Supply chain optimisation (SCO), cost-cutting strategies and progressive client engagement are serving World Net Logistics well in an import-export market that is increasingly asking more from freight forwarding companies. One of the SCO strategies that World Net had identified as tried, tested, and even triumphant given the market’s toughness was cross-docking, sales director Jim Landers told FTW. It’s the distribution method that allows freight forwarders to scratch docking bay turnaround fees charged by shipping lines. “There is no turning fee if you cross-dock,” Landers said. “These can cost around R6000 a container and through cross-docking, distribution isn’t only much faster but it’s a saving we can pass onto our clients.” Moreover, it has resulted in World Net embarking on a capacity expansion drive in Durban that will enable them to maximise on cross-docking initiatives. Saving on expense wherever possible had become a kind of clarion call for the company, Landers emphasised, and was one of the reasons why they were constantly trying to predict where clients’ profit margins might be compromised. “We’re sending out many more notifications to our clients than used to be the case. Specifically in cases where additional costs like bunker adjustment factor (BAF) surcharges and general rate increases (GRI) are concerned. “Ninety percent of the time we find that we can advise clients well in advance of addons likes BAF charges and GRIs coming into play. The worst thing we can do as a service provider is to pass on additional costs they’re unaware of.” Proactive belt-tightening measures are also one of the reasons why World Net took the enhanced manifest regulations by the SA Revenue Service, reporting on conveyances and goods (RCG), seriously from the start. “We made sure that we got on top of RCG. We trained our staff well, got the necessary processes and procedures in place, and did all the behindthe-scenes planning to make sure all runs well.” And yet despite the company’s ability to forge ahead through what many might say is a perfect storm of political uncertainty and a see-sawing currency, Landers isn’t shy to admit that “it’s tough out there. “That’s why we’re looking at growing our sales team by as much as 30%. “We’re also focusing on strengthening some of our trade lanes, particularly out of the Far East, where we have a strong footprint, and certain locations out of Europe such as Germany and the UK.
CAPTION
We’re doing three consolidations a week out of Frankfurt and because we’re focusing on preclearing goods it goes straight through. – Jim Landers
