Kevin Loudon, CEO of Access, and a man with 23 years’experience in the freight ships agency business, talks recession, customer focus, growth and “logical logistics”
By Ian Armitage
No matter how you look at it, freight forwarding plays an essential role in both domestic and international trade and, in recent years, globalisation and the need to reduce cost have re-focused the freight forwarder in ways that are both innovative and functional.
“This is very, very true,” says Kevin Loudon, Founder and CEO of Access, a Durban-based firm, which has quietly gone about building a substantial name for itself in freight forwarding, warehousing and transport logistics. “We have worked very hard with our clients to reduce cost and increase efficiency over the entire supply chain and are reaping the rewards.”
Access, which has vast experience in the management of transportation and an in-depth knowledge of international and local supply chains, comprises several business units – Access Freight International, a fully fledged global freight forwarding and clearing company which traces its roots back to 1991; Access Freight Logistics (AFL), which was founded in 1999 and operates several Logistics Centres, and Access Freight Africa (AFA), which has been in operation since 2001 and has branches in Johannesburg and Durban, as well as representation in Zambia, Malawi and the DRC.
“We also have a division called Access Freight Projects (AFP), a specialist division which deals exclusively with extraordinary cargoes, and a unit called Access Transport (Pty) Ltd,” adds Loudon. “We offer the full spectrum of supply chain services, providing services through a number of business units, which operate largely independently, with a decentralised management structure, but which are then pulled under one umbrella - Access.
“Each business unit has its own CEO , who sets about designing and executing their own strategic plan, but who reports to the group. We ensure their plans are sound and that, working under the Access umbrella, they are able to leverage the synergies we’ve got to the benefit of the customer.”
Access’ core competencies, says Loudon, include general multi-modal freight forwarding and clearing, and its services are complemented by an extensive infrastructure of warehousing and logistics facilities.
The synergy between the respective business units allows Access to integrate its service offering, affording clients the competitive advantage they require.
State of freight
As with most industries, one of the biggest challenges facing freight forwarders in South Africa is the credit crunch. “The market is certainly tougher than it was a year ago,” admits Loudon.
“But what I call the true players have stuck around. The guys that were sailing a bit close to the wind have fallen by the wayside, but we have been very fortunate in that we have got a very strong customer base, consisting of true players, and we have very close relationships with those customers.
"We work very hard on satisfying their needs and, when times are tough, like they are now, they fall back on the reliable partners they have got and the guys that can deliver value added services – that’s us.”
Perhaps unsurprisingly then, as a result of this focus, Access is performing well. Indeed, mineral volumes have, in Loudon’s words, “grown substantially”.
“Fundamentally, that is because we have been able to pass on the savings of the reduction of the freight base rates that have come through,” he explains. “With the middle market slump, the ocean freight rates have dropped significantly and we have been able to pass these savings onto our customers, which has, in turn, kept them competitive.
“Remember, recession or not, the world keeps turning – and there is still demand,” adds Loudon, who explains that Access’ private ownership and broad footprint has afforded it the flexibility to react quickly to the market.
“It is about supporting your customer and sticking with them through thick and thin. Wherever we can make cost savings for customers, we pass it onto them. And in times like this they need even better service and even better solutions. So, for us, it is about being close to our customers, understanding their needs and then positioning our business to meet them,” continues Loudon.
He says that the group is aggressively expanding its reach, both across borders and internationally, continuously seeking ways to be more innovative in this dynamic and competitive market.
Logical logistics
Access provides integrated supply chain solutions and is supported by extensive infrastructure at the major ports within South Africa, along with strategic Airfreight and road transportation into and out of Southern Africa.
Its growth is centred on focused sales, making use of a global network, leveraging capabilities and building on an already strong culture.
“The focus for us is to grow sales now, ensure that we are effectively growing and developing and make sure we continue with the aggressive growth strategy we have laid down,” says Loudon.
“We have spent a lot of money putting a strong foundation in place and now we are leveraging that. We also think our growth strategy is about Africa and having a broad footprint in Africa; despite the recession, Africa can still grow and develop – it is a long way away from the ceiling. “
“So, it is about growing and it is about belief – believing in yourself and your product and selling hard,” he continues. “It’s also simple, logical logistics.”
On the crest of a wave
In an industry where speed and reliability are crucial, Access has the knowledge and understanding to identify the best possible solutions. For this reason, Loudon is sure success will continue. “We are achieving consistency by articulating our values very clearly. We have quite a strong value set and culture.
“Our greatest company focus is maintaining our competitive advantage in service delivery. It is critically important to maintain contact with clients in order to offer flexible services according to their changing needs and challenges.”
View Digital Corporate Profile of ACCESSGroup in SupplyChain Digital June 2009