In the highly competitive courier and express parcel market where there is often little to choose between competitors from a price point of view, value-add to the client takes on new meaning. According to Eugene Swanepoel, general manager of SkyNet Worldwide Express, a division of Crossroads Distribution, reliability and ease of business are two critical aspects of the express business. “Courier companies by their very nature can be very complex to deal with and therefore we have put a lot of effort into simplifying processes and improving the ease of the business environment within our company. At the same time reliability remains a top priority – people need to know that the service they are contracting is reliable,” he said. With the express market not always having critical mass and volumes remaining relatively low in comparison with powerhouses like the US, it is not necessarily always the cheapest mode of transport in South Africa. “We don’t have the volume to really drive costs down to make it easier for customers to use an express service,” said Swanepoel. “But it is a market that has remained extremely stable because of the reliability of the service. At the same time it does speak directly to the current trend of holding less stock but retaining the ability to react quickly to supply chain demands.” Swanepoel remains extremely positive about the future of the sector saying that while industry trends point to a segment that is not growing as fast as it should, the stability and ongoing need to move goods quickly and reliably provides for a positive outlook. “Domestically we are also quite limited in terms of airlines, with only a handful of players in the market, while road tends to be a challenge when operating in Africa due to a lack of infrastructure. These are real challenges that do impact on our business, but at the same time the express and courier industry is one that adds value.” He says that, thanks to the courier and express industry, along with the advent of the Internet, small to medium enterprises can now reach markets they traditionally could never access without having to invest in big inventories, big facilities to hold their stock and national distribution networks. INSERT Domestically we are quite limited in terms of airlines, with only a handful of players in the market.’ CAPTION ‘Ongoing need to move goods quickly and reliably provides for a positive outlook.’
Simplicity and reliability keep customers happy
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