|Interview with Dale Good, CEO of GLS Supply Chain Equipment
Last week we had the opportunity to sit down with Dale Good,
CEO of GLS Supply Chain Equipment, and talk about the current
state of distribution and logistics in South Africa. He
gave us exclusive insights into the industry and offered
his advice on how SA can optimise its operations and in
doing so catch up with its foreign counterparts.
Tell us a bit about your professional history
A few years ago I was a part owner a software company, CoreProcess.
During this time we wrote a program, CoreValue, which did
financial modeling of supply chains, and launched it in
London. Through this I was exposed to major international
retailers such as, Tesco, Somerfield, ASDA (Walmart), Carrefour
and many others. This was while some of them were all undergoing
their centralization processes, which gave me interesting
insights into the complexity of this strategy. I was exposed
to both the Vendor and retailer issues through this as our
program measured the cost from factory gate to shelf and
breakdown all the steps, and costs, in between. The knowledge
gained from this enabled us to optimize the supply chain
and greatly cut costs, information which became very valuable
to both buyers and vendors in the industry.
What is the current state of distribution operations in
South Africa is in an interesting position because they
have been operating 2 existing models for distribution,
centralized and direct-to-store. Whilst most retailers in
South Africa have started to shift to a centralized distribution
system, which is for the better, we are still suffering
from the hangover of a dual system and there is still a
long way to go and take out these costs in an effective
way. The 2 different models and their respective cost structures
have resulted in the substitution of costs across both cost
structures, this still needs to be untangled over the next
couple of years or so.
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