Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of manufacturers and consumers. It may sound simple, but it is not.
It demands the integration of information, transport, inventory, warehousing, materials handling, packaging and security. The goal is to have the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer. There is considerable value in achieving this.

The current international downturn and credit crunch is prompting new preoccupation with low cost, and manufacturers and suppliers have become more cost conscious at all levels within their organisations.
There is an impact on the logistics industry. Logistics, sitting at the end of the supply chain, is invariably hardest hit when it comes to cost cutting, despite the fact that logistics in many cases contributes less than 10% of the total cost in the manufacturing and supply chain.
Come what may, its status as a cost focus point seems permanent.

We have asked ourselves: “Is there value in being the cheapest transport contractor?”
Our answer is no, and we drive the added value proposition much harder than cutting costs for our customers. By adding value, we reduce cost. The result is that our customers stay with us for very long periods, primarily because they appreciate the value and benefits that we invariably bring to their business.
Such value derives from backward integration within our customers’ supply chains and Cargo Carriers’ commitment to delivering a very high service level at all times – without fail.

In support of this, we have implemented a branch best practice system within all our contracts, which focuses on each customer and the specific needs of that customer.
The results, when compared with international standards, show significant improvement by leaps and bounds.

Exceptional service levels, however, come at a cost and we regard this cost as a non-negotiable issue.
Our focus on improving and increasing our levels of service has differentiated us from our competitors and this, together with our innovative approach to the supply chain of each customer, is the foundation stone of our competitive edge.

Cargo Carriers subscribes to the POOGI (process of ongoing improvement) approach as detailed within the concepts of the Theory of Constraints (TOC) published by Eli Goldratt – a renowned Israeli physicist and business guru who also developed, among others, the concept of OPT (optimised production technology) and Critical Chain Project Management, which emphasise the resources required to properly plan and manage projects.

The way in which South African commercial and industrial enterprises do business changes on a daily basis, and even more so in the current challenging economic times. With POOGI and TOC woven into our business culture and methodology, we understand this and embrace the challenges associated with change, at the same time being committed to extract value for our customers and shareholders on a continuous basis.

The Cargo Carriers group has operated traditionally in clearly defined vertical markets, namely steel, chemicals, powders, fuel and sugar. We have industry experts with deep knowledge of these verticals so that we can walk the talk and clearly understand the needs of our customers and the constraints within their supply chains.
This focused approach, based upon expert knowledge, has led to Cargo Carriers being widely accepted as a logistics leader in the industries within which we operate. Not only do we ensure that we understand the logistical complexities that apply to these verticals, we also have the knowledge and the resource to develop and apply the most appropriate and effective logistics solutions. Low-cost logistics services and solutions simply cannot deliver the required depth of experience and industry expertise. They require shortcuts that result in unforeseen costs being incurred elsewhere through late, lost or incorrect delivery, inadequate storage, vehicle accidents, damaged loads and product loss and liability.

The real value of expert logistics services and solutions generally becomes apparent only as a company experiences the real costs of low-cost logistics when ‘the wheels fall off’. Major contracts can be compromised or cancelled and essential product may not reach its destination on time, invoking heavy financial penalties.
There are many other variables that can go wrong if a low-cost approach is adopted. Simply stated, low cost is often very high cost.