Robust African exports are good news for warehousing and distribution – and demand has remained resilient despite economic headwinds. That’s according to Terence Odendaal, managing director of Teralco Logistics, which recently opened a new 22 000sqm racked, food-grade warehouse in Glenmarais on Gauteng’s East Rand. While the South African and global economy remained sluggish, the outlook for warehousing and distribution was positive”, he said. “We foresee continued resilience of the sector for the foreseeable future on the back of robust demand for South African manufactured products – and if the African Continental Free Trade Area succeeds we could start to see the roll-out of more efficient 24/7 one-stop borders,” he said. According to Odendaal the company’s new warehouse location was carefully chosen to be in close proximity to the R21 which links to all the major export corridors. “With many African economies enjoying growth rates three, four and sometimes even five times higher than South Africa, we believe that demand will increase.” Commenting on trends, Odendaal said there had been a definite shift in fastmoving consumer goods (FMCG) warehousing and distribution. “FMCG companies are focusing more on efficiency than scale when it comes to their supply-chains. This change in mindset has primarily been driven by both the sluggish global economy and the 4th revolution, hence the need for efficiency is coupled with the need for improved technology, systems and processes.” With a focus on SubSaharan Africa, he said one of the biggest challenges was often the lack of understanding of the dynamics behind African supply chains that required time and experience.
INSERT: FMCG companies are focusing more on efficiency than scale when it comes to their supply-chains. – Terence Odendaal
