Africa, as in most parts of the world where emerging markets are

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Suzan Hubbard
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Warehousing gets automated Africa is all set to up its game in providing efficient and standardized warehousing services with the help of technology. Namrata More reports.

1 Warehousing gets automated Africa is all set to up its game in providing efficient and standardized warehousing services with the help of technology. Namrata More reports. Africa, as in most parts of the world where emerging markets are the focal point, has only recently begun implementing standardized warehousing requirements. The concept of employee and equipment safety is only now being understood in these emerging markets and especially in Africa. This understanding is just one way that will lead to warehouse improvements and logistical efficiency, says Jan Blažek, sales and marketingat Modralog. Blažek further explains that the management standards are also affected by the lack may - june 2014 LUA 5

2 of knowledge in regards to warehouse flow capabilities and return on investment (ROI) possibilities. Once management has the ability and requirement to incorporate the various standards for safety and efficiency, it will automatically turn to means of modernizing itself so as to increase its output and ROI. As logistical output and flow improves, Africa will slowly leave its place as an emerging market within the warehousing and logistics field and will aim to become a major hub for transportation and storage needs, asserts Blažek When looking to enter the emerging Markets' Modralog is focused on the Egyptian warehousing industry. Egypt is a market wanting and willing to improve its logistical capabilities, though lacking in the knowledge and understanding of how this is to be done. A market in which human labor costs almost nothing, the understanding that better efficiency would cost more than the minimum wage of the local employee was a challenge to express, says Blažek. Modralog s projects in Egypt focused on providing turn key solutions and warehouse efficiency consultancy to a market severely lacking such capabilities. Just as in the rest of Africa, the Egyptian market began embracing these solutions, however slow and cautious, and we at Modralog believe that both Egypt and Africa are at the initial stages of this logistical expansion. The current standards in Africa with regard to warehouse management are improving on a large scale. In parts of North Africa, great improvements in infrastructure have been achieved in the aspects of warehousing. The proximity of European influence and the need to create transit markets/shops for transit cargo to Eurasia and Middle/Far East have seen a transformation of logistic supply chain facilities improving at commendable rate. In West Africa, substantial progress has been made in some of the countries like Nigeria, Ghana, Senegal, Cote D ivoire etc. South Africa and Nigeria also currently have one of the fastest flourishing warehousing facilities in Africa and they are up to international standards, says Kayode Oluwasegun-Ojo, managing director and CEO at NAHCO Aviance. Nigerian Aviation Handling Company Plc. (NAHCO Aviance) is a Nigerian diversified enterprise with interests in aviation cargo, aircraft handling, passenger facilitation, crew transportation and aviation training. The company currently serves more than 35 airlines at seven airports across Nigeria, with plans to expand operations to other African countries. It handles about 70 percent of domestic and foreign airlines operating in Nigeria. The most challenging commodities in Africa have been perishables, pharmaceuticals and shipments, generally classified as special handling. This, is because most African countries still have basic amenities challenges like power supply, harsh weather conditions, inter border bottlenecks, improper handling and training/education which sometimes create damage/exposure. These create gaps in retaining/maintaining shipment integrity. However, most warehouse facility entities provide alternative and business sustaining solutions to manage these challenges, even though at great cost to the business, says Oluwasegun-Ojo. NAHCO Aviance was recently commissioned ass the biggest air cargo warehouse in sub-saharan Africa. With the completion of the warehouse, its interior space has been further increased by about 21,000 square metres, which represents over fifty percent in storage space when compared with the old structure. With this, the company can now handle 230,000 and 60,000 tonnes of import and export cargo respectively per annual. The edifice is now semi-automation which incorporates mechanical conveying system and frictionless raised platform (castor mat area) in addition to the re-construction of the access road and working floor areas which enhances the speed and 6 LUA may - june 2014

efficiency of the cargo handling processes.

With over 8 million m2 of warehouses, Bolloré Africa Logistics has an unrivalled warehousing capacity in Africa and constantly seeks ways to modernize and deploy a wide range of added-value services.

recieve the same levels of performance and service as anywhere else in the world.

