Logistics inefficiencies
demand some creative thinking
JOY ORLEK
ZERO TO hero in less than ten years is the enviable achievement of Zero Appliances.
The company has made major inroads into the worldwide absorption refrigeration market, competing successfully in some 35 countries with the likes of Electrolux.
But while it has honed its own productivity and efficiency levels, it cannot escape South Africa’s inflated logistics costs which are out of its control.
“Once you’ve quoted the client, that price is fixed,” says export director Ger‡d Wessels, which means that additionals like the port congestion surcharge and the high cost of freight must be absorbed. “Our ex factory price is very reasonable, but the cost of transporting the goods makes us uncompetitive in world markets,” says Wessels, who would like to see transport operators assuming a partnership role since the success of exports is ultimately their bread and butter.
“We haven’t lost an export order through delays caused by logistics inefficiencies, but it requires some fancy footwork to appease the client while projecting a first world image,” says Wessels.
Zero Appliances uses Cargo Embassy as its forwarder of choice. “Good service is a major priority,” he added.
