Corporate Consolidations

As global retail becomes more and more ecommerce driven and local companies have looked to grow their warehousing and distribution facilities, the new buzzword has been consolidation. This refers to a company consolidating their operations and facilities under one roof so as to maximise on their operational values. In a province such as Gauteng, logistics and distribution companies would have facilities in a few areas in order to be closer and more accessible to their clients. Ecommerce has changed all that as people can transact over the net without engaging with the distributor and have their goods delivered to their doorstep or company premises.

 

This has led to companies considering the benefits of consolidation and one case in point is DSV which is building their mammoth facility in Pomona which will have an under roof component of 140 000sqm. This is about the size of 14 soccer fields. The move is aligned with the DSV strategy of aligning all their office and logistics facilities under one roof so as to deliver a seamless end-to-end service for their clientele.

 

The benefits of consolidation are various but they ultimately affect the bottom line positively reducing the number of facilities in a business, it can save money and operate more efficiently. Consolidation also improves communication between business functions, such as production and marketing, and achieves savings by decreasing head count and having systems and processes under one roof. Consolidation and new builds are thus an offering that companies seeking to stay at the front of their sectors must consider so as to deliver better and timeous service to their clients. 

Author Metcalfe Mtungwazi