Dovetail Business Solutions in accordance with Triton Express crossed borders across Africa with Dovetail's Freightware logistics software solution. This presentation serves as a case study on the success that can be achieved.
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Crossing Borders into Africa with Fleet Management- Freightware
1.
2. Our Submission
• This joint submission is about how
Triton Express and Dovetail undertook
to cross borders and drive business
into southern Africa - specifically into
Namibia, Swaziland, Zimbabwe,
Mozambique, Lesotho, Botswana and
most recently Zambia
• By using an established infrastructure,
world class I.T systems and an
entrepreneurial culture
• To tell you the story about how Triton
Express did this is Juan Potgieter,
Triton’s Project Manager for Cross
Border Operations and Tony Davis,
Managing Director of Dovetail
3.
4. Real Results
• Currently 65 new jobs have been created with the establishment of these 6 new branches
(both in South Africa and in neighbouring states)
• The company has invested in a number of new vehicles to service these new areas
• Triton Express has been able to expand its service offering to both its current client base as
well as to attract clients in new market verticals including mining
• Improved service levels - in the case of Namibian operations. Triton Express increased
services levels for its partner from 42% - 97% on time delivery
• The expansion drive into Africa has achieved success with 4 of the 6 cross border branches
showing profitability in the first 12 months
• This has paved the way for these operations to contribute in the region of 10% to overall
group turnover
6. The Triton Express Journey
1987 1993 1994 1997 2000 2001 2003 2004 2006 2011 2012
Triton Express
is Established
Johannesburg &
Pietermaritzburg
Cape Town
1st
Linehaul
Vehicles
Port Elizabeth
& Freightware
Bloemfontein
George
Nelspruit
Polokwane
Newcastle &
Richards Bay
Upington &
Windhoek
7. Triton by numbers
• A client base in excess of 2, 500 loyal customers nationally
• 1, 120 dedicated and hardworking employees
• Over 300 vehicles of which 78% are Euro 3 + compliant (RSA standard - Euro 2 until
2014) reaffirming our commitment to a greener Africa
• 2, 692 tyres on the road on a daily basis
• Average daily tonnage distributed of 502 tons
• Average parcel size of 165kg
• Turnover in excess of R463 Million for FY 2013
• Over the past 26 years The Triton Express Group has grown and its subsidiary
companies include Triton Express, Triton Linehaul, Triton Supply Chain Solutions,
Triton Fleet Management and Cryogas Express.
8. Strategic Objectives
• The last decade has seen Africa rise in the global village - amid on-going uncertainty in
the global economy and despite scepticism, evidence of Africa’s progress and growth
remains real and sustainable
• To provide the best possible service that exceeds customer expectations
• To be an entrepreneurial organisation with leadership at every level
• To use the latest technology to maximise productivity and enhance service
• To establish consistent, reliable and dependable express road freight operation into
neighbouring countries from South Africa
To be recognised as the leader in our industry in all aspects of our organisation
10. The Opportunity
• According to the EY Africa Attractiveness Survey of 2013 the transport and logistics
sectors account for 42% of Africa’s infrastructure projects up to February 2013 and
41,5% of all capital invested into the continent
• A developing continent
• A return to political stability in the SADC region
• The discovery of natural resources
• A substantial increase in foreign investment
• Ultimately southern Africa requires a dependable break bulk, express road freight
service , underpinned by an established infrastructure, world class I.T systems and an
entrepreneurial culture
11. IN-DEPTH RESEARCH
•Basic principles of demand and supply by
understanding the market, trading conditions,
competitors and regulatory considerations
•Analyse local and sub-Saharan market trends in
terms of what is being purchased and moved
(market verticals)
•Market volumes and competitor analysis
•Insights into types of commodities and the
related volumes of commodities being moved
•Cost factors
•Geographical and typographical considerations
Getting the facts
12. PROCUREMENT OF LOCAL EXPERTISE AND
BUSINESS PARTNERS
•Working with local business and experts in
market was key to medium to long term
sustainability
•Successful expansion cross border is boosted by
having resources on the ground that are already
entrenched in market
•Acquiring of businesses in Swaziland and
Zimbabwe, whilst a partnership was established
for the Mozambique and Namibian Operations.
Local expertise
13. QUALIFIED PROJECT TEAM
A project of this nature is complex and demanding and as such there was a need to have a
multi- skilled team in place to research, develop, implement and manage the project.
