Providing end-to-end customer service has been the driving force for the team at SA Cargo Services.This was clearly demonstrated with the company’s recent launch of a full clearing and forwarding division with an international network.“It has significantly boosted our offering and we are now able to offer order fulfilment, indent management, as well as international freight and transport management. This meshes with our already established local warehousing, transport and distribution services,” said Hans Modipane, executive logistics, sales and marketing. “These are important developments considering that customers are increasingly relying on us to handle their end-to-end supply chain. For certain specialised products we are now seeing goods being unitised, ready from warehouse to retailers. Bespoke onsite unpacking from container and repacking for retailer is another aspect of distribution that seems to be improving the market.”Mndeni Ngcobo, sales and marketing manager, said most fast moving consumer goods (FMCG) customers required specialised pick and pack and unitisation that was tailored for their different customers. “Our proximity to the Durban port enables us to receive, unpack, consolidate and distribute to the rest of the country.”Ngcobo and Modipane said there were multiple advantages that could be derived from consolidating close to the port.“Firstly, we are able to help our customers to reduce the volume of vehicle traffic moving from the port directly to their premises – and this is because consolidation allows for bigger breakbulk loads instead of individual container loads. This comes with some cost savings. Additionally, reducing the number of vehicle trips has a positive impact on the environment in terms of reducing carbon emissions and the number of trucks on our national roads.”The biggest challenges in the warehousing space remain very high leasing and overhead costs which means you need a constant f low of cargo to maximise revenues whilst on the other hand customers need additional storage days but are not always willing to pay for them.“The recent unrest in Durban, as well as the ensuing cyberattack on Transnet, have also created a capacity bottleneck,” said Modipane. “This has resulted in too much inbound cargo and slow outbound movement of cargo. In order to maintain profits, warehouses and depots do not necessarily want to store for lengthy periods of time as this creates an imbalanced f low of cargo.”From a distribution point of view, the cost of trucking cargo remains a challenge. “Whilst the more cost-effective and environmentally friendly mode of transport would be rail, it is still unreliable due to locomotive shortages and copper theft. This is why the logistics sector still favours trucking which, of course, comes with its own set of challenges.”Commenting on future trends, Ngcobo said digital planning and optimisation would certainly dominate over the next few years. “In a world where siloed processes and services were previously profitable and effective, today’s standards and trends require a far leaner and more integrated approach which includes digitisation, optimal planning, visibility of operational data, and instant communication. Due to the presence of international and local blue-chip retail and FMCG companies within the market, South Africa has found the digitisation transition somewhat easier in comparison to its continental counterparts.”Most FMCG customers require specialised pick and pack and unitisation tailored for their different customers.– Mnedi Ngcobo
