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.