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New business model provides turnkey operation for BBBEE entrants

19 Oct 2012 - by Ed Richardson
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Combine the skills and
experience of veteran clearing
and forwarding agents with
those of an information
technology professional, and
one gets a new business model
that is already making waves
in the Eastern Cape – waves
which could well wash over the
rest of the country.
“I must have been told 50 or
more times that this or that is
not done in the industry. But
I don’t have preconceptions,”
says business analyst and IT
professional Donald Maherry.
One of the innovations is
a “fixed price” for clearing
imports and exports, rather
than one based on the value of
the cargo.
Looking at the process from
an IT perspective, he can see
no difference in value and cost
of the work required to clear
cargoes of different values.
Clients benefit by having a
fixed cost in the budget and
their forecasts.
He has been helped by
logistics consultant Beverley
Birley to establish Across
Africa Logistics (AAL), which
has been developed from the
ground up as a model for black
economic empowerment in the
industry.
Systems developed and
implemented for AAL allow it
to offer a full logistics service,
including sea, air and road,
clearing, freight forwarding’
and consolidation.
“We started by talking to
executives who understand the
entire supply chain process,
built up the processes and
systems, and documented
them. From there we have
formulated a turnkey operation
for BBBEE entrants into the
industry,” he says.
The management and
billing system is designed
to be on-line, which means
that it can be accessed from
“anywhere”.
Regular reports to clients
are generated automatically
to keep them informed of the
progress of their cargo and feed
into their auditable financials at
the end of their financial year.
His idea for creating a
turnkey business model was
inspired by the challenges
faced when setting up AAL.
“Every step in the process
works against a start-up small
business in this industry. That
includes the guarantees they
must have in place with the
different authorities,” he says.
“The business in a box
(or laptop) will start with
clearing, which is well on its
way in the prototype store
and includes a brokerage
model for independent sales
professionals, companies or
SMEs who wish to leverage
the service and better rates
we can generate.
“We essentially connect the
people who can get contracts
with the skills to then do the
job,” he says.
Systems and process help
complete the bulk of the work
as 90% of what the industry
does is repetition, he says.
Training will be included in
the package, with businesses
operating on a franchise basis
that includes the necessary
guarantees. Support for
the other 10% will also be
provided where necessary.
All the latest customs
codes and regulations will be
kept updated, so whenever a
franchisee logs in they will
have all the information they
need at their finger-tips.
“They will not have to put
down R400 000 or more, and
will benefit by being able to
leverage freight rates through
the group when they move into
freight forwarding,” he says.

CAPTION
From an IT perspective, Maherry there’s little difference in value and cost
of the work required to clear cargoes of different values.’

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