Supergroup

01/06/2010

Partnership enhances mining supply chain

Broad-based supply chain management company Super Group has been appointed as the sole logistics service provider for mining equipment and services provider Sandvik Mining and Construction (Sandvik).

The contract includes the management of Sandvik’s outbound national distribution, as well as its cross border deliveries to Botswana and Namibia, reports Sandvik Regional Logistics Manager, Rodger Winter.

“Currently, Super Group covers over 5,7-million kilometres a year distributing Sandvik’s products to more than 70 delivery points across Southern Africa. The goal is to ensure that Sandvik’s customers receive the right parts, at the right time, in the right condition, all in a cost-effective manner,” says Winter.

He explains that, through close cooperation between Super Group on-site staff and Sandvik staff, together with a pool of emergency vehicles that are used when required, the efficiency of deliveries has been increased, enabling Sandvik to eliminate unnecessary transport costs.

Further, as strategic partners, Sandvik and Super Group have designed ‘milk-run’ deliveries to Sandvik’s clients from its main warehouse in Jet Park, Johannesburg, and its satellite branches in Rustenburg and Burgersfort.

“Other value-adding initiatives currently being used or in the process of being developed, include real-time proof of delivery (POD) management, POD’s available electronically, full supply chain visibility, product track and trace, live vehicle tracking, delivery process optimisation and client communication,” says Super Group’s Jonathan Fitzpatrick.

This is achieved through advancements in Super Group’s service delivery, such as the My Dashboard system, a Web-based tracking system that enables Sandvik to track the delivery progress of orders and view electronic PODs.

Green Fleet is another system soon to be tested. It will allow Sandvik to view live POD signature information.

“The success of these initiatives has resulted in a customer service level in excess of 99,5%, while at the same time ensuring effective cost control and management,” says Fitzpatrick.

He says that challenges faced by the logistics industry include the increasing fuel price and strikes at mines, which cause mining operations to close, making the delivery of goods impossible. Poor road infrastructure and conditions, such as potholes, cause extra wear on tyres and vehicles; and the possible toll fee charges on highways have also put the industry at a disadvantage.

Fitzpatrick adds that the introduction of administrative adjudication of road traffic offences (AARTO) could hold potentially negative consequences for the logistics field. AARTO involves the implementation of a points system by the traffic department that could result in a driver’s licence being suspended for three months or more.

“In addition, many of the mines we service are in remote areas, resulting in problems with animals on the road slowing down vehicles, while the recession has caused certain mines to close shafts and reduce their productivity,” concludes Fitzpatrick.