Motor dealerships in
Zambia need to have
reliable and flexible
logistics systems in
place to ensure that they can keep
their customers’ cars and trucks on
the road.
Zambia’s exclusive Ford
distributor is Vehicle Centre
Zambia, which is based in Lusaka,
and also has branches in Kitwe and
Livingstone. It provides support
across the rest of the country from
the Lusaka and Kitwe outlets.
The company leverages the
logistics capabilities of the French
CFAO Group, and in particular
its storage platforms in Europe,
to ensure availability and short
delivery lead times for vehicles
and spare parts, according to sales
and marketing manager George
Roberts.
CFAO Automotive has 50
subsidiaries across Africa,
supporting a range of brands.
Vehicle Centre Zambia started
selling Ford and UD trucks in
June 2013.
Roberts says the distance from
suppliers of vehicles and parts in
South Africa and elsewhere around
the world means that the company
has to hold more stock than
dealerships in South Africa.
Most dealers in South Africa are
no more than a day’s road freight
away from the main warehouses,
and there are no border delays to
cope with.
“Our policy with spares is that if
we sell two of an item a year we will
hold it in stock. This means we hold
10 times as many parts as South
African dealers,” he says.
There is careful management of
the stock in order to control costs.
“We count
the parts on a
daily basis to
ensure that we
only order to
replace what
has been sold,”
he says.
Orders are
consolidated
to make up
consignments
which come
mainly from South Africa, and
take three to four days to arrive
from loading.
“We generally order on a weekly
basis,” he says.
Urgent parts are airfreighted into
the country.
Loads of vehicles are imported
weekly, and are kept in bond
until sold in order to manage
cash flow.
According to Roberts,
the Ford brand is
gaining traction
in Zambia,
with the
highly
successful
Ford Ranger one ton bakkie
helping to drive awareness and
sales.
Economic growth in the west
and other parts of the country is
also creating opportunities for the
opening of new branches.
INSERT & CAPTION
The distance from suppliers
of vehicles and parts means
that the company has
to hold more stock than
dealerships in South Africa.
– George Roberts
