Projected 20 Percent Growth in Turnover


The main drive over the last year is the company’s investment in training with a view to improving its BEE status. What they are not doing soon is going into the forecourt business given the question of critical mass and cost to serve in this specific channel. This complex business requires careful consideration
Nor does ID Logistics have any short-term plans for the SADC region, other than perhaps ‘following’ a client into these areas, much as they partnered with Danone to start their South African presence in 2012 or providing a specific solution into the region for a customer.
With Danone as an anchor customer, the client list has grown extensively by adding companies that are new to contract logistics, as well as those who have jumped ship to partner with ID Logistics. And here size does not matter. Among large customers are the ‘smaller players’ who are embarking on the contract logistics journey for the first time.
Eric Hamar, CEO of the ID Logistics Group points out, “We customise a solution for each client so that together we build up logistics expertise and help these concerns expand their markets. We do not enforce our systems but make it our business to learn about each customer’s unique needs and adapt accordingly. And this is not a one-way learning curve. We bring global expertise to bear while local companies have much to teach us too.”
New verticals
Says Etienne Juillard, MD in South Africa, “We added eighteen contracts in 2017 largely in the dairy, processed meat, convenience and retail sectors, some of whom have significant logistics needs. “This brings the number of clients to 36 from seven active customers in 2015. With just under 38 000sqm under their belts, the company has capacity up to 50 000 sqm. Most sites are chilled with around 20 percent being ambient but the company signed up Nestle for ambient food distribution in KZN earlier this year. This is a strategic move as is the company’s diversification into flower distribution export as a new vertical, as is their pilot with the OK food division convenience suppliers across 38 stores over four months in the Western Cape.
The company’s energies have also gone into green projects with R7.9 million spent on photovoltaics and a significant investment in brand new double-decker trucks which are projected to increase payload by 20%. The implementation of a secondary transport optimisation programme, which includes a TMS, will allow a projected 12% reduction in the number of drops.
The implementation of a centralised control tower will drive costs down for customers while employees are encouraged to make their voices heard when it comes to innovation especially as the demands of ECommerce increase.
Globally, ID Logistics employs 19 000 people at 300 locations worldwide in seventeen countries. The company aims to enter one country a year. Last year it was Rumania, we eagerly await 2018’s new addition.
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