20 March 2007 – Stockholm, Sweden – A call to take a more holistic approach to managing finished vehicle logistics in South Africa has been made by Rune Loew, Managing Director, CAT-WWL Logistics (PTY) Ltd, the global finished vehicle logistics provider.
Speaking at the second AIDC± National Automotive Supply Chain Conference in Port Elisabeth, South Africa, Mr Loew declared that until recently there had been no high level vision for integrating the various steps in the vehicle supply chain process in South Africa which has meant there was limited scope for creating synergies among the various service providers.
As a consequence OEMs in South Africa have not been enjoying the benefit of a fully integrated supply chain and has instead been exposed to higher than necessary total distribution costs.
Mr Loew told delegates that the optimum solution for improved flexibility and response in the finished vehicle logistics sector was for logistics companies to take a seamless factory-to-dealer approach to the way they do business.
“Improved service predictability, better visibility, greater transparency, and improved flexibility in the market are all achievable goals in the South African vehicle logistics market,” said Mr Loew.
“By demonstrating true innovation and leadership we can achieve enhanced customer service, shorter distribution times, increased quality, and a reduction
in overall costs,” Mr Loew concluded.
“South Africa is fast developing from an emerging local market for cars and is becoming a major supplier of vehicles for local and global markets,” Mr Loew observed.
Hitherto vehicle makers in South Africa have not been enjoying the benefit of a fully integrated supply chain and have instead been exposed to higher than necessary total distribution costs.
“The integration of South Africa into the global marketplace has brought with it new challenges and expectations for quality and cost. To achieve real synergies in the vehicle logistics marketplace we need to apply a multi-supplier approach to vehicle distribution in this country,” he commented.
“By deploying a holistic approach to finished vehicle logistics we can create real efficiencies and improve the opportunities for growth,” concluded Mr Loew.
CAT-WWL Logistics is a joint venture between Wallenius Wilhelmsen Logistics, the global finished vehicle logistics company, and the French-basedCompagnie d'Affrètement et de Transport (CAT) Group.
The Automotive Industry Development Centre (AIDC) has been established to assist in increasing the global competitiveness of the South African automotive industry to world-class levels by addressing the following challenges: