Meadow Feeds teams with Barloworld Logistics
The leading South African animal feed producer Meadow Feeds, and supply chain management major Barloworld Logistics, today announced the commencement of a ten (10) year transportation outsource contract. In terms of the deal, Barloworld Logistics will perform the entire physical outbound distribution function for Meadow Feeds. This includes the planning, management and physical transportation of Meadow Feeds’ products, as well as the optimisation of the outbound supply chain at the company’s seven South African feed mills located in Randfontein, Delmas, Welkom, Paarl, Ladismith, Port Elizabeth and Pietermaritzburg. The agreement will commence on 1 October 2011 and will run for an initial term of ten (10) years involving in excess of 160 pieces of transportation equipment, as well as the transfer and management of approximately 180 employees.
The customised Barloworld Logistics solution involves the management, optimisation and scheduling of fleets, processes and personnel – in such a way that the highest degree of flexibility and cost effectiveness is achieved.
Roedolf Steenkamp, Managing Director of Astral Foods, Feed Division, explains the rationale behind the contract: “This arrangement underpins Meadow Feeds’ strategy of outsourcing certain specialised, non-core activities. This will allow increased focus on key components of Astral’s integrated poultry value chain. The choice of a suitable business partner and outsource provider was made easy due to Barloworld Logistics’ extensive experience in extracting sustainable value for their clients from such outsourcing arrangements, as well as their unique partnership approach and track record of supply chain management innovation.”
Divisional Director at Barloworld Logistics, Francois van Rensburg, is excited about the opportunity: “There’s a good cultural fit between two great South African brands. We understand Meadow Feeds’ need for a world-class, low cost solution which brings cutting edge innovation into its distribution network. Our track record speaks for itself and we are proud to be given the opportunity to enhance Meadow Feeds’ strategic advantage.”
ABOUT BARLOWORLD LOGISTICS
Over 70% of potential savings and service enhancements in a supply chain come from the re-engineering and integration of logistics processes. Barloworld Logistics is South Africa’s leading integrated logistics and supply chain management company, and a fast-growing global player. They create strategic advantage for their clients by optimising and integrating the client’s logistics processes and information flows, thereby radically reducing their costs and increasing their service levels.