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WOMEN IN LOGISTICS: Reaching new heights in agricultural logistics

Marlé Badenhorst of DACHSER South Africa, part of a global logistics company, has worked in the agricultural logistics industry for fifteen years. Her considerable experience and personal approach, backed by DACHSER’s range of specialists and comprehensive international logistics networks, ensures that the company provides expert, personalised solutions to clients when it comes to agricultural import and export.  

DACHSER South Africa provides full supply chain logistics solutions to the agricultural industry, including freight forwarding and cold chain solutions. The company most frequently deals with bulk imports of agricultural implements, equipment and even entire plants from countries including Germany, China and Turkey, as well as importing raw materials for agricultural use that would be too expensive to produce locally.  DACHSER South Africa handles exports of various commodities to African countries and internationally.

Many years of analysing client needs and challenges, and then finding solutions, has helped Badenhorst identify what clients really require from an agricultural logistics service provider.  “Clients are so varied with regard to their individual requirements, but often the problems and challenges they face are similar,” she says.  According to Badenhorst, several critical factors come into play to ensure top performance from a logistics company servicing the agricultural industry.

Personalised service

Based centrally in Bloemfontein, South Africa, Badenhorst can often be found visiting outlaying areas including mines & farms in the Free State or Northern Cape to discuss customers’ projects. “Meeting with customers on their premises, including outlying areas like mines or farms, really adds value and is part of the recipe for the long term successful relationships that we cultivate.  I believe a personal relationship is very important to people in the agricultural industry.” 

Harnessing an international network

Dachser has a closely integrated, worldwide transport and warehouse network with over 376 locations in 42 countries, providing customers with a strong presence in the most important procurement and sales markets in the world. “Having so many offices internationally strengthens our network for communications, provides a strong infrastructure and often helps us provide the best quotes,” says Badenhorst. “Recently, we assisted with the import of an entire fertiliser bagging plant from the Netherlands for an agricultural customer. Our offices in the Netherlands and in Germany ensured that  we could offer the best transport rates and a seamless process.”

According to Badenhorst, network knowledge also comes into play when exporting agricultural commodities to any African country, or to international markets. “Thanks to our offices in all the relevant countries, DACHSER has the knowledge and relationships to be able to advise on the various certification and import requirements for a particular product in these countries, ensuring the process runs as smoothly as possible.”

Tailored solutions and careful cost management

Badenhorst says the biggest challenge for import and export has become finding good sea freight rates, due to major increases in shipping charges after the pandemic. “Escalating costs and exchange rate changes have completely exploded the rates per container. We focus on strong negotiation and contacts to ensure that shipments are still viable for customers.”

Intent on finding specific solutions for clients, Badenhorst works hard to streamline haul operations in each case. “We definitely do not apply a standard approach to every client. We monitor charges line by line and deal with all the suppliers directly rather than using third parties where possible. All the charges add up, and it makes a difference when it comes to keeping costs to a minimum.”

Ability to provide live updates and frequent communication

“Not knowing what is happening is a pain point for clients, and they appreciate frequent live updates of the status of their shipments,” says Badenhorst. “DACHSER’s sophisticated client information systems enable this. We monitor shipments on a daily basis, and we are very proactive on updating customers.  Dachser is implementing a direct customer tracking programme, which takes it to the next level of enabling customers to directly track their own shipments.”

Customs expertise

As a freight forwarder, it is essential to have good relationships with the shipping lines and an excellent grasp of shipping principles and Incoterms, says Badenhorst. She accesses the specialist knowledge of colleagues like Deon Heunes, a former customs officer himself. “Deon’s knowledge is impressive. If we do encounter hold-ups, we ensure we are in the best position to assist and keep clients updated. Delays in customs can be expensive and it is critical to avoid unnecessary delays and penalties.”

In some cases, DACHSER South Africa only comes in at the point of clearance and delivery in South Africa, even if the company hasn’t undertaken the marine transportation. “We work closely with the bank’s forex departments to assist customers with the correct documentation,” says Badenhorst.

