DP-03
NCT FORESTRY CO-OPERATIVE LIMITED
COMMERCIAL SERVICES
DEPARTMENT
Document Number: DP-03
Revision 7
AUTHOR:
COMMERCIAL
SERVICES MANAGER
APPROVED
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DP-03
NCT FORESTRY CO-OPERATIVE LIMITED
1.
PURPOSE AND SCOPE
To provide pulp and non-pulp timber marketing and road and rail logistical
services to members of the Co-operative. To efficiently manage the timber
depots and execute log exports.
2.
RESPONSIBILITY FOR IMPLEMENTATION
Commercial Services Manager (CSM)
Commercial Services Secretary (CSS)
Operations Manager (OM)
Marketing & Supplies Co-ordinators (M&SC)
Logistics Co-ordinator (LC)
Logistics Administration (LA)
Export Co-ordinator (EXC)
3.
REFERENCES
N/A
4. PULPWOOD MARKETING AND SUPPLIES PLANNING
 Orders are received monthly in advance from pulp and board mills
stipulating species, tonnages/volume and transport mode preferences.
Orders to be confirmed by the 5th of the month before which supplies are
to commence.
 The mill order and captured timber requests are matched as per the order
allocation policy procedure.
 Mill exchange contracts, mill hard gum (high density gum species)
requirements and road/rail preferences by the requesting mills and volume
requirements are considered and special allocations may be used as
exceptions in the allocation process.
 A weekly and monthly supplies plan for both pulp and board markets is
compiled and implemented and distributed to member services.
 Supplies to pulp and board mills are monitored weekly and deviations
forwarded to Member Services Manager.
 Inform members of rejected timber deliveries:
- Pulp / Board mill informs the Commercial Services Manager in writing or
telephonically of the reject.
- Commercial Services Manager informs the Member Services Manager of
the reject.
 Complete annual timber sales report
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RESP
CSM
CSM
CSM
CSM
CSM
CSM
CSM
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NCT FORESTRY CO-OPERATIVE LIMITED
5. SPECIAL MARKETS
Commercial Department
 Register the applicant buyer by completing the following forms:
Conditions of Sale
Buyer Master File Input Sheet
VAT Consent Form
Credit Cover Application
Personal Surety
 Market to receive a copy of a Round Log Timber Received Schedule
M&
SC
5.1 ORDER CONFIRMATION PROCESS
Commercial Department
Complete order confirmation between NCT Grower Member and
NCT Registered Buyer
Order confirmation to be faxed to NCT Registered buyer for
signing
Signed Order Confirmation to be faxed, posted or hand delivered
to NCT Grower Member.
Administration Department
On receipt of the signed Order Confirmation from the NCT
registered buyer, the received fax to be titled: Order Confirmation:
XYZ Market and forwarded to the Order Confirmation Mail Group
File the signed Order Confirmation on Alchemy Search
CSS
CSS
CSS
CSS
CSS
5.2 CAPTURE AND MAINTENANCE OF ORDER CONFIRMATIONS.
IT Department
Capture the order confirmation in Oracle within two hours of
receiving the signed order confirmation
Capture the unique order confirmation number
Replace old order confirmations (delete them from the system)
and replace with new order confirmations for specific grower
members and markets
General Order Confirmation Maintenance on market profiles
CSS
CSS
CSS
CSS
5.3 CREDIT GUARANTEE MAINTENANCE
Administration Department
Credit Guarantee and any other form of credit cover held by NCT
registered Markets to be documented and up dated continuously
and made available in a Credit Rating Report.
M&SC
5.4 INVOICING MARKETS AND MEMBER PAYMENTS
Financial Department
Responsibilities to be defined for specific markets on a Credit
Control Responsibility Report
By 12h00 every Tuesday - markets to send weekly Round Log
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M&SC
TSD
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Timber Received Schedule. By the 3rd day after month of delivery
– markets to send monthly Round Log Timber Received
Schedule
Before invoicing check prices on schedules against current Order
Confirmations
Invoice markets according to schedules received
Receipt payments from markets on the following working day of
payment received by NCT.
