Photo: Jacques Joubert, Carmen Stewart, Bruce Acton, Zaboenisha Wagner, Kegan Thambiran, Ashley Brown, Johan Dekker, Ricardo Diljan
DSV’s move from dedicated warehousing to shared multi-client facilities unlocked supply chain cost synergies for us and our supply chain partners – and the initiative won two awards at the Logistics Achiever Awards (LAA) held recently.
A Gold was awarded for “unlocking supply chain value by the provision of shared services in a multi-client facility”. The award recognised that internal changes led to operational improvements and efficiencies, a positive financial impact and created a competitive advantage.
The Enviro award recognised the redesign of the warehouse in Raceway to a multi-client, ISO 14001 accredited facility achieved “significant savings in energy requirements, improvement in MHE operating equipment, and recycled 90% of all site waste.”
We partnered with both internal and external stakeholders in a change management process to educate and upskill all involved on the benefits of collaborating to identify and manage cost out of the shared supply chain – and to reinvest savings for mutual benefit.
Photo: Jacques Joubert, Bruce Acton, Johan Dekker, Kegan Thambiran
A culture of cost-consciousness and ownership has emerged, and in 2018 and 2019 DSV saved R6,8m to fund:
- Lower fee increases for customers whilst defending a fair margin
- Supply chain design and inventory optimisation projects for clients
- Upskilling and cross-training of its people
- Technology that reduces cost, increases operating efficiency and reinforces environmental responsibility (such as solar and LED).
This culture of saving costs for reinvestment has increased our retention of customers, staff and suppliers.