Successful trials were run with Dick Cotterell, perishables manager at Spar KZN DC, and consequently over 300 units have been ordered to replace the dry ice, resulting in significant cost savings for Spar.

The Eutectic Holding Plate is similar to a cooler box ice brick filled with a solution which freezes at a predetermined temperature (temperature can be set to customer requirements). Once frozen, the plate can hold the temperature for up to 24 hours.

Among the advantages of using the Eutectic Plates are that they are maintenance free, re-usable, eco-friendly resulting in a reduction in CO2 emissions, durable, easy to handle as you don’t need gloves and the solution can be set to a range of temperatures while dry ice offers only one set temperature.

Although there is an initial cost outlay, the Eutectic Holding Plate systems easily pays for itself in a matter of a few months as there is no consumable cost attached.

Xolani Sele of Spar inserts a chilled Eutectic plate into the holding plate system in the vehicle prior to loading stock for delivery.

Key provisions in the new Act will raise directors’ accountability to shareholders and increase the likelihood of shareholders participating in legal action, particularly if the company and its officers caused shareholders to suffer significant financial loss.

“The scope of persons able to bring an action as well as the basis for liability is now much wider,” says Philip Hobson, Financial Lines Manager at Chartis South Africa. 

“This means that anyone, including shareholders and staff members, can sue directors and officers directly, which will heighten their personal liability.”

Currently, a shareholder’s relationship with the company means that they can’t, generally speaking, bring an action against officers directly. They have to request the company to bring a law suit against an officer who committed a wrongful act.

However, directors and company officers are unlikely to bring an action against their colleagues, and therefore shareholders have limited recourse to recover damages from wrongful acts committed by company officers. 

“Under the new Act, shareholders will have direct recourse against directors and officers in a personal capacity as long as they can prove they have suffered damages,” says Hobson.

This recourse will now be available to a wider range of persons, not just shareholders. Directors will be personally liable for breaches of their fiduciary duties and may be sued for loss and damages caused to creditors, employees, customers, competitors, shareholders or other stakeholders of a company.   

For example, if a director makes a bad decision or acts negligently, causing his company to suffer financially, and this results in retrenchment of an employee, that staff member will be able to bring an action against the company officers directly.

Another significant change in the Act is that it specifically provides for class actions by extending liability to a class of persons. Class actions increase the amount of damages claimed exponentially.

Increased shareholder activism and the extension of  liability to a wider class of persons means that South Africa is likely to follow the trend in countries like the US, UK and Australia which all have experienced increased litigation against companies, company officers, and directors.

Australia, for example, which has gone through a similar corporate law evolution, has seen claims against directors and officers double in the last 4 years. In the UK, the D&O insurance market is forecast to grow by 27% to £596 million by 2013.

Directors and officers need to be prepared for the changes in the Act and the wider basis for liability, as their own assets will be in the firing line should an action be bought against them. This means they could face very large monetary damages.

Hobson warns that management should make sure they are properly insured for any eventuality.

“Companies, directors and their insurance advisors aren’t well prepared for the risks that could arise from increased shareholder activism and class actions. Considering the Act provides for personal liability, which could cost directors financially, they need to ensure they are adequately covered.”

Sooner than many policy-makers anticipate, emerging water supply problems will impact on the whole spectrum of South Africa’s development challenges.

This is the sobering reality that has emerged in a report released this week, based on round table discussions convened by Business Leadership South Africa (BLSA) and the Centre for Development and Enterprise (CDE).

The aim was to examine the state of the water sector in South Africa, probe the reasons for its problems, and explore some solutions. Participants included government officials, representatives of business and civil society, academics, consultants, and other experts.

“Water security is a critical issue,” said Ann Bernstein, executive director of CDE. “To improve the country’s outlook, political leadership at the highest levels must recognise the severity of the current situation.

“They need to pay urgent attention to putting appropriate policies and institutional capabilities in place to address threats to water security and quality.”

South Africans may one day have to make do with significantly less water per capita. For a country already using almost all its existing water resources, this would be a dramatic change, with far-reaching implications for households, businesses, communities and government.

South Africa is in this position for a number of reasons: it is a very dry country and 98% of its existing water resources are already fully developed. Its largest economic centres are not situated near the major sources of water and acid mine drainage is affecting the quality of available water. Added to these issues, the water the country does have is being managed badly.

