Crossing Borders into Africa with Fleet Management- Freightware
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Transcript of Crossing Borders into Africa with Fleet Management- Freightware
Our Submission
• This joint submission is about how Triton Express and Dovetail undertook to cross borders and drive business into southern Africa - specifically into Namibia, Swaziland, Zimbabwe, Mozambique, Lesotho, Botswana and most recently Zambia
• By using an established infrastructure, world class I.T systems and an entrepreneurial culture
• To tell you the story about how Triton Express did this is Juan Potgieter, Triton’s Project Manager for Cross Border Operations and Tony Davis, Managing Director of Dovetail
Real Results• Currently 65 new jobs have been created with the establishment of these 6 new branches
(both in South Africa and in neighbouring states)
• The company has invested in a number of new vehicles to service these new areas
• Triton Express has been able to expand its service offering to both its current client base as well as to attract clients in new market verticals including mining
• Improved service levels - in the case of Namibian operations. Triton Express increased services levels for its partner from 42% - 97% on time delivery
• The expansion drive into Africa has achieved success with 4 of the 6 cross border branches showing profitability in the first 12 months
• This has paved the way for these operations to contribute in the region of 10% to overall group turnover
Real Results - Volumes past six months
COUNTRY WAYBILLS PARCELS MASS (KG’s) SUBTOTAL (RANDS)Botswana 161 973 154 697 485 244
Lesotho 21 310 11 891 39 746
Mozambique 221 1 271 103 476 1 319 738
Namibia 7 124 48 716 1 112 423 6 599 996
Swaziland 3 606 29 810 1 152 258 3 332 578
Zimbabwe 311 8 071 664 405 2 115 910
GRAND TOTAL 11 444 89 151 3 199 150 13 893 215
The Triton Express Journey
1987 1993 1994 1997 2000 2001 2003 2004 2006 2011 2012
Triton Express is Established
Johannesburg & Pietermaritzburg
Cape Town
1st Linehaul Vehicles
Port Elizabeth & Freightware
Bloemfontein
George
Nelspruit
Polokwane
Newcastle & Richards Bay
Upington & Windhoek
Triton by numbers • A client base in excess of 2, 500 loyal customers nationally• 1, 120 dedicated and hardworking employees• Over 300 vehicles of which 78% are Euro 3 + compliant (RSA standard - Euro 2 until
2014) reaffirming our commitment to a greener Africa• 2, 692 tyres on the road on a daily basis• Average daily tonnage distributed of 502 tons• Average parcel size of 165kg• Turnover in excess of R463 Million for FY 2013• Over the past 26 years The Triton Express Group has grown and its subsidiary
companies include Triton Express, Triton Linehaul, Triton Supply Chain Solutions, Triton Fleet Management and Cryogas Express.
Strategic Objectives• The last decade has seen Africa rise in the global village - amid on-going uncertainty in
the global economy and despite scepticism, evidence of Africa’s progress and growth remains real and sustainable
• To provide the best possible service that exceeds customer expectations• To be an entrepreneurial organisation with leadership at every level• To use the latest technology to maximise productivity and enhance service
• To establish consistent, reliable and dependable express road freight operation into neighbouring countries from South Africa
To be recognised as the leader in our industry in all aspects of our organisation
Triton Express Today
2013Swaziland
Mozambique
Zimbabwe
Lesotho
Botswana
RTMS Green Awards
Namibia Zambia
The Opportunity • According to the EY Africa Attractiveness Survey of 2013 the transport and logistics
sectors account for 42% of Africa’s infrastructure projects up to February 2013 and 41,5% of all capital invested into the continent
• A developing continent• A return to political stability in the SADC region• The discovery of natural resources • A substantial increase in foreign investment
• Ultimately southern Africa requires a dependable break bulk, express road freight service , underpinned by an established infrastructure, world class I.T systems and an entrepreneurial culture
IN-DEPTH RESEARCH
•Basic principles of demand and supply by understanding the market, trading conditions, competitors and regulatory considerations•Analyse local and sub-Saharan market trends in terms of what is being purchased and moved (market verticals)•Market volumes and competitor analysis•Insights into types of commodities and the related volumes of commodities being moved•Cost factors•Geographical and typographical considerations
Getting the facts
PROCUREMENT OF LOCAL EXPERTISE AND BUSINESS PARTNERS
•Working with local business and experts in market was key to medium to long term sustainability
•Successful expansion cross border is boosted by having resources on the ground that are already entrenched in market
•Acquiring of businesses in Swaziland and Zimbabwe, whilst a partnership was established for the Mozambique and Namibian Operations.
