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Cultivating success in agribusiness with tailored logistics

In the ever-evolving landscape of the agricultural sector, agribusinesses frequently grapple with logistics challenges that can hinder operational efficiency and profitability. From unpredictable shipping rates and fluctuating exchange rates to complex import regulations, the challenges mount up. A lack of transparency in logistics processes often leaves clients anxious about the status of their shipments, creating unnecessary pressure and frustrations.

“The right logistics partner is a crucial cog in the success of any agribusiness,” says Detlev Duve, Managing Director of DACHSER South Africa. "As businesses face mounting pressure to optimise costs and ensure compliance, it's essential to partner with a provider that understands the particular complexities of the industry and is well equipped to provide tailored solutions."

According to Duve, essential factors for navigating agricultural logistics successfully include robust project planning and risk management, a strong network, personalised service with teams in the field, detailed tracking and customs expertise. "Potential customers should carefully evaluate how their logistics partners address their pain points. A lack of proactive measures can lead to significant operational disruptions and financial loss."

Strategic solutions for agribusiness

Agribusiness often requires large equipment and machinery to be imported or transported, in cases an entire plant, requiring specialist expertise. When it comes to moving produce, it is vital to maintain product quality and comply with food safety regulations during transit.

DACHSER provides a full suite of supply chain logistics solutions to the agricultural industry. The company frequently handles bulk imports of agricultural implements, equipment, and raw materials from countries like China and Turkey, and exports commodities such as teff and lucerne to other African countries and beyond.

For instance, a milling company that exports processed, fortified maize for the World Food Programme relies on DACHSER's expertise. The maize is warehoused, repacked, and wrapped onto pallets in DACHSER’s food-grade warehouses. “We use our own warehouses in Durban, Cape Town, and Johannesburg, ensuring control and compliance with food safety standards,” says Duve.

Cost-effective and client-focused
​DACHSER South Africa's targeted approach to logistics encompasses a range of services, including consolidation, i.e. LCL (Less-than-Container-Load) services via a sea freight gateway in South Africa, and FCL (Full-Container-Load) services. Break bulk seafreight is offered for large plants as needed. Duve explains, “We pride ourselves on building solutions according to customer needs, and finding the most efficient ways of operating. Congestion is a problem at ports, so we try to consolidate shipments and ensure that we have warehousing at strategic points, securing supply chains end to end for customers." ​
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​Unlike standard annual rate increases, DACHSER frequently reviews terms and agreements to ensure clients get the best possible pricing. “Matters evolve rapidly in logistics and regular reviews are critical."

Shipping rates have become increasingly volatile, a challenge DACHSER tackles head-on. “Escalating costs and exchange rate fluctuations have exploded the rates per container,” says Duve. “We focus on strong negotiation and direct dealing with suppliers to keep costs to a minimum.”

Project planning and control

Effective project planning is another core strength of DACHSER. From importing entire plants to handling complex equipment projects, DACHSER’s international network ensures optimal control and seamless movement of cargo. “Having so many offices internationally strengthens our network, allowing us to provide the best quotes and a seamless experience for our clients,” says Duve.

Customer service and transparency

As a global business, DACHSER has an extensive network and is well-equipped to handle complex shipments across borders - while at the same time cultivating personal connections through our local team. "Our team of experts understands the intricacies of agricultural supply chains and leverages this knowledge to deliver tailored solutions that meet our clients' needs."

Personalised service is at the heart of DACHSER’s operations. Clients are assured of a single point of contact and have access to senior management, including Managing Director Detlev Duve. Frequent updates on shipments, live tracking, and proactive communication differentiates DACHSER from other logistics providers.

“Not knowing what is happening is a major pain point for clients,” says Duve. “Our sophisticated technology and client information systems enable frequent live updates, making a significant difference in client satisfaction. It brings clients closer to where their products are in the world.”