A highly ambitious policy agenda has been pursued with scant regard for the vital role of skills and experience in water management. The desire to meet targets of demographic representivity, along with the all too frequent practice of securing jobs for friends and political allies, has trumped almost all other priorities in the process of staffing both existing and newly established entities.

“Water supply has come under growing strain,” said Bernstein. “It has become clear that the deterioration in water management is largely due to a failure of government at all levels.”

None of the catchment management agencies, established by law in the late 1990s to sit at the heart of the country’s water resource management, is functioning. Some 90 municipalities do not have a single professional water engineer, and very few have written operating procedures. Ninety percent of municipalities cannot meet water standards for discharge from their waste water treatment plants.

“We are losing up to a third of our water in some areas because of ageing infrastructure. In Gauteng, for instance, the infrastructure was designed 40 or 50 years ago and does not cater for the current population.

 “In order to avoid the worst outcomes of present trends, we need urgently to focus on factors over which we have some control.”

Some of the vital steps identified during the round table include:

·         Political leadership is vital

·         Institutions responsible for managing water must be strengthened. This requires improving structures of governance and ensuring that all appointees have the skills and experience to manage the sector. Political deployments and jobs-for-pals must not be tolerated

·         Maintenance of existing infrastructure must be prioritised, especially in growing urban areas

·         The impact of acid mine drainage needs to be addressed, with government and industry working together to minimise the impact of this threat to water quality, especially in Gauteng and increasingly Mpumalanga

·         Waste needs to be minimised, with consumers, businesses and government playing their part. As the country’s experience with electricity has shown, this requires getting prices and incentives right

“Though not yet as visible a crisis as electricity provision, water supply is already impeding the country’s socio-economic development in some localities,” said Bernstein.

“Water is not the only scarce resource that is running out. So is time.”

As consumers become more eco-conscious, companies globally are going to even greater lengths to position their products and services as environmentally friendly.  This trend is growing locally as well with a significant number of South African companies fast adopting eco-friendly advertising materials, products and methods for their new campaigns.

DuPont, the global leader of market-driven science, says it has noticed a major emerging trend among South African marketers to advocate advertising material as part of their organisations’ green-campaigns. Carlman Moyo, regional director for DuPont Sub-Saharan Africa explains, “Eco-friendly promotional materials deliver a brand message as effectively as traditional materials. But, greener materials provide the added benefit of delivering a very powerful additional message – one of environmental responsibility.”

Moyo adds that by incorporating recyclable material into advertisements, marketers have the opportunity to elevate the brand image and reflect a positive impression among existing and potential customers, along with the repeated exposure of the organisation’s corporate identity.

According to Moyo, marketers are aware now more than ever that consumers want to support companies who care for the environment. “When people see that a company believes in protecting the environment it makes them feel better about using their goods and services.”

The rising success of the recently launched DuPont Mvelo – a South African first in wide-format 100% recyclable printing material, stands testament to this new marketing trend. “Billboard and print advertising has recently become a contested issue among eco-friendly South African consumers and pressure is mounting for organisations to find sustainable, yet weather resistant alternatives for their promotional campaign material,” says Moyo.

Another concern for consumers is the vagueness of communications they see around green products and services in South Africa. “It has become important for marketers to have irrefutable claims. Materials claiming to be 46% degradable or composed of a third of recycled materials are losing their effect simply because consumers cannot conceptualise the environmental benefits.”

Moyo highlights other opportunities for organisations to promote their commitment to environmental sustainability such as biodegradable packaging and branded promotional bags, made completely from recycled products. “These can provide a useful accessory for the consumer who will appreciate the low impact on the environment.” He also encourages marketers to implement environmentally-friendly touches wherever possible citing company stationery, business cards and low-impact printing procedures as practical opportunities.

“Eco-friendly materials and technology are readily available to local marketers and it simply requires an organisational shift in mindset and a top-down commitment to going green effectively,” concludes Moyo.

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A rodent hazard awareness campaign in Bertrams, Johannesburg was amongst several events held to mark World Health Day (7th April) 2010. The event was being organized by the World Health Organization Collaborating Centre for Urban Health, which is a partnership of the City of Johannesburg, the South African Medical Research Council (MRC), the University of Johannesburg and the University of the Witwatersrand.

