In the past manufacturers would produce stock and store it in warehouses to have enough stock to absorb maximum market demand i.e. it was called a just-in-case strategy.

This would mean costs were incurred for warehousing, security, staff and lighting.

The just-in-time strategy means that stock is only produced when orders are received. Raw materials are ordered in and the stock is manufactured. This system minimises the need for storing production supplies or finished stock.

A by-product of the JIT system is cost savings but at the same time nothing is fool-proof. It is necessary to be ahead of the game, to eliminate problems that will halt production. Problems like forecasting incorrectly, suppliers not carrying enough raw materials and hiccups with the transport of raw materials.

However, this does not take away the fact that a JIT system helps improve the inventory and manufacturing process, and in doing so improves supply chain efficiency.

In response to the COVID-19 pandemic, IFC, a member of the World Bank Group, announced a partnership with Imperial to jointly develop a modular screening and treatment healthcare infrastructure program for deployment in sub-Saharan Africa.

Supported by IFC, Imperial, an integrated market access and logistics provider including healthcare infrastructure, pharmaceuticals and medical supplies, is developing a pilot project in South Africa to manufacture and deploy modular healthcare units that will provide screening, treatment and other healthcare services to COVID-19 patients. The program’s objective is to expand and provide services in densely populated, low-income urban areas where access to healthcare is limited. Imperial will further partner with IFC to develop additional pilots in other countries in Africa, including Nigeria, Kenya and Ghana, identifying country-specific needs and approaches that can be scaled up with the assistance of private healthcare service operators and government partnerships.

The first pilot of the program launched in South Africa in September 2020, includes five modular screening and treatment centres for COVID-19 patients. These modular testing units may be deployed in less than a day and have the potential to boost healthcare options and help reduce infection risk among people and their communities.   The modular treatment facilities created under the program will also continue to contribute to primary healthcare infrastructure options beyond the COVID-19 pandemic, particularly for underserved communities.

It’s clear, it’s focused and it stands out! The new logo of the Road Freight Association (RFA) tells a story and reflects the new leadership and new focus the Association.

Explaining the thinking behind the new branding, RFA Chief Executive Officer Gavin Kelly said: “Our new logo is aligned to our Code of Conduct, our Values and our Vision and Mission. In essence, it depicts what the RFA stands for and what its objectives are.”

The new logo comprises five icons reflecting the key focus areas of the Association, as well as its tagline ‘Without Trucks South Africa Stops!’ The five icons are:

• Green: Road freight needs to operate in an environmentally “aware” way. Being ‘green’ is not just about vehicle emissions: it’s about packaging, energy any resource required to operate. We need to take the environment into account in everything we do.
• Smart: Focussing on doing freight logistics in a far more efficient manner – whether it’s designing and refining vehicles to move payloads more efficiently, designing better return load capacity or ensuring more skilled drivers. Working smart is about maintaining high standards, using resources optimally, reducing costs and being efficient.
• Safe: Safety applies to the entire operations – drivers, on-vehicle employees, vehicles, cargo securement, storage and health. Assets and cargo need to be protected against crime.
• Legal: We need to be compliant in everything that we do and adhere to all legislation relating to transport, anti-competitiveness, professional service delivery, company registration, labour requirements and more!
• Freight: This is our bread and butter – it’s why we are here. Within this lies our drive to keep the country going, providing benefits for our Members, ensuring we support them in sustaining their businesses and supporting them in along their journey to success!

The development of a new logo involved a number of activities – including a design competition amongst Members. This, combined with some online research and the examples of other successful identities around the world, led to the concept of the logo.

Says Kelly: “It was time for a change – the RFA had not modernised or changed its logo for decades. It also made perfect sense, given our new focus and leadership within the Association. However, our strong tagline remains – without trucks, South Africa stops!”

South African businesses are expecting a huge bill, with an estimated at R1.4-billion for storage and demurrage costs that have been accumulated during the 27 days of Level 5 lockdown, as more than 20 000 containers piled up in storage facilities across the country.

This week, the South African Association of Freight Forwarders (SAAFF) CEO David Logan expressed ‘serious concern’ at the high level of charges being invoiced by shipping lines for storage and demurrage on cargo which could not be delivered during the early stages of lockdown.

“SAAFF represents 294 South African companies in the international freight forwarding and customs broking arena managing approximately 70% of the containerised and break-bulk freight moving in and out of South Africa’s seaports, airports and land borders,” he says.

“Until recently, containers could not legally be delivered to closed importers until the appropriate lockdown level was reached. As a result, cargo was delivered and unpacked into warehouses.  In many cases the position remains the same with Level 3 only making its presence felt this week”.