TSD
TSD
AC/
M&SC
5.5 DEBTOR AGE ANALYSIS
Financial Department
Debtor age Analysis Report up dated weekly
TSD/
M&SC
5.6 DELIVERY NOTE GENERATION
-
-
Pending Credit – delivery notes for special markets to be
generated at the request (telephonically, fax, e-mail or personal
request) of the supplying member.
Only generate delivery notes in agreement with the specifications
of the latest Order Confirmation.
Where two valid Order Confirmations are in existence – establish
the suppliers request and generate delivery notes accordingly.
6. TIMBER EXPORTS
 Manage supply of timber by rail into export depot.
 Consolidate member supplies with rail trucks receipts at export depot.
 Consolidated member supply list forwarded to TSD for payment.
 Co-ordinate timber rejects from export depot.
Daily Procedure
- Ensure rail trucks are in place
- Count trucks
- Remove consignment notes from all rail trucks
- Complete Rail Trucks Received document
- Fax Rail Trucks Received document to NCT Pietermaritzburg
- Road delivery form is to be obtained for all rejected timber deliveries.
- Rejected loads to be offloaded and loaded directly onto road hauliers
once delivery documents obtained from Logistics co-ordinator.
- On completion of all offloading of timber Spoornet is to be notified via
fax for removal of all rail trucks.
- All copies of documentation to be filed.
Timber Receiving and Offloading
Daily check of timber within rail trucks to ensure compliance of all
specifications.
CSS/
LA
CSS/
LA
CSS/
LA
LC
LC
LC
LC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
Stacking of Timber
- Accepted timber to be offloaded and stacked on site.
- Stacks not to exceed 3m in height and no more than 50m in length
- Ends of stacks to be secured so as to prevent timber from rolling.
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NCT FORESTRY CO-OPERATIVE LIMITED
Safety Health and Environment
Ensure all personnel on export sites adhere to all procedures thereby
maintaining effective quality and productivity.
-
EXC
EXC
Hard Hats, Safety boots and protective clothing to be worn by all
labourers employed on the work site.
Hard hats to be worn by all persons entering the site.
Road Deliveries - Gum ( Richards Bay and Durban sites)
- Timber to be offloaded 24 hours per day – 7 days a week.
- Hauliers to weigh in at HZ depot – Richards Bay deliveries.
- Hauliers to weigh in at Bay Head weighbridge – Durban deliveries.
- On entering depots the drivers must give the Bell operator the NCT
delivery notes that are to be verified by the bell operator prior to
offloading.
- Prior to offloading - Bell operator to check conformance to
specification.
- Bell operator to record delivery on log sheet and to hand over
receipted delivery form to driver of haulier.
- Haulier to weigh out at HZ depot – Richards bay deliveries.
- Haulier to weigh out at Bay Head weighbridge – Durban deliveries
- Bell operator to daily hand in delivery notes to their respective area
offices.
EPC
EXC
Manufacturing of Bundles
- Bell loader to remove timber from stacks and correct volume placed
into cradle i.e. timber not to exceed or be below the mark on the
cradle.
- All undersize or poor quality timber to be removed from cradle.
- Bundling staff to ensure chains are not twisted
- Chains placed around timber, timber within chains is then rolled by a
lifting process.
- Prior to lifting, crane operator to check that dander area is cleared
- Bundling staff to move out of danger area when bundles are lifted
from cradle
- Chains in place and two steel straps of 10 m each placed around
timber, tensioned and crimped. Straps not to be greater than 160 mm
apart.
- On lifting bundle from the cradle, gap between straps and timber not
exceed 15cm
- Bundles not conforming to specifications are to be rejected
- Accepted bundle to be removed from cradle and placed on stack
EXC
Stacking of bundles
- Bundles to be placed on top of dunnage
- Bundle stacks not to exceed 3 stacks in height
- Bundle stacks not to exceed 50m in length
- Three lines of bundles are recognised as a bundle stack
Contamination
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Two contract personnel on site to monitor contamination
remove plastic daily from site
Personnel on site to ensure food and parcels are placed into lockers
provided on site
Personnel not to place food contained in plastic amongst the bundles.
