Outsourcing gains ground
AS MORE and more companies demand that freight operators take responsibility for a larger part of the supply chain, activities such as warehousing and the associated inventory management functions have lent themselves well to outsourcing.
That’s the view of Safcor Panalpina’s Anthonie Verploegh, who points out that these have long been considered cost centres, draining both capital resources and operational cost, and for which there is a range of alternative suppliers.
“Many of our medium to large customers are already enjoying the value added services we offer through our consolidation and deconsolidation centres, international network, bond and rebate facilities and direct Customs interfaces with the recent SARS accreditation roll-out,” says Verploegh.
“In some instances they do not even see their products which are received, kitted or bundled, and despatched though our dedicated warehouses and channels.
“We manage customer stock, handle all paperwork based on EDI instructions originating from our customers, and process it all the way to documentation finalisation or POD (Proof of Delivery).”
Traditionally IT has been of a “demand-pull” nature in the freight forwarding industry, says Verploegh., with service providers giving customers restricted access to their main frame on an ad hoc basis.
At Safcor Panalpina the IT offering is more of a “supply-push”, he says. “The customer advises us of the information required, when he requires it, the frequency and format. We will then proactively get the data to him so that he does not need to dial up to enquire. It’s all about quality and reliability of the flow of goods and information.”
Verploegh believes that an increasing number of companies is now taking a more mature approach and seeing third party logistics providers (3PLs) as a strategic weapon in the marketplace. “Customer migration to service providers who are able to satisfy all or most of the logistics needs is a recognised trend.”
Safcor Panalpina’s logistics management strategy revolves largely around its international network, with focus on clients who transact internationally with high value and time-sensitive products.
“Organisations trading globally want to deal with fewer suppliers and they want their suppliers to be more innovative and wide-ranging in their offerings.”
