Methodical planning is critical

Careful and methodical planning are crucial for successful project work, says Colin Atkins, director projects for World Groupage Services. “Not only does this ensure smooth running of the project, but it also ensures that costs are kept down.” It is important to remember that it is not as easy as just a case of moving cargo from A to B, he says. “When planning it is important to consider all the available options, analyse each one on its merits, consider the shortcomings of each option (what can go wrong), then consider the logistical requirements, discuss with all role players, and then only consider the costs.” And with World Groupage Services having been involved in project work for several years, Atkins should know. The company recently showed its project competence when it completed the import of stackers and reclaimers from China for Sishen South iron ore mine. With around 150 police escorts required for the abnormal loads it proved to be quite challenging, but careful planning saw them meeting the deadline. Atkins says there is much opportunity for project cargo at present. “While there are a number of large projects either under way or on final feasibility in South Africa, all offering work for competent price competitive BBBEE logistics companies, the real opportunities probably lie beyond our borders. “South Africa is well positioned to handle logistics throughout Africa and logistics players generally have a strategic advantage over their counterparts abroad, provided they have strong strategic alliances with companies in the countries they wish to work in.” Atkins says all indications are that the project industry will see steady growth in the coming months after a few years of consolidation due to projects being put on hold. But there are still challenges that companies must overcome. “Tenders often involve substantial work and time and may only be for projects still to be tendered on. The lead time to banking can be years,” he says. “Another challenge is that many supply chains are controlled politically and quality BBBEE suppliers are often excluded from even quoting. This lack of competition can lead to bad service delivery. In addition, coming off a low activity base, there are many logistics players tendering on jobs, often with very low margins or even at cost to pay their overheads. While these tenders are initially competitive and attract attention at tender adjudication, the lack of basic strategy and methodology of operation often results in poor performance and excess variable costs, pushing up final project logistics costs and resulting in an unhappy client.” Atkins says the message clearly is to be careful when assessing a logistics provider in order to ensure they understand the full implications of the project and agree on how variable costs will be contained. “If there is no strategy, there is no solution,” he says.