SA logistics industry facing challenges as norms change
An executive of a freight-forwarding and supply chain management company has sounded the alert that the industry faces serious challenges as global and local developments coincide to change the way the business is conducted with the norms of the past two decades becoming obsolete.
Solution Centre head, Teresita van Gaalen of Savino Del Bene SA, a worldwide corporate network specialising in global logistics, freight forwarding, clearing and supply chain management, said that the operation is gearing up to take advantage of these developments "wherever possible" and reinvent the company where necessary.
"We are closely monitoring the progress of the Customs Control Bill now before parliament. The Bill will see the inland ports of entry closed and the operations transferred to coastal ports, such as Durban. A study of the Bill's impact on costs and possible disruptions of the seamless systems in place, labour and transport changes is presently being conducted by several groups including the South African Association of Freight Forwarders (SAAFF) and the University of Cape Town.
In another development, Savino has established an APDP Business Unit offering a specific value proposition to the automotive and components industries as a specialised service to NAACAM and NAAMSA members to assist in declaring material content correctly while minimising duty and maximise incentives.
Changing population densities
"Our business strategies are also taking cognisance of changing population densities and the growth of discretionary spending power in emerging markets. In sub-Saharan Africa we see the allocation of multi-billions of rand for infrastructural development and the SADC regional bloc adopting a five-year infrastructure master plan," Van Gaalen said.
Namibia, as a case in point, is developing port facilities to service its corridors to South Africa, Angola, Zambia, Zimbabwe and Botswana. Savino Del Bene Namibia is now operating a warehouse and moving major break-bulk cargo from the DRC as well as to Zambia as we gear ourselves for major business opportunities. Namibia manager, Jacques Steenkamp reports a growing demand for the large truck capacity we offer importers and exporters to support the packing and unpacking facility we operate in Walvis Bay.
Van Gaalen said that shipping companies are pouring money into building ever-larger container vessels and this, added to the vessel sharing alliance between the world's largest shipping companies - Maersk Lines, MSC and CMA-CGM, will lead to extensive reconfigurations taking place in the freight forwarding and logistics business.
"The steps we have taken to address these challenges include setting up a Solutions Centre where high-powered logistics professionals in the company meet to address changes taking place in the industry. They provide a forward-going strategy to deliver information proactively that will enhance all aspects of a client's business related to a 'value supply chain' approach."
