The economic crisis unleashed by the outbreak of COVID-19 has hurt economies around the world. When times are tough, shedding non-core business processes is one of the most prudent and effective ways to cut costs while improving performance.
Know your Core from your Context
There is more pressure than ever for companies to provide superior customer service. In his book, ‘Dealing with Darwin’, Geoffrey Moore argued for the distinction between Core and Context, an approach that separates the few activities a company does that create true differentiation in customers’ eyes (Core), from everything else that a company needs to do to stay in business (Context). A focus on core competencies increases the sustainable competitive advantage of a company by creating value for customers.
The core competency of any business is the strategic, competitive advantage it holds over its competitors. This can include equipment, processes or intellectual property, as well as know-how or specific abilities that a company performs especially well. It’s about establishing what you are really good at doing and then concentrating on that.
The importance of innovation
One of the key competencies of service organisations is innovation. Outsourcing business tasks like supply chain management to a third-party logistics (3PL) provider frees up employees’ time, creating an environment in which ideas are more easily able to flow and be further developed into innovations. This in turn drives improvement of the business model and the delivery of better products or services.
Access to infrastructure and expertise
Working with a 3PL provider gives your business access to experts who not only understand your supply chain, but also have insight into a range of logistics problems and how to solve them.
Leading 3PL providers offer state-of-the-art warehousing, the latest technology systems, increased speed to customer and improved flexibility and visibility across the supply chain, enabling your business to meet customer demands more effectively.
The research proves it
In the Gartner 2019 Logistics Outsourcing Strategy Survey, approximately 70% of respondents stated that functional, end-to-end (E2E) supply chain and overall business objectives have been met or exceeded with the help of supply chain outsourcing counterparts.
Logistics Going Green
A logistics start-up has launched eco-friendly packaging that allows online retailers to minimize their impact on the environment with last-mile deliveries. The new packaging will offer the same quality, durability, and security everyone has come to expect with an added benefit of leaving minimal impact on the environment.
In South Africa alone, billions of plastic bags are discarded every year. Clinging to trees, spreading across fences, and filling up gutters. Sadly, the logistics industry also contributes to this single-use plastic wastefulness.
Many single-use plastic items are only used for a few minutes and outlive their users for hundreds of years. Being industry disruptors within the logistics field, the logistics start-up has the privilege to address this pressing concern and pilot their new sustainable paper packaging range, which includes mailing bags, envelopes and packaging tape ensuring tough tamperproof and trusted products.
There is no denying it anymore, single-use plastic is not sustainable. By adding this paper packaging option to last-mile delivery every fulfilment strategy can be environmentally sustainable and change the logistics industry altogether.
Abu Qir Port Project Contract Awarded to DEME
DEME, the dredging, offshore, environmental, and infrastructure service specialists, announced that at the end of last year it secured a large dredging contract for the Abu Qir port project in Egypt.
Described as the largest ever dredging and land reclamation contract in history, the project includes the reclamation of 1 000ha of new land, the deepening of the port’s approach channel to 23m and the dredging of a turning basin to 22m. More than 150-million cubic metres will be dredged.
This ambitious megaproject creates land for the expansion and further development of Abu Qir, which boasts an ancient history and is slated to become a bustling economic hub, supplementing nearby Alexandria, in Egypt.
DEME will deploy the world’s most powerful CSD (Cutter Suction Dredger) ‘Spartacus’ on the project.
The project’s preparation has already started, with the main works set to commence in early 2021. The project is set for completion in 2023.
“We are very proud to have secured our largest ever dredging and land reclamation contract to date, and to support the Arab Republic of Egypt in its ambitions to develop a world-class project,” says DEME CEO Luc Vandenbulcke.
Convergence Partners acquire CTrack
Technology investor Convergence Partners has entered into an agreement with Inseego to acquire 100% of Ctrack’s operations in Africa and the Middle East.
The transaction will be the maiden investment for its third fund, the Convergence Partners Digital Infrastructure Fund (CPDIF).
Ctrack is a telematics software-as-a-service digital infrastructure platform, providing fleet management, insurance and weather telematics solutions, as well as asset tracking products, to its subscribers in Africa and the Middle East.
Convergence Partners says the business’s Internet-of-Things (IoT) and data analytics capabilities are a key component of an emerging sector in Africa and the company is a good fit with CPDIF’s strategy of identifying high-growth market players that build digital infrastructure on the continent.