Returns management offers big savings

The economic recession is encouraging a more innovative and comprehensive use of the global logistics supply chain and United Parcel Service (UPS) has seen a greater demand from its customers to utilise a wider range of the company’s services. “Our customers have seen the cost-saving value of using one company for the full logistics service, from storage and distribution to the full spectrum of transport services – road, air and ocean,” says Thore Saether, operations director for UPS South Africa. He adds that UPS’s global positioning and strong international buying power makes it the “ideal partner” to offer a comprehensive, cost-effective supply chain management solution. “The economic climate is encouraging an out-of-thebox approach to coordinating the supply chain through as few links as possible.” He told FTW that the need for cost reduction had forced companies to find more creative solutions, which include offering multi-faceted services. “For example, there has also been a greater emphasis on returns management, especially parts under warranty. The improvements in cost control and service to the end user can be substantial,” notes Saether. “We are pleased to be in such a strong position and our focus is to continue to provide a holistic supply chain in Africa,” he adds. He says that American companies in particular are increasingly focusing on African development. “Increasingly foreign companies are looking to develop into Africa but are using their local operation in SA as a launching pad, using the skills gained locally to accelerate their presence in the region,” says Saether. He is confident that South Africa will retain its status as a gateway to Africa, particularly as a logistics hub, as it has skills, hard gained over many years of investment and service.