Exporting to 25 countries worldwide

Multiple prize-winning company
PFK Electronics, which has
recently added the KwaZulu
Natal Top Business and the 2009 KZN
‘Exporter of the Year’ awards to its list
of other trophies, has refined its import/
export programmes to a high gloss.
Established in 1985 by a group
of electronic engineers with a strong
grounding in design and manufacturing,
the company has developed into a major
designer and manufacturer of automotive
electronic systems to global markets.
It has acquired a niche market
in designing and manufacturing of
automotive electronic security systems,
supplying both the original equipment
manufacturers (OEMs) and the
aftermarket. It has experienced growth in
excess of 30% since 1996.
Privately owned with a staff
complement of around 400 people, it is
situated in Durban, with two subsidiaries
– Knightwatch, based in Kent in the UK,
and Autowatch in Perth, Australia.
“Currently,” said group sales and
marketing director, Colin Snyman, PFK
is one of the two largest designers and
manufacturers of automotive security
products in SA with a greater than
65 % market share in the local security
aftermarket.
“We export 70% of our manufactured
products to customers in 25 countries
worldwide. And, for major clients, we
also cater for unique customer branding.”
PFK’s specialist design expertise
encompasses embedded microcontroller
and radio frequency based vehicle
security systems; keyless entry
systems; global system for mobile
communications (GSM) based tracking
systems; Alcolocks (an alcohol breath
analyser-based immobiliser system); and
controller area network BUS (Canbus)
controllers (a two-wire protocol found
extensively in modern vehicles).
To help give it access to the global
market, according to sales administration
manager, Kapil Singh, the company
complies with a number of international
standards.
The company’s freight system caters
for both import and export traffic, he
added, both airfreight and sea freight,
and road for shorter distances.
The import traffic is mostly from
outside sources, especially China and
Europe, and either by air or sea. “The
ruling here,” said Singh, “is if the
consignment is very heavy, we would
use sea. But, if it is a viable issue, we
bring it in by air.
“But we also get components from
distributors in SA,” he added, “where
they source them and ship them in, and
we just buy from them. Most of this
comes to us by road, but some is still
by air.”
When deciding whether it is air or sea
for exports, the company uses a formula
including volume, product value, timing
and cost.
But a primary deciding force in this
choice is the fact that the company’s
buyers don’t want to sit with expensive
items in stock, and the distribution
scheduling tends to be on a just-in-time
(JIT) basis.
“This clients’ preference means that
most of our export traffic is by air,” he
added, “although if the cargo is large, we
would use sea freight if possible.”
An unusual choice is evidenced by
a large client in California in the US,
which asked PFK to use sea freight. “To
cope with this,” said Singh, “we have got
into a cycle – with pre-planned
monthly shipments.”
But its Durban situation offers
PFK one big advantage when it comes to
seafreight.
“As the major port in SA, it has
direct shipping connections to East Asia,
South East Asia, the Arabian Gulf, the
Indian Ocean Islands (IOL), East and
West Africa, Europe, and North and
South America,” Singh added.
Local sales are conducted through the
company’s sales office in Johannesburg
and multiple distributors around the
country, and distribution here is by road
in KwaZulu Natal, but to Johannesburg
and other outlying centres by air.
For over the border sales the
predominant mode is air, according
to Singh.
“We also have an express trade,”
he added, “where we use DHL, TNT,
UPS or one of the other express/courier
companies. This is mainly for our traffic
in documentation or urgent items.”
PFK Electronics manufactures
and distributes over 1.2-million units
a year.