Ship Loading
- Loading of all bundles on nominated contractor haulage equipment
- Supply of all mechanical equipment to move bundles from site to
vessel
- Counting of bundles loaded onto ship and from site
- Periodic inspections during loading, ensuring safe work procedures
maintained and that SAMSA clearance is obtained once vessel
loaded.
- Supervision and management of operation as listed in para 4.3.7
Export procedure
- Nomination of vessel and notification to NCT
- Notification to Shipping Agent
- Shipping agent informs Portnet, Stevedores and NCT of ETA.
- Pre plan check is carried out prior to ship arriving
- Pre plan meeting arranged with Portnet or agents (min 3 days prior to
arrival of ship) and all authorities to finalize vessel operations
- Induction meeting on vessel with Master, NCT and agents.
- After meeting inspection with the Master or First Mate to inspect for
contamination of hatches and shipping equipment i.e. plastic.
- Commencement of loading
- Tally sheet recording of bundles loaded
- Daily meetings between NCT, Portnet, Agents, Stevedore and vessel
crew during loading
- Debriefing meeting held on completion of loading
- Documentation signed and given to Shipping Agents. Documents
(Bills of Lading) to be handed to NCT within 24 hours
- Vessel summary report completed and forwarded to Commercial
Manager – NCT
- Shipping Agent to prepare Bills of Lading confirming delivery and
forward to NCT. Within 24 hours of completion
- Documentation regarding vessel is filed at NCT (Pietermaritzburg)
- Vessel Report (Bills of Lading) compiled by Shipping Agent within 3
days of vessel sailing and forwarded to NCT including:
Photographic report
Port Net Combined Export documents
Form 178 completed by NCT
Form DA 550 completed by Shipping Agent
Form T979 completed by Shipping Agent and
Portnet
Authority to sign Bills of Lading
Mates receipt
Notice of Readiness
Cargo Manifest
Stowage Plan
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EXC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
EXC
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NCT FORESTRY CO-OPERATIVE LIMITED
Statement of facts
SAMSA certificate
Tally Reports
Lay Time calculations
All signed certificates
Any survey certification
7. TIMBER HOLDING DEPOTS
 Planning for timber purchases into depots (5th of each month) includes determining available space
- season’s wattle or gum availability.
- export possibilities.


Arrange for dispatches of timber from timber depots :
- negotiate quantity, rates and markets
- determine mode of transport
- Obtain delivery / consignment notes
- Supply required information to Technical Services Department and
obtain job number.
- Negotiate and obtain rates and timing schedule for the loading and
transport of timber from the depot.
- Complete monthly sock assessment of all depots.
Monthly management of the timber depots include :
- Purchase timber dye, protective clothing, rations tools & stationary
when required.
- Negotiate rentals, weighbridge services & repairs and security
requirements.
- Ensure timber depots comply with all the insurers requirements.
- Ensure weighbridges are legally compliant eg: assized.
- Ensure that timber supplies meet the required specifications.
- Ensure that general maintenance on depots is carried out eg:
buildings, fencing, water supply and computers.
- Ensure fire-fighting rosters are current.
- Authorise rental, purchasers, electricity, water and telephone
payments.
EXC
CSM /
OM
OM
CSM/
OM
OM
8. RAIL TRANSPORT
8.1
LOGISTICS CO-ORDINATION
- Consolidate and submit NCT’s business order for the following
weeks rail truck orders to Spoornet.
- Rail truck request plan to be submitted to Spoornet by 12H00 on
Tuesday week before delivery.
- Confirm truck supplies with Spoornet
- Convey confirmed rail truck order with Member Service
Administrators.
- Monitor loading performance of NCT members.
- Monitor off loading performance at mills.
- Negotiate rail rates with Spoornet.
- Some processes are followed with various wood hauliers.
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LC
LC
LC
LC
LC
LC
LC
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DP-03
NCT FORESTRY CO-OPERATIVE LIMITED
8.2
8.3
LOST RAIL TRUCKS
Scrutinize query file from Member Services and ensure that all
information is consistent, correct and complete with particular
reference to Spoornet documentation.