The right expertise and experience to manage risks and add value

“We help clients to manage risks and evaluate where they might have gaps,” says Badenhorst. “In particular Insurance can be complicated, and we often find new clients who have been importing for many years simply don’t have the correct insurance cover. A good freight forwarder must be able to advise on this.”

Badenhorst also notes the importance of frequent review of terms and agreements between freight forwarders and clients. “At DACHSER, we don’t take the approach of simply implementing annual rate increases. Matters are evolving so much in logistics, and a full review is critical to ensure the client has the best possible pricing.”

With South Africa’s agricultural production set to reach record levels again, strong logistics partners are a critical part of maximising opportunities in the sector. Fresh from great success at agricultural exhibition NAMPO, Badenhorst is excited about what the future holds. “It’s very rewarding to see how much value we can add for clients in this sector as we take on bigger projects, shipping lines recover and we are able to support Southern Africa’s agricultural industry as it grows to new heights.”

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 31,756 employees at 376 locations all over the globe, DACHSER generated revenue of 7.1 billion euros in 2021.  Country organisations represent DACHSER in 42 countries, including South Africa.

Break Bulk Service between Frankfurt and Johannesburg

Airfreight consolidation, or break bulk, is the consolidation of several shipments from various shippers that are destined for the same port or airport overseas. DACHSER South Africa provides a bi-weekly consolidation/break bulk airfreight service between South Africa and Europe, originating in Germany at the company’s Frankfurt Gateway. This offers a cost-effective solution for smaller importers, especially through the challenges of COVID-19. “Different offices in and around Europe deliver cargo into our Frankfurt Gateway and we make use of a weekly service departing from Frankfurt each Saturday and Tuesday. We build up our own unit load devices (ULD), meaning cargo pallet, for the carriers to ship to Johannesburg”, says Detlev Duve Managing Director of DACHSER South Africa.

“Various customers can make up these units, which are moved under one Master Airway Bill. Each consignment is designated to a specific consignee, and  flown to us in South Africa. Once the units arrive in Johannesburg, we break the consolidation apart per House Airway Bill and proceed with customs clearance and other necessary documents.  We then arrange for the cargo to be delivered to our customers.” 

Efficient management of global supply chains by DACHSER Air & Sea Logistics

In air and sea freight, operational procedures are characterized by a high degree of manual effort and require coordination with numerous contacts. With DACHSER as a logistics partner, customers benefit from digital solutions for more efficient management of their international supply chains. A single point of contact at DACHSER supports and coordinates their simple and fast implementation.

DACHSER's experience does show that more and more companies are taking advantage of digital applications for managing their air and sea freight. In order to provide customers with a suitable digital solution according to their requirements, DACHSER provides a diverse product portfolio. The offer is based on personalized customer solutions such as eLogistics, the central customer platform of DACHSER or standardized EDI applications and web based APIs. Analog processes can thus be replaced, optimized, or direct connections to the IT infrastructure of DACHSER can be created. The global project management by the experts of DACHSER Air & Sea Logistics does not only cover isolated parts but the entire processes and customer requirements along the supply chain are considered. This holistic approach also takes into account the overarching connection to the DACHSER Road Logistics network. For a smooth implementation, the products are tested by simulating use cases before going into operation.

Advantages at a glance:

• Nationwide project management and professional consulting by a competent, single point of contact at DACHSER
• Transparency and communication throughout the entire project process
• Digital, paperless exchange without e-mails: direct transmission of forwarding orders to DACHSER’s transport management system for air and sea freight (Othello)
• Sending status and invoice data to the customer's ERP system
• Fully automated, time saving and low-disruption processes
• Fast and detailed shipment information in real time
• Seamless integration via a single, secure source of data, thus avoiding data silos
• Synergy effects of the homogeneous system infrastructure of DACHSER
• Extension of existing enterprise solutions with additional features 
• Comprehensive digital set-up with customized solutions

The experts at DACHSER Air & Sea Logistics will be happy to provide you with further information.

