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Computer Configurations fast-tracks FMCG distribution

Johannesburg, 12 May 1998

TFD Network Africa, one of the largest independent logistics and distribution management companies in Southern Africa, has upgraded to the latest Corollary Pentium Pro system to run its sophisticated computer systems and extensive network. TFD receives, warehouses and delivers FMCG products to major retail and wholesale trade customers on behalf of more than 30 local and international manufacturing companies. All deliveries are accompanied by priced invoices for the actual quantities delivered and in addition to the distribution functions, TFD provides a credit administration service on behalf of a number of its principals. On average 122 000 order lines are delivered every day. Distribution and logistics in South Africa are expensive, with huge geographic areas to be covered to deliver goods to a relatively small and scattered population. With the trade`s emphasis on minimising stockholding, the need for rapid, regular, full deliveries in this highly competitive industry is essential. The company is able to counter these high costs through economies of scale and consolidated deliveries. Theft and hijacking are added complexities that increase the risk to suppliers. TFD assumes many of the risks associated with the supply of product to this industry and earns its revenue from fees directly related to the quantity or value of product handled. Any disruption or errors in the process will immediately cost the company money, either through increased costs or lost revenue. According to TFD financial director Alan Young, the company "takes the pain of distribution away from the client." "By providing a cost-effective solution through strategically placed distribution centres we solve the manufacturers` logistics problem in servicing the trade. We have the critical mass to be able to distribute more efficiently throughout Southern Africa than any one of our clients could achieve on their own. "To process the substantial volumes handled we require superior systems to manage, control and report on all aspects of the business. We have invested heavily in sophisticated computer and network technology over the past eight years and will continue to do so to regularly update and improve our systems. Our clients enjoy the benefits of the best possible systems we can provide." According to Ronnie Sarkin of Computer Configurations, the latest Corollary machine is the second upgrade supplied to TFD since the first installation three years ago. "With each upgrade the applications have been ported across the new machine with no changes needed," said Sarkin. For additional data storage TFD has also installed an Orca 3000 high availability external data storage system, also supplied by Computer Configurations. It provides 24-hour on-line, realtime information to 200 users at more than 30 sites operated by TFD, its clients and agents throughout South Africa. These direct connections are supplemented by the use of EDI with clients and customers. "The FMCG industry operates at low margins," concluded Young. "Accurate timeous documentation is essential as most customers will not accept delivery without a priced tax invoice accompanying the goods. Any errors will delay payment and create additional administrative workload. As a result, any system failure is especially critical to our business."

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Peter Heydenrych
Frank Heydenrych Consultants
(011) 452-8148