Logistics Achiever Awards 2010

IMPERIAL Logistics was acknowledged for its outstanding logistics and supply chain management achievements, specifically relating to optimising complex supply chain business cases backed by performance measurement, and tangible supply chain improvement through collaboration.

Special Merit Award - State of Logistics™ Survey

The Council for Scientific and Industrial Research (CSIR) and University of Stellenbosch, together with IMPERIAL Logistics produce the authoritative, annual State of Logistics™ survey, annually. The survey provides a comprehensive picture of the state of logistics in South Africa.

Titled, ‘Logistics value and cost driving  macro and micro-economic change towards global competitiveness and sustainability’, the 6th State of Logistics™ survey highlighted issues such as the cost of bad roads on the South African economy, converting logistics into a competitive edge and developing a South African paradigm of humanitarian logistics. It focused intensely on sustainable business and ‘green’ logistics, and interrogated the question, ‘the state of logistics in South Africa – sustainable improvements or continued exposure to risk.’

Click here and download editions of the survey. The 7th State of Logistics™ survey is due for release early in 2011.

Gold Award - Goldfields Logistics/Sappi Fine Paper

Goldfields Logistics, a member of the IMPERIAL Logistics Group and South African paper and pulp manufacturer, Sappi Fine Paper have a relationship that is defined by collaboration and commitment, with the first proof point being that it has endured over a decade.

Logistics service providers are on an ongoing quest to solve the ultimate question. How do they deliver a sustainable competitive edge? Is it through technological supremacy or people? Is it about tailoring client-specific solutions or is it about the process? Is the sustainable competitive advantage enhanced by strategic alliances and partnerships, or by continuously redefining conventional perspectives on logistics and supply chain management?

This business case demonstrates that it is about all these factors – and more. It is positive proof that collaboration between the LSP and customer is thé key to deliver cost savings and to transform a transactional relationship into a strategic alliance.

The challenge and the solution lay in balancing processes, people and technology elements within the supply chain. Results included:

• Cost savings of R21.5 million or 4.3% of logistics spend over the past three years, a time during which business globally came under threat during the recession.
• Reduced Stock Holding and improved First in First out (FIFO) practices delivered significant improvement of overall stock control, with FIFO reaching an all-time high of 96%.
• Through Stock Accuracy, clean counts have been achieved over the past year, and two years in the case of some depots and dispatch bays, with stock counts performed and variances investigated and cleaned within just six hours.
• Load Plan Accuracy, which impacts On Time, In Full (OTIF) has improved from 57% to almost 98%.
• Goldfields created such a reliable replenishment process that the supply chain is capable of delivering despite the complexity of small drop deliveries.
• The LSP is in a position to offer Rental Rates in some cases at 60% of the commercial rental market average, equalling a saving for Sappi of R3.5 million for all DCs.
• Trusted delivery, combined with supply chain management efficiencies has positively impacted Sappi’s customer relations climate and helps the customer service team adapt to market needs.
• The spinoff of the elimination of waste in the supply chain not only impacts Sappi economically, but limits their negative environmental impact.

By combining consistent fundamentals with tangible value add, Goldfields delivers confidently on its mandate. There is faith in the system. Notably, the relationship fully embraces the Ubuntu philosophy, and because of this continues to deliver remarkable cost savings and operational efficiencies.

'I am, because we are.
I affirm my own humanity by recognising yours.
When one is diminished we are all diminished.
When one succeeds, we all succeed.'

Perhaps the most impressive highlight lies in the renewal of Goldfields’ contract, without the business having been put out to tender - a rarity in the industry. For Goldfields, though, the most revolutionary dynamic of the partnership lies in the fundamental shift in accountability that Sappi has entrusted them with.

Silver Award - Volition/Sasol Oil (Project Chrysalis)

As the South African petroleum industry increasingly became a net importer of fuel, it faced the challenge of insufficient storage or manufacturing capacity. For Sasol Oil, responsible for the fuel marketing and distribution activities within the Sasol Group the rethinking of its business organisation structure was needed. While addressing capacity, Sasol Oil also needed to estalbish a new business model for its retail service stations, integrate the supply chain processes of separate funtional business units and develop a supply chain strategy incorporating appropriate technology to enable process distribution activities within the Sasol Group.

In partnership with IMPERIAL Logistics member company, Volition, Sasol Oil rolled out ‘Project Chrysalis’. Through this initiative, the Group has become a process driven organisation - a radical change compared to its historical focus on being a market channel focused business.

‘Project Chrysalis’ focused on eight key areas:

• Design and analysis - development of the supply chain business architecture.
• Strategy – creating an integrated Sasol Oil supply chain strategy that remains aligned to overall business strategy. 
• Measures – implementing and utilising key supply chain performance indicator definitions that are aligned with the Sasol strategy.
• Process training and alignment – implementing optimised and integrated supply chain business processes that are aligned with the SCOR model.
• Interfaces - setting up roles and responsibilities between the supply chain and other departments.
• People -  maintaining a supply chain organisational structure to consistently deliver in line with the changes.
• Technology – instituting technology requirement definitions to enable new processes.
• Business case -  delivering a business case for change, updated for approval during each phase of ‘Project Chrysalis’.

The results of the collaboration between Volition and Sasol Oil delivered:

• Supply chain decision making based on an IRR (internal rate of return) driven business case.
• End-to-end supply chain planning, with S&OP ensuring total business consensus decision making.
• Through sound change management, the workforce transitioned smoothly into a supply chain focused organisation. The silo mentality was reduced, with less fragmentation experienced; supply chain functions are aligned in terms of supply chain objectives, with less duplication happening throughout the Group and personnel consistently take process ownership.
• Integrated business processes with implemented interfaces
• Establishment and utilisation of supply chain technology requirement definitions and startup support has included the launch of integrated planning system initiative development, approval of on-board computing and consignment stock pilots and the establishment of process measure definitions to launch business intelligence implementation.
• Internal functions were integrated to maintain, optimise and monitor process-related successes
• Business processes implemented have proved to be sustainable through various audits

Volition delivered tangible value to Sasol Oil, which included generating of common supply chain objectives and understanding, a process focus rather than functional focus throughout the business and specific supply chain focused metrics to drive the required change and quantifiable benefits that already surpass original business case requirements. However, a highlight of the partnership is the delivery of an integrated organisation that is consistently aligned to overall customer delivery.