Volvo moves to consolidate logistics services for commercial vehicles
The Volvo commercial vehicle group will, in a R59-million project, consolidate the logistics services for all its South African operations into one distribution centre, to be located in Johannesburg.
As a result, all the parts warehousing, logistics and distribution services for Renault Trucks, Volvo Trucks, Volvo Bus and UD Trucks will be housed under one roof.
Distribution Centre South Africa GM Colin Govender says the group’s customers and dealers are set to benefit from what he believes will be a more streamlined and effective parts operation.
The move to a single distribution centre comes as UD Trucks, Volvo Trucks and Renault Trucks continue their slow but steady merger into one operational entity – but with three independent brand identities – in South Africa.
The local development mirrors global corporate movements, starting when the Swedish Volvo Group acquired French truck manufacturer Renault in 2001 and Japan’s UD Trucks Corporation in 2007.
Volvo Trucks Southern Africa regional president Torbjörn Christensson said in a 2012 interview that, although Volvo Trucks did not want to lose the independent identity of the brands under its control, it was seeking increasing synergies in South Africa between Renault Trucks, UD Trucks and Volvo Trucks.
The new incorporated Volvo Group South Africa distribution centre will see the Volvo Group’s existing centre, located close to the company’s headquarters on the East Rand, grow from 4500 m2 to 11500 m2.
The consolidation project is set to start in October and is expected to be com- pleted by the fourth quarter of 2014, says Govender.
“We have a good business case for this investment. It is also designed to support the continued growth in this market.”
The Volvo Trucks group aims to sell just more than 6 000 trucks in 18 markets in Southern Africa in 2013.
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