The campaign aimed to respond to results from the Health Environment and Development (HEAD) study, which revealed that large proportions of households in most of the study sites (Bertrams, Riverlea, Braamfischerville and Hospital Hill) are experiencing problems with rodent infestations.

The aim of the campaign is to educate communities about the diseases associated with rodents as well to encourage people to use sustainable and environmentally friendly measures to avoid rodent infestations.

In recent years rodents have been perceived to be a major challenge in parts of Johannesburg. Amongst the detrimental outcomes of rodent infestations are damage to property, eating and spoiling food reserves, and more rarely, biting of people.

However, simple domestic hygiene and waste management practices can play a major role in preventing rodent infestations. For example, keeping food and water in covered containers, washing dishes immediately after use, keeping rubbish in closed containers, fixing of dripping taps and leaking roofs as soon as possible and reducing the amount of garden refuse and rubble in yards, all play an important role in minimizing rodent infestations.

The City of Johannesburg advises: “Property owners have a duty to maintain their premises in a clean and tidy condition at all times and also to report any conditions that may promote a public health hazard.”

Accumulations of refuse/rodent infestations should be reported to the People’s Centre on (011) 375 5555, who will register the complaint and refer it to the Health Department for follow up/inspection then further action.

On Monday 15 March, the Water Research Commission (WRC) hosted a media workshop addressing the topic of nano-technology, and its role in the field of water treatment. The WRC intends to hold several such workshops each year in order to give media and interest groups access to their findings on relevant water issues.

The talks served to highlight the complex nature and broad scope of water treatment in South Africa. General perception of water treatment emphasises the purification of drinking water as the key component of water treatment, but this is only a small piece of the bigger picture. It was pointed out that the agricultural sector accounts for 50% of the country’s total water consumption, with a further 35% going to industrial usage, and only 15% allocated to Local Authorities and Water Services Institutions. The purity requirements for industrial and agricultural water are, as one might expect, substantially less stringent than those for drinking water. This means that the main consideration for water treatment in these areas is not the purification of water which is to be used, but the treatment of wastewater before it is discharged and the remediation of contaminated groundwater.

The diversity of industry in South Africa demands a wide range of treatment methods for industrial wastewater. Professor Maggy Momba of the Tshwane University of Technology outlined some of the most prevalent methods, and how nano-technology can potentially improve them. Treatment through chemical reactions that eliminate harmful contaminants is one such treatment method. Examples of this include the chemical reduction of metal ions and organic molecules such as alkanes.

Nano-technology can facilitate these chemical treatments in three ways. Firstly, catalyst particles on the nano-scale offer a higher surface area relative to their mass than larger particles, thus offering greater catalytic activity. Secondly, the reacting chemical species themselves, if produced on the nano-scale, offer larger reactive surface area relative to their weight. Thirdly, nano-reactive membranes can be produced by incorporating nano-scale catalyst particles into nano-fibres which are woven into a membrane. Fluids passing through such membranes are more effectively contacted with these catalyst particles than is the case with conventional methods.

The large scale treatment of drinking water in South Africa is relatively straightforward: sedimentation to remove large particles, flocculation with aluminium sulphate to remove colloidal particles and dissolved solids, possibly followed by disinfection with low concentrations of chlorine. However, South Africa’s widely dispersed population makes water distribution highly problematic. According to Dr. Marelize Botes of the University of Stellenbosch, decentralisation of water treatment is the most feasible approach for extending water supply to remote areas. The prevalent method for water treatment in South Africa, sedimentation followed by flocculation, is suitable primarily for large-scale treatment operations.

Alternative technologies, suitable for small scale point-of-use water treatment operations, must be pursued. A further complication is that those areas in most urgent need of improved water supplies also lack other basic infrastructure such as electricity.

Thus, to be considered as a solution to South Africa’s clean water shortage, a technology must be affordable on a small scale, operate without regular maintenance and require a minimum of expertise to set up, while also being versatile enough to cope with a wide range of contaminants.

This is a daunting set of requirements, which cannot be met by any existing technology. The pursuit of revolutionary water treatment technologies is critical if universal access to clean water is to be achieved. Nano-technology is one such avenue of research, promising a variety of options for enhanced water treatment.

