ID Logistics becomes n°2 provider in chilled distribution market, aims to double its business in SA by 2020
ID Logistics - May 18th 2017, 16:41
ID Logistics, an international leader in the contract logistics market, recently announced its commitment to South Africa and outlined plans to expand its local operations at a recent press conference Fastmoving attended.
The France-based company has seen exceptional organic growth since its inception in 2012 and have a clear ambition to double in expansion in South Africa by 2020.
2016 South Africa highlights
Eric Hémar, CEO and Chairman of ID Logistics, who was on a business trip in South Africa commented: “Our activities in South Africa have experienced solid growth in 2016. We opened our network in 2014 with one customer, Danone. Now we have become the second largest provider in the chilled / perishables’ market, with a multi-client approach and the confidence of big branded names in South Africa. Our team has strengthened its infrastructure, consolidated and expanded its client portfolio and offering. We are excited to continue to welcome some more world renowned multi-national brands and some more South African brands into the fold during 2017.”
Strategic and operating priorities for 2017
Etienne Juillard, MD of ID Logistics SA, expanded, “Our challenge is now to continue to build on the perishable platform, extend our warehouse facilities and convince clients in other sectors - such as retail and FMCG, where centralisation and insourcing is prevalent - to outsource these services and enjoy the benefits of faster turnaround times, cost savings, global quality standards and innovation. It also opens up new opportunities, such as collaborations between suppliers and other providers. At the same time, we are developing and growing our services in other vertical markets, namely e-commerce, cosmetics, and fashion, leveraging our experience from other countries. What is also important is to upsell to our existing client portfolio and offer more value-added services.”
Juillard added that in line with the group’s commitment, the South African subsidiary is investing in new technologies and innovations with the objective of increasing productivity and improving experiences for clients. These include route optimizing software, in-truck live navigation and delivery status, digitalization, narrow aisle and flexi-reach trucks. Hand-in-hand with these innovations is the upskilling of personnel to handle the new technologies.
According to Juillard, the group’s global standards have had a positive impact on upping the bar in terms of skills in South Africa. “We deploy overseas’ resources to share and support these processes. What we really hope to achieve is a good balance of local and international skills, which ultimately benefits our clients and the industry at large,” he added.
The establishment of ID Logistics in South Africa with an anchor international customer was the springboard for developing a comprehensive multi-customer, multi-channel and multi-category operation and as such, the group’s engagement and investment in South Africa was for the long term.
He also emphasized the importance of enhancing the company’s B-BBEE scores to achieve a Level 4 rating in the next few years, pending promulgation of the latest legislation scoring system.
Highlights of ID Logistics SA’s recent financial year include extending the Danone contract until the end of 2022; on-boarding 11 new clients in the FMCG perishable sector including Henties, Mayo, BRM, Sir Fruit, Crisp, Okin Foods, Deneys Swiss Diary, and Woody’s; completing 75 cost-saving initiatives to enhance their network; and achieving global quality standard certification of all 5 local sites.
ID Logistics’ CEO, Eric Hémar, shared the group’s 2016 financial results, which were recently announced. “Through organic growth and acquisitions, ID Logistics achieved revenues in excess of €1 billion in 2016 and has solid growth in store for 2017. The group has managed in particular to diversify its client portfolio by stepping up its presence in e-commerce, penetrating new business sectors such as healthcare, fashion and automotive, and attracting new clients that are world market leaders in their field.
These investments made in 2016 will drive our growth over the next few years in order to achieve our aim of becoming a leading name in contract logistics in Europe and Africa,” he commented.
ID Logistics’s biggest share of global revenue is generated in the retail sector at 42%, followed by fast-moving consumer goods (FMCG) at 22%, high-tech at 9% and fashion at 6%.
ID Logistics SA, part the global contracts logistics group, has embarked on a national initiative to reduce its carbon footprint, starting with electricity consumption at its Gauteng distribution centre in Boksburg.
After on-boarding 11 new clients in the FMCG perishable sector this year and extending their anchor client, Danone’s contract until 2022, ID Logistics South Africa has set its view on targeting other categories, such as fruit and vegetables, flowers and other vertical markets.
ID Logistics South Africa, part of the global group that specialises in contract logistics, has recently embarked on a secondary transport optimisation programme to decrease costs and improve efficiencies across the operation.
When it first established its network in South Africa five years ago, ID Logistics South Africa - part of the global French contract logistics company - could not foresee how quickly it would gain traction in the country. After establishing and managing a network for Danone throughout the country, ID Logistics SA expanded its offering to the perishables and selective ambient environments in the last 2 years.