Doubling on-time deliveries from 45 to 95%: mining case study
Mining industry logistics presents a range of challenges, particularly with the nature and volume of materials being transported. These challenges are even greater throughout Africa due to fragmented road infrastructure and complex customs regulations.In 2021, Kuehne+Nagel was approached by a world-leading supplier in mining materials manufacturing. They came to us with the same problems typical of mining logistics in this region, including:
- Lead times: reaching KPIs for on-time delivery against a vast landscape of obstacles.
- Visibility: keeping every stakeholder informed throughout the supply chain journey.
- Customs: navigating the various country-specific clearance regulations throughout Africa.
- Road expertise: understanding country regulations and planning the most efficient routes
- Cost control: aligning costs between manufacturers and logistics teams.
The state of play
At the time that this major South African player approached us, they had an average on-time delivery rate of just 45%. In particular, they lacked visibility over their shipments. These would often be large volumes of highly valuable spare parts and mining engines.The company first approached Kuehne+Nagel with one lane in mind, though there was potential to scale, subject to a trial period for different regions. We offered them our superior visibility solutions that would help to prevent bottlenecks at every stage of the journey.
Real-time visibility
The South Africa region is home to a number of logistics companies with tracking functionality, but Kuehne+Nagel has competitive advantage. Our eTruckNow visibility platform is the only software available in the area that gives customers direct access to vehicle telematics. Whereas others need to go through the time-consuming processes of logging in to tracking systems, our data is available in real time.This was hugely valuable to the client, who needed to have 24/7 visibility of their shipments to prevent delays. They benefitted from the eTruckNow platform’s innovative functionality, as well as Kuehne+Nagel’s expertise, including:
Milestone
updates
With data being tracked 24/7, clients can find out exactly where their cargo is and what its status is. For example, milestones are logged when loads go through customs clearance. Agent-led customs clearance
The complex and disparate customs regulations across African countries can lead to preventable delays. Kuehne+Nagel offers clearance out of South Africa, with agents available to speed up this process.Route
planning
Optimising route planning is not only about saving time but carbon footprints. With our extensive knowledge of key routes and customs clearance throughout Africa, journeys are shorter and more efficient.Automated rates
engines
Lack of transparency can lead to unexpected fees. We offer automated rates engines, helping customers to understand their full costs from the outset. In turn, they can forecast and save time on billing disputes.The results
In just six months, we were able to take the client’s previous 45% on-time delivery rate up to 95%. Using our real-time visibility platforms, we gained their trust in a challenging environment. They had very niche obstacles, including deliveries to remote locations across Africa.Likewise, the cargo itself was often large or valuable, and often needed express delivery option. The company had significant time savings thanks to remote monitoring 24 hours a day. As a result, they could see updates immediately, and didn’t need staff logging in at unsociable hours to collect data.
Our systems allowed access through mobile device or web browsers, with nothing more than internet access required. The cloud network provides updates wherever the shipments or destinations are—no matter how remote.
Project Logistics services
across Africa
across Africa
Safety, engineering and expertise for heavy and oversized cargo to impossible routes.
The future
Thanks to this partnership, our client is now paired with the only logistics provider in South Africa to offer real-time telematics monitoring. On-time delivery rates have more than doubled from 45% to 95%. Achieving these ambitious KPIs in just six months offers untapped growth potential—with truck movements growing by 53% in 2023.Our solutions have now secured a long-term extension of mining logistics partnerships. We were also able to scale from one lane to eight —with each lane counting on a successful trial. Having started in South Africa, Kuehne+Nagel has now expanded its coverage to Botswana, DRC, Lesotho, Malawi, Mozambique, Namibia, Zambia and Zimbabwe.
Crucially, we have gained trust by addressing unique problems, including lead times, visibility, customs clearance, route optimisation and cost control. This will continue as we continue developing the eTruckNow visibility platform. With eDocs, 360° views, route planning and instant booking all available in one platform, the client will continue to increase revenue and scale to new regions.
Our industry-leading technology is paired with our industrial logistics solutions expertise. We look forward to expanding our service offering with the client as their brand grows.
Visit us at Mining Indaba to learn more.
Join us in February for Mining Indaba
The Kuehne+Nagel South Africa team returns to Cape Town in 2024 for Mining Indaba, taking place at the Cape Town International Convention Centre . With more than 8,000 delegates from around the world, the event is the largest deal-sourcing and corporate matchmaking conference of its kind. Join our industrial logistics solutions experts alongside investors, executives, mining companies and government officials.Visit our stand at R30-9 from 5-8 February to find out more about our mining logistics partnerships and solutions.