“The level of charges levied by ocean carriers have been a source of concern for many years, but in normal times there was some justification for this as it was generally speaking relatively easy to clear and deliver containers within the free time allowed. Under these circumstances it was reasonable for the carriers to expect that their containers should be returned and put back into service without delay” Logan points out.

“COVID-19 has changed all that. The extended time spent in Levels 5 and 4 has meant that large numbers of containers could not be delivered with the situation only recently easing up when Level 4 allowed a limited amount of movement. The move to Level 3 will mean that a further large quantity of containers will be released for delivery, so we can expect increasing pressure in terms of exorbitant detention costs. Even at this stage, the amounts involved are very high and we are aware of invoices running into many millions of Rand already”.

Logan warns that this will not improve for some time.

Shipping line charges for delayed containers are derived from two main areas: storage (or overstay) and demurrage (or detention). The first usually involves a mark-up often running into several hundred percent of the warehouse’s charge.  The second is a direct charge for loss of use of the container. This is always charged in US Dollars at rates which bear no relation whatsoever to the actual cost of owning or leasing a container.

“In reality, these charges were designed to penalise inefficiency rather than to recover costs.  There is no logical reason why this approach should be applied in our current circumstances.

We appeal to ocean carriers to exercise restraint and moderation by recovering only their outlays, although we would accept that some reasonable administrative charge could also be imposed,” Logan concludes.

Certification and Operations Manager Appointed at the Road Freight Association

Kevin van der Merwe a veteran Trucking industry specialist has been appointed as the Executive Manager: Certification and Operations at the Road Freight Association (RFA). He replaces Gavin Kelly, who has served as the Chief Executive since June 2019. Kevin will officially take on this role effective from the 1^st of September 2020.

Kevin is no stranger to the RFA: he has been consulting for the Association for nine years, focusing on abnormal loads and vehicle loading. In January 2019 he was appointed as the Acting Executive Manager – Certification and Operations while the CEO position was being filled, to assist Gavin in ensuring members received the attention they needed.

His new role deals with certification: ensuring members are able to meet the Core Code and objectives of the RFA – from meeting compulsory standards, to elective certification of members for Road Traffic Management Systems – SANS 1395, Quality Management Systems – ISO 9001 (Integrated Freight Management Systems),  Environmental Management systems ISO 14001 (Integrated Freight Management Systems), Occupational Health and Safety – ISO 45000 and RTSMS (Road Traffic Safety Management System – ISO 39001), as well as operations: assisting with day to day challenges that members face in operating a commercial transport business in terms of the NRTA (and related legislation).

Solving Problems for Members

Whilst Kevin will continue with his work on abnormal loads and vehicles – “I have the support of a very experienced team who are experts in key areas that service the needs of our members”, he will now be involved in dangerous goods, green trucks, smart trucks, SMMEs, the Transport Education and Training Authority (TETA), security matters, traffic prosecutions, technological developments, operating costs, removals, couriers and recovery vehicles –  just to name a few. “My focus is to ensure that I engage with various role-players and stakeholders to solve and prevent problems that impact on the operational ability of members, as well as intervening in matters when irregularities are detected,” says Kevin.

Member and Industry Engagement Crucial

Interactions and engagements with RFA members are key in his new role: “The operational challenges and developments of members also form part of the responsibility of the position,” continues Kevin. “It enables me to engage with various role-players within the road freight and logistics industry:  including members, government departments, suppliers, Original Equipment Manufacturers (OEMs), equipment developers and academia. The position is responsible for driving engagement with our members through its various interest groups to ensure that the specific industry segments we represent have a conduit to effect the changes they want to see and ensure that the regulatory authorities do not lose sight of the fact that they must engage with industry on all matters that impact on it.”

Unlocking Membership Value

Kevin is excited at the opportunities his new position offers to unlocking membership value: “It is great to be part of such a dynamic group of capable people who understand the importance of putting our members first. The RFA has a great reputation as an effective industry representative body that takes direction from its members and is committed to unlocking membership value. The “reset” of the Association under the new leadership and focus on the needs of members is critical to the continued success of the RFA”.

COVID-19 and Consultation Cutbacks

Commenting on the myriad of challenges currently facing road freight operators, Kevin says: ”The COVID-19 pandemic has provided regulatory authorities with an ideal excuse not to engage with industry on a regular basis on matters such as the high cube container height limit issues, and the true meaning and purpose of “consultation” when engaging with interested parties for the purposes of introducing new legislation. I am however positive that we will get matters back on track as soon as the restrictions on movement and industry are lifted.”

The RFA is not opposed to regulatory authorities, because their role is to support industry and bring about a conducive operating environment. “As an Association we must endeavour to always put the needs of members first and continually find ways to unlock member value,” concludes Kevin.