New innovations are making Zero Fuelling Africa’s growth worthwhile green initiatives in other parts Waste to Landfill a reality. It requires an and development as of the world.” integrative approach with separation at Customers supplier source and effective down-stream waste the leading provider of The biogas digester is a well proven management practises. This approach innovative supply chain technology that converts organic waste maximises recyclables recovery, while into a clean and sustainable energy organic waste is isolated and treated solutions to customers. source. Lourens explained that when using composting or biogas. The Transnet organic waste such as discarded food remaining waste consisting mainly of customer waste is landfilled, it produces methane unrecyclable plastic packaging can then gas, which is many times more potent be converted, either into energy (such Catalyst for than CO2. Biogas digesters have been as electricity or oil) using Pyrolysis or, economic growth Road movement around in South African since 2014. into bricks or concrete to build much and transformation Transnet “Unfortunately, many of the installations needed infrastructure. The waste-to- controlled/private did not perform, with several facilities energy landscape in South Africa is still having closed-down or running with in a vulnerable state, but we believe this Transnet Freight Rail severe performance constraints. The will all soon change as our economy is Stimulating growth inland terminal most important lesson for successful shifting to a low carbon economy,” he through its purchasing implementation is the selection of an concluded. experienced local operational partner that power

B-BBEE beneﬁts and Transnet Freight Rail supplier development movement Transnet The fantastic Whova conference app was announced Ports as the most used by all Whova clients globally for Terminal June! The delegates at SAPICS 2019 made the most of using the app to network, set up meetings, chat, Full value chain solution create their individualised programmes, keep up from pit to port including to date with changes and developments and store ﬁrst and last mile their photos. Thanks to Imperial Logistics for their Transnet National Ports Authority sponsorship of this valuable tool!

Freight Rail I Engineering I National Ports Authority I Port Terminals I Pipelines

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PACKING MEALS FOR VULNERABLE CHILDREN #giving back

The 2019 SAPICS Conference in Cape Town gave supply chain professionals a chance not just to learn and network at Africa’s leading event for the profession, but also to give back to those less fortunate.

elegates showed that they are not SAPICS would like to say a huge thank just passionate about supply chain you to the delegates who gave their Dmanagement, but about people, time to the heart-warming initiative. In too, when they got together to pack a addition to seizing the opportunity to help record 10 000 meals for Rise Against vulnerable children, everyone had fun Hunger in just one hour. Their efforts will and enjoyed applying supply chain best make a huge difference in the lives of 22 practice to improve and streamline the children in need. packing processes. We are enormously grateful to everyone who made this The delegates worked together to pack record-breaking activity possible. meals that will provide 22 children with one hot meal a day five times a week Rise Against Hunger’s meal distribution for an entire year. The dehydrated, programme supports around 70 early nutritionally balanced meals are specially childhood development centres located developed for Rise Against Hunger’s fight around the Western Cape, in areas against hunger in the most vulnerable that include Khayelitsha, Cross Roads, communities. Vrygrond, Hout Bay and Kosovo. Children at these centres will receive the meals This is the second year that the SAPICS packed at SAPICS 2019. The organisation Conference has featured a meal packing helps some 50 000 beneficiaries event to support the international non- nationally, through more than 300 early profit organisation. childhood development centres.

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AWARD WINNERS AT SAPICS 2019 #winners Sean Culey’s outstanding presentation on how to thrive in the age of disruption netted him the award for the “Most Innovative Speaker” at the 2019 SAPICS Conference.

This year’s “Best Speaker” award was presented to Herbert Pechek who is the supply chain management principal at the United Nations’ support office in Somalia. He was the main architect of the transformation of the organisation’s complex, multidimensional peacekeeping operations into an efficient horizontal supply chain.

The award for the Best Written Paper from a Practioner went to Susan Moore from the Rhodes Food Group in South Africa for her white paper which was Sean Culey on stage receiving the most Best Booth – Linked. based on her presentation entitiled “What gets measured gets Improved”. The innovative speaker award. importance of making your customer’s experience your metric.

Presentations and White Papers from SAPICS 2019 are available here.

Fabulous stands populated the exhibition area at the Century City Conference Centre in an intentionally smaller and more select exhibition.

Ingenious designs, innovative ideas and well-rehearsed and knowledgeable company representatives were provided by the exhibitors.

The independent panel of stand judges did not have an easy decision to make to select the best stands. After arduous consideration the following exhibitors were presented with awards: Best Double Stand – Eazi Access. Best Single Stand – Jera Consulting.

Herbert Pechek on stage receiving the best Susan Moore won best written paper. Delegates celebrating all the achievements at SAPICS 2019 trophies. speaker award. the SAPICS 2019 closing dinner.

37 38 Need a full solution provider? EAZI DOES IT.

Eazi Access Scissor Lifts A5 Advert May 2019_1.indd 1 2019/05/16 07:40