‘Outsourcing could address SA’s bloated logistics costs’

KEVIN MAYHEW
SOUTH AFRICA’S logistics component remains double the percentage cost of that in Europe and America, so a radical change in attitude towards reducing the cost of logistics is still required.
General manager logistics of Johannesburg-based Birkart Globistics, Mike Stolpe, says there is a willingness by local manufacturers to introduce efficient production processes, but they are reluctant to look at logistics adjustments to achieve greater efficiencies and cost savings.
“They do not look at the logistics chain as a whole unit, but rather seek to make savings in certain areas alone. If they viewed it as a single process and introduced more outsourcing there would be greater savings,” Stolpe explains.
Logistics represents about 16-18% of costs to reach consumers in South Africa, against just 6-8% in Europe and America.
He adds that his company introduces the latest necessary logistics infrastructure, methodologies, IT and systems to achieve greater economies for clients.
Birkart Globistics offers supply chain management, just-in-time delivery, real-time tracking and tracing, order follow-up and order management, local distribution and warehousing with radio frequency scanning among other services.