Now is the time for FMCG importers to review their relationships with their logistics operators and suppliers. This is according to Blain Kondiah, managing director at Turners Shipping.“The last two years have seen unprecedented delays in international shipping, leading to uncertain lead times and unreliable supply chains. Add to this the rising costs of imports and one can see it is time to hit the reset button.”South African importers must deal with exchange-rate f luctuations as well as steadily rising shipping costs. In the FMCG environment, cost points are critical and any savings that can be made along the way will impact the unit cost of goods on the shelf.Kondiah encourages importers to have a look at the agreements and arrangements they have with their suppliers in the supply chain. “For example, many service providers have f lat rates for generating documents and other standard operations in the shipment of goods. These add up and impact the bottom line.“It is important to check all documentation and get detailed invoices from your suppliers and to make sure every entry is understood.”China is a major source of imports for the local market, and with most shipments being FOB, it is important to use a shipper that has in-depth knowledge of landside arrangements in China.With over 30 ports serving the export manufacturing hubs in China, choosing the best route is not as easy as one might think. Ports may vary in the types of goods they prefer to handle, the vessels that are accommodated and shipping lines served.“The closest port is not necessarily the best option,” says Kondiah. “The costs of landside operations are high and can be even more costly if poor decisions are made through lack of local k nowledge.”When choosing a carrier, one must consider the merits of direct and indirect sailings, and berthing allocations at the ports of discharge.“If the last two years have shown us anything it is where there are weaknesses in our supply chains, and we now have the opportunity to address these and come out stronger.”Turners Shipping is the South African partner in BDP International’s global network of freight managers, giving them access to the 14 BDP offices and partners in China.
