CS Holdings improves supply chain management at Transwerk

CS Holdings has enhanced supply chain efficiencies at Transwerk through the provision of internationally recognised training from SAPICS, the Educational Society for Supply Chain, Manufacture and Logistics in South Africa. As a direct result of the training, Transwerk`s Locomotive Business has doubled its turnover and created approximately 120 new jobs.

Transwerk, a business unit of Transnet Limited, is one of South Africa`s premier transport and equipment manufacturers and refurbishers, with particular strength in the rail transport sector. The company`s product-focused Locomotive Business provides refurbishment services to electric and diesel electric locomotives. Its manufacturing and refurbishing facilities are located in Bloemfontein, Cape Town, Durban, Germiston, Johannesburg, Kimberly, Pretoria and Uitenhage.

"We needed to improve our supply chain processes to meet the changing demands of our business," says Locomotive Business manager Boney Susan. "Consequently, we implemented a hands-on training development programme and enrolled our employees for PPIM (Principles of Production and Inventory Management) and CPIM (Certification in Integrated Resource Management) training. The CPIM training was geared at managers and supervisors, while PPIM training was conducted at supervisory and planner level. Additionally, lower level employees received detailed warehouse training."

"Although Transwerk had implemented a comprehensive MRP2 system running on their SAP back office environment, their database was inaccurate and materials were replenished according to stock levels," says CS Holdings` Reuben Badana. "Planning would only start once a locomotive came in for refurbishment and orders for materials took between 25 and 30 days to process."

Once training began, Transwerk immediately began to reap the benefits and Susan says the supply chain is now being effectively managed for the first time. "We now have proper of materials in place, and can perform accurate demand planning as far ahead as 2004. Additionally, orders are released up to 90 days ahead of the time the material is needed."

"Each locomotive that comes in for refurbishment is allocated to one supervisor and one production planner, who also functions as a small supply chain manager and takes complete ownership of all the materials for that specific product," he concludes. "This makes it easy to rectify problems should they occur."

Transwerk has also been able to reduce its number of suppliers and has placed long-term contracts with the remaining ones. "Because we now have long-term visibility we are able to pass that on to our suppliers and negotiate more competitive prices," says Susan.

"The standard of training supplied by CS Holdings has been excellent and we have established a sound relationship with them," he adds. "The training is done on-site, which works well, as trainees are able apply what they learn to their own environment. Additionally, Tshumisano uses case studies relevant to our business because they understand our environment and can relate to the problems we experience in the workshop."

"By empowering its workforce at managerial, supervisory and shop floor level, Transwerk has streamlined its supply chain and is well on its way to achieving operational excellence," Badana concludes.