STIJN WOUTERS The creation of Gordian Logistics Experts SA will result in about 30 to 50 jobs being created between the Netherlands and South Africa
Physical-asset management company Pragma is partnering with Netherlands-based company Gordian Logistic Experts to form a local branch, Gordian Logistic Experts South Africa (SA), which will introduce spare parts management solutions onto the local market this year.
In May last year, during Nether-lands Prime Minister Mark Rutte’s visit to South Africa, the two companies’ willingness to collaborate culminated in a contractual agreement and the subsequent signing of a memorandum of under- standing.
“Rutte’s visit coincides perfectly with this milestone, as this partnership is a perfect product of the close collaboration between South Africa and the Netherlands,” says Gordian managing consultant Stijn Wouters.
He adds that the partnership brings together innovative expertise in spare parts management and sustainable asset management. The creation of Gordian Logistics Experts SA will result in Pragma’s investing in the European market, supported by Gordian in the Netherlands. Together, Gordian Logistics Experts and Pragm-a aim to create between 30 and 50 additional jobs as a consequence of the partnership.
Pragma partner consultant Gerrie Olivier says the partnership is primarily about two different, yet complementing, sets of expertise that meet in a market where demand for sustainable practices is non-negotiable. With the spare parts management offering, Pragma has the immediate benefit of expanding its physical-asset management services in South Africa.
Localisation
Wouters states that Gordian and Pragma have a similar view of the market, albeit in their respective fields of expertise. Gordian, similar to Pragma, delivers a service where the tactical spare parts planning is done on clients’ behalf, with a spare parts planner identified either by the client, or Gordian and/or Pragma, he adds.
Gordian performs a number of activities on a monthly basis, such as classifying the assortment of spare parts, setting inventory and forecasting parameters, and reviewing exceptions.
Moreover, Gordian monitors the key performance indicators for which targets are set with the client and “will support the client with this continuous improvement cycle to create an enhanced balance between stock availability, working capital and operational costs”, he notes.
Further, Gordian offers spare parts management training on two levels – strategic training aims to make managers aware of the concepts and directions to improve, with tactical training aiming to empower logistics engineers and buyers through concepts and methods that they can apply in the field.
“This gives the client’s organisation a boost in knowledge and skills when . . . applying spare parts management concepts, which are considered significantly valuable in Europe,” Wouters says.
He adds that the complementary nature of Gordian’s spare parts management within Pragma’s broader asset management business creates value for a comprehensive client proposition: “Pragma and Gordian are not only sharing intellectual property, such as training material, methods and software, but are actually also marketing the new and broader offering with a single supplier for the customer.”
Olivier notes that the major benefit of Pragma and Gordian combining their efforts is evident in the field of spare parts management, where Pragma and the South African market currently have limited experience or access to quality solutions.
To improve local logistics efficiencies, Olivier says that, in an asset-intensive environment, the aim is to always ensure that a deli- cate and enhanced balance is struck in terms of performance, cost and risk. This also depends on whether the asset is used for delivering a service, manufacturing a product or providing transport.
As a developing country (compared with Europe), Wouters states that the South African manufacturing industry faces various challenges. Despite these challenges, the sector offers many opportunities regarding economic growth, but these are, however, associated with a complex labour environment.
This, says Wouters, emphasises the need for complex assets, as ever-increasing pressure on better performance and cost reduction subsequently highlights the importance of managing assets and spare parts.
“South African companies are invariably open to creative cosourced solutions, like the management of assets and spares from a remote centre – otherwise known as a control tower. The South African market and beyond, therefore, offers attractive business opportunities for innovative and socially committed service providers like Gordian,” he points out.
Olivier avers that, in Pragma’s experience, spare parts management and the enhancement thereof is often regarded as no man’s land, but adds that, in most industries, there is significant value in engineering spares.
“In partnering with Gordian, Pragma’s aim is to service the market by delivering more value by freeing up the capital that is unnecessarily locked up in spare parts,” he says, adding that Pragma believes that the partnership positions both companies to expand their collaboration with universities and colleges by providing a fertile training ground for growing and developing expertise to fill the current knowledge and experience gap in the market.