Company Report: JAS Forwarding S.A.: Forwarding for future growth
JAS Forwarding S.A.: Forwarding for future growth Despite the economic climate putting a strain on growth, Financial Director Renee Hawkridge explains that JAS Forwarding S.A. is not too concerned about the year ahead

"JAS continues to operate as we have in the past," Financial Director Renee Hawkridge explains, when Exec Digital asks whether JAS South Africa is feeling the effects of the financial crisis.

"There is still a lot of activity and we are not too concerned about the year ahead. We have increased our focus on training as we now have the infrastructure to do so. The bigger we grow, the more we are able to train our people because we have the commitment of all our employees."

Growth
"Our sales team is on the road so we are still obtaining new business." Hawkridge continues. "We have no intention of going through a retrenchment process, as is happening with other companies, even though there is no immediate growth on the horizon."

However, this has not always been the case. This unit of JAS Forwarding Worldwide, which boasts 230 branches/agents in 80 countries, is a leader in the international freight forwarding market. JAS South Africa has continued to expand since its inception in 1982.

"As you grow, you are able to expand in other fields," explains Hawkridge. "For instance, when JAS started in 1982, we were just importers, predominantly in airfreight, slowly moving into sea imports. It wasn't until the early 90's that we branched out into exports.

"The South African economy was the main reason for this shift in business strategy," she explains. "It is still predominantly an importing country but South Africa has increased its exporting in recent years. Good business sense was for JAS South Africa to fulfil this demand for their customers. Exports is not as yet beating the imports, but it does contribute sizeably towards our overall revenue."

Service Offering
Simultaneously, JAS South Africa has also expanded its service. "As our name suggests, we were forwarders as opposed to clearing agents, but we now offer the full-service - forwarding, clearing and warehousing, which is an enhancement. A one-stop shop as such," says Hawkridge.

"Being in a service dominated environment, these value-added services mean that we remain competitive. New business is gained on our competitive rates offered, but clients are retained by being offered a good all round professional service."

A Global Offering
Being part of the international JAS Group also assists JAS South Africa win new contracts. For instance, Hawkridge explains that the JAS team won a contract with an international company's South African subsidiary through a recommendation by its sister company - JAS America. "It gives us a foot in the door as the sister company in the USA is receiving excellent service from JAS," she says. "It is very helpful having sister companies around the world as they assist us, and generate business for us and of course it works both ways. It is a mutually beneficial relationship to all.

"This gives us the edge on non-international companies who have to involve a third party agent that may not share the same vision."

Training Programs
Hawkridge is keen to stress that although JAS South Africa is part of a wider group; the South African unit is almost entirely autonomous, developing its own training program and wider community programmes to benefit its employees. For instance, the company runs two training courses for the previously disadvantaged citizens - both of which are part of a wider government initiative to improve South Africa's labour market and skills.

"The Adult Basic Education and Training (ABET) is mainly for our warehouse staff and drivers," says Hawkridge. "It is part of a government incentive for companies to train their adult workforce who wish to finish their basic education."

Alongside this ABET training, JAS South Africa offers what is commonly known as Learnerships. This year-long training course differs from the ABET training as the potential candidates have matriculated from school and are competent in English and Maths but are unemployed and unable to afford tertiary education. "This involves training these individuals specifically about our industry - forwarding and clearing," Hawkridge explains.

"They are trained by a credible training institution using schoolroom lessons and on-the-job training methods. Throughout the year they are assessed according to unit standards and once found competent, receive a government-recognised certificate at an NQF3 level. This assists them in being marketable to any other company within this field. JAS South Africa attempts to retain these skills by permanently employing these learners once the Learnership has been completed."

The Future
With just over 12 months until the 2010 FIFA World Cup, Hawkridge is excited about the benefits it will bring to South Africa. "There is huge excitement surrounding the World Cup," she says. "As much as the outside world is in recession, our government is putting a lot of money into improving the infrastructures within the country, which will / has brought work to the unemployed."

January to April every year is a slow time for JAS and then increases, at present it's still quiet. That said, Hawkridge is confident that JAS South Africa is going to come out on top this year. "We are strong, we have a healthy balance sheet - JAS is here to stay." she says. "South Africa is an emerging market, so we are dependent on the world economy to improve before we can make our way forward," Hawkridge concludes.

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