UK logistics company sees success in SA market

Following significant growth, further Loadhog Pally solutions are being rolled out at online store Kalahari’s Cape Town distribution centre, with a substantial number also bought for its second centre in Johannesburg. UK distribution transit packaging company Loadhog completed its first contract this year and has identified more potential applications throughout Africa.

As one of South Africa’s largest online stores, Kalahari needed a faster, safer, more efficient and economical way to handle new category products, while complementing its current products and methods of picking and transporting products internally; therefore, logistics and opera- tional solutions service provider and Loadhog partner Corporate Renaissance Group (CRG) Supply Chain Services (SCS) introduced Kalahari to the Loadhog Pally solution.

CRG SCS provided a wheeled pallet solution for Kalahari, the market leader and fastest-growing service provider in the country’s ecommerce sector, which specialises in the supply of books, films, games and electronics.

The Pally combines a pallet and a dolly in one simple device. Many companies use pallets for a large part of their operations but, at some point, will transfer the goods to a dolly to eliminate the use of materials handling equipment such as forklifts.

“The Pally incorporates bearers which can be engaged at any point to act like standard bearers and then, when required, a simple pedal push brings down the wheels and the unit becomes a dolly. Therefore, all double handling is eliminated, making the operation more efficient and, therefore, achieving significant savings. Plus, it can be incorporated into any operation without large-scale changes,” says Loadhog sales and marketing manager Giles Moore.

Loadhog has continued to grow, following its success in ser- vicing the local market and has worked on projects for Internet company the MIH group, which includes Kalahari. Since then, Loadhog South Africa has been established to provide materials handling solutions, extending Loadhog’s capabilities into the local market.

Unlike any other pallet, one foot-press on a pedal at either end of the robust, stackable Pally transforms it into a fully mobile, wheeled dolly, allowing instant mobility for efficient movement. A second pedal-press returns the Pally to pallet mode, lifting the wheels clear of the floor, transferring all the weight onto the pallet bearers to create a stable, secure unit for easy and fast product picking.

“The Pally is a great solution when we need flexible storage and movement options, especially in an environment with low levels of automation and high product variability,” says Kalahari head of operations Annes Schreuder.

The 800 mm × 600 mm robust Pally, with a 250 kg capacity, was a suitable solution and the first contract signed related to the internal storage and transport of a huge range of goods at Kalahari’s distribution centre in Cape Town, explains Schreuder.

Further expansion plans are in place for Loadhog in the next three years and the outlook for partnerships between Loadhog, CRG SCS and Kalahari are promising, Moore says.

“In the next five years, we are looking to go from a £7-million turnover to a £30-million turn- over. This will triple our workforce and we expect to have operations in six different countries. We are currently active in two countries with entry into a third imminent,” adds Moore.

Out of this £30-million, £8-million will come from new products which do not exist today. Loadhog is placing great emphasis on new product development and expanding overseas. “We are currently supplying in 22 countries, but in five years’ time, we will be selling in over 70 countries,” Moore says.

Plans for expansion are met by adapting to the latest trends and technological advances, which include full sortation machines and automated lines. In Europe, many companies have been using these technologies for quite some time now, but Loadhog notes that more and more companies are implementing these solutions.

“In developing countries, this adaptation is happening more rapidly, which makes it of particular interest for us. In terms of new equipment, we would certainly be among the top companies owing to our own innovative ideas, which sees dedicated employees solely concentrating on new products and developments,” says Moore.

He notes that the biggest growth potential for the company lies in two main areas, namely exporting and companies pooling operations.

“There are opportunities in exporting to developing countries, particularly in the Middle East, South America and Africa,” he says.

“The second main area of growth is in our pooling operation. We manufacture plastic layer pads for the movement of glass bottles from manufacturer to breweries. We have an opera- tion in the UK, Australia and the Iberian region, and are looking to expand this throughout Europe and the Americas. We are also looking to replicate the pooling model of our Hogboxes, devel-oped for a large UK retailer, in Europe.”

The company says the pooling operations have become a significant focus, as they will ensure regular revenue.