A decade of expansion, consolidation and growth …

Leading tyre manufacturer, Pirelli Italy, recently announced the renewal of their logistics contract with SLA (Strategic Logistical Alliance), for a further three years. SLA, established 11 years ago, is rated as one of the foremost and best third party logistics service providers and is dominant in the imported wheel and tyre industry, handling all major imported tyre brands, including Pirelli. SLA has been attending to Pirelli’s logistics requirements since 2000 and this eight year relationship, combined with the company’s reputation for reliability in a very competitive market, as well as strong links with Italy through its association with Italian shareholder SDB, (Savino Del Bene), were some of the factors instrumental in Pirelli Italy’s decision to renew the contract. “With a huge understanding of the requirements of our tyre customers and tyre retailers, we are perfectly capable of meeting every clearing and forwarding, bond store administration and warehousing and distribution requirement,” says Dave Buchanan, SLA Strategic Accounts Manager for Pirelli South Africa. Dave continues, “The tender process lasted a rigorous six months during which Pirelli’s international logistics team, based in Milan, Italy, analysed the various facets of the tyre warehousing and distribution functions. This was followed by micro analyses of the processes to ensure that each function was costed correctly and that maximum efficiencies were attained. Every area was then carefully analysed - from receiving, handling, picking and storage to administration and distribution, before being benchmarked against international best practice to guarantee that staff and assets are efficiently utilised”. Alessandro Marchi, Managing Director, Pirelli South Africa, says that SLA tendered against a number of other major players. “There was some very tough competition among the selected group of logistic providers,” says Alessandro. “SLA was one of the companies short listed and the relationship of loyalty and trust established over the last few years undoubtedly gave SLA the edge. “When we decided to renew this partnership, we considered four main factors – service levels, cost efficiency synergy, and proactive management,” explains Alessandro and adds that SLA brought all four factors to the table. “The partnership has been honest with transparent communication channels which is a combination that will undoubtedly lead to further growth for both companies,” states Alessandro. According to SLA’s Pirelli Warehouse Manager, Jacques Wessels, a close relationship between Pirelli and the SLA warehouse has enabled SLA to benchmark a service level of 98% and above on deliveries to the dealers. “Arranging logistics is one of our greatest challenges in this competitive market. As a tyre distributor, we focus on determining and then providing the dealers with the right product at the right time, at the right place.” Kobus Maree, SLA Managing Director, shares his views: “We are absolutely delighted to have won the tender again. We have benefited from our existing relationship with Pirelli; our in-depth knowledge of the logistics industry as well as our understanding of the South African tyre industry also counted in our favour. We are well versed with Pirelli’s marketing and operational strategy within the South African market and we have an enviable reputation for integrity and professionalism. We regard ourselves as an extension of Pirelli’s logistics team.” “We focus on customer success rather than customer satisfaction and have built the company on listening to customers and their understanding and perception of good service instead of interpreting what we perceive to be the customer’s service requirements,” says SLA General Manager Warehousing, Graeme Vorster. “Other factors counting in our favour are our well trained, loyal people, cutting edge technology and innovation,” comments Graeme. Alessandro and Kobus share the philosophy that customer satisfaction is the cornerstone in achieving the competitive advantage. “Consequently product quality and service become inseparable,” explains Alessandro.