Dachser Rheine expands capacity

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.

For a sustainable society: More and more NGOs are taking action around the world

In the course of globalization, internationally networked non-governmental organizations or NGOs are playing an increasingly important role. DACHSER’s partnership with children’s aid organization terre des hommes demonstrates how a company can support an NGO over the long term.

Environmental protection, human rights, joint development projects, migration, anti‑discrimination: the importance of non-governmental organizations, or NGOs, for society is great. Independent of states and governments, they advocate for social, socio-political, or environmental issues. The coronavirus crisis is making the work of NGOs more urgent, as humanitarian aid in developing countries is now more important than ever. This is a challenge for many such organizations, as their work is often hampered by travel bans as well as difficult working conditions and hygiene measures on site. In addition, many of those who donate are less willing to do so in times of crisis. Yet this is exactly what NGOs depend on, because in addition to membership fees, donations are their main source of financing. Transparency with regard to an organization’s cash flow and what it achieves with those funds is now all the more critical for strengthening donor confidence. Many NGOs inform their donors regularly via press releases, newsletters, or on their website about individual projects and the use of funds. NGOs are also monitored by auditing companies and the relevant tax authorities to ensure that they are using donations correctly. A “donation seal” from the German Central Institute for Social Issues (DZI), headquartered in Berlin, helps engender even greater trust on the part of the donors. The seal guarantees that the respective NGO is trustworthy and that the work they do is respectable.

DACHSER supports terre des hommes

According to estimates, there are currently tens of thousands of NGOs worldwide, providing medical care in crisis areas, looking after refugees, supporting micro-enterprises in the start-up phase, and more. One of the leading children’s aid organizations is terre des hommes. Founded in Germany in 1967, the organization protects children from slavery and exploitation, cares for the victims of war, violence, and abuse, and provides education and training for children. The German arm of terre des hommes currently supports 386 projects around the globe. International logistics provider DACHSER has been supporting the work of terre des hommes in South Asia, southern Africa, and Latin America since 2005. In keeping with the principle of “helping people to help themselves,” terre des hommes implements local aid projects to permanently improve the lives of children and the others in their villages. “As a global logistics company, we have operations around the world that bring people, markets, and manufacturing closer together. Yet not everyone is experiencing the benefits of globalization. It is our responsibility to stand up for these people and improve their living conditions,” explains Bernhard Simon, CEO at DACHSER.

By extending its contract with terre des hommes through 2025, DACHSER will be supporting the North Indian state of Bihar as well as projects in New Delhi and Uttar Pradesh. Taking a look at the latter, Ingrid Mendonca is coordinating an aid project there for terre des hommes Germany and is enthusiastic about the commitment of the locals, especially now during the coronavirus pandemic. “Not only do the youth groups support their own communities, sew masks, and procure food, but they are also getting in touch with young people in other villages, districts, even states and getting organized,” Ingrid Mendonca says. “Their commitment to improving the situation is inspiring.”

DACHSER employees also benefit from their employer’s commitment to social responsibility and can support terre des hommes projects on site. For example: Melanie Diem, Team Leader Project Management at DACHSER, coordinated a sustainability project by terre des hommes and DACHSER in Livingstone, Zambia. DACHSER Young Professionals and students from the terre des hommes network took part in the project. “The participants’ commitment to the cause was very impressive. DACHSER employees have the opportunity to immerse themselves in the work of an NGO, an area with which they might otherwise never come into contact,” Melanie Diem explains.

A special kind of commitment

The partnership between DACHSER and terre des hommes shows that together, a commercial company and an NGO can achieve amazing things. “Our collaboration with DACHSER is particularly valuable and important to us because it involves a huge personal commitment and open and honest dialogue,” says Stephan Stolze, head of the fundraising department at terre des hommes. “DACHSER’s employees and CEO Bernhard Simon in particular are deeply involved in the terre des hommes projects funded by DACHSER. They want to know how the people on the ground are doing and to what extent DACHSER’s support succeeds in helping to improve the living conditions of the local people.” In 2018, DACHSER’s commitment was recognized with the German CSR Award in the “Social Engagement” category. Partnering with an NGO makes DACHSER a pioneer, as only a few companies in Germany support internationally active NGOs. “Larger, international companies in particular should seriously consider the UN’s 17 Sustainable Development Goals and support projects in these areas for as long as they can,” Stephan Stolze says.

Step by step toward the goal — Sea freight groupage containers facilitate the continuous flow of goods

In turbulent economic times, sea freight groupage containers are becoming increasingly popular. Production bottlenecks, fragile global supply chains, and a container shortage have further increased the demand for small and predictable shipment sizes in sea freight. Michael Kriegel, Department Head DACHSER Chem Logistics, explains the service that enables a reliable flow of goods in sea freight. He also talks about why a good network connection is crucial, especially for goods with high security requirements.

Companies are already analyzing their global supply chains and increasingly shifting their shipments to sea freight groupage (called “less than container load,” or LCL for short). The big advantage of groupage for customers is that they can ship smaller loads without having to pay for a full container. As a result, they can maintain a continuous flow of goods, even in the event of production bottlenecks, and also respond more flexibly to seasonal fluctuations. LCL containers are often prioritized over full containers in the loading process, which provides an additional time advantage and allows for better planning of transportation times. DACHSER markets what it calls “consolidation boxes” - customers pay only for the space they actually occupy in the containers. In addition, the company plans departures weeks in advance rather than only once production volumes are known. This means that containers, which are still in short supply, can be pre-booked in good time and customers retain flexibility when booking. 

