Growth in the express freight
sector has been relatively flat in
recent months as the economic slowdown
impacts the supply chain –
but some operators are still finding
growth opportunities and exploring
home deliveries.
CEO of the South African Express
Parcels Association (Saepa), Garry
Marshall, said slower demand had
meant cost-cutting had become a
critical issue for businesses.
“Trade is relatively flat and that
isn’t a surprise. In times like these
people look at what is the best way
of transporting goods, and supply
chains are reconfigured. Sometimes
slower means of transport are a lot
cheaper and people will downgrade
from one mode of transport to
another – for example airfreight may
become seafreight or roadfreight,”
he said.
“Supply chain professionals
are becoming more slick and
knowledgeable, playing a more
steering role in
organisations,
and making
decisions – ten
years ago that was
unheard of, but
companies have
realised that it is
the last frontier in
terms of reducing
costs. But costcutting
doesn’t
always mean
that express is
affected because
sometimes
companies want to move goods
faster rather than leaving them on
the shelf,” he said.
Marshall said some operators,
especially those specialising in
specific supply chain models such
as electronic, auto-parts and home
deliveries, were
experiencing
“great growth”
while some
generalists faced
negative growth.
He said the
need for speed
and security
of goods being
moved with
sophisticated
tracking and
control measures
in place meant
the sector offered
surety of delivery for high-value
goods, including electronics and
cellphones.
He said operators were also
finding opportunities on the back
of growth in online shopping – and
strong networks were key to success
as online retailers required delivery
services to every corner of the
country, including some difficultto-
reach rural areas.
“The issue is about density – if
you have to go to Smith Street in
Lusikisiki you may only have one
delivery every week but to Smith
Street in Cincinnati there are
economies of scale. We are widely
spread and thinly populated. How
do you do this cost effectively?”
He said businesses were
exploring automated drop boxes
at garages as solutions and also
overcoming challenges such as
knowing when a consumer would
be home by building databases
of customer patterns to establish
suitable delivery times.
INSERT & CAPTION
Businesses are exploring
automated drop boxes
at garages as solutions
and building databases
of customer patterns to
establish suitable delivery
times.
– Garry Marshall
