Running oil in the logistics and supply chain sector is a tough, highly competitive business according to Arend du Preez, MD of Crossroads, who believes that oil majors should not use inferior service providers as it carries a lot of risk for their fleets and brands.
Du Preez put emphasis on the role of safety in the industry – that logistics and supply chain service providers must adhere to the most stringent safety standards in the industry.
“The potential reputational damage from even a single incident is significant,” said Du Preez.
“It’s an innate part of running a successful business in our industry. You have to shape the economy of your business around safety because safe operators recoup the cost of running the business.
“More than 50 years of successful operations with some of the country’s top brands have proved this point to us time and again.”
Du Preez said logistics and supply chain operators have to ingrain safety into the daily routine of their employees.
He added however that the task may be a relatively straightforward process to develop the necessary standards required to be successful in implementing safety strategies if you have a single yard with a few employees and one or two vehicles. The task, he said, becomes exponentially more challenging as you expand your scope across the country and across borders.
“One of the ways to be successful is to keep historical records so that you can measure past performance and establish future improvements. That stems from engaged managers who understand the fundamental operations and therefore the success factors that stimulate customer happiness and, more than that, their comfort that the risk is being properly managed on their behalf.”