Environment

Increasing logistics efficiencies

Improving efficiency is a sure way to reduce our carbon footprint and costs of production, particularly energy. New ERP systems, currently being implemented across the division, promise more effective administration and logistics. Kolok, for example, has moved to a fully computerised paperless warehouse, a system that has now been rolled out to all other branches within the country. At Waltons, smarter management allows us to increase the proportion of direct deliveries, i.e. reducing dependence on the warehouse. This reduced double-handling of product, stock-holding, obsolescence, lead times and transport costs, but came at the cost of retrenching 40 people. Likewise, Kolok works with dealers to promote direct deliveries. Waltons KZN have redesigned their distribution process, and this will involve the consolidation of four distribution facilities into a large facility and offer benefits from economies of scale. To this end a purpose-built facility has been designed. Operations are expected to commence in the first half of 2012 financial year. Voltex has begun implementation of a new ERP system which will greatly enhance efficiency levels and quality of management information. Contract Office Products are currently reviewing a range of green products to resell, and these will contain recyclable components. Petrol and diesel consumption has reduced by 12%, partly by increasing the proportion of direct deliveries (as opposed to handling through a warehouse).

Green design at Seating

In addition to the list of commodities in short supply, South Africa is now experiencing a shortage of pine timber that is affecting the cost of all wood-related production industries. Seating, for example, consumes 220m3 of veneer each month, extrapolating to 18000 trees felled annually. By introducing the new ACTIVE range of chairs, made from injection moulded foam around a polyurethane frame, the company has been able to save 40 square metres of veneer per month, or 3000 trees annually. Convincing the market of these benefits has taken a determined awareness campaign, but the trend is now firmly towards more environmentally friendly products. A further spinoff has been the dramatic drop in the use of formaldehyde resins in the manufacturing process. ISO 18001 and ISO14001 standards have been achieved.

The company has also introduced its Seating Production System (SPS) which reduces the number of manufacturing stages by a third, thereby dramatically increasing the energy efficiency of production.

Sustainable manufacturing

Sustainable office furniture manufacturing is gaining momentum at Seating, CN Business Furniture, Dauphin and Waltons. Walton’s suppliers have integrated ISO 9001/2000 quality management, ISO 14001 environmental management and ISO 18001 health and safety management systems, while Seating chairs are 95% recyclable. No glues and resins are used during the assembly process, nor do materials sues emit toxic substances. In order to reduce shipping costs, products are assembled at the closest point of sale and packages in boxes for storage, reducing weights by 25%. CN Business Furniture  last year launched the first green desk in SA, using board that complies with the highest European environmental standards (E1 European Standard). Dauphin is fully 9001 / 2008 quality management accredited and is in the process of obtaining the relevant environmental accreditation.

Energy-saving opportunities at Voltex

While most companies in the economy are looking for solutions that will save energy costs, and thereby reduce their carbon footprint, Voltex is in the advantageous position of being able to exploit opportunities for business by offering efficient energy solutions to all sectors of the economy.

Voltex has launched a new division focusing mostly on energy saving interventions for industrial, commercial and residential applications. The company offers both engineering services and products to enhance electricity efficiency. In total, approximately 40 projects have thus far been successfully completed and a number of additional projects are work in progress.

Human rights

Human rights issues such as freedom of association, child labour and forced or compulsory labour, are enshrined under South Africa’s constitution and well legislated for under various relevant Acts. Incidents of discrimination are monitored in accordance with legislation and there were no significant incidents to report.

Screening of suppliers and contractors outside of South Africa is largely covered by the quality of our business associations and Bidvest Industrial and Commercial Products deals largely with well-known brands. Formalised screening of suppliers is not in place and this is noted as an area for improvement in the future.

Society

An interactive presentation on the Competitions Act and Competitions Commission was held, chaired by one of the leading law firms in the country. This was represented by all companies within the division. Each delegate has been tasked with disseminating the content of the meeting to their respective employees.

A total of 587 employees were dismissed or retrenched during last year. 251 employees were dismissed for misconduct / fraudulent activities, 318 due to operational requirement and 18 due to incapacity/ill health.  72 of these dismissed employees referred the matter to the CCMA or to arbitration. A number of these applications are still pending, whilst rulings on the other 42 matters were in favour of the company.

Product responsibility

Bidvest Industrial and Commercial Products operates exclusively in the business to business market, where its business partners are credible and its product lines stable. We have very limited exposure to product responsibility issues such as fair product labelling and the integrity of customer information. Nonetheless, management of each company within the division have been advised to become acquainted with the content of the Consumer Protection Act, which will legislate product responsibility and guide our compliance thereto.