Reliable service providers key to overborder export success

Getting it wrong when moving perishables in and around Africa is a costly exercise, according to the supply chain director of a major retailer with a vast and growing African footprint. “If you fail to move the product within the required time and it can no longer be sold then you have to dump it. And to dump in many African countries costs money as you need a certificate that has to be purchased to do that,” he explained to FTW. More often than not retailers learn many of these lessons the hard way – forking out a lot of money to get it right. “When we started expanding into Africa we had a very steep learning curve in the movement of perishables, which is far more complex than general foodstuffs and goods. There is very little room to manoeuvre.” It’s crucial to put processes and procedures in place to ensure quality is maintained throughout the cold chain – taking into consideration the African environment’s lack of infrastructure. “One must remember that every cost is ultimately built into the product. The aim is to keep costs as low as possible and therefore you have to ensure you don’t have too many failures or have to pay too much in penalties and fines.” He said in many cases in Africa they used airfreight for perishables as it was the most reliable and quickest way to get product to the final destination without compromising the cold chain. “We have had to invest in infrastructure to make sure that the various temperatures are maintained throughout the logistics chain – and that has in some cases meant at airports for example. Not all of the spend is on your own infrastructure and it requires a significant cost output initially. But what you save in preventing losses due to supply chain inefficiency is well worth it.” Another critical factor, he said, was reliable service providers. “We are a retailer and not a transporter. We outsource the transport of all of our product, and having reliable people on the ground who can overcome the many obstacles and challenges is critical to success in the African context.” Ultimately, the decision to move goods of any kind into Africa requires a longterm strategy. “It is not quick and it requires investment. You have to be patient as there’s no overnight return on investment. At the same time you have to be willing to withdraw from markets if it becomes apparent that none of the supply chain solutions are resulting in change. Success in Africa does not come overnight.”