Manilal condemns SA’s antiquated production processes

'Global competitiveness is being eroded'
CLIVE EMDON
LACK OF investment in research and development in the manufacturing process and production levels is a major challenge for exporters, says Barlow Manilal, the national president of the Chartered Institute of Logistics and Transport (CILTSA). Speaking at a Gauteng meeting of the Institute recently, he said the best way to improve manufacturing was through research and technological innovation. “While a great deal of investment has taken place at multinational level, growth of locally-owned businesses is unsatisfactory. This leads to antiquated production processes and equipment which erodes our global competitiveness. “South Africa needs high levels of competence matched by efficient cost effective systems.” Manilal said key challenges facing the South African components industry were cost control, quality, and relationships between the vehicle manufacturers and suppliers. In addition, he pointed to the “infrastructural inefficiencies” of ports and rail transport and Transnet’s failure to integrate road and rail transport. He said cost control required proper use of inventories for raw materials, work in progress, and finished goods. “Currently total logistics costs exceed international benchmarks, specifically those of India and China.” A weaker rand and lower remuneration levels historically have resulted in poor quality. This cushion was reflected in the ‘return rates’ of products, the ‘rework rates’ and ‘scrap rates’ that are no longer tolerable, he said.