Companies must be able
to maximise their supply
chain by minimising the
hidden costs and risks
associated with moving a product
from point of origin to point of
consumption, according to Steven
Gottschalk, CEO of Value Logistics.
He then raises the question:
What if there were significant
opportunities to achieve this that
could minimise risk and potentially
save money?
“In our experience, most
businesses have a distribution
model that scales anywhere from
fully owned to fully outsourced. As a
business has grown and adapted to
the market, its choice of distribution
model is likely to have been shaped
more by default than by design. As a
result, there are likely to be aspects
of the distribution model that ‘have
always been done that way’ but may
not be optimal to where the business
is or where it’s going.”
Across all industries outsourcing
has grown significantly for three
fundamental
reasons:
• Businesses
want to focus
on their core.
“They are
looking to
outsource
operations
that don’t
form part
of their core
business,”
Gottschalk
added. “This
allows them
the time and
energy to focus on their core
expertise and leave non-core
functions to the experts.”
• Businesses want to leverage
resources. “In outsourced
environments, businesses benefit
from shared resources with the
added benefit of not having to
manage the complex human
resources challenges.”
• Businesses can’t afford the cost
of learning.
“Companies in
an outsourced
relationship
benefit from
the specific
expertise that
a dedicated
outsource
partner can
bring to their
business,
thereby reducing
the learning
curve and
maximising
effectiveness
through best practice.”
A supply chain, like any other
chain, is only as strong as its weakest
link. According to Gottschalk, each
link either creates friction or flow –
and friction costs money or escalates
risk.
“Value Logistics has the
infrastructure to offer end-to-end
supply chain solutions under one
roof as one business. Because of that,
we are able to not only understand
the friction points in a supply chain,
but also have the expertise to shape
solutions that minimise these. All
of this is backed by state-of-the-art
facilities, leading edge technology
and smart people who care.”
The newest addition to this
is the cutting-edge warehouse
and transport facility in
Joostenbergvlakte in the Western
Cape region. “This facility is part
of the group’s planned expansion
strategy,” Gottschalk said. “Led by
the fact that Cape Town is destined
to become SA’s second largest city,
the Western Cape is seen as a rapid
growth node.
“We are scaling up to take
advantage of this so that our
customers can too.”
INSERT & CAPTION
Companies in an outsourced
relationship benefit from
the specific expertise that
a dedicated outsource
partner can bring to their
business.
– Steven Gottschalk
