Re-engineering eliminates process duplication

RAY SMUTS AS THE rand powers on, eroding profit margins and increasing transport costs, there is only one thing for it; save, save and save, says South Africa’s largest portside cooling handler, Fresh Produce Terminals. “The real challenge that fruit industry service providers such as FPT face at this time is to reduce costs without it impacting on service and standards,” says Durban-based Denny Reddy, FPT Durban general manager. Put simply, the annual rate increases are around 2% lower than the rates at which costs are rising, says Reddy. “The usual cost-cutting strategies targeting tangible cost items such as telephones, stationery and travel, only serve to create an awareness and do not really address the issue in the longer term, in a sustainable manner.” To further reduce costs and still be able to render a professional service in the Specialised Reefer Sector, FPT is busy re-engineering its processes so that both its employees and its facilities meet the needs of the industry and survive the current financial constraints. Some leading economists believe the rand will be trading at R6.44/dollar come year’s end. Essentially, this will entail a complete review of the handling process to streamline traffic flows and eliminate areas of duplication that add no value. This will result in closer co-operation with other service providers in the fruit industry. In addition, by increasing the flow of data from source, pallets can be stowed in the vicinity of the possible shipping locations, thereby minimising the number of times a pallet is handled, and reducing costs. “We believe this will result in a more cost-efficient terminal operation while importantly maintaining service and quality levels,” says Reddy.