With one of the best fleets of vehicles on the South African roads, Willowton Logistics is becoming known as one of the most reliable and consistent performers in the transport and logistics industry. Top man, Antonie Jacobs tells Enterprise Africa more about the importance of modernising vehicles and successfully navigating a stagnant economy…
South Africa’s roads are like the arteries of the country, moving much needed goods and services around the country, supplying the fuel that allows the country’s beating heart – its commercial industries – to thrive.
Whether its food, water, coal, FMCG, construction materials, agricultural equipment or any product that needs to be shifted from place to place, it’s often easiest, quickest and cheapest to move it by road.
South Africa’s total road network is about 747,000km, the longest network of roads of any African country, and SANRAL is always looking to extend and improve the system. But with congestion increasing all the time, and time-delays on deliveries not an option for most companies, finding a logistics partner who can successfully navigate the country’s road network is now vital.
Take the Willowton Group for example. As one of South Africa’s largest FMCG producers, Willowton manufactures products such as edible oils, margarines and spreads, beauty, toilet and laundry soaps, candles, chocolate, baking and industrial fats. It has large facilities in Pietermaritzburg, Johannesburg and Cape Town, and is the producer of popular brands including Sunfoil, Sunshine D, D’lite, Crown, Nuvolite and Allsome rice. It is essential for Willowton to get its products from A to B quickly and with minimal hassle so it utilises the services of its subsidiary – Willowton Logistics.
Founded in 2008, to provide logistics and transportation services to the group, Willowton Logistics has grown and carved its own space in the market, attracting customers from all over the country.
After expanding its fleet in 2015, the company is now looking to grow its customer base and develop its people so that it can offer industry leading service across-the-board.
“For this year, we are not going to expand the fleet much more. Maybe next year we will expand the fleet further,” says Head of Logistics and Operations and Acting Managing Director, Antonie Jacobs. “We have already expanded our personnel base to allow us to look closer at the small details and cove more aspects so that we can control our environment.
“Business-wise, we’re looking at getting some additional customers in certain areas but that’s still a work–in-progress and is more of a tender type aspect so we’re still 50/50 as to whether that will come off.”
As the main logistics provider to the Willowton Group, Willowton Logistics is fortunate to have its mother company, an important customer, right on its doorstep.
“We are based on the same premises and because we are part of the group we get first choice on work,” explains Jacobs. “The Willowton Group only contributes about 32% of our income and the rest is from our wider customer base. Obviously, 32% of the customer base is quite big so we see it as a huge benefit and we’re proud of the relationship.”
Willowton Logistics already moves products onto the continent for the group; countries including Mozambique, Swaziland, Lesotho, Zimbabwe, Botswana and Namibia are all importers of Willowton products and as the group continues to build its African presence, the logistics division will be ready to assist.
“Africa is becoming more and more important. The group is putting up new branches and we will be handling the logistics and we try to handle it the same way as we handle our local business. In Africa, our operations are exactly the same, just in another country,” says Jacobs.
FLEET IN TOP GEAR
As a major South African transport company, Willowton Logistics has many excellent attributes including fantastic staff, enviable location, loyal customers and a robust business model but perhaps the jewel in its crown is its fleet.
The company boasts one of the largest Freightlinerfleets in the country and has different options available including tankers, tippers and refrigerated vehicles. Jacobs is proud of the fleet and says that it helps to set Willowton Logistics apart from the chasing pack.
“We have some of the best branded vehicles from Mercedes-Benz. We have already updated about 70% of our fleet to Mercedes-Benz. These vehicles have always been one of the best so our whole fleet, technology-wise, has improved tremendously,” he says.
“We pride ourselves on our equipment – we have new vehicles, new trailers; better products than our competition. The trucks look better when they arrive at a customer, they’re more fuel efficient, more driver friendly and they give back more data to the head office; it’s all to do with online connections so that we can see exactly what the vehicle is doing instead of waiting until the end of the week when a driver brings in paper work and you have to work it all out manually. Technology-wise, we are quite far ahead at this stage.”
PwC released a report in 2013 stating that roads in Africa still remain vastly under developed and leave much to be desired, causing real headaches for transport and logistics companies. The rail, port and air freight industries all require further investment, especially in less-developed nations, and until there is a better alternative, road freight remains the most efficient way to move goods across the border.
As South Africa remains the gateway for international companies to grow on the continent, Willowton Logistics will have many opportunities to bolster its cross-border transport business.
“As our customers grow each year, we accommodate them with any type of growth. We try to grow with them. We use our assets to the maximum and we do not add assets if it’s not necessary,” says Jacobs.
ECONOMY PUTTING THE BRAKES ON
Even with customers growing into Africa and a high-tech fleet, Willowton Logistics still has to be mindful of the current economic situation in the country.
With many industry commentators predicting 2016 to be a particularly difficult year for South Africa, and nothing being helped by the unusual decisions made by the government regarding he Minister of Finance, Jacobs admits that now is a time when companies do need to be careful with every cent and manage each situation effectively.
“With the economy the way it is, especially in transport, it’s a hard game right now and we have to look after the penny and the pound,” he says.
“Obviously, when the economy slows, the market moves much slower – everything gets more expensive. People can’t always afford everything in the way they used to three or four years ago so the market does move slower and when this happens, transportation moves slower. This is why we look for additional customers. It is very grim but you just have to manage it day by day. We have long-term and mid-term aspirations and also short-term aspirations and you have to manage things as you go along, even if things slowdown a bit.”
But with as much negativity as a slow economy brings, Jacobs and Willowton remain upbeat, trying to manage every situation as it comes and make the best of every opportunity.
“There are still certain customers that are on full steam and they stay very constant throughout the year but the economy effects everyone so it does cause a problem but you have to manage it as best you can.
“We try to hope and plan for the best and do that as efficiently as possible, making the best use of the resources we have, and it’s like any business – you have to plan effectively and make decisions creatively. You must also embrace technology as that sets you two or three steps ahead of your competition,” Jacobs concludes.