6 minute read
INTERVIEW WITH DR MTHOBISI ZONDI, EXECUTIVE CHAIRMAN AT LOGIDIST GROUP (PTY) LTD
INTERVIEW WITH DR MTHOBISI ZONDI, EXECUTIVE CHAIRMAN AT LOGIDIST GROUP (PTY) LTD
Q. GIVE A BRIEF SUMMARY OF THE COMPANY, ITS CURRENT PRODUCTS/ SERVICES, AND WHICH MARKETS IT CATERS TO.
LogiDist Group is a diversified industrial group of companies with operating assets in the manufacturing of steel products, logistics and services, health and wellness, defense and engineering, and manufacturing of timber products. Founded in 2006, the company is 100% black-owned, 100% black managed and 100% black-controlled. The company employs more than 150 people in all its operations in Gauteng, Mpumalanga and KZN.
Q. WHAT DO YOU SEE AS THE KEY CHALLENGE FOR TRANSFORMATION IN YOUR SECTOR?
The availability of funding for emerging black-owned businesses is one of the biggest challenges. The manufacturing sector is heavily reliant on capital for specialised machinery and equipment, and funding for black-owned businesses is very scarce in this country. Those that have access to funding are sometimes not interested in operating assets but just investing, which in itself cannot truly transform the sector.
Q. HOW DO YOU RETAIN PERSONNEL IN YOUR COMPANY AND STOP KEY STAFF JUMPING SHIP?
We play open cards with personnel. When the business is going through challenges (e.g. recently during Covid-19 lockdowns), we take staff into our confidence in terms of what we are doing to try and stay afloat. That helps to get all hands on deck and ‘fight’ against the challenges together.
Q. WHAT ARE THE SKILLS YOU LOOK FOR IN STAFF, AND ARE THESE NEEDS BEING FULFILLED?
Our businesses are technical in nature and require technical personnel such as engineers, technicians and artisans. Supporting functions such as HR, finance, Marketing and IT are also important. At our Johannesburg based head office, for example, we need personnel that understand that it is a requirement to support ALL business subsidiaries and this comes with a lot of depth in terms of knowledge and flexibility in terms of working conditions. Skills can be acquired provided an individual is committed, dedicated and hardworking.
Q. WHAT ARE YOUR COMPANY’S KEY TRANSFORMATION MILESTONES?
Internally, we want to ensure that every staff member eventually owns a share of the company. Externally we want to ensure that more than 60% of our supply chain activities are outsourced to black owned companies. Furthermore, we want to meaningfully enrich every community where we have operations through job creation and sustainable wealth creation.
Q. WHAT SKILLS DO YOU THINK THE NEW GENERATION OF BLACK LEADERS ARE GOING TO NEED? HOW DO YOU IDENTIFY THOSE LEADERS IN YOUR BUSINESS?
We need leaders who understand that businesses cannot be sustainable unless they add meaningful value to the lives of those involved. Inclusive growth and development means “we take everyone with us”. It is not adequate that the company has healthy margins, dedicated employees and compliant processes. There needs to be impactful results that change people’s lives for the better. Otherwise the system is not sustainable.
Q. HOW HAS YOUR B-BBEE RATING BROUGHT YOU BUSINESS OR EXPANDED YOUR BUSINESS?
B-BBEE as an indication of transformation still has a long way to go. We still have companies who are rated as Level 1 yet they are not truly transformed. While the intentions of B-BBEE are good, there has to be better implementation to ensure it achieves the results it was designed for.
Q. WHAT TIPS OR ADVICE DO YOU HAVE FOR PITCHING BUSINESS CONTRACTS?
Always ensure that you use your first contract to create very high standards of service that will leave the customer open-mouthed. In that case you are assured both return business from the first client and future business through referrals by the same client. Nothing beats meeting and exceeding customer expectations, everything else is merely fluff.
Q. IS THE DRIVE FOR SUSTAINABILITY CHANGING THE WAY YOU DO BUSINESS? HOW?
One of our subsidiaries manufactures steel tanks for the petroleum industry. With the drive towards green energy we have seen that less and less projects are commissioned, which means that we had to look at new ways of participating in the green energy value chain. This is both challenging and exciting as it forces us to think outside the operational paradigm we’ve been caught in for many years.
Q. WHAT ARE THE MOST IMPORTANT CHALLENGES YOU HAVE HAD TO FACE IN YOUR TRANSFORMATION AGENDA?
The number of black-owned businesses is very disproportionate in the sector, which means the value chain is still mostly controlled by untransformed companies.
Q. WHO ARE THE PEOPLE YOU MOST ADMIRE, AND WHY?
Everyone who understands that things don’t just fall onto your hands from above, and that you need to sweat for them. There is NO substitute for hard work.
Q. IF YOU HAD TO START YOUR WORKING LIFE OVER AGAIN, WHAT ADVICE WOULD YOU GIVE YOURSELF IN HINDSIGHT?
Have a grand plan and work towards it. I think earlier in my life I made plans as I went along, and kept adjusting and trading off. I would be more consistent if I were to do it all over again.
Q. WHERE WILL YOU BE IN 10 YEARS TIME?
Growing the business to other provinces, nationally, and towards SADC countries.
Q. HOW DO THE COMPANY’S CSI PROJECTS CONTRIBUTE TO THE BUSINESS AS A WHOLE?
Our CSI projects tend to focus on communities where we have operations. We don’t leverage CSI for marketing. We rather focus on creating long-term relationships with community stakeholders based on mutual trust.
Q. DESCRIBE THE BUSINESS PHILOSOPHY THE COMPANY PRIDES ITSELF ON.
“We take everyone up with us”
Q. WHY DO YOU BELIEVE TRANSFORMATION IS SIGNIFICANT IN SA?
Because without it, the business environment as we know it is not sustainable.
Company Details
Address: 20 Pelteir Unit 11 Sunninghill office park, Sunninghill Johannesburg, 2191
Tel: 011 234 3075
Email: info@logidistgroup.com
Web: logidistgroup.com
Social Media: @LogiDist Group
Occupation and position:vExecutive Chairman
First job: Junior Engineer
Best advice and who gave it:
“Never let anyone pressure you into making an important decision. Always take your time” – Carl Sadie, former colleague
Best business book read this year: Phil Knight’s Shoe Dog
Most inspiring business leader: Steve Jobs
Way you relax: Audio Books
Business philosophy(in one sentence): Keep pushing until something gives