Growth expected for local and export volumes

South Africa, while vulnerable to the global effects of battered economies and natural disasters as seen last year, continues to have a strong automotive sector that is expected to show growth in sales of both local and export volumes. According to David Macrae, business development manager for CAT-WWL Logistics, the general consensus seems to be that volumes are levelling out after a better-than-expected market recovery in 2011, but many factors can have an impact on the local market, such as inflation and volatile exchange rates, global economy woes and natural disasters – all of which were experienced last year. “South Africans are spending again and this is clear by looking at the new car sales trends. More new models are being released and new brands are being introduced – particularly from China. In addition new plants are being built on local shores, pointing in a positive direction,” he said. “The biggest challenge remains balancing operational costs with providing high performance levels. “OEMs and importers have very high expectations of their service providers and it is critical that service and quality meet those expectations. Labour costs are as always at the top of the challenge list – and as our business is labour-intensive, the levels of quality and service delivery required demand that we employ the very best people available.” According to Macrae, the business of outbound vehicle logistics requires critical adherence to lead times and process controls which can present huge challenges when planned processes are interrupted. “As such we spent a number of years developing a customised, integrated Supply Chain and Vehicle Yard Management System solution with advanced features such as alert reporting, deviation reporting, detailed KPIs and predictive ‘Smart’ parking functionality amongst others. These ensure seamless operations are carried out within the required time frames even when unforeseen circumstances take place.” He said ensuring one remained at the top of one’s game in the automotive sector demanded constant focus on new ways to improve services and provide more value to customers. “This year we are initiating a couple of major internal programmes that will be rolled out at all our operational sites, tackling major issues such as safety, productivity and performance, work ethic etc. When you are responsible for around 500 000 new vehicles every year, it is critical that each one of them is driven and handled with utmost care and attention.” CAT-WWL Logistics has numerous operations in all major automotive hubs in South Africa, including Prospecton, Uitenhage, Port Elizabeth, East London, Johannesburg and Pretoria, providing supply chain management, vehicle storage and yard management, rail operations, transport and technical services to vehicle manufacturers (OEMs) and importers.