Accurate forecasting of stock is key

Long gone are the days of delivering a one size fits all solution to customers’s warehousing needs, says Detlev Duve, managing director at Dachser South Africa. “Most customers today require a unique and tailor-made solution specific to their needs,” he explains. “Not many customers will adopt the copy and paste rules of the past.” And while tailor-made solutions are a challenge, they’re achievable through the use of good warehouse management and reporting systems, he says. “Customers are reducing the amount of surplus stock warehoused with the aim of reducing storage costs as well as freeing up cash flow. The key is to manage the customers’ inventory effectively by ensuring accurate forecasting of stock movement in order to avoid an out-of-stock situation, which is detrimental to maintaining their market share and growth.” Duve says now more than ever before there is a far greater demand for real-time inventory management systems capable of providing the customer with a vast range of information. “This has become a general requirement in the market as opposed to a value-added service offered by a handful of providers.” A worrying trend, he says, is the move to opt for substandard product in terms of packaging to save additional fixed costs. “This logically creates challenges in terms of providing the end customer with presentable consignments as the packaging deteriorates far more quickly through general handling and transport,” he says. “Educating the customer on the various risks involved when utilising an inferior packaging product has become very important.” In terms of developments in the company, Duve said extensions to Dachser’s facilities in Pomona in Gauteng were close to completion and would add an additional 3000 sqm of warehouse space offering 3900 pallet positions to industry. INSERT & CAPTION There is growing demand for realtime inventory management systems capable of providing the customer with a vast range of information. – Detlev Duve