DACHSER charters world's largest cargo aircraft

WOMEN IN LOGISTICS: Reaching new heights in agricultural logistics

Marlé Badenhorst of DACHSER South Africa, part of a global logistics company, has worked in the agricultural logistics industry for fifteen years. Her considerable experience and personal approach, backed by DACHSER’s range of specialists and comprehensive international logistics networks, ensures that the company provides expert, personalised solutions to clients when it comes to agricultural import and export.  

DACHSER South Africa provides full supply chain logistics solutions to the agricultural industry, including freight forwarding and cold chain solutions. The company most frequently deals with bulk imports of agricultural implements, equipment and even entire plants from countries including Germany, China and Turkey, as well as importing raw materials for agricultural use that would be too expensive to produce locally.  DACHSER South Africa handles exports of various commodities to African countries and internationally.

Many years of analysing client needs and challenges, and then finding solutions, has helped Badenhorst identify what clients really require from an agricultural logistics service provider.  “Clients are so varied with regard to their individual requirements, but often the problems and challenges they face are similar,” she says.  According to Badenhorst, several critical factors come into play to ensure top performance from a logistics company servicing the agricultural industry.

Personalised service

Based centrally in Bloemfontein, South Africa, Badenhorst can often be found visiting outlaying areas including mines & farms in the Free State or Northern Cape to discuss customers’ projects. “Meeting with customers on their premises, including outlying areas like mines or farms, really adds value and is part of the recipe for the long term successful relationships that we cultivate.  I believe a personal relationship is very important to people in the agricultural industry.” 

Harnessing an international network

Dachser has a closely integrated, worldwide transport and warehouse network with over 376 locations in 42 countries, providing customers with a strong presence in the most important procurement and sales markets in the world. “Having so many offices internationally strengthens our network for communications, provides a strong infrastructure and often helps us provide the best quotes,” says Badenhorst. “Recently, we assisted with the import of an entire fertiliser bagging plant from the Netherlands for an agricultural customer. Our offices in the Netherlands and in Germany ensured that  we could offer the best transport rates and a seamless process.”

According to Badenhorst, network knowledge also comes into play when exporting agricultural commodities to any African country, or to international markets. “Thanks to our offices in all the relevant countries, DACHSER has the knowledge and relationships to be able to advise on the various certification and import requirements for a particular product in these countries, ensuring the process runs as smoothly as possible.”

Tailored solutions and careful cost management

Badenhorst says the biggest challenge for import and export has become finding good sea freight rates, due to major increases in shipping charges after the pandemic. “Escalating costs and exchange rate changes have completely exploded the rates per container. We focus on strong negotiation and contacts to ensure that shipments are still viable for customers.”

Intent on finding specific solutions for clients, Badenhorst works hard to streamline haul operations in each case. “We definitely do not apply a standard approach to every client. We monitor charges line by line and deal with all the suppliers directly rather than using third parties where possible. All the charges add up, and it makes a difference when it comes to keeping costs to a minimum.”

Ability to provide live updates and frequent communication

“Not knowing what is happening is a pain point for clients, and they appreciate frequent live updates of the status of their shipments,” says Badenhorst. “DACHSER’s sophisticated client information systems enable this. We monitor shipments on a daily basis, and we are very proactive on updating customers.  Dachser is implementing a direct customer tracking programme, which takes it to the next level of enabling customers to directly track their own shipments.”

Customs expertise

As a freight forwarder, it is essential to have good relationships with the shipping lines and an excellent grasp of shipping principles and Incoterms, says Badenhorst. She accesses the specialist knowledge of colleagues like Deon Heunes, a former customs officer himself. “Deon’s knowledge is impressive. If we do encounter hold-ups, we ensure we are in the best position to assist and keep clients updated. Delays in customs can be expensive and it is critical to avoid unnecessary delays and penalties.”

In some cases, DACHSER South Africa only comes in at the point of clearance and delivery in South Africa, even if the company hasn’t undertaken the marine transportation. “We work closely with the bank’s forex departments to assist customers with the correct documentation,” says Badenhorst.

The right expertise and experience to manage risks and add value

“We help clients to manage risks and evaluate where they might have gaps,” says Badenhorst. “In particular Insurance can be complicated, and we often find new clients who have been importing for many years simply don’t have the correct insurance cover. A good freight forwarder must be able to advise on this.”

Badenhorst also notes the importance of frequent review of terms and agreements between freight forwarders and clients. “At DACHSER, we don’t take the approach of simply implementing annual rate increases. Matters are evolving so much in logistics, and a full review is critical to ensure the client has the best possible pricing.”

With South Africa’s agricultural production set to reach record levels again, strong logistics partners are a critical part of maximising opportunities in the sector. Fresh from great success at agricultural exhibition NAMPO, Badenhorst is excited about what the future holds. “It’s very rewarding to see how much value we can add for clients in this sector as we take on bigger projects, shipping lines recover and we are able to support Southern Africa’s agricultural industry as it grows to new heights.”

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 31,756 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.

“When it comes to Brexit, many companies have their head in the sand”

The Brexit is complete and the transition phase will be history in a few weeks. No matter what agreements the EU and Great Britain may reach in the short term, January 1, 2021 will mean a deep cut for the movement of goods to and from Great Britain. Steffen Wiese, Head of Sales, European Logistics, North Central Europe at DACHSER, explains what companies urgently need to bear in mind and some even run the risk of oversleeping the preparations.

Would you say it’s still possible to avoid a hard, no-deal Brexit? How would a hard Brexit affect goods transport involving the UK?