Based in Bloemfontein, South Africa, DACHSER's decentralized sales executives often visit farms, discussing projects directly with customers. "This personal touch significantly enhances the long-term relationships we cultivate, as we deeply understand that in the agricultural industry, connection and trust are vital."

DACHSER South Africa expands coastal cross-docking facilities

Cross-docking, where inbound cargo is unloaded from an incoming container, sorted and then loaded directly to outbound carriers, is an important logistics strategy that keeps supply chains moving in a productive, effective manner.  Logistics leader, DACHSER South Africa, has recently expanded its Durban operations to a new 3600sqm warehouse in Pinetown, Durban.

“The new off-loading and loading bays have increased our capacity to handle a number of containers at a time, enabling us to offer excellent turn-around times,” says Detlev Duve, DACHSER South Africa, Managing Director,  “The facility provides a dedicated central site for products to be sorted for delivery to multiple destinations in the most productive way, saving costs. Ultimately, our customers benefit from a more efficient supply chain.”

Deidre Smith, DACHSER Sea Freight Imports Manager,  says, “We’re able to consolidate shipments, or even break down larger shipments into smaller loads, for easier delivery. Storage and handling costs can be reduced as products spend less time in the warehouse. Cargo also typically reaches its final destination faster, giving our customers a competitive edge.”

Further to a spacious, well-equipped warehouse, Smith says that experienced staff and effective planning are the foundations of a successful operation. “Skilled staff are vital to the operation and management  of the warehouse.  From expert inventory control using Warehouse Management Systems,  through to our material handling equipment operators and cargo handling teams, we ensure that all our staff are well-trained and clear on the different goods and requirements of our customers.”
 

Smith explains that the goods that are most conducive to cross-docking are those that are in steady demand, usually higher volume, fast-moving products scheduled in regular dispatches to pre-planned destinations. DACHSER also has the experience to handle large or complex items. “Of course, the preferred cargo to handle is stackable, palletised cargo that fits neatly into racks can be easily transported, but we’ve become experts in handling the odd and awkward cargo too.  Taking care of customers cargo and avoiding damages is our top priority, and our Durban handling team has the experience to load the trucks safely and correctly.  We also ensure that the appropriate handling equipment is available when off-loading a container and manoeuvring the cargo around the warehouse.”  
 

The DACHSER team handles both Pre-Distribution, where goods are unloaded and despatched according to set distribution instructions, and Post-Distribution processes, usually for retailers, which entails flexible picking and packing according to demand, based on in-store inventory, sales forecasts and trends.

Duve says it is also essential to partner with reputable transporters that offer a regular and reliable service to move the goods from warehouse to customer door.    

“With all the right foundations in place, cross-docking has become part of the seamless supply chain solution DACHSER South Africa offers to our customers, which further includes contract logistics, value-added warehousing, customs clearance and customs warehousing services,” says Duve.

 About DACHSER:

A family-owned company headquartered in Kempten, Germany, DACHSER is a leading supplier of logistics services worldwide.

DACHSER offers comprehensive transport logistics, warehousing, and customer-specific services in two business fields: DACHSER Air & Sea Logistics and DACHSER Road Logistics. The latter consists of two business lines: DACHSER European Logistics and DACHSER Food Logistics. Comprehensive contract-logistics services and industry-specific solutions round out the company’s offerings. A seamless shipping network—both in Europe and overseas—and fully integrated IT systems ensure intelligent logistics solutions worldwide.

Thanks to some 30,995 employees at 393 locations all over the globe, DACHSER generated revenue of 5.66 billion euros in 2019. That same year, the logistics provider handled a total of 80.6 million shipments weighing 41. million metric tons. Country organizations represent DACHSER in 44 countries.

For a sustainable society: More and more NGOs are taking action around the world

In the course of globalization, internationally networked non-governmental organizations or NGOs are playing an increasingly important role. DACHSER’s partnership with children’s aid organization terre des hommes demonstrates how a company can support an NGO over the long term.

