The logistics of keeping vehicles on the road

Motor dealerships in Zambia need to have reliable and flexible logistics systems in place to ensure that they can keep their customers’ cars and trucks on the road. Zambia’s exclusive Ford distributor is Vehicle Centre Zambia, which is based in Lusaka, and also has branches in Kitwe and Livingstone. It provides support across the rest of the country from the Lusaka and Kitwe outlets. The company leverages the logistics capabilities of the French CFAO Group, and in particular its storage platforms in Europe, to ensure availability and short delivery lead times for vehicles and spare parts, according to sales and marketing manager George Roberts. CFAO Automotive has 50 subsidiaries across Africa, supporting a range of brands. Vehicle Centre Zambia started selling Ford and UD trucks in June 2013. Roberts says the distance from suppliers of vehicles and parts in South Africa and elsewhere around the world means that the company has to hold more stock than dealerships in South Africa. Most dealers in South Africa are no more than a day’s road freight away from the main warehouses, and there are no border delays to cope with. “Our policy with spares is that if we sell two of an item a year we will hold it in stock. This means we hold 10 times as many parts as South African dealers,” he says. There is careful management of the stock in order to control costs. “We count the parts on a daily basis to ensure that we only order to replace what has been sold,” he says. Orders are consolidated to make up consignments which come mainly from South Africa, and take three to four days to arrive from loading. “We generally order on a weekly basis,” he says. Urgent parts are airfreighted into the country. Loads of vehicles are imported weekly, and are kept in bond until sold in order to manage cash flow. According to Roberts, the Ford brand is gaining traction in Zambia, with the highly successful Ford Ranger one ton bakkie helping to drive awareness and sales. Economic growth in the west and other parts of the country is also creating opportunities for the opening of new branches. INSERT & CAPTION The distance from suppliers of vehicles and parts means that the company has to hold more stock than dealerships in South Africa. – George Roberts