‘HealthCheck’ pinpoints shortcomings in logistics chain

There is definitely room for making significant savings in logistics costs, with the current economic crisis adding impetus to the need for companies to have cash released from their supply chains, according to Alex Novitzky, supply chain development manager at Cape Town-based Mærsk Logistics. “International supply chains tie up significant amounts of cash,” he told FTW, “and logistics typically accounts for up to 8-10% of the cost of sales. “Therefore, supply chain optimisation deserves a closer look during these times of economic and financial challenges where even healthy companies are being forced to change strategy in order to weather the storm.” That’s even more the case in SA, Novitzky said, where inland logistics costs are rated higher than most other parts of the trading world – and therefore offer even more room for cost-saving reconnaissance. And supply chain analysis is one of the prime offerings from Maersk Logistics, which has devised a “SupplyChain HealthCheck” – what he called “a proven and practical approach” to supply chain design and optimisation. It’s a cost-saving analysis, with an extra benefit in helping to improve service levels, he added. “By challenging how products flow through the supply chain, as well as how costs accumulate from factory gate to store door, we consistently enable our clients to take out significant costs in supply chains while maintaining or even improving service levels towards their customers.”