Self-regulation and improving efficiencies.

(going beyond simply complying to

legislation )

Background to Crickmay

• Our Mission: Sustainability of our clients

• Specialise in creating self regulated and

efficient supply chains

What is productivity?

• P=output/input

Why is productivity important?

• Productivity= less trucks= less accidents

• Productivity without collaboration = 0

Govn’t

Industry

Consignee/ors

Drivers

SELF REGULATION & PRODUCTIVITY

Transport company’s

Visibility= Productivity

What is Visibility?

Winston Churchill

• “You can only see as far as you can see”

VIP Technical

Trial

LAP

RTMS

Consignee/or

visibility

Consignee/or

visibility

Consignee/or

visibility

Standards

SABS standards

RTMS History

0%

5%

10%

15%

20%

25%

30%

% Incidence of Overloading Exceeding 2% Tolerance

July '07 - Three Month Rolling Average

Example of visibility - Timber

Proven Results

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

Base

Oct-

03

Dec-0

3

Feb

-04

Ap

r-04

Jun-0

4

Aug

-04

Oct-

04

Dec-0

5

Feb

-05

Ap

r-05

Jun-0

5

Aug

-05

Oct-

05

Dec-0

5

Feb

-06

Ap

r-06

Jun-0

6

Aug

-06

Oct-

06

Dec-0

6

Feb

-07

Ap

r-07

Jun-0

7

Aug

-07

Oct-

07

Dec-0

7

Feb

-08

Ap

r-08

Jun-0

8

Aug

-08

Oct-

08

Dec-0

8

Feb

-09

Ap

r-09

Jun-0

9

Aug

-09

Oct-

09

Dec-0

9

Feb

-10

Ap

r-10

Jun-1

0

Aug

-10

Oct-

10

Dec-1

0

Overloading Over Tolerance Since November 2002

(Note Tolerance Dropped in July 2006 to 2%)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

Avera

ge %

Tri

ps O

ver

To

lera

nce

% Overall Overloading Over 2% Tolerance Per Month

0

20

40

60

80

100

120

Base first 5 months Aug-Dec '08 Last 5 months: Jan-May '12

Fata

litie

s In

de

x

Fatalities per 100M km's - Eskom Road Transport Supply Chain (Expressed as an Index)

0.0

0.5

1.0

1.5

2.0

2.5

2003 2004 2005 2006 2007 2008

Ho

urs

Mill Turnaround TimeDarnall Mill

Darnall

SLIP Industry Average

0

5

10

15

20

25

30

35

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Bas

e

2007

2008

2009

2010

2011

To

nne

s

Inci

den

ce o

f Ove

rload

ing

Effect of Reduction in Overloading on Industry Payload

Incidence of Overloading Avg Payload Linear (Incidence of Overloading)

Timber Overloading Sugar Overloading Coal Overloading

Sawmilling Recoveries Sugar Congestion Coal Accidents

8M ton p.a., 8 Mills, 208

transporters, 5 large growers

21M ton p.a., 13 Mills, 485

transporters, 27,548 growers35M ton p.a., 9 Stations,

197 transporters, 35 mines

42 Mills (75% of industry) 4.6M ton p.a., 3 Mills, 67

transporters, 271 trucks,

211 cutting fronts

Self regulation and productivity

Govnt

Industry

Consignee/or

Drivers

Transport

company

Conce

ssions

Drivers

Haulier

Standards

Incentivises eg PBS

Benchmarking KPA’s

Central driver

Database

Must use

RTMS accredited

transporters

Visibility

Industry

To me RTMS should be tailored for your industry

Visibility

Standards

Solutions

Steering

Committee

Supply Chain

Data

Transport Source &

Destination

Reduced risk and cost

Central driver

database

Measurement

Origin of load

Destination

Loading: Over/Under-loading

Loader availability

Terminal times

Queues

Speed

Trip time

Accidents

Main objective Rough rule of thumb

Value of

improvement thus

far (R)

Reduce lead distance

(km) [Tactical]R1 for every km reduced 92,400,000

Reduce waiting (hours)R1.5 /t for every 12 minutes

reduction at terminals70,000,000

Improve vehicle

operating days per

annum

. not calculated

Reduce underloadingR2 /t for every tonne of payload

lostn/a

Increase payload (t) R2 for every tonne gained 78,000,000

Increase payload with

PBS (t)R 2 for every tonne gained n/a

Reduce % empty legs

[Operational]

R1/t for every 1% travel time less

empty. n/a

Diesel Rebate R 1.5/ litern/a

Total R 240,400,000

Reduce road damage 60% of 10% premium on rates 170,000,000

Example of gains to be made at 100kms

Grain Industry Challenges Effect

Overloading, New Road Traffic

Act and AARTOroad damage and increased cost, accidents and deaths,

non level playing field, poor industry image, increased fines

Grain Contaminationdanger to humans and animals, wastage, loss of income

Grain Theftdirect loss of income

Underloading increased cost of transport, more trucks on the road,

increased laoding and offlaoding pressure

Transport Congestion increased cost of transport, more trucks requried to do the

same job

Production Efficiencyincreased cost of prodcution, lower market competitiveness

No enough grain on railfacility infrastructure pressure, increased cost of transport

Transport rateinefficent REAL transport, increased cost

Market stability food security issues, cost of grain increasedT

ran

sp

are

ncy

Co

st

Ris

k

Grain Industry Issue

• Through visibility ( starting simple) and

regulating yourselves you will open the key to

a whole new level of efficiency and reduced

costs.

Last word of cooperation on

drivers

• 90% of accidents cased by human error

• 80% of accidents cause by 20% of drivers

• Crying need for data on drivers

Eyegym

Centraldriverdatabase.com

Driver reference

CENTRAL DRIVER DATABASE

DRIVERS

• Registration by SMS

Talent index

OUTPUTS:

Current Dover

System Reports

Eyegym results

On-board

Computer History

Natis/AARTO

PARTNER

INPUTS:

DEVELOPMENTEMPLOYERS

• Access to existing reports

• Access to Driver Cell numbers

• Driver references.

Recording of

driver history

( Talent index)

Insurance records

Thank you

Background to Crickmay

• Our Mission: Sustainability of our clients

• A founding member of RTMS

• Gold LAA winners 2002,2004,2009

• 2012 LAA Platinum winner Cum Laude

“Platinum, Cum laude status implies achievement

beyond excellence.

It is taking the lead and showing the way. It

represents achievement record that shows

sustainable and continued professional development

and distinction.

Entry made me proud to be a South African”

G De Villiers Chairman of the judging panel “