Minimising hidden risks helps maximise supply chain

Companies must be able to maximise their supply chain by minimising the hidden costs and risks associated with moving a product from point of origin to point of consumption, according to Steven Gottschalk, CEO of Value Logistics. He then raises the question: What if there were significant opportunities to achieve this that could minimise risk and potentially save money? “In our experience, most businesses have a distribution model that scales anywhere from fully owned to fully outsourced. As a business has grown and adapted to the market, its choice of distribution model is likely to have been shaped more by default than by design. As a result, there are likely to be aspects of the distribution model that ‘have always been done that way’ but may not be optimal to where the business is or where it’s going.” Across all industries outsourcing has grown significantly for three fundamental reasons: • Businesses want to focus on their core. “They are looking to outsource operations that don’t form part of their core business,” Gottschalk added. “This allows them the time and energy to focus on their core expertise and leave non-core functions to the experts.” • Businesses want to leverage resources. “In outsourced environments, businesses benefit from shared resources with the added benefit of not having to manage the complex human resources challenges.” • Businesses can’t afford the cost of learning. “Companies in an outsourced relationship benefit from the specific expertise that a dedicated outsource partner can bring to their business, thereby reducing the learning curve and maximising effectiveness through best practice.” A supply chain, like any other chain, is only as strong as its weakest link. According to Gottschalk, each link either creates friction or flow – and friction costs money or escalates risk. “Value Logistics has the infrastructure to offer end-to-end supply chain solutions under one roof as one business. Because of that, we are able to not only understand the friction points in a supply chain, but also have the expertise to shape solutions that minimise these. All of this is backed by state-of-the-art facilities, leading edge technology and smart people who care.” The newest addition to this is the cutting-edge warehouse and transport facility in Joostenbergvlakte in the Western Cape region. “This facility is part of the group’s planned expansion strategy,” Gottschalk said. “Led by the fact that Cape Town is destined to become SA’s second largest city, the Western Cape is seen as a rapid growth node. “We are scaling up to take advantage of this so that our customers can too.” INSERT & CAPTION Companies in an outsourced relationship benefit from the specific expertise that a dedicated outsource partner can bring to their business. – Steven Gottschalk