New business model provides turnkey operation for BBBEE entrants

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.’