Difficult conditions demand supreme supply chain efficiency

ALAN PEAT THE MARKET for SA perishable cargoes this year has been a difficult one, according to Glen Gerber, CEO of Durban-based Spectrum Shipping. “You have to take into consideration not only the strengthening of the currency,” he said, “but also the drought. “This combination resulted in reduced volumes and variable product quality which has been subjected to the ever- growing pressures of global competition. “Also, delays in shipping and the phasing out of porthole containers has limited the availability of integral containers.” All in all, and as a result of diminished margins, the last year has been one in which exporters have placed significant emphasis on reducing the cost of getting a product from source to buyer, Gerber added. “The focus is now clearly not only on the cost of clearing,” he told FTW, “ but also on the efficiency and effectiveness of the supply chain.” This includes cartage, foreign exchange, insurance and freight. “But more specifically,” Gerber added, “offshore landside charges which, through strategic offshore partners, can reduce the costs to the exporter.” To achieve all this, Spectrum Shipping has - through its global associates – recorded what he described as “dramatical growth” in its client base. This has been through its ability to provide customised supply chain solutions to a select, niched client base. “ The ‘partnership’ between exporter and supply chain service provider is now being based on ‘intelligent logistics’ and sound supply chain management,” said Gerber. “ The basis of the ‘partnership’ is now being accepted not as an ‘event’ (i.e. clearing) but as a ‘process’ - whereby both Spectrum and the client work together to refine the supply chain.”