Overcoming Africa’s logistics challenges: Dachser South Africa's approach to customs 

Trade is the lifeblood of any economy, and the smooth operation of customs and trade procedures is critical. However, logistics companies moving goods across the African continent face a unique set of challenges. These include inadequate road and rail networks, poor infrastructure, excessive official and unofficial roadblocks, significant border delays and complex customs and excise. A lack of coordination among multiple government agencies often results in inefficiencies and bottlenecks that hinder the smooth flow of goods across borders.

The establishment of a single market has introduced new distribution systems for customs and excise revenue, which has necessitated adjustments from logistics companies. The secretariat of the African Continental Free Trade Area (AfCFTA) agreement launched an interim trading arrangement with eight qualifying countries (Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia) to test the agreement’s provisions while negotiations are ongoing. Although trading under the AfCFTA started in January 2021, commercially significant trade has yet to happen, primarily due to the delayed Phase 1 negotiations on trade in goods and services such as the negotiations on Rules of Origin (RoO).

Regional integration arrangements further complicate matters. For example, the coexistence of the Southern African Customs Union (SACU) and the Common Market for Eastern and Southern Africa (COMESA) poses specific challenges. Intensive documentation requirements, samples for laboratory analysis, complex tariff classification, and valuation delays are some other hurdles that affect trade facilitation.

In this challenging environment, logistics companies play a pivotal role. DACHSER South Africa has been successfully navigating these complexities for over forty years, providing comprehensive logistics and customs management solutions that ensure the smooth movement of goods.  “Our commitment is to provide our clients with a holistic and seamless solution and we see ourselves as an extension of their businesses.  This means that we take care of all aspects of the transportation, including customs, storing, handling and the safe delivery of goods from origin to destination.” 

To deal with customs challenges, DACHSER focuses on compliance, transparency, and adaptability, says DACHSER Managing Director Detlev Duve. "Compliance with local and international customs regulations is essential, requiring a detailed understanding of these laws and regulations. Transparency in operations helps build trust with authorities and clients, while adaptability allows logistics companies to adjust to changing regulations and market conditions."

In order to avoid significant time delays and unforeseen cost implications, Duve says it’s vital that companies involved in international trade understand and comply with changing regulations and requirements. However, getting to grips with regulatory environments be challenging for companies and divert resources away from core business priorities, making a trusted logistics partner an essential part of doing business.

Duve says DACHSER's teams are well-versed in customs regulations and procedures. “We ensure compliance with customs requirements, including correct classification and documentation, which can save customers considerable time. Understanding Incoterms and maintaining a good working relationship with local customs authorities are key components of our approach. We further consider where costs can be saved or passage expedited. For example, certain processes could entitle an importer or exporter to claim back a percentage of duties paid to customs.” 

Customs developments have also created some opportunities for logistics companies and clients to streamline their operations.  For example, in South Africa, the government has introduced measures such as accredited client statuses for those registered for customs and excise activities.

Global logistics operations like DACHSER are also able to fully leverage technology to improve their customs handling processes. “Our digital tools assist in accurately calculating duties, tracking shipments, and ensuring documentation is correctly filed, reducing the risk of errors and delays,” says Duve.

DACHSER South Africa also offers value-added solutions for clients such as bonded storage, which allows cargo to be stored for up to two years, improving cash flow for importers. The company further provides an option for clients when a portion of imported goods will be directly exported, sparing them from having to pay duty and VAT twice. “If the client does not need to clear the entire shipment, DACHSER South Africa will clear the goods directly into our bond store and no duty or VAT will be paid until the cargo is moved out,” Duve explains. “If a portion of the stock needed to go to an African country, we would move this out with a bonded truck to that country, where the cargo would be cleared.” 

While the customs landscape in South Africa and Africa presents formidable challenges, logistics companies like DACHSER South Africa have found ways to navigate these complexities and deliver excellent service to their customers. Now more than ever, the value derived from using an experienced logistics provider in Africa can lead to significant cost savings.