From Point of Origin to Point of Consumption

From Point of Origin to Point of Consumption
Maximising your supply chain by minimising the hidden costs and risks associated
with moving your product from point of origin to point of consumption.
What if there were significant opportunities to maximise your supply chain that could minimise
your risk and potentially save you money? In our thirty plus years of experience, at Value
Logistics we have enabled countless businesses to do just that.
In our experience, most businesses have a distribution model that scales anywhere from fully
owned to fully outsourced. As your business has grown and adapted to the market, your
choice of distribution model is likely to have been shaped more by default than by design; as
a result there are likely to be aspects of your distribution model that you have always ‘done
that way’ but may not be optimum to where your business is or where it’s going.
Through this rapid change, outsourcing across all industries has grown significantly for three
fundamental reasons:
• Business want to focus on their core. Businesses are looking to outsource
operations that don’t form part of their core business – thereby allowing them the
time and energy to focus on their core expertise and leave non-core functions to
the experts.
• Businesses want to leverage resources: In outsourced environments, businesses
benefit from shared resources with the added benefit of not having to manage the
complex human resources challenges.
• Businesses can’t afford the cost of learning: Companies in an outsourced
relationship benefit from the specific expertise that a dedicated outsource partner
can bring to their business, thereby reducing the learning curve and maximising
effectiveness through best practice.
However, although attractive for many reasons, few businesses are aware of, or have
considered, some of the unique challenges of outsourcing any aspect of their supply chain.
Some of these include:
• What to do with their current infrastructure,
• What to do with their current staffing and
• What to do with their legacy systems.
Any one of these could prevent businesses from even considering the idea of outsourcing
and its benefits – at the cost of some major opportunities to reduce overall costs and risks.
But where do these costs and risks actually hide? Well, a supply chain, like any other chain,
is only as strong as its weakest link. Each link either creates friction or flow – and friction costs
money and escalates risk. Challenges range from staff issues to overstocked warehousing to
underutilised resources to aging systems and so on. These problems manifest themselves
everywhere along the supply chain, and their knock-on effect and cost implications are more
significant than most business leaders realise.
Perhaps the question you need to be asking is “is this happening in my business?”. We don’t
profess to know enough about your business to answer that question, and to make sweeping
statements about if or by how much we can reduce your cost to risk ratio. For that reason, we
offer a robust optimisation assessment at our cost. This will give you an indication of what
possible advances you could design into your distribution model, as well as highlight how or
if we can assist in enabling this.
Value Logistics Limited is an Authorised Financial Service Provider #45763
Because Value Logistics has the infrastructure to offer end-to-end supply chain solutions under
one roof as one business; we are able to not only understand the friction points in your supply
chain, we also have the expertise to shape solutions that minimise these friction points. All of
this is backed by state-of-the-art facilities, leading edge technology and smart people who
The newest addition to this, is the cutting edge warehouse and transport facility in
Joostenbergvlakte in the Western Cape region. This facility is part of the Group’s planned
expansion strategy, led by the fact that Cape Town is destined to become South Africa’s
second largest city, and hence the Western Cape is seen as a rapid growth node. We are
scaling up to take advantage of this so that our customers can too.
Unfortunately, most businesses’ supply chains are caught up in the reality of the status quo
created by aging infrastructure, technology and outdated experience. Value Logistics
however, continues to invest significantly into the technology, processes and people that
enable lower-cost, lower-risk supply chains. Don’t let your supply chain be a handbrake on
your strategy. The real question is quite simple. Is distribution your business or a core aspect
of the success of your business? If the latter, perhaps it’s time to talk to us and move from the
distribution model you’ve defaulted to over time to designing the optimum distribution model
for your future.
Value Logistics. Nurturing your supply chain.
Every Product. Every Kilometre. Every Step Of The Way.
Contact Tracey le Roux
[email protected]
082 828 9854
Value Logistics Limited is an Authorised Financial Service Provider #45763