Environmental protection, human rights, joint development projects, migration, anti‑discrimination: the importance of non-governmental organizations, or NGOs, for society is great. Independent of states and governments, they advocate for social, socio-political, or environmental issues. The coronavirus crisis is making the work of NGOs more urgent, as humanitarian aid in developing countries is now more important than ever. This is a challenge for many such organizations, as their work is often hampered by travel bans as well as difficult working conditions and hygiene measures on site. In addition, many of those who donate are less willing to do so in times of crisis. Yet this is exactly what NGOs depend on, because in addition to membership fees, donations are their main source of financing. Transparency with regard to an organization’s cash flow and what it achieves with those funds is now all the more critical for strengthening donor confidence. Many NGOs inform their donors regularly via press releases, newsletters, or on their website about individual projects and the use of funds. NGOs are also monitored by auditing companies and the relevant tax authorities to ensure that they are using donations correctly. A “donation seal” from the German Central Institute for Social Issues (DZI), headquartered in Berlin, helps engender even greater trust on the part of the donors. The seal guarantees that the respective NGO is trustworthy and that the work they do is respectable.

DACHSER supports terre des hommes

According to estimates, there are currently tens of thousands of NGOs worldwide, providing medical care in crisis areas, looking after refugees, supporting micro-enterprises in the start-up phase, and more. One of the leading children’s aid organizations is terre des hommes. Founded in Germany in 1967, the organization protects children from slavery and exploitation, cares for the victims of war, violence, and abuse, and provides education and training for children. The German arm of terre des hommes currently supports 386 projects around the globe. International logistics provider DACHSER has been supporting the work of terre des hommes in South Asia, southern Africa, and Latin America since 2005. In keeping with the principle of “helping people to help themselves,” terre des hommes implements local aid projects to permanently improve the lives of children and the others in their villages. “As a global logistics company, we have operations around the world that bring people, markets, and manufacturing closer together. Yet not everyone is experiencing the benefits of globalization. It is our responsibility to stand up for these people and improve their living conditions,” explains Bernhard Simon, CEO at DACHSER.

By extending its contract with terre des hommes through 2025, DACHSER will be supporting the North Indian state of Bihar as well as projects in New Delhi and Uttar Pradesh. Taking a look at the latter, Ingrid Mendonca is coordinating an aid project there for terre des hommes Germany and is enthusiastic about the commitment of the locals, especially now during the coronavirus pandemic. “Not only do the youth groups support their own communities, sew masks, and procure food, but they are also getting in touch with young people in other villages, districts, even states and getting organized,” Ingrid Mendonca says. “Their commitment to improving the situation is inspiring.”

DACHSER employees also benefit from their employer’s commitment to social responsibility and can support terre des hommes projects on site. For example: Melanie Diem, Team Leader Project Management at DACHSER, coordinated a sustainability project by terre des hommes and DACHSER in Livingstone, Zambia. DACHSER Young Professionals and students from the terre des hommes network took part in the project. “The participants’ commitment to the cause was very impressive. DACHSER employees have the opportunity to immerse themselves in the work of an NGO, an area with which they might otherwise never come into contact,” Melanie Diem explains.

A special kind of commitment

The partnership between DACHSER and terre des hommes shows that together, a commercial company and an NGO can achieve amazing things. “Our collaboration with DACHSER is particularly valuable and important to us because it involves a huge personal commitment and open and honest dialogue,” says Stephan Stolze, head of the fundraising department at terre des hommes. “DACHSER’s employees and CEO Bernhard Simon in particular are deeply involved in the terre des hommes projects funded by DACHSER. They want to know how the people on the ground are doing and to what extent DACHSER’s support succeeds in helping to improve the living conditions of the local people.” In 2018, DACHSER’s commitment was recognized with the German CSR Award in the “Social Engagement” category. Partnering with an NGO makes DACHSER a pioneer, as only a few companies in Germany support internationally active NGOs. “Larger, international companies in particular should seriously consider the UN’s 17 Sustainable Development Goals and support projects in these areas for as long as they can,” Stephan Stolze says.