Companies are starting to realise the advantages of third party logistics as a result of the downturn, according to Dave Johnson of EDGIN. Manufacturers using internal logistics functions now have idle warehouses and low stock, and third-party logistics providers can save a lot of money by preventing this. “By using a 3PL you are spreading the risk of wasted space, not to mention the idle personnel and capital equipment,” he says. EDGIN also offers fourth party logistics services and has found that this can also be cost-effective, according to Johnson. He practises what he preaches and outsources where necessary. “One of the most important aspects of logistics is honesty, and if you’re honest you’ll admit that some of your peers can do a better job than you with some products, or that they have a facility more suited to a particular commodity or storage requirement.” EDGIN outsources warehousing to three other concerns in Cape Town alone.
