Capital Equipment News July 2018

TRANSPORT & LOGISTICS NEWS

A solid logistics strategy transcends merely appointing a 3PL The importance of a sound logistics strategy can never be overemphasised, considering the large role that it contributes towards business success. “Logistics ranks second only to improve the management of logistics, not least of which is the appointment of the most suitable 3PL provider, and then comparing costs, risks and potential benefits of pursuing such a plan.

exact number of warehouses, distribution centres, trucks and outsourcing partners, in addition to human capital, that is involved. There are other critical details that should also never be overlooked. These include ensuring that the best possible rates have been secured on all freight shipments and all probable ways of improving truck utilisation have been fully explored.” De Villiers advises to then conclude the process by undertaking robust functional analysis, which also encompasses scrutinising other important roles within a company, including supply-chain management, procurement, distribution, transportation and reverse logistics. ❂

product quality in order of importance and neglect thereof, or poor planning of this critical aspect of business will, therefore, have large and long-term negative impacts. Unfortunately, there are still many companies that believe that a sound logistics strategy merely entails appointing any third-party logistics (3PL) provider,” says Quinton de Villiers, MD of Bridgewater Logistics. De Villiers, whose team also undertakes extensive transport logistics project management for the company’s many clients, suggests firstly aligning business objectives with the overall goals of the logistics strategy. This is considering that logistics plays a direct role in increasing efficiencies by reducing overhead, inventory and costs, in addition to improving customer satisfaction by minimising delivery times and by ensuring a reliable means of distributing product to market. The next step entails scrutinising existing logistics operations to determine strengths and weaknesses. Strategic analysis takes into consideration those opportunities that can be exploited to A new black-owned logistics company servicing the KwaZulu-Natal and inland fuel depot route is being aided by some of the newest tech in logistics, as it goes toe-to- toe with big transport companies. Using drones to create its niche in the complex business of fuel distribution, Crusade Logistics plans routes and monitors driver safety, providing customers with two-hourly updates on the estimated arrival time to the depots, ensuring that they are ready to receive the fuel. Currently bridging fuel for Chevron South Africa and the Caltex Brand in KwaZulu-Natal, the 51% black-owned and 30% black female-owned fuel hauler recently secured Enterprise and Supplier Development (E&SD) funding from Chevron South Africa to expand its business. Chevron South Africa’s E&SD programme is not only aimed at growing its base of capable and reliable partners, but also, improving opportunities for

Structural analysis, on the other hand, entails placing the current organisation of logistics operations and the supply- chain under the microscope. “A sound starting point for this study is determining whether there is scope to outsource logistics, as well as to increase the use of distribution networks and centres, among others,” he says. “Importantly, it also requires an in- depth understanding of existing logistics resources, and includes knowing the

Importantly, the assessment of supply chain management should also encompass both inbound and outbound logistics, in addition to distribution networks.

Creating a niche through innovation

Crusade Logistics uses drones, go-pro and media production software to map out transport routes, providing drivers with an electronic journey plan.

new black-owned entrants to drive transformation through its value chain. Crusade Logistics has received industry accolades for driver safety, fuel efficiency and reliability. “We mark out the routes first with drones to give drivers visual cues and familiar landmarks on an electronic journey plan. We have seen a marked improvement in driver safety and it also reduces the risk of trucks getting lost with a full load of fuel onboard,” says

Wesley Naidoo, co-owner of Crusade Logistics. “Start-up firms are held to the same exacting standards as more established suppliers and while there can be significant barriers to entry for new entrants, we are keen to enable their success by providing them with business opportunities within our fuel supply chain,” says Chevron South Africa’s fleet operations manager, Noma Dumse. ❂

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