By establishing a central export packing hub for chemical cellulose pulp, IMPERIAL Logistics group company Freightmax has enabled client Sappi Export Services to achieve cost savings, improved efficiency and environmental benefits.

The background
Sappi’s Saiccor mill, situated South of Durban, manufactures chemical cellulose pulp - predominantly for export. Sappi is the single largest exporter by volume through the Durban harbour, and utilises Sappi Export Services (SES) to perform its export functions. SES previously exported containerised pulp units through multiple facilities within the Durban port area, but this led to a number of challenges, including varied operating hours, the splitting of batches between sites and loss of economies of scale. It also meant that there was little flexibility to change shipping arrangements and to amend volumes, and it created SAP Warehouse Management System complications and duplication.

The solution
To overcome the challenges of the previous approach, Freightmax was contracted to establish a single hub for the export packing of containerised cargo for Sappi Export Services. Implemented between June and October 2011, the project has been a profound success, with substantial benefits for Sappi. The centralised facility now handles more than 480,000 tons of product annually (both import and export), and Sappi occupies some 18,500 square metres of undercover warehousing space.

Establishing this hub has enabled Sappi Export Services to consolidate containerised import and export operations with one service provider. In addition, Freightmax’s solution has enabled the company to cut costs and enhance efficiencies. The establishment of an empty container depot adjacent to the hub – for the pre-packing of containers – is a further boon and efficiency booster. The SAP challenges inherent in the previous system have also been eliminated, since Freightmax is now operating as Sappi’s SAP user on site. The hub operates 24 hours a day, 365 days a year.

Big benefits
Sappi can now enjoy enhanced stock planning through a single hub. By pre-packing containers, storage space, and the cost thereof in the warehouse, is also significantly reduced. Substantial cost savings are being reaped through the consolidation of facilities and resources, as well as a reduction in crosshaul costs, since the hub is within five kilometres of Durban port. Sappi has achieved further cost savings by collecting empty containers by reach stacker from the adjacent Freightmax container freight station, rather than collecting empty containers by trucks from other premises. With environmental considerations high on both Sappi and IMPERIAL Logistics’ agendas, the environmental benefits of reducing vehicle mileage – and thereby reducing the activity’s carbon footprint - is a big added boon.

Client commendation
Freightmax’s solution has been commended by client Sappi. Morgan Moodley, financial controller at Sappi Export Services comments: “There were a number of challenges due to the cyclical delivery of the pulp, which took some time to overcome. Over the last couple of months, the systems and processes have vastly improved and the relationship is showing greater benefits to both parties in terms of efficiencies and cost savings. We look forward to working with the Freightmax team in order to further streamline the supply chain by integrating systems and eliminating waste from the various processes.”