Whether they are dedicated to one or multiple customers, our added-value warehouses notably provide secure facilities for your merchandise, with CCTV, burglar detection and access control, bonded

3 efficiency of the cargo handling processes. Other facilities in the warehouse are: modern cold-room, more and sophisticated security gadgets, large strong room, vault, dangerous goods room as well as facilities for storage of human remains. With over 8 million m2 of warehouses, Bolloré Africa Logistics has an unrivalled warehousing capacity in Africa and constantly seeks ways to modernize and deploy a wide range of added-value services. Originally built to address storage needs for commodities like cotton, cacao and coffee, our warehouses have been improved by a policy of regular, substantial investment, ensuring that customers can recieve the same levels of performance and service as anywhere else in the world. The group offers its customers some sixty added-value warehouses spread across the African network and are seeking to develop this network going forward. Whether they are dedicated to one or multiple customers, our added-value warehouses notably provide secure facilities for your merchandise, with CCTV, burglar detection and access control, bonded warehouses, temperature-controlled storage and facilities for sensitive, perishable or dangerous goods. With specialised equipment and information systems, we ensure state-of-the-art reception and inspection procedures, fine management of stock and inventory levels, electronic data interchange (EDI), the production of key performance indicators (KPIs) and regular reports on the storage of your merchandise. Kenya based Siginon Group offers its customers modern, spacious and secure warehousing options in Nairobi, Mombasa and Eldoret that meet their unique needs. The facilities include storage of cargo in cold rooms as well as in general, transit and bonded warehouses. In Mombasa the warehouses are fitted with railway sidings for storage of inward and outbound cargo that goes by rail. The warehouses are fully equipped with forklifts (normal and clamp), hand jacks, ladders, weighing machines fitted with rollers for ease of loading and off loading and fitted scissor jacks. Siginon warehouses provide solutions in third party logistics (3PL). In Mombasa, the warehouses capacity are 136,000 square feet, Nairobi are 45,000 square feet and Eldoret 7,400 square feet. There is a further 40,000 square feet of open space available adjacent to the Siginon Nairobi and Mombasa complex. The warehouses are secured 24 hours a day with 24 hour CCTV surveillance, security personnel and manager within the premises. We pride ourselves in having zero pilferage at our warehouses and assure our customers of security when they store their cargo at Siginon. Africa has no choice but the change for the better in regards to it warehouse IT capabilities. IT is expanding and affecting every aspect of modern life and warehousing and storage is no different. From Excel sheets to ERP to WMS programs, Africa will have to advance with its IT capabilities if it does not want to be left behind, says Blažek. IT is a crucial part of Africa's ability to make logistical requirements more efficient and to make its name known to the logistics world. As Africa's storage requirements grow and better tracking means are required, keeping up with IT standards is something that must not be left on the side lines, warns Blažek. Africa is a vast regions and perhaps, the reason why supply chain practices across countries differ greatly. Some countries are realising the benefits of efficient warehouse management and are reaching out to knowledgeable service providers from first and developing countries to assist them in applying leading practices, says Shermandra Singh, business development director, Dove- Kigali Entebbe Juba Scheduled Freighter Service NAIROBI - JUBA ( SUDAN) NAIROBI - DAR-ES-SALAAM, MWANZA & ZANZIBAR (TANZANIA) NAIROBI - ENTEBBE (UGANDA) NAIROBI - KIGALI (RWANDA) NAIROBI - BUJUMBURA (BURUNDI) Adhoc Charters For telecom, relief, project, motorvehicles, peace keeping equipment to over 45 destinations in East, Central, Southern, Horn of Africa and the Indian Ocean Islands Bujumbura Mwanza Dar-es-salaam Nairobi Zanzibar Head Office: Jomo Kenyatta International Airport, P.O. Box: 593, Nairobi KENYA Tel: , Fax: , info@astral-aviation.com SITA: NBOASCR may - june 2014 LUA 7

tail. Warehouse and distribution centers rely on warehouse software to increase operational efficiency, the timeline of information management.

It ensures compliance with legislature and eliminates the need for manual labor by automating warehouse processes.

to access first world technologies, explains Singh. Manual warehouse processes can no longer be relied on when countries with large distribution centres expand their services, believes Singh.