Many companies, especially in the automotive, life science, and healthcare industries, have been using groupage shipments by sea for years. But this service is also suitable for the chemical industry, which places particularly high demands on safety and transparency during transport - and thus needs a logistics provider with the appropriate experience. DACHSER is one such provider. It set up a purchasing partnership with the German Chemical Industry Association (Verband der Chemischen Industrie e.V., or VCI) in 2009. This successful alliance for European groupage shipments from Germany was then expanded in 2015 to include air and sea freight. Member companies of the association now benefit from globally standardized core services in the groupage network - transport, warehousing, and IT solutions. All this specialist industry experience has been pooled in the DACHSER Chem Logistics team. 

“In shipments from customers in the chemical industry, which sometimes contain dangerous goods, the decisive factor is always safety. We have to protect life, limb, and the environment,” says Claus Freydag, Managing Director DACHSER Air & Sea Logistics Germany. “DACHSER also boasts global dangerous goods expertise in the groupage container segment and covers all LCL-compatible IMO classes in its own network and in its partner network,” he adds. The company’s central dangerous goods management system and its more than 250 regional safety advisors monitor compliance with special regulations governing the transport of dangerous goods. In addition, many DACHSER employees are trained annually in the particular requirements of chemical logistics.

For sea freight groupage, the sea freight team consolidates various LCLs and loads them into a full container. This optimizes utilization of container capacity, which in turn provides the basis for economical transport costs. Maximum utilization also improves transport sustainability while reducing the risk for individual companies at a time when supply chains are fragile. “Ports around the world have been clogged for months, causing significant delays - and making it rare, if not impossible, for shipping companies to stay on schedule. Instead of sending a full container on its way, which can get held up if loading windows are missed, more and more customers are opting for sea freight groupage containers. This reduces their risk by spreading it over several departures and ships and ensures a more timely transport,” Freydag explains.

Intelligent logistics solutions and a strong network are crucial

Demand for LCL services will continue to grow, even apart from the impact of the pandemic. That’s why DACHSER, as a market leader in the German and European groupage market, has also expanded its maritime LCL network to include 70 weekly direct services to and from Germany. “With a focus on the main global routes, we are systematically expanding our dangerous goods capacity as well. This of course means serving the major markets in both the eastern and western hemispheres, such as China, India, and the US,” Freydag says. In 2021, DACHSER shipped around 19,700 cbm of dangerous goods as LCL with customers in the chemical industry. Dangerous goods thus already represent 15 percent of DACHSER ASL Germany’s LCL business. In addition to the usual port-to-port services, DACHSER also operates various direct import services to the hinterland or other European cities. For example, once a week LCL groupage containers travel directly from port locations such as Hong Kong, Shanghai, and Ningbo to ports such as Hamburg and Bremen - but also with direct loading to Frankfurt, Kaufbeuren, Cologne, Munich, Nuremberg, Stuttgart as well as Copenhagen and Gothenburg. Direct loading minimizes the risk of cargo damage and provides additional safety by eliminating deconsolidation at the transit terminal.

Furthermore, this increases profitability and achieves additional lead time advantages by rectifying bottlenecks in the port. “DACHSER’s global network connects all groupage transports on land and water. We link our own sea freight groupage container services to and from Germany to the comprehensive range of services offered by DACHSER European Logistics, thus enabling end-to-end service throughout Europe,” Freydag says. For storage and unloading, DACHSER is increasingly using its own branch infrastructure in addition to the standard container freight stations (CFS) at the ports. When port capacity is limited, companies thus benefit from additional dispatch quality and shorter transit times.

This concept, in keeping with the idea of “everything from a single source” links the European overland transport network with the global sea freight network - a feature that not every company can offer. “Thanks to the end-to-end solution of our LCL product, which goes beyond just sea transport, we can maintain high quality across the aforementioned carriers and offer transparent traceability of the goods,” Freydag adds.

The past two years have seen risk minimization in the global movement of goods become a crucial factor for success. To take full advantage of LCL shipping, it is crucial that pick-up and onward carriage are also handled in an integrated manner, thus ensuring expertise in the safe transport of dangerous goods along the entire transport route.

Striving for security of supply

In the recent past, supply chains have proven increasingly fragile and at risk. The reasons are manifold. To counteract this, companies are taking far-reaching measures. What these look like and how DACHSER can manage complex supply chains against this backdrop are the thoughts of CEO Burkhard Eling.

The past 18 months have laid bare some of the weak points in the global economic system: just-in-time with lean warehousing, the focus on individual manufacturing sites in Asia, and the one-sided concern with efficiency and costs—all relied on structures that proved too fragile and too susceptible to disruption.

Companies have now analyzed their supply chains and are taking concrete action, such as expanding their warehouse capacity in Europe and the US, decentralizing production, and obtaining raw materials and intermediate products from multiple suppliers. In short, they are striving for security of supply. But that does not imply a shift to de-globalization. Supply chains will remain global, but they will become more complex.

Finding solutions even under difficult conditions

At DACHSER, we have no trouble managing complex supply chains; in fact, it’s our core expertise. We’re able to offer solutions that work even under difficult circumstances, which explains our continued success in the first six months of 2022. But prospects are dim: enormous cost increases in almost all areas will stifle demand and, as a consequence, significantly slow the current growth momentum.

We are already hard at work preparing for this scenario. For instance, we’re investing in digitalization and automation to make supply chains more efficient and more transparent. But we’re also investing in the people at DACHSER. After all, digital skills at all levels of the company will decide our success in the future.