New computer system ties logistics chain together

Eliminating infrastructure deficiencies the challenge Kevin Mayhew WITH ITS central location as the hub for most production and transportation, Gauteng has become a popular choice for logistics companies which are being contracted by large local and international manufacturers to outsource their entire logistics process. The sales and marketing manager of Röhlig-Grindrod, Herman Fouche, says such outsourcing has become necessary in South Africa and led to a greater investment in technological capability to manage information systems. “For quite some time the logistics industry in southern Africa has been criticised for long throughput times, damages, delays at ports, relatively high percentage of transportation costs relative to total production cost and the like. Much of the responsibility for eliminating these will now rest with the contracted logistics provider. Maximising efficiencies to cope with the many difficulties calls for intense collection, coordination and integration of information management, which can only be achieved with technology,” he said. The major motivation for outsourcing such a critical element of the production and distribution process is to enable the manufacturer to concentrate specifically on his core business. “With logistics including such elements as warehousing of finished product for initial distribution locally, regionally or internationally, and since Gauteng is the nerve centre of the continent’s production capacity, it stands to reason that a strong presence is necessary there. This will have to be backed by strong representation at other outlets such as ports where hands-on involvement is essential to solve any unique operational or documentation problems at that point,” he explained. Australian link Röhlig-Grindrod has invested in a new computer system called EDI Enterprise which will tie the whole logistics chain together. The system has been developed in co-operation with Röhlig in Australia and has operated with great success for the Australian wing of the company, he explained. Augmenting this is its access to the various supply chain strengths of the Grindrod Group and its own facilities that include warehousing in Johannesburg, Cape Town, Durban and Maputo. These warehouses are capable of local and national distribution, including facilities for bulk commodities. It has acquired Corridor Clearing at Komatipoort for clearances for Mozambique. The company is soon to announce plans for Nigeria and Sudan as well.