Reverse Osmosis is perhaps the most promising water treatment option for purification of drinking water. Making use of a membrane with pore size sufficiently small to permit no solid contaminants, Reverse Osmosis processes are of particular interest for their versatility; they are capable of removing all solid contaminants, including viruses, as well as dissolved solids like salt. Nanofibres can be woven to produce membranes with high porosity and permeability but very small pore size, admitting high flow rates of water, while effectively removing all contaminants. The high ratio of surface area to volume of fibres on the nano-scale also results in a high removal capacity before membrane saturation occurs. The University of Stellenbosch is conducting ongoing research into the production of nano-fibres through a process called electro-spinning.

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Looking for a quality supplier? Check out the ManufacturingHub.co.za business services section.

“Global pressures remain to reduce logistics costs, while increasing emphasis is being placed on providing quality service and adding value. Furthermore, in line with global trends, the drive towards a more sustainable logistics system is gaining prominence,” says Hans Ittmann, CSIR Built Environment Executive Director.

He adds that this year’s edition, themed ‘logistics value and costs – driving macro and micro-economic change towards global competitiveness and sustainability’, emphasises the critical economic value that should be derived from logistics. “The real mitigation of risk and realising sustainable logistics solutions can only, however, be generated through effective collaboration between private and public sectors, process improvements and structural changes,” Ittmann says.

The survey finds that though South Africa saw an increase of 6,9% in logistics costs compared to the previous year’s R317 billion, 2008 costs are at their lowest since 2004, totalling R339 billion or 14,7% of GDP. However, when compared to other countries’ logistics costs, e.g. the USA’s 9,4% (2008), domestic costs remain too high.

During 2008, the recessionary global oil price positively impacted industry costs, whereas SA’s higher-than-normal transport demand and poor network configuration, rising bad road conditions, radically increased storage and inventory costs, need for increased funding to bolster capacity and consistently increasing road corridor traffic had a negative effect. For example, the percentage of bad roads in SA’s secondary road network increased from 8% (1998) to 20% (2008) with significant deliveries routed via this road network.

“IMPERIAL Logistics is continuously working with our customers to implement sustainable solutions and, for me, that’s one of the positive things that one has to take out of the recession,” says Marius Swanepoel, CEO of IMPERIAL Logistics. “Our customers and companies in general are increasingly more interested to find better ways of doing things, which allows us to work closer with them to create more sustainable and cost effective solutions. It is more about taking waste out of the supply chain and I think this is what we’re seeing now.”

According to Dr Jan Havenga, Director at the Stellenbosch University Centre for Supply Chain Management, certain aspects of South Africa’s logistics cost situation still require significant attention. However, it is heartening to note that wide consensus exists among logistics stakeholders on many important initiatives.

Havenga says, “The challenge however remains: Although consensus exists around issues such as regeneration and use of rail capacity, not enough has been done yet. The competitiveness and sustainability of South Africa’s logistics system remain at risk and moving from consensus to action is long overdue. Public-private partnerships are a key success factor.”

Dr Sibusiso Sibisi, President and CEO of the CSIR, concurs and adds, “The State of LogisticsTM survey highlights the importance of the critical area of logistics and supply chain management in the global market. Since its 2004 maiden issue, it has aimed to provide a comprehensive picture of the state of logistics in South Africa through adopting a collaborative approach to knowledge generation. We believe the surveys open the way for further discussions, interactions and dialogue on various logistics and supply chain management issues.”

“This publication has become one of the premier references for logistics in South Africa through benchmark-driven research and long-term partnerships with IMPERIAL Logistics and Stellenbosch University,” concludes Ittmann.

Read the 6th State of LogisticsTM survey at www.csir.co.za/sol or www.imperiallogistics.co.za/sol.

“Obtaining BRC accreditation at our Cape Town Ndabeni site is another significant step forward in turning Nampak Flexible into a world class business. Following our Kwazulu-Natal plant’s certification in April last year, Nampak Flexible is the only flexible packaging company to achieve BRC accreditation at all its operations and one of very few if any packaging companies in South Africa to do so.” – say’s Moore.