•Ernst and Young assisted with statistics on Africa
•Manica helped to understand the problems at border posts
•An internal task team consisting of Operations, IT, Sales, Finance and Top Management was
set up
•We engaged with the relevant partners such as Dovetail who we knew were critical to the
success of this project
•A detailed project planning process was then developed to coordinate this diverse team of
experts
Skilled team
14. Like the tyres on the truck…
The essential role of technology
15. Long-term relationship
•Triton and Dovetail have worked together for 13 years, creating a strong working
partnership with a good future. This has created a deep understanding of the way Triton
Express operates
Local partner with local software
•Understanding, responsiveness and affordability were essential factors.
•The speed of localisation, customisations, adaptability, local African knowledge made a
significant difference
Experience
•Dovetail already has clients and rollout experience
in Zimbabwe, Namibia and Botswana
The Dovetail Partnership
16. The FreightWare Advantage
Stable, scalable, modular and functional
•Reliability without limits
The ability for Triton Express to add value
•Triton IT has developed solutions around the
FreightWare platform that add unique advantage
and value
Knowledge transfer: ease of use and training
•Triton Express were able to roll out the new
branches with minimal input from Dovetail
The Dovetail Partnership
17. Like the tyres on the truck…
The essential role of technology
Strategic Intent
•Dovetail has a strategic focus to continue to
expand into Africa, ideally with existing clients
•This project has already opened doors to further
opportunities in SADC countries
18. Facing Challenges
The team quickly learned that what works for
one cross border operation isn’t necessarily
suited to all and that there was a need for
flexibility and adaptation:
•Tailor made solutions and client offerings
•Customised process flows
•Operational, sales staff and customer training
19. THE BORDERS
Challenges
•Paperwork
•Lack of consistency and staff efficiency
•Corruption
•Non-synchronised working hours on either side of the border
Key Learnings
•Engaged with local authorities and customs officials
•Established an internal cross border division handling
clearing in SA
•Partnered strategically with in-market clearing agents to
handle clearing cross border
•Implemented policies and procedures and customised work
flows
•Developed internal training
Facing challenges
20. LEGISLATION
Challenges
•Different requirements per country in terms of
setting up new businesses (business laws, ownership
of land, Zimbabwean Indigenisation Initiative)
•Customs laws per country varied
•Regulations with respect to official languages
Key Learnings
•In-depth research to gain understanding of what was
required legally
•Due diligence undertaken to identify partners
•Engagement with local translators to assist with
language barriers
Facing challenges
22. INTERNAL PROCESSES
Challenges
•Numerous currencies and fluctuations in cross border fees
•Freightware restraints around the different charges and currencies
•Documentation – Understanding of requirements (client education)
Key Learnings
•Engaged and work closely with Dovetail
•Customising the system to charge out fees individually (postal codes)
•Sales and customer services training
•Adapting Freightware to prompt specific questions
Facing challenges
23. The journey into southern Africa
Aug 12 Oct 12 Dec 12 Jan 13 Mar 13 Aug 13Aug 13
Branch in
Windhoek
Daily from
Upington
4 dedicated
vehicles
Branch in
Harare
Twice weekly
from Jnb
2 dedicated
vehicles
Branch in
Matshapa
Overnight
from Jnb
6 dedicated
vehicles
Branches in
Maputo &
Vilankulos
Daily via
Nelspruit
Dedicated
fleet in
country
Branch in
Maseru
Overnight
from Bloem
1 dedicated
vehicle
Running via
Zim to
Lusaka &
mines in
Solwezi
district
Branch in
Gaberone
Daily
from Jnb
3 dedicated
vehicle
24. The road travelled
The overriding goal for Triton Express was to turn each branch into a profitable business
unit within its first year of operations.
This has been achieved with:
6 operational cross border branches that are
fully functional in 12 months
93% of cargo delivered to these regions
within Triton’s own infrastructure
25. Triton Express’ expansion has resulted in an increase in
quality transport services in areas where it is needed to
promote growth
This has made a positive difference in the lives of the
communities in Southern Africa and created value for
employees
The short term focus is increasing volumes into the
existing countries, improving services levels even further
and making these branches sustainable into the future.
From a long term point of view we will continue to look for
new opportunities and locations to expand our service
offering
The road ahead