Advise the Member and Member Services in writing that NCT are
unable to trace the delivery and that Spoornet have been
approached to investigate the location of the wagon. Place a copy
on query file.
Submit a query to Spoornet and request POD (proof of delivery).
Place a copy on query file.
Submit query to Mill with supporting documents from Spoornet
requesting immediate payment of delivery. Place a copy on query
file.
If wagon can still not be traced and the information on file is found
to be consistent, correct and complete then wagon will be added to
“Lost Wagon List”. At the first appropriate opportunity this will be
put to a management for ex gracia payment.
The LC will advise the Member and Member Services in writing
that the wagon has been added to the “Lost Wagon List” and put to
management for payment. Place appropriate copies on query file.
The LC will advise the Member, TSD and Member Services in
writing that NCT have traced delivery and that payment thereof will
be forthcoming. Place appropriate copies on query file.
The LC will advise the Member, TSD and Member Services in
writing of the decision of management to make payment or not and
as to any amounts decided on. Appropriate thereof copies to be
placed on query file.
TRUCKS DELIVERED TO INCORRECT SIDING
Submit a claim to Spoornet for the variation in price when Spoornet
delivers trucks to the incorrect consignee.
Prepare all documentation for CM to authorise that member be
paid the price variation.
All authorised documentation to be forwarded to TSD for payment
Inform member via letter of the fact that Spoornet has delivered
truck to incorrect consignee
8.4 RAILAGE TO SPECIAL MARKETS
Railage requests (for railage of timber in the week following the
next) must be submitted by the Friday (16h00).
Railage requests to be submitted as follows:
- Vryheid – Alna
- Greytown – Dulcie Brown
- Pietermaritzburg – Faith David
All requests to be confirmed by the Logistics co-ordinator on the
Monday following the submission date.
All relevant documentation e.g. delivery notes are to be printed by
the relevant district office. That is the district office responsible for
that member.
Day to day rail operation queries are the responsibility of the NCT
Member Services Rail Administrator.
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LC
LC
LC
LC
LC
LC
LC /
TSD
LC /
TSD
LC
LC
LC
LC
LC
LC
LC
LC
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DP-03
NCT FORESTRY CO-OPERATIVE LIMITED
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-
Rail queries must include
- Truck placement status
- Loading problems
- Truck Release status
Members are responsible for the documentation and placing of all
delivery documentation that is to be placed on all timber trucks
Financial queries regarding the market is the responsibility of the
Member Services co-ordinator in the buyers area.
LC
LC
LC
9. ROAD TRANSPORT
OBJECTIVES:
 To ensure the smooth functioning of all supply activities by means of an
effective and simple control system.
 To set systems and procedures that will ensure in an uninterrupted
supply plan.
 To ensure sustainable daily rateability at all mills using the JPT.
 To ensure that monitoring and communication is a shared responsibility
for all.
 Once order is confirmed, a rateability analysis is done to confirm
tonnages and timber availability dates.
 Logistics will analyse the plan carefully and communicate changes to
member services where necessary.
DM
LA/LC
MSA
 Delivery documents are to be generated and handed to the transporters
who will thereafter schedule these loads on the JPT.
 After loads have been bookedMSA
 Communication of planned supply days to members as per booked loads
in the JPT.
 Member Services to monitor supplier’s weekly tonnages and report on
discrepancies.
MSA/
OM
 Logistics to monitor all brokered transport loads to ensure loads and
tonnages are moved.
LA/LC
 Upon monitoring, of the JPT the following discrepancies need to be
communicated immediately to the relevant people and a plan of action
accompanied.
 Unavailable timber
 Unavailable transport
MSA/
DM/
OM/LC
DM/LC/
MSA/
OM
 All stakeholders to be governed by the JPT to ensure the supply and
capacity requirements for mills, growers and transporters have been met.
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NCT FORESTRY CO-OPERATIVE LIMITED
10.
ATTACHMENTS
11.
RECORDS
N/A
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