There’s still a chance that a deal could be agreed. But the closer we get to the deadline, the less hope there is. DACHSER is definitely readying itself and its customers for a hard Brexit to ensure we’re prepared for all eventualities.

Post-Brexit customs clearance will make transporting goods vastly more complicated, expensive, and time-consuming. We expect a hard Brexit to majorly disrupt transports, especially at the beginning of next year. We’re noticing that some companies have already taken action and have moved operations to locations with the EU. In light of new customs clearance procedures, some business models are no longer very practical and will have to be revised. B2C shipments will become more expensive, even if simpler procedures are introduced for goods of up to a certain value. It just won’t be worth it for many senders. Since shipping times and costs for supplying the European market from the UK will also increase, many senders have already moved their distribution centers to the EU.

Are companies, including DACHSER customers, in Germany and the rest of Europe prepared? Where do you see room for improvement?

In addition to the well prepared companies, there are also quite a few that still need to take urgent action. They’ve waited too long, which will lead to problems—at the latest starting January 1. This holds especially true for companies that have up to now exclusively served the European domestic market, as they often lack the requisite customs expertise.

Many companies actually expect that a deal will mean everything remains as it is. What’s more, the Covid-19 pandemic has largely eclipsed Brexit as a topic in the public eye as well as at many companies.

But it’s important to know that no matter what happens on the political stage over the coming days and weeks, customs clearance will definitely be a hot topic among senders and recipients of goods transported between the EU and the UK. This means that preparation is non-negotiable.

A more general question: What must a company intending to export goods to or import them from the UK as of January 1, 2021 take into account?

Senders first have to check the extent to which their supply chains are affected. Special attention must be paid to preparing the information and documents required for customs clearance so that we, in our role as logistics provider, can take care of the customs formalities relating to imports and exports. This information includes the EORI number. Moreover, obtaining customs authorization from the respective importer is essential for processing shipments to and from the UK. For this reason, we are asking our customers to notify their recipients that they must provide us with the importer’s name so we can request the necessary authorization.

DACHSER itself is well prepared to make future customs clearance for goods transports between the EU and the UK as smooth as possible. It’s now up to senders to once again check thoroughly that they have made all necessary preparations. On our website, we’ve published a checklist that allows our customers to see at a glance what they have to be aware of. And of course, DACHSER’s local contact persons are always ready to answer any questions.

It’s absolutely clear what the worst-case scenario would be: goods remain stuck with the sender and we are unable to collect them. The transport can start only once all the paperwork required for customs clearance has been made available. Starting January 1, there will be no transition period or exceptions and the paperwork cannot be submitted later. These are the conditions that logistics providers must now observe. In this worst-case scenario, customer warehouses would overflow as the goods remain where they are.

What specific preparations has DACHSER made as a logistics provider?

DACHSER has been preparing for Brexit for years now. We formed an internal project team made up of experts from all areas of the company. It’s this team’s job to address all aspects of Brexit—from customs clearance, volume monitoring, and traffic routing to IT, staffing, and communications.

To prepare for all eventualities, we’ve invested particularly in customs and created software solutions to help ensure customs processes are performed efficiently. As well as adding resources to our IT infrastructure, we’re making sure that DACHSER UK and DACHSER Ireland both have sufficient personnel—especially those trained in customs matters. On the mainland, our global logistics network provides us with ample expertise and resources. We’ve also formed an internal task force to support our colleagues in the UK and Ireland as well as our distribution platforms in the EU starting January 1, 2021. Task force members are being trained on how the various systems work so we can stem any additional costs, and our country organizations are working closely together to minimize any disruption. And because we have AEO status in the UK and in numerous EU countries, we can see to it that goods clear customs as quickly and seamlessly as possible.

What’s the situation in the Republic of Ireland? The majority of transports to and from Ireland pass through the Channel. Are there alternative routes?

There are bound to be obstacles when transporting goods to Ireland. But what’s particularly unclear is how things will work with Northern Ireland, which as we all know is a very political issue. There are alternative routes to Ireland and while all options involving ferry companies are being explored, these will ultimately lead to longer transit times.

After years of Brexit preparations, what lessons have you learned?

It’s all about staying flexible in the face of inevitable surprises, especially political ones. Personally, I hope that the nightmare scenarios predicting thousands of trucks stranded on each side of the Channel don’t come true and that the authorities also do their part to implement the process efficiently. I’m also curious to see how the economy develops and whether Brexit will scare other countries away from pursuing any desire to leave.

Growing with the opportunities

Economic growth is stagnating or even declining in many places, but in the Asia Pacific region, it is surprisingly strong. DACHSER is greatly expanding its network there for customers from all over the world.

Latest update on DACHSER Air & Sea Logistics operations

With this update DACHSER would like to inform about the current DACHSER Air & Sea Logistics operations across the regions APAC, EMEA and Americas. In the attached document (see download below) it is listed whether a country organization of DACHSER is operational or, if only limited or not at all, why this is the case. Since the situation in the countries may change rapidly, the attached document will be updated on a regular basis and published on our website.

We sincerely regret any inconveniences caused to our customers due to the pandemic. At DACHSER, we have contingency measures in place and will offer our customers the best alternative solutions to keep the supply chain running. Anyhow, the situation at ports, airports or customs authorities might cause delays. Furthermore, the capacity situation on the global airfreight market is very tense as there are basically no passenger flights operating at the moment.

At the same time, DACHSER has installed strict hygiene measures (e.g. home office) to ensure a safe working environment and to do our part in stopping the spread of the virus. DACHSER is trying to keep the impact of these measures as low as possible, however, together with the official measures by the governments, the precautions may lead to some delays in the operations.

In case of any questions and/or queries, please feel free to contact your local DACHSER representative.