GAC Laser targets ‘reasonable’ growth

While the significant decline in volumes moving through South Africa’s ports is an indication of the economic outlook, supply chain major GAC Laser is targeting reasonable growth for the year ahead. “In Cape Town and Durban we’re aiming for 25% while our fledgling Johannesburg office is expected to deliver 50-60% growth,” CEO Simon Hayes told FTW. “From a customer perspective we haven’t seen too much down-trading so we are very positive and are hoping that the downturn won’t last too long.” The company is hoping for an improvement by the middle to end of the year. Now into the second year of its joint venture with Laser Logistics, GAC Laser is reaping the rewards of its association with a significant international partner with a global network spanning 300 offices worldwide, says Hayes. Historically GAC Laser has always been big in textiles in the Western Cape. “It has been troublesome as an industry but our textile players seem quite strong,” he told FTW. The company has however diversified in terms of product mix and service portfolio, moving into warehousing, transport and distribution. “We now offer the full supply chain spectrum and use an IT system built and developed for the GAC Group internationally, providing internet-based visibility for our customers.” In line with several industry commentators, Hayes believes that developments around the 2010 Soccer World Cup will help to cushion the effect of the global downturn for South Africa. And at GAC Laser there’s a clear hype about the event. Not only is the company involved logistically – having developed an event logistics capability at Group level – but it’s also using it to build brand exposure and provide a meaningful channel through which its staff can participate and contribute to the global event. Its truck branding, group marketing, group skills development and corporate social responsibility programmes are all geared to 2010, with soccer development for the previously disadvantaged one of the areas of focus. The next big development for GAC Laser will be the launch of a state-of-theart facility in Kwazulu Natal. Set to open in July, it will be custombuilt to GAC Laser specifications. “It will be moulded for our Durban operation which involves a lot of handling, unpacking and cross-docking, creating greater operational efficiencies.” Growth and consolidation are clearly the watchwords at GAC Laser for the year ahead.