4 tail. Warehouse and distribution centers rely on warehouse software to increase operational efficiency, the timeline of information management. Dovetail s warehouse software management solutions comprise accounting software, inventory systems and track and trace technology. It ensures compliance with legislature and eliminates the need for manual labor by automating warehouse processes. Owing to the big resource boom experienced in Africa, certain countries, with vast resources are experiencing rapid growth with regard to skills development and infrastructure, thereby, enabling them to access first world technologies, explains Singh. Manual warehouse processes can no longer be relied on when countries with large distribution centres expand their services, believes Singh. Warehouse service providers realise that cost reductions are not achieved by throwing more people into the business but rather implementing standard operating procedures and business processes. Automation is a critical success factor for better controls, visibility and process management as distribution channels are no longer servicing the main country they operate from. Many countries now use their internal distribution centre to supply and deliver goods to various countries in the region, example: Kenya will service Rwanda and Tanzania. They need robust scalable solutions to support these additional services. We have seen companies not only Owing to the big resource boom experienced in Africa, certain countries, with vast resources are experiencing rapid growth with regard to skills development and infrastructure Shermandra Singh, Dovetail in the SADC region looking for automation and modernisation but also countries further north. Dovetail recently acquired a new contract in Kenya, where the logistics company aims to utilise our transport and mobility solutions to turn their business into a world class automated logistics service provider in the East African Region. Many companies are starting to realise the benefits of automation and mobility in supply chains. Mobility and automation have a big impact on a country s effectiveness with regards to tracking and tracing packages and consignments and ensuring that shipments reach their destinations on time. Therefore, African countries are increasingly realising the importance of incorporating automation into warehouse processes to ensure accuracy and timeouts deliveries. As first world countries are realising the potential that Africa holds with regard to mineral, oil and gas exploration, these countries invest in certain countries and, thereby, also transfer their skills and knowledge of effective supply chain practices. According to a case study, Dovetail Business Solutions implemented its Accellos warehouse management system (WMS) solution for chemical distributor Freightpak, which is owned by South African transport, 8 LUA may - june 2014

Freightware transport management system.the solution supports Freightpak in its goals for future growth as it is configurable to grow with the company.

5 warehousing, distribution and logistics solutions provider Value Logistics.The project entailed the implementation of the Accellos 3PL warehouse management system in Freightpak s warehouses across South Africa, which Dovetail integrated with Freightpak s existing Freightware transport management system.the solution supports Freightpak in its goals for future growth as it is configurable to grow with the company. The project scope was complex as Freightpak hosts multiple principles across various warehouses and the WMS had to cater for the hazardous chemicals environment as well as subsequent product requirements and regulations.the project went live on September 2, 2013 with the Accellos warehouse management system, which was successfully configured to meet Freightpak s requirements.the implementation of Accellos WMS enabled efficiencies to be brought into Freightpak, help position the business for growth and provide the company with a platform to ensure competitiveness and provide the right systems to meet client requirements.dovetail Business Solutions PMO manager Tersia Myburgh explains that Accellos 3PL comprises the latest innovations in cost control, revenue management, and inventory services, enabling Nigeria currently has one of the fastest flourishing warehousing facilities in Africa and they are up to international standards Kayode Oluwasegun-Ojo, NAHCO Aviance companies to consistently manage business processes and meet deadlines while exceeding customers demanding expectations. The fundamental benefit of Accellos 3PL WMS is the ability to easily and seamlessly manage multiple warehouses with multiple principles, locations and products with each requiring their own set of processing rules. The 3PL element is an intrinsic part of the solution, which Accellos designed to meet these requirements. IBTimes reported in February, 2014, that private equity investments in Africa are up 136 percent and added that there is a fast growing middle class in some African countries with more than a third of those countries expecting to see economic growth greater than 7 percent in the next few years. Owing to the rapid rate at which Africa is growing, first world countries see the potential for development as well as a promising ROI in future. As investment in Africa increases, African countries will continue to expand their infrastructure and knowledge and, in an effort to compete and catch up with global markets, theyare turning to automation and mobilisation to streamline supply chain processes. Challenges affecting Warehouse Management in Africa Poor power supply Customs interventions and regulatory bureaucracy Security Inadequacy Imbalance service pricing which leads to undercutting Inefficient /Inadequate cold chain solutions. Poor Equipment and poorly trained manpower. Initiatives to overcome challenges: Providing costly alternative power supply/generators; Regular parley with Customs and regulatory agencies to partner with service providers; Engaging professional security agencies to aid government agencies assigned to that responsibility; Offering premium service options to maintain pricing that will keepthe business afloat; Investing in modern equipment and trained manpower. may - june 2014 LUA 9

Across Africa, Beyond Borders

Across Africa, Beyond Borders Magellan Logistics East Africa Based in East Africa, we are a boutique logistics company offering personalised services to our customers. Our core activities include: - Cross