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Equipment firm’s Gauteng distribution hub focuses on improved regional logistics

9th October 2015

By: Schalk Burger

Creamer Media Senior Deputy Editor

  

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International heavy-equipment engine manufacturer Cummins’ regional distribution centre (RDC) in Woodmead, Gauteng, has halved the average logistics distribution time for clients in Southern Africa and allowed for critical or long-lead stock to be kept closer to client sites, says Cummins Global Logistics Southern Africa RDC site leader Russell Bunnell.

The 20 833 m2 site serves 11 Southern Africa countries and holds more than $20-million worth of stock, including filters, parts, components, refurbished engines, new engines and generators. More than 12 300 units, comprising about 450 000 pieces, are housed in about 16 000 stock locations within the warehouse. More than 100 people are employed at the facility, which also houses a separately managed filtration manufacturing and coolant-blending plant.

The RDC in Gauteng is one component of Cummins’ strategy for Africa, with a similar facility in Ghana and a network of distributors and branches across Africa, says Cummins Global Logistics Africa leader Peter Stephanis.

The RDC will also support and supply Cummins’ 14 branches throughout the Southern Africa region.

“The RDC has enabled us to consolidate our logistics facilities, improving logistics for not only our larger clients but also our smaller clients, as we can more effectively consolidate and dispatch loads to the various branches and countries,” says Bunnell.

The centre also supports Cummins’ emergency client services, where parts and engines can be dispatched and flown to clients in the Southern Africa region within 24 hours or less from the four main airports in Gauteng.

Stephanis notes that Cummins’ strategy matches its forecasts for double-digit growth in demand for its products in Africa, with the new distribution centres it is opening on the continent bringing the resources of Cummins closer to its customers, thus improving uptime.

The RDC runs on globally standardised Cummins’ Global Logistics software systems, and, thus, integrates directly into the company’s various manufacturing and reconditioning facilities to improve the management of orders and costs, as well as reduce the lead time for equipment, explains Bunnell.

“The facility is based on world-class best practices and on Cummins’ own best practices, such as our Six Sigma and LEAN methodologies, which see team and individual performance measured, improved and recognised. Any improvements developed here are shared globally, and, where suitable, rolled out to other facilities.

“This also means that we will continue to improve the performance of the RDC over time, in addition to the significant gains in efficiency thus far,” emphasises Bunnell.

Engineering News was invited on a guided tour of the facility last month. Bunnell notes that its containerised electricity generators are in high demand throughout Africa, especially for remote sites such as mines.

Meanwhile, the RDC has a 20 t overhead crane, a heavy-duty 16 t forklift powered by a Cummins 9 ℓ diesel engine, and recessed flat-bed truck loading bays that allow for the loading of the very large items it has to dispatch to clients in the mining, construction and marine industries.

“The largest generator we had here so far was a 19 t, 1.5 MW containerised diesel generator, with a 50 ℓ motor, alternator and all the power management systems, housed within a 40' shipping container,” notes Bunnell.

Cummins is positioning itself to capture the expected growth in Africa arising from continued development and improved customer service, which is in line with the company’s historic strategy of entering developing markets and territories ahead of the expected growth curve, Stephanis concludes.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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