Consolidation
volumes remain
under pressure
thanks to
economic challenges and
increasing costs which
are difficult to recover,
says Neil Harris, senior
executive: marketing and
sales for neutral wholesaler
Regional Wholesale
Services.
“Critical cost reduction
is required to become more
efficient and competitive as
simply passing on costs is
currently just not possible.
Volumes have been coming
off since the latter half of
April with all the public
holidays and have been
under pressure since. Many
of our customers have
reported up to doubledigit
declines in volume
compared to the same
period last year – as well as
previous months whereas
they were ahead of the
average market growth
curve last year and into Q1
this year.”
Drawn-out industrial
action, acquisitions and
in some cases business
closures have been further
signs of the difficult market
conditions, says Harris.
“There’s also been a
tendency among customers
we serve to split their
allegiances amongst
service providers for
better negotiating power
which places pressure on
yields and sustainability,
especially since RWS
supplies and maintains
one of the most extensive
wholesale networks on
offer,” says Harris.
There is also an
increasing move from
typical courier companies’
minimum shipment f lyer
bag type business to a
larger mix of business-tobusiness,
retail and B2C
freight.
“Logistics is all about
economies of scale and
producing critical mass
to keep your transport
unit as cost-efficient as
possible – especially when
maintaining a 15-branch
network inland. The
consolidation benefit on
our line-haul vehicles
enables our customers
to maximise their
consolidation strength into
lower costs per waybill,”
explains Harris.
His outlook for the
regional wholesale
consolidation industry is
however positive, despite
current challenges.
Harris says RWS
continues to focus on
its IT offering through
integration with its
customers from freight
acceptance to proof of
delivery (POD).
“Automation is the key
to faster communication,
transparency, customer
visibility of the delivery
process and accuracy of
billing. Less reliance on
paper f low and optimum
resource utilisation is what
we are striving for to the
benefit of our customers,”
he added.
INSERT & CAPTION
Logistics is all about
economies of scale
and producing critical
mass to keep your
transport unit as costefficient
as possible.
– Neil Harris
