Page 34 - Logistics News June 2016

news

Resolve wins R400-mn contract for
Pick n Pay logistics control tower

RESOLVE’S RECENT R400-million State of road transport
partnership extension with Pick n Pay sector unpacked
represents the company’s biggest logistics
control tower project to date. Resolve, an SOUTH AFRICA’S economic growth outlook
Imperial Logistics group company, was for 2016 is the lowest forecast on record
initially awarded a five-year contract by thus far, standing at 0,7%. With next year’s
Pick n Pay for transport managed services growth rate revised from 2,1% to 1,8% by the
in 2012. The engagement was expected International Monetary Fund (IMF), it does not
to yield significant savings on transport bode well for the transport sector. Economic
costs, largely as a result of integrated challenges coupled with transport challenges,
planning of demand and supply of including volatile fuel prices, toll costs, and
transport services. stricter carbon requirements, will continue to
hinder business growth, according to industry
Core to the service are central commentators.
planning and proactive execution
management, ensuring compliance with Whilst the number of truck accidents is
distribution plans, which in turn improve lower than light vehicle accidents, an incident
customer satisfaction and reduce costs. with a heavy vehicle has a far greater impact.
The integrated service model optimises There are an alarming number of accidents
all logistics activities in Pick n Pay’s every year on the N3, for example, causing lane
outbound supply chain, which enables closures that delay road traffic. The impact
the extraction of maximum benefits from of this is longer turnaround times, reducing
the Pick n Pay strategy of increased overall supply chain efficiency and operators’
centralisation at the distribution centres. profitability.

With the contract due to expire in It’s clear that road transport operators
2017, Resolve and Pick n Pay agreed will need to do things more efficiently, while
an extension of the services currently improving driver behaviour and safety to
offered to June 2020, as well as new ensure sustainable businesses.
services that include primary transport
planning, management and optimisation, June 2016 | Logistics News
and the implementation of an integrated
and outbound logistics control tower,
enabled by ONE Network technology.

The control tower will provide real-
time updates across all aspects of the
outbound logistics process, including
warehouse performance. It will enable
exceptions to the plan to be managed at
all parts of the outbound process, and
for the plan to be adjusted optimally in
real-time, making the operation more
efficient.

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