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BusinessDay www.businessday.co.za Thursday 15 April 2021
INSIGHTS
COURIER SERVICES Sponsored content
Strategies key to meeting sector demands
Company is •confident about
its network and reach, writes Penny Haw
I
n an economy shaped not only by Covid-19 but also by recession and a shift in manufacturing, retail and consumer trends, innovation is fundamental to most businesses. But, says CEO of SkyNet Worldwide Express, Tommy Erasmus, successful and enduring innovation depends on identifying and understanding the demands of every sector you’re involved in and having the international reach and flexibility to meet them. It also means being able to depend on employees who are valued, empowered and encouraged to make positive change. “Respect, professionalism and perseverance — and how these principles relate to our people and how they do business — form the foundation of our culture,” says Erasmus. “We’re viewed by competitors as a market disruptor and differentiate ourselves in four key areas: people, innovation,
Diederick Stopforth … access. smart technology and tailormade services.” Independently-owned and locally-operated, the Skynet Worldwide Express network is an international courier cooperative comprising locallyowned courier companies operating as SkyNet licensees. The success of the model is underpinned by it having recently attracted both local and international investors. “SkyNet is not only a global brand with international reach and a broad footprint in Africa, but also one of SA’s true and abiding brands with an optimistic view of the future,” says Erasmus. “We’re proud of this and, well before Covid-19 compelled other companies to focus on local manufacturers
and companies because lockdown stifled international trade, we developed a strategy and identified 10 vertical markets in which we decided we wanted to prevail.” These markets, he says, were selected because they suited SkyNet’s best-in-class domestic networks and reach — the company has offices in many of SA’s less obvious centres and services outlying areas more frequently than many of its competitors — and its effective network in neighbouring countries. “We strategised with our customers and colleagues to define the most suitable markets but also selected them because we recognised them as markets that drive the South African economy.”
IT AND ACCESSIBILITY
It doesn’t help to identify and target markets if you’re unable to effectively service them. Confident about its network and reach, SkyNet has invested substantial resources developing its information technology (IT) abilities in recent years. One primary objectives was to improve communication with customers, thus advancing convenience. “Some of the most effective services are also, in many ways,
the simplest,” says Erasmus. “For example, we are now able to provide predictive delivery notifications to customers. This is not only convenient for them but also us, and results in notably fewer nondeliveries.” SkyNet also introduced an automatic address checking system, which scans addresses provided to ensure accuracy before parcels and documents are despatched. This has significantly reduced returns and nondeliveries. “On the subject of addresses, we’ve long recognised that many South Africans have informal addresses, which are not necessarily documented or easy to find. We’ve allowed for this market by introducing SkyNet counterpoints with more than 2,000 partners at retail outlets, agricultural coops, centres in townships and the like, each of which is has access to an IT system to simplify and expedite our services,” explains Erasmus.
MARKET SECTORS
SkyNet categorises its vertical markets as follows: education, e-commerce; healthcare; highend cosmetics; high-value items; agricultural; multilevel marketing; information technology and communications (ITC); reverse
logistics; and the cash market. “We were already set up to meet the demands of the ecommerce sector before Covid19, which meant we could service the huge demand that ensued,” says SkyNet marketing executive Diederick Stopforth. “Recognising that, for ecommerce clients, final mile delivery is essentially ‘the moment of truth’ and having invested in our IT systems to advance communication, traceability and security of deliveries meant we were able to conclude more e-commerce business between March and November than we had in the previous three years.” The company’s healthcare delivery service, SkyNet International Healthcare, which was also up and running well in advance of the pandemic, became even more critical during lockdown. “Our wide network and many convenient counterpoints, and the fact we were set up for the specialised handling and support to distribute medicines, instruments and equipment for both regularly scheduled and emergency supply, was key to many individuals and organisations during lockdown,” says Stopforth. “Our specialisation in healthcare, in fact, has enabled us to tender for
the national distribution of Covid-19 vaccines, the outcome of which we await.” SkyNet’s involvement in the education sector goes back about five years to when it introduced a drop-off and collection assignment service for Unisa students. Again, this convenient service became vital to more students and institutions during lockdown. Limited access to shops and the permanent closure of some retailers led to increased demand for SkyNet courier services from the high-end cosmetics market during 2020. Likewise, unemployment, the new establishment of small and medium enterprises (SMEs) and the growth in the “gig economy” led to more business from multilevel marketing companies. Similarly, demands for computer equipment and
software for work-from-home applications saw an increase in the ITC sector. The agricultural sector is, says Stopforth, an important and growing one for SkyNet. Countertop partnerships with co-ops in rural areas have not only provided farmers with better access to agricultural products but have also opened up e-commerce opportunities to their families and employees. Using its extensive network reach and effective reporting and communications technology, SkyNet is growing its reverse logistics business, which requires the courier company to fetch and return products to organisations. “We’ve also tapped into the cash market via our partnership with e-hailing platform Droppa,” says Erasmus. “This not only significantly contributes
towards employment creation and economic development, but also gives individuals and SMEs who don’t have accounts with courier companies quick, easy and cost-effective access to our services.” Innovation, he says, is “the new normal”. Among the sectors receiving attention from SkyNet at present is the highvalue courier market, which is targeted by crime. “This is an important sector for us but, for the safety of our employees and partners and the security of our customers’ businesses and products, we know we have to do things differently,” says Stopforth. “We have come up with some innovations to minimise risk, which are currently undergoing trials, and look forward to introducing these industry-first solutions soon.”
