Guardforce International sends out a clear message at its 'Fort Knox' facility at Johannesburg International Airport
High-security warehouse
and
distribution
service offered to forwarders
THE freight forwarding and logistics industries must take a holistic approach to risk management if they wish to survive, according to Fred Zenna, vice-president of Guardforce International.
Cargo risk is something that the traditional freight forwarder has never really understood, he said. Maybe 10% know the risk and can offer a holistic solution.
But major multi-nationals and insurance companies now demand a fully-secured environment for their shipping, Zenna added. And a new face is emerging in the SA logistics scene. The 4th party logistics service providers - who make a holistic product offering.
And the strategy which is accompanying the emergence of this new type of holistic forwarder is to outsource services to specialists.
The SA forwarding community is now making a very sharp turn to the right, said Zenna. If they want to compete in a very tight market, they must provide all the security needed.
In areas where they are inadequately provided, they should employ someone with all the structures in place.
The risk management of high-value, theft-sensitive cargoes is the Guardforce speciality.
There is irrefutable logic behind this product offering, according to Zenna.
In practical terms, why should a forwarder or shipper have to invest in a high-security warehouse and distribution service, when possibly only 20% of their cargo is at risk? he asked.
We believe that we can fill this gap. The forwarder, logistics provider or shipper can use us as a link in the chain supplying what they can't, or don't want to, offer.
But we can, and do, offer complete warehousing and insurance - giving a risk management solution to security.
This replaces the previous perception, according to Zenna.
Before, he said, everyone thought that they could leave it to the insurance companies to indemnify them. But the insurance cost kept on rising - and eventually insurance companies demanded full security on the cargo movement.
And here, you can either be pro-active or reactive, Zenna added.
Our vision and commitment is to be pro-active, he said. The reactive will suffer increasing insurance premiums, lose customers, and eventually lose their businesses.
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