Cash flow allows an organisation to pursue opportunities that enhance value. This may indeed become tricky when importing the goods required to run a business becomes an expensive and complex process, including costs associated with moving the goods, as well as duties and taxes requiring payment once the goods have arrived and clearing required before collection. These activities can result in tied up cash leading to reduced efficiency.
From shoes made in China to crude oil from India, the ability for businesses to ship goods by sea has brought about global economic benefit. Every year billions of tonnes of goods are shipped along major trade routes, in South Africa alone over R133 billion worth of goods were shipped around the world in 2018.
African economies have in recent years experienced a surge in business activity, thanks in part to the emergence of an increasingly prosperous middle class. This consumer boom has not only strained retail supply chains but has placed overwhelming demands on national utilities. The World Bank states that more than 25 African countries face an energy crisis, yet the continent abounds with untapped renewable energy resources. Throughout the continent, electricity supply is constrained, and often erratic with damaging ramifications to local economies and crucial infrastructure such as hospitals, telecommunication networks and water supplies to name a few. These challenges within the energy sector are exacerbated by the absence of contemporary energy services and more often than not, poor infrastructure. The need, therefore, to seek out alternative energy solutions is now an imperative for the continent.
Managing a warehouse holding large quantities of inventory, worth millions of Rands day after day, is no easy feat. A warehouse manager’s job is riddled with daily challenges that can make life a little tricky. Weighing high on the scale of challenges is damaged warehouse inventory, a problem which is difficult to avoid, taking into account all the movement required within the warehouse process. This can have a negative effect on order fulfilment and achieving service level agreements.
(also published in Bizcommunity)
On 27 February 2019, Barloworld Group announced a strategic decision to merge their Automotive and Logistics Divisions, a move that will leverage the assets and capabilities of the two divisions. The new change brings about the opportunity to strengthen the Group's core capabilities while optimising their existing portfolio to ensure sustained value creation.