AST e-Business, a division of the JSE-listed AST Group, is currently in negotiations to acquire strategic resources and to establish strategic partnerships in the Supply Chain Management (SCM) arena and is set to become a major player in the field of e-fulfilment.
This will further strengthen its existing position as the leading supplier of e-procurement solutions in South Africa, and will provide an entry into the high-growth market of actual delivery and logistics of e-commerce transactions.
If South Africa follows international trends, the total cost of logistics in South Africa is estimated at R70 billion per annum. This includes insourced and outsourced activities. The outsourcing of logistics will grow by at least 15% in the next 5 years.
"Far higher growth rates can be expected in the outsourcing of supply chain management, planning and optimisation, as there are virtually no working models in South Africa," explains Stephen Bosman, Director of AST eVentures. "AST is targeting this lucrative market - it will host innovative technology solutions combined with day-to-day management services in order to leverage the potential of - and the opportunities presented by - collaborative logistics."
Value is created through the establishment of a central, collaborative logistics network, providing opportunities for suppliers, shippers, customers and other logistic services to pool resources for greater efficiencies. The focus is therefore on true and neutral collaboration and not, as is the case with asset providers, on better utilisation of own assets. The network also does not exclude supplier companies which prefer to utilise own logistics assets.
"Through this collaborative network, AST provides economies of scale with regard to software, hardware and intellectual capital. Companies that do not focus on logistics as a core competence would rarely be able to justify the expenditure required to acquire and/or develop best-of-breed logistics management, planning and optimisation technology and human resources," notes Bosman.
The AST Collaborative Logistics Network broadly provides design and optimisation of supply chains, including planning and execution.
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