http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.98Change: -0.10
R/$ = 13.31Change: -0.01
Au 1134.50 $/ozChange: -0.35
Pt 1008.00 $/ozChange: -12.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 17, 2012

Gas manufacturing, supply company prioritises logistics

Back
Africa|Compressors|Environment|Eskom|Gas|GM|GM Seelan Gounden|Industrial|Road|SECURITY|Storage|Training|transport|Africa|Electrical Energy|Electricity|Energy|Equipment|Gas Industry|Logistics|Manufacturing|Product|Products|Solutions|Supply Chain|Environmental|Power|Operations
Africa|Compressors|Environment|Eskom|Gas|Industrial|Road|SECURITY|Storage|Training|transport|Africa|Energy|Equipment|Logistics|Manufacturing|Products|Solutions||Environmental|Power|Operations
africa-company|compressors|environment|eskom|gas|gm|gm-seelan-gounden|industrial|road|security|storage|training|transport|africa|electrical-energy|electricity|energy|equipment|gas-industry|logistics|manufacturing|product|products|solutions|supply-chain|environmental|power|operations
© Reuse this

Rising costs, in particular electricity and transport costs, are exerting pressure on the gas industry, forcing companies to rethink their supply chain strategies, says industrial and speciality gas manufacturing and supply company Air Products South Africa supply chain GM Seelan Gounden.

“Environmental pressures such as tariff increases have forced us, from time to time, to change our logistics operations. An efficient supply chain may have to make way for business effectiveness.

“When product has to be pooled from production sources that are geographically widely spread throughout the supply chain, transport costs increase,” he states.

Gounden explains that it is a matter of understanding that supply chain efficiencies may need to be prioritised on occasion to realise the greater goal – that of business effectiveness. This is the approach Air Products South Africa has had to take in the winter months for the business to cope with increased winter power tariffs.

“As a result, product availability will be prioritised to maintain our security of supply promise to customers. Electrical energy is by far the biggest portion of our production costs, so hikes in State-owned power utility Eskom’s tariffs have a significant impact on our bottom line, necessitating a change of approach to one of flexibility in response to these pressures.

“As a network, this body needs to be flexible enough to respond creatively to the environment, which includes changes in power and fuel costs,” says Air Products South Africa packaged gases GM Sizwe Nkonde.

According to Gounden, Air Products South Africa has increasingly been looking for creative solutions within its production and supply chain to meet the challenge of Eskom’s proposed hikes in power tariffs. Such solutions include switching off equipment such as compressors, when possible, to minimise plant use.

“It necessitates a reconfiguration of plant use, as well as auxiliary equipment, such as cooling fans in the winter months,” states Gounden.

He stresses that managing power use is also closely aligned with managing demand in a fluctuating market.

“Managing the dynamic inter- change between supply and demand necessitates not only better management and flexibility on our part, but also better forecasting skills in terms of market knowledge, both locally and globally,” adds Nkonde.

Another challenge facing the gas industry is the rise in fuel costs and Air Products South Africa is dependent on road transport for its bulk and packaged gas distribution.

“There are a number of ways in which Air Products South Africa meets this challenge, such as analysing and improving a customer’s on-site inven- tory storage. Improved inventory and cost management result in increased reliability and security of supply,” comments Gounden.

In addition, the company has made inroads into reducing its fuel consumption through driver training and the monitoring of driving behaviour through drive-cams, as well as the use of route optimisation programmes.

“The fleet should ideally be both robust and fuel efficient – there should be a balance,” he maintains. “Further, an increase in labour costs has to be taken into account in any business context but must be mitigated within the supply chain through the alignment of all stakeholders towards a common goal of cost effi- ciency,” he concludes.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Materials-Handling and Logistics News
IN WORKING ORDER The cost to rehabilitate the two 500 t Chinese portal cranes for the Integrated Logistic Services’ oil service centre was more than R2-million
Global lifting solutions provider Konecranes has rehabilitated two 500 t Chinese portal cranes for the Angolan National Oil Company’s (Sonangol’s) Integrated Logistic Services’ (Sonils’) oil service centre, says Konecranes Southern Africa technical and training...
H930 BACKHOE LOADER The robust H930s backhoe loader series is particularly well liked by businesses that need smaller machines
Distributed by local earthmoving equipment distributor High Power Equipment Africa (HPE), automotive manufacturer Hyundai’s backhoe loaders have been well received by the local market, says HPE, the sole distributor of Hyundai earthmoving equipment in Southern...
ELGIN ORCHARDS The growth and increasing demand for all Kubota products are largely driven by the manufacturer’s focus on innovation and new technologies
The growth in sales of Japan-manufactured Kubota tractors, distributed in South Africa by specialist machinery importer and distributor Smith Power Equipment, has been satisfactory, says Smith Power Equipment technical specialist Mike Heath, adding that customers...
More
 
 
Latest News
A preliminary investigation by the Railway Safety Regulator (RSR) into the derailment of a Shosholoza Meyl train in Kimberley earlier this month, found that Transnet Freight Rail (TFR) had failed to communicate with the Passenger Rail Agency of South Africa (PRASA)...
Three of home improvement company Illiad’s major shareholders – Sanlam, Visio and Coronation, which held 69.25% – have agreed to vote in favour of a takeover by Steinhoff, with the company’s remaining shareholders to vote on the deal on September 29. Seventy-five per...
Government should face the fact that South Africa’s full-blown jobs crisis is a matter of urgent public importance, the Democratic Alliance (DA) said on Friday. MP James Vos, the DA shadow minister of tourism, was responding to a letter by Baleka Mbete, the Speaker...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96