‘Work smarter and returns will grow’

There is no doubt that
improved logistics in the
supply chain can increase
return on investment, says
Garth Bolton, joint CEO of
Cargo Carriers.
Bolton told FTW that too
often companies remained
in a rut due to past practice
methodology. “This is
something many logistics
companies fight on a daily
basis especially when it
comes to the manufacturing
industry. If we improve the
logistics of the supply chain,
then we will improve our
return on investments, but to
do that we must change the
way we are doing business.”
Using the example of
a shoe factory in Port
Elizabeth, Bolton said it was
found that by changing the
way the company had been
doing business, it became
more viable and found itself
increasing its return on
investment substantially.
“To improve logistics
efficiency, it did however
require changing the way
they were thinking and
how they were operating.
The reality is that asking
a company to do that does
require a leap of faith.”
He said too often
companies believed that
to increase their return
on investment meant
squeezing the transport and
warehousing sectors of the
supply chain. “Most truckers
are lucky if they get 10%.
Many companies think if
they want to increase their
profitability they should try
to get their transportation
costs as well as warehousing
costs down. And realistically
you are not going to make a
substantial increase on your
return on investment if you
just do that.”
Bolton said by
substantially changing
the manufacturing aspect
of the business as well as
increasing sales a much
larger increase on investment
can be made.