Collaboration across industries the way forward

Increased collaboration
within specific industries to
leverage available distribution
networks and infrastructure
is fast becoming a trend in the
warehousing environment,
according to Carli Venter,
general manager: solution
development, Barloworld
Logistics.
“Rather than investing
and having capital tied up
in property and high levels
of inventory, organisations
are choosing to partner with
a lead logistics provider
and focus their time and
investments on customer
centricity and technology,” she
told FTW.
“In South Africa
collaboration is still limited
to specific industries whereas
in Europe and other more
mature markets you will find
more collaboration across
industries and sometimes
even between competing
logistics companies.
“One of the current strong
drivers to collaborate and
share infrastructure and
resources is the focus on
reducing carbon emissions
and environmental impact.”
A collaborative approach
also makes sense in the
current economic environment
where often companies are
feeling the pressure.
“Many organisations are
experiencing significant
cost pressure and the supply
chain remains an area that
provides opportunities for
continuous improvement and
cost savings,” said Venter.
“We find that what is seen
as a stretch target today
for specific KPIs becomes
the standard tomorrow –
and we continuously have
to find new innovative
avenues of unlocking value
for our clients.”
According to Venter,
the Barloworld Logistics
philosophy has always been to
design and develop solutions
for clients aligned to specific
strategy, supply chain needs
and business requirements.
“With higher degrees
of industry collaboration,
the degree of specialisation
for each client becomes
reduced. Our focus then
shifts to industry-appropriate
solutions and finding ways
to achieve cost savings that
would not have been possible
within the boundaries of a
single supply chain.”
She said while the trend
of outsourcing was set to
continue in years to come,
companies were increasingly
starting to invest in growing
their own logistics and
supply chain capabilities
in-house to drive value for
their businesses.
“We anticipate that more
and more organisations
with a strong focus on
supply chain rather than
manufacturing will
target other firms with
a similar product base
and distribution profile
to incorporate them into
their distribution network,
thereby creating their own
consolidation opportunities
and cost savings,” she said.