Innovation essential to the logistics business For all its challenges, one of the upshots of Covid-19 is that, particularly due to more and more consumers being compelled to shop online, it accelerated the digitalisation of economic life. This, says GM of business change management at DSV South Africa, Nicholas Diemont, provided opportunities for the logistics industry to innovate. “Demographic and digital trends were already driving the growth of e-commerce, but the pandemic-induced spurt was significant and irreversible, and we have seen e-commerce grow upwards of 1,000% across our client base,” he says. In addition, while supply chains might already have been addressing issues around shorter product life cycles, rising consumer expectations and online trading before March 2020, the lockdown significantly changed the flow of goods and flagged many other challenges, from resilience and design to visibility and renewed emphasis on managing costs and inventories. “The experience of 2020 pushed businesses to ask for more real-time visibility of their products so they could more easily manage their customers’ expectations and experiences,” he says. “This required immediate response and means constant innovation has become an essential part of the logistics business.” Driving both competitive advantage and operational sustainability, DSV’s commitment to innovation means it has to work across many different touchpoints to deliver benefits to its clients and their customers. “By innovating on both horizons (that is, competitive advantage and operational sustainability), we are able to
Nicholas Diemont … solutions. create more efficient solutions, reduce costs for our customers and invent new products and services that improve customer experience and offer growth opportunities,” he says. Among the activities receiving ongoing attention at DSV is supply chain design and mapping. The company’s objective in this regard is to ensure every material, process and shipment is documented and integrated into a compelling and effective customer supply chain strategy. The company’s electronic data interchange and application programming interfaces automate the exchange of data between DSV and its customers’ transport and warehousing systems, handle invoices and enable customer partners to book transport with DSV. “The process is simple and efficient, reduces administrative time and increases security and
THE PANDEMIC INSPIRED DSV TO USE 3D PRINTERS TO PRODUCE HYGIENE PRODUCTS, SUCH AS CONTACTLESS DOOR OPENERS
efficiency and improves effectiveness for both customers and ourselves.” In keeping with global and local business and technology trends and demands, there are several other innovative projects under development at DSV’s Africa Innovation Hub. Among these is the application of the Internet of Things via the company’s visibility platform to counter increasing risk of theft and pilferage, and to advance temperature monitoring on temperature-sensitive cargo. DSV is also developing the use of biometric verification to validate an identity without the need for physical identification. Research and development is also under way regarding the automation of mundane and repetitive tasks via robotics process automation in DSV offices and automated guided vehicles in its warehouses. In addition, DSV plans to introduce an automated expected time of arrival service in SA for road distribution deliveries, following the success of the service in Europe. In addition, the company is looking to introduce automated drones to help manage warehouse efficiencies. The pandemic inspired DSV to make use of 3D printers to produce hygiene products, including contactless door openers. Also, DSV fast-tracked the development of a Covid-19 app to monitor the location and safety of its employees. “The new system gave us full visibility of all employees while observing protocols and enabled us to better manage our way through a particularly disruptive time,” says Diemont, adding that DSV encourages its employees to propose ideas and work with the Africa Innovation Hub to rapidly build and test prototypes.
Drone deliveries a reality Dronamics, a pioneer and manufacturer of large cargo drones, recently announced the launch of Dronamics Airlines. Working with companies in Australia, Canada and Ireland, Dronamics Airlines will undertake same-day drone cargo deliveries using the company’s cargo drone, the Black Swan. The company introduced a prototype of the Black Swan in 2018. The cargo drone is capable of transporting up to 350kg over a distance of 2,500km. According to cofounder and CEO at Dronamics, Svilen Rangelov, the Black Swan can deliver goods faster and cheaper than any airplane currently available on the market. It flies autonomously,
can be monitored and managed remotely via satellite and costs less than a sports car. “It can land on short and unpaved runways, enabling ondemand point-to-point flights and speedy same-day delivery even to the most remote locations that would otherwise take days to reach over ground or sea,” says Rangelov. The company has partnered with organisations in Australia, Canada and Ireland, which will act as subsidiaries to Dronamics to lead local drone regulations for the delivery of e-commerce products, agricultural products, pharmaceuticals and spare parts. Dronamics recently appointed Sergio Oliveira e Silva chief operating officer. He will be responsible for the
airline business’s setup and operations, the deployment of the drone port network and the upcoming operational authorisations under the fastevolving drone regulations around the globe. Silva was previously MD of an Asianbased global aviation company and has more than 25 years of experience in the industry. “This is an important milestone for us, and we are thrilled by the talent we are attracting to our organisation that is embracing our vision to democratise airfreight,” said Rangelov. “We will continue enhancing our experienced management team, who will provide additional expertise to deliver our first commercial flight in the near future.”