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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."

Women leading in logistics at DACHSER South Africa

Three dynamic women in the Cape Town office of DACHSER South Africa, part of global logistics leader Dachser, are navigating their way through a successful career in the traditionally male-dominated field of logistics.

Portia Dryden, Adenisha Jeftha and Sasha-Lee Juter all joined the company through DACHSER’s well-established learnership programme and progressed to become permanent employees. The women share several traits, including enthusiasm for their role in logistics, a capacity to build strong relationships, delight in keeping things running smoothly, and an enjoyment of the diverse challenges logistics brings.

Dryden, now an Air & Sea Import Controller, says that what excites her about her role knowing how essential logistics is in the global supply chain. “It puts a smile on my face when I walk into a clothing store where they are launching their new range for the season, and I know that I had a hand in making sure the imported garments reached the stores in time. This industry opens your world to see how many different sectors work, and in many cases, you gain a deep insight into what happens behind the scenes. The freight industry is multi-dimensional and always growing. With advances in technology, there is always something new to be learnt and that keeps me interested and excited.”

Dryden says although great strides have been made in the last decade, working in a male-dominated field can be intimidating on different levels, from dealing with service providers to liaising with customers, as gender-based barriers have been there for a long time.  “I learned that I had to walk the walk and forget about old, outdated expectations of how one should behave based on gender. Instead, I grew my confidence by learning the trade and gaining the experience. I focused on what I, as an individual, can bring to the table. This does not mean that the road to professional and personal success is challenge-free, but rather that I am both willing and resilient enough to face them.”

The highlight of sea freight controller Adenisha Jeftha’s career was handling her first big client independently after several months of permanent employment.  She then became the key accounts controller on that account and her portfolio has extended to a range of clients across different industries. She thrives on the variety and meeting deadlines. “The constant change in my day excites me - this is not just a A-Z job. I am really motivated by making sure that shipments arrive on time.”

Jeftha says her colleagues and clients inspire her daily. “The relationships we build with our clients and colleagues are a key reason why most staff want to stay at Dachser. We’re more than just colleagues, we’re a family.”

 Airfreight Exports Supervisor Sasha-Lee Juter agrees. “Each new day holds different challenges, different difficulties, but it’s the relationships you build over the years that makes all of that worth it.  Juter is determined to show that logistics no longer needs to be a male dominated industry. “Times have changed so much and I believe the industry has very quickly developed and is allowing more women to steer the ship. To keep attracting women to logistics, companies need to create a culture of equality where we can thrive.”

“I would recommend this career to any individual that likes working under pressure and in a fast-paced environment,” Jeftha concludes. “This is genuinely a great industry to work in.”

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 30,800 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. 

Avoiding customs risks with DACHSER South Africa

Customs plays a vital role in protecting society by securing transport chains by ensuring product safety and by combating cross-border crime. However, inefficient customs can be a barrier to trade and a key risk factor for companies already operating in a more challenging environment as a result of the COVID-19 pandemic. Now more than ever, the value derived from using an experienced logistics provider can lead to significant cost savings. For clients experiencing cost drainage and time delays when moving goods, it might be time to consider their holistic logistics solution carefully.  Read more

Managing Director of DACHSER South Africa, Detlev Duve, says, “Measures undertaken to address the health crisis of the COVID-19 pandemic, including stringent social distancing regulations and stricter transit requirements, have impacted the movement of goods, border procedures and customs in unprecedented ways. Customs border administrations across the regions, already overloaded, have been further stretched, with an impact on the smooth flow of logistics across the region.  The digitisation of transport and trade procedures and the harmonisation of customs regulations must be a strategic imperative during COVID-19, and beyond. However, in many countries across the African continent, we’re not there yet.”

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.

“It has always been a priority Dachser’s teams to be up to speed on customs regulations and procedures, which includes the legal requirements necessary for moving goods into or out of South Africa - and the African continent,” says Duve.  “Our Customs team follows streamlined processes and includes specialist personnel who can analyse and assess client requirements. 

Customs compliance

DACHSER's teams can verify all paperwork for compliance and accuracy, as well as verify and understand International Commercial Terms (known as Incoterms). “Our teams must understand what our clients are importing or exporting, and the requirements around these products. They 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.” 

Rigorous compliance with Customs requirements includes making sure that the product is correctly classified and declared, that it is accurately valued and that the necessary documentation is on hand at the time of clearance, says Duve.  “We have a good working relationship with the local customs’ authorities and have worked closely with them as we moved through the changing regulations of the pandemic, and the transportation of essential goods.”

Many delays occur when importers provide the incorrect tariff headings, or do not have the sales agreement, proof of payment other required information to hand.   Delays can also be experienced when the importer does not have the necessary permission to import the product or cannot produce the proper permit or Letter of Authority. Duve says, “We advise our clients thoroughly on the requirements before beginning any process.  We then closely monitor our clients’ entries, and if there is a possibility of delay, we act upon it immediately through the various channels. Our teams follow these up frequently, and escalate until goods are released.”

Bonded storage to save costs

DACHSER also offers bonded storage, which enables cargo to be stored for up to 2 years.  “Bonded store allows the importer a better cash flow given that they can remove goods only as and when needed.  In doing so, the importer is only required to pay the VAT and Customs duties on those items extracted.  Additionally, the importer can also transfer ownership of the goods, making the new owner liable for any VAT and duties payable.”  Duve says that importers are also able to inspect the goods in the bond store, before paying VAT and duties, to ensure that the correct cargo was shipped and that the quality and quantity is correct. 

DACHSER offers another option to clients when a portion of imported goods are going to be directly exported. “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. “We keep full control of the stock.  Should the client require a portion of stock to be released for local supply we clear the goods, paying the duty and VAT on behalf of the client and billing this back.  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.  In this way, the client is spared having to pay duty and VAT twice.”

Duve says that DACHSER South Africa continues to seek value-added solutions for their clients as they deal with the pandemic.  “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.”  

Discontinuation of the additional service “cash on delivery”

Digitalization and automation are key topics in online business as well as in logistics. As a result, a large number of online payment options have developed that are used in B2B and B2C business worldwide. The hygiene measures established as a result of the Corona crisis and the change in payment behaviour make it more difficult to use means of payment such as "cash on delivery". For DACHSER, the previous additional service "cash on delivery" is no longer necessary and will therefore discontinue this form of payment from 1 July 2020.