Moore adds that through standards such as BRC, along with the ISO (International Standards Organization) and AIB (The American Institute Of Baking) certifications already held by Nampak Flexible, the company aims to consistently meet and exceed the exacting quality standards and expectations of its customers.

Peinke gives her thoughts below on what is needed for South Africa to become a viable manufacturing destination:

The 2010 Budget speech saw government commit to financially support an industry-specific policy for the first time. This was expressed in the allocation given to the Industrial Policy Action Plan, or IPAP2. Previously, government has been reluctant to invest in specific projects and preferred to allocate funds to government departments for them to administer according to their mandate requirements. Therefore reports that there is a difference in opinion between the DTI and the Treasury does not augur well for the implementation of the IPAP2. One of the main issues identified by the current administration, and the reason for the creation of a new government department, the Department of Economic Development under Ebrahim Patel, is ensuring policy coherence and coordination between various government departments.

Finance Minister Pravin Gordhan has also emphasised that in order for the manufacturing economy in South Africa to flourish, the country would have to remain open to international competitiveness. This has caused a lot of debate and criticism, in particular from COSATU and other labour organisations. However, a number of sectors in the local economy would not even exist if it weren’t for multinationals who have established local manufacturing/ assembly plants. A case in point is the automotive sector, which would not exist if it weren’t for companies such as Volkswagen, BMW, Toyota and Ford. These companies provide the demand for local component manufacturers, as well as provide employment for a significant number of people. Without these companies, the industry would collapse, and this would have serious implications on the manufacturing sector.

Frost & Sullivan is of the opinion that there is certainly a valid argument for the implementation of a point matching system. It will provide local manufacturers with the assurance of a predictable government tender procedure. In addition, this doesn’t bias the system and detract from investment potential in the manufacturing sector. However, if a local company can provide the right products of the correct standard and quality, why shouldn’t they be awarded the tender?

Government and labour have to acknowledge that in some sectors, companies are forced to import components and products from overseas companies since they are cheaper, and meet the required quality standards that the local manufacturing industry cannot provide. Certainly, Minister Ebrahim Patel’s proposed import tariff increases could help strengthen procurement from local companies. However, this is not the answer for all sectors. If forced to do so, some companies will also continue to import goods at higher prices, with a result of increased manufacturing built-in costs for the consumer. Import tariff quotas could however be beneficial in reducing the high number of imports in sectors such as clothing and textiles, electronics, capital equipment and pharmaceuticals.

Frost & Sullivan’s proposed solution to this debate around state tender prices and import tariffs is a local content policy. This policy would require locally-based multinationals to employ a certain percentage of locals in their workforce, and procure a certain percentage of local goods used in their manufacturing process after a certain period of time. Where these needs cannot be met by local industry, by all means allow them to import, or establish facilities for the development of these local companies. This will still enable an investment-friendly environment, while meeting the local needs of labour, the private sector and government.

In summary, the main point that needs to be emphasised is that government and industry cannot afford a delay in the implementation of IPAP2 or any other industrial policy initiative for that matter. Our economy is already under severe pressure to compete in a largely knowledge-driven global economy, and increasing pressure from developing economies i.e. BRIC countries. If we don’t pull together and aim to increase manufacturing competitiveness immediately, there won’t be a sustainable industry to support.

www.frost.com

The firm says that the CPA comes into effect in October this year, 18 months after promulgation and will have with “far-reaching consequences for manufacturers and suppliers of consumer goods.”

The Act purposefully defines “consumer”, “manufacturer”, “supplier”, and even “consumer industry” itself very widely. Manufacturers previously had no causal connection, and therefore liability, towards consumers, but are now loudly and clearly in the supply chain and answerable to consumers where defective or substandard products have caused loss.

Other notable provisions include the strict liability provision by which neither supplier nor manufacturer may contract out of gross negligence. Even routine exemptions from liability are invalid unless the consumer signs acknowledgement that they have been drawn to his/her attention. Manufacturers and suppliers themselves, if they have an annual turnover in excess of a given amount, will not be classified as consumers and will not receive the protection that the Act affords to consumers.

Smaller businesses in particular may face difficulties taking measures to protect themselves from the strict liability imposed by the Act. While much will depend on the regulations yet to be published, there is no doubt that the Consumer Protection Act will impact on the cost of doing business, passing expense on to the very consumer whom the Act is meant to protect.