2 shipment delays it was found out that shipment

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2. Shipment Delays It was found out that shipment delays are an norm with almost all imports and export processes, and the organization and the team “imports” is susceptible nor any exception to these ever present bottlenecks and issues. Yes, they influence the running of the business negatively and are definitely regarded as one of the greatest bottlenecks or pitfalls in the process. Transit time is one of the most critical factors in logistics (imports) as goods must be delivered at their intended destination at the right time. The total time taken from pick up to delivery of goods thus has significant impact on the business. Transit is important for buyers who need to use the product being delivered to satisfy various needs at the right time. The finds of which are; A shipment delay, will not only delay the planning of the shipments but will also hold up even the payment of the products as well. Late payments acquire their own extra and additional cost and the finance part of the business then negatively impacted. When there are higher demands on certain products and SKU’s, the risk of out of stock rises by a huge margin Transportation costs became higher and more expensive, because actions like road- hauling and rail-haul of shipment containers urgently to the regions were they are need mostly There are also risks of high jacking of containers and pilferage with regards to the previous action plan of urgent transportation As the shipments are receive late, planning is interrupted with regards to scheduling for receipt to warehouse. In shipments that are scheduled as “Direct Drops” will experience disturbances and this affects the Distribution Centers where these are to be delivered. Page | 38
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Action Plans What is set in place in improving and monitoring shipment delays, the business has put in place processes to counteract this, by firstly having strong and good relationships with both the internal and external parties. This is done by creating and having good relationships with the Brand Companies to inform the Import Co-ordinator about the shipment delays that may or will be expected to happen. This helps with planning and assessing the impact of this. The service providers of Pernod Ricard South Africa, like DSV, helps in informing the business about any weather conditions and port conditions that may have a negative potential in influencing the shipments in the form of the vessel omitting the port due to bad weather, or port congestions and strikes. Secondly, internally after the business has been informed of such shipment delays, action plans are taken, by firstly assessing the risk of out of stocks for the products in the containers or shipments coming in which will omit port to the next port. If a shipment delay happens to a product on risk of out of stocks, therefore though costly, the shipments will be offloaded on the next port and with the proper planning the stockout can be avoided for that brand and product.
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