Exporter seeks local logistics partner to cut costs

In an effort to better

control its supply

chain costs and gain a

competitive edge in a

highly competitive market

space, chemical export

company Curechem is

looking to partner with

a local logistics supplier

who can

provide a

turnkey

endto-

end

solution.

“At the

moment

we

operate on

a cost and

freight

(CFR)

basis

where

our suppliers arrange the

logistics and invoice us for

the total costs. In addition

we as the buyer carry the

risks,” said the company’s

managing director, Anup

Chand.

He told FTW that the

company – which supplies

industrial, mining, food

and beverage, agriculture

and water treatment

chemicals – was a small

player compared to

the other

multinational

chemical

giants.

“Cutting

down on our

supply chain

costs and

improving

our delivery

times will

help us gain

a stronger

foothold

in the

marketplace,” commented

Chand.

Curechem has a presence

in Mozambique, Zimbabwe

and Zambia. “While

we do work with local

manufacturers, a lot of our

supplies are imported from

China and South Korea,

with the

goods coming

into the Port

of Durban.

From there

we transport

the goods

via rail to

Johannesburg

and via

road to the

neighbouring

countries,” he

explained.

According

to Chand,

getting the goods in on a

CFR basis (instead of on

a free on board – FOB –

basis) leaves the company

in the dark about hidden

costs and reasons for delays

etc. “We end up being

invoiced for hundreds

of dollars for storage or

leasing of containers.

“If we were working

with a third party logistics

provider, we would be

better

informed

about the

process and

have more

input on the

solutions

and ways

to avoid

unnecessary

costs,” he

said.

The

company

also has a

branch in

Dar es Salaam, Tanzania

and Chand says it would

also be open to a logistics

operator who could provide

services in the East African

market, with imports

arriving in the port city as

well.

INSERT & CAPTION

Cutting down on our

supply chain costs

will help us gain a

stronger foothold in

the marketplace.

– Anun Chand