Local expertise
QUALIFIED PROJECT TEAM
A project of this nature is complex and demanding and as such there was a need to have a multi- skilled team in place to research, develop, implement and manage the project.
•Ernst and Young assisted with statistics on Africa •Manica helped to understand the problems at border posts•An internal task team consisting of Operations, IT, Sales, Finance and Top Management was set up•We engaged with the relevant partners such as Dovetail who we knew were critical to the success of this project•A detailed project planning process was then developed to coordinate this diverse team of experts
Skilled team
Like the tyres on the truck…
The essential role of technology
Long-term relationship•Triton and Dovetail have worked together for 13 years, creating a strong working partnership with a good future. This has created a deep understanding of the way Triton Express operates
Local partner with local software•Understanding, responsiveness and affordability were essential factors.•The speed of localisation, customisations, adaptability, local African knowledge made a significant difference
Experience•Dovetail already has clients and rollout experience in Zimbabwe, Namibia and Botswana
The Dovetail Partnership
The FreightWare Advantage
Stable, scalable, modular and functional•Reliability without limits
The ability for Triton Express to add value•Triton IT has developed solutions around the FreightWare platform that add unique advantage and value
Knowledge transfer: ease of use and training•Triton Express were able to roll out the new branches with minimal input from Dovetail
The Dovetail Partnership
Like the tyres on the truck…
The essential role of technology
Strategic Intent•Dovetail has a strategic focus to continue to expand into Africa, ideally with existing clients•This project has already opened doors to further opportunities in SADC countries
Facing Challenges
The team quickly learned that what works for one cross border operation isn’t necessarily suited to all and that there was a need for flexibility and adaptation:
•Tailor made solutions and client offerings•Customised process flows•Operational, sales staff and customer training
THE BORDERS
Challenges•Paperwork•Lack of consistency and staff efficiency•Corruption•Non-synchronised working hours on either side of the border
Key Learnings•Engaged with local authorities and customs officials •Established an internal cross border division handling clearing in SA•Partnered strategically with in-market clearing agents to handle clearing cross border•Implemented policies and procedures and customised work flows•Developed internal training
Facing challenges
LEGISLATION
Challenges•Different requirements per country in terms of setting up new businesses (business laws, ownership of land, Zimbabwean Indigenisation Initiative)•Customs laws per country varied•Regulations with respect to official languages
Key Learnings•In-depth research to gain understanding of what was required legally•Due diligence undertaken to identify partners•Engagement with local translators to assist with language barriers
Facing challenges
INFRASTRUCTURE
Challenges•Connectivity •Dealing with multiple telecomms service providers (ie MTN vs Vodaphone)
Key Learnings•Dedicated IT support from SA•Installed larger routers and lines
Facing challenges
INTERNAL PROCESSES
Challenges•Numerous currencies and fluctuations in cross border fees•Freightware restraints around the different charges and currencies •Documentation – Understanding of requirements (client education)
Key Learnings•Engaged and work closely with Dovetail•Customising the system to charge out fees individually (postal codes)•Sales and customer services training •Adapting Freightware to prompt specific questions
Facing challenges
The journey into southern Africa
Aug 12 Oct 12 Dec 12 Jan 13 Mar 13 Aug 13Aug 13
Branch in Windhoek Daily from Upington
4 dedicated vehicles
Branch in Harare
Twice weekly from Jnb
2 dedicated vehicles
Branch in MatshapaOvernight from Jnb
6 dedicated vehicles
Branches in Maputo & VilankulosDaily via Nelspruit
Dedicated fleet in country
Branch in Maseru
Overnight from Bloem1 dedicated
vehicle
Running via Zim to
Lusaka & mines in
Solwezi district
Branch in Gaberone
Daily from Jnb
3 dedicated vehicle
The road travelled
The overriding goal for Triton Express was to turn each branch into a profitable business
unit within its first year of operations.
This has been achieved with:
6 operational cross border branches that are
fully functional in 12 months
93% of cargo delivered to these regions
within Triton’s own infrastructure
Triton Express’ expansion has resulted in an increase in quality transport services in areas where it is needed to promote growth
This has made a positive difference in the lives of the communities in Southern Africa and created value for employees
The short term focus is increasing volumes into the existing countries, improving services levels even further and making these branches sustainable into the future.
From a long term point of view we will continue to look for new opportunities and locations to expand our service offering
The road ahead