THE DEFINITIVE TRUCKING SITE



Past Issues

October 2007

 

Refrigerated Transport

 

The Woolworths - Fast 'n Fresh (FnF) partnership is undoubtedly the role model for anyone interested in forming and developing a successful business partnership built on shared values and vision. The present arrangement between the two companies originated in 2000 and is rooted in clearly defined and measurable goals shared by both companies writes Max Braun.

Johan Schafer, transport specialist at UPN, tells FleetWatch that for the partnership to succeed, Woolworths see FnF not only as partners but as part of its business in terms of aligning their respective vision and value systems. He emphasises the need for principals to have clearly defined transport goals which are fully understood, accepted and communicated to its retailers.

The partnership is based on a comprehensive service level agreement that spells out every detail of the agreed transport operation right down to the time tolerance of each scheduled delivery slot. The slots apply as much to the retail end of the business as it does to FnF.

Loading/unloading is scheduled to take place 24 hours a day, seven days a week with many drops scheduled between midnight and six am. Every aspect of the transport operation is measured against a performance score card. All operations are independently assessed and evaluated in terms of an operational efficiency charter twice every year to ensure the value chain is being met.

Schafer, an experienced transport manager himself, firmly believes that after taking into account its sales objectives, changes and developments in the market (including feedback from customers), principals must be in a position to guide its transport partner on the vehicle configurations that are best suited to the efficient and economical distribution and delivery of its products. "Principals must have sufficient knowledge and experience in this area of the business to inform its transporter the size and frequency of loads that are envisaged for the upcoming period," says Johan.
 

Gavin Wilson (right) MD of Fast ‘n Fresh and Andrew Crafford, national marketing manager, explain the thinking behind the well known company’s new logo and corporate identity 

FnF, the Imperial Group owned refrigerated transporter, has grown dramatically from a four-vehicle fleet in 1992 to more than 200 in 2007. Apart from the Woolworths partnership, FnF operates a commercial fleet with around 80 Reefers. As a long term transport service provider to Woolworths, FnF has developed and consistently applies stringent operating standards that leave little to chance or mishap. Prime-movers engaged in primary distribution tasks are replaced every three years or 800 000 km, while those working in secondary distribution functions are replaced every four years or 500 000 km - these include 6x2 12-pallet and 4x2 9-metre artics.

Vehicles are maintained in the company's new R40-million distribution mode in Centurion where Tyco and DaimlerChrysler technicians maintain the Navistar Eagles and Mercedes-Benz vehicles respectively in the modern, 16-bay workshop equipped to undertake all maintenance and where necessary repair work. All vehicle maintenance is scheduled and takes place around the clock. FnF vehicles are continuously tracked by the RFID Comtec system. Fuel is automatically managed by the Fuel Master system.

Apart from ongoing monitoring of fuel consumption and targets to improve fuel usage, FnF has installed a bio-diesel storage facility for blending with its home base diesel fuel. The blend at present is five percent by volume. In a bid to improve its driver selection techniques and to upskill its existing drivers, FnF is in the process of finalizing the acquisition of its in-house driver training simulator. The model of choice will be a local product with locally developed software - a huge benefit for the company and its drivers.

This short synopsis of the FnF 's approach to refrigerated transport illustrates not only the level of commitment needed to secure and retain profitable transport but also the willingness and determination to build a long term mutually beneficial business relationship with principals that understand the rigor of road transport.

The success of the Woolworth/FnF partnership is an excellent example of where both parties are willing to share information vital to the success of the project - understanding, agreeing and accepting the risks, jointly managing the risks by on-going review, assessment and evaluation of efficiencies that lead to a commercially acceptable return for both parties.

Schafer says gone are the days when principals should try to exploit transporters. They are vital components in the success of any business that is in the process of building and sustaining market shares. 

"You need to deal with the many problems associated with this business but make sure you add value to your principal's business by consistently achieving perfect order fulfillment. That is the pathway to long term success in refrigerated transport," says Gavin Wilson.

Johan Schafer, transport specialist at UPN emphasises the need for principals to have clearly defined and communicated transport goals which are fully understood, accepted and communicated to its retailers. 

 

Every FnF rig is monitored 24/7 by hi-tech systems to control food quality, vehicle scheduling and fuel consumption. 

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