Logistics - International

The division remains focused on the German and broader European market given the substantial outsourcing potential and continued trend towards companies outsourcing non-core activities. The biggest potential to increase its share of the outsourced market is within warehousing, contract logistics and contract manufacturing.

A key initiative to grow market share in the European market is the implementation of an enhanced and focused sales organisation. Further to this, the business structure was reorganised according to its service offerings, operating as Imperial Transport Solutions and Imperial Supply Chain Solutions from 1 July 2015. This has improved visibility and clarity of its potential client base, and together with a centralised sales capability has already resulted in contract gains.

To further enhance customer service through technology, the international business is implementing the Imperial Freight Management System to automate the matching of cargo to shipping vessels. This capability will enable it to offer its customers the most cost-efficient and reliable transport on all Western European waterways, and provides customers with online access to various functions, including tracking of cargo.

Logistics International’s strategic intent is to shift its business model to more knowledge-based, technology-driven services with a focus on managed logistics. To achieve this, strategically relevant assets will be combined with managed freight and services where appropriate, together with further acquisitions to add the necessary capabilities.

Logistics International expanded its activities in China during the year, and is collaborating with Logistics Africa to evaluate all relevant and developing industries in Asia for potential future investment.

REVENUE 2016
R million
2015
R million
%
change
Logistics International 20 793 19 071 9

OPERATING PROFIT 2016
R million
2015
R million
%
change
Logistics International 1 013 958 6

OPERATING MARGIN 2016
%
2015
%
Logistics International 4,9 5,0