Finding business tough? Help is at hand

Finding business tough? Help is at hand

There’s never been a more challenging time to run a business in South Africa. A contracting economy and the pandemic have combined to create a perfect storm. For transport operators, this has meant placing an emphasis on cost containment more than ever before…

Just over a year ago, life as we know it in South Africa changed. The country’s lockdown – one of the toughest in the world – kicked off. Fast forward to April 2021, and the country is still facing the effects. According to the BeyondCovid Business Survey, 41% of businesses are planning to retrench staff over the next six months. Construction, accommodation, food, manufacturing and ICT are worst affected – with the public sector, healthcare and financial services being least impacted.

It has been a challenging time for transport operators too. They are facing multiple business challenges, including rising operating costs, increased fuel prices, decreasing revenues and tighter margins. But, as Nomonde Kweyi, general manager, marketing & communications, Scania Southern Africa points out, they’re not alone.

“Scania has always been at the forefront of setting new standards in sustainable logistics solutions. Improving the quality of our products, while continuously improving the flows across every part of our supply chain, eliminates waste and allows us to challenge operating costs,” she notes.

“Furthermore, Scania’s New Truck Generation is setting new benchmarks in the total cost of ownership, providing customers with sustainable cost efficiencies, and securing them a competitive advantage in their industries.”

State-of-the-art technological leadership is behind Scania’s latest sustainable operating breakthrough. Vehicle data recorded from multiple Scania trucks, in daily operation, using multiple drivers, yielded an average 10% fuel saving across the New Truck Generation range.

“Every Scania we make is equipped with smart technology, advanced sensors and wireless connectivity. We have thousands of constantly connected vehicles providing the data needed to make informed cost savings decisions,” explains Mark Erasmus, general manager sales, Scania Southern Africa.

This proven 10% fuel saving, compared to the Scania PGR range, makes the Scania New Generation the most fuel-efficient truck in South Africa. “Fuel costs can equate to over a third of operators’ total operating costs,” says Erasmus. “Any improvement in fuel efficiency can provide drastic savings.”

But Scania isn’t resting on its laurels. “The highest recorded fuel savings in the market provides our customers with the cost savings needed to offset maintenance costs. By using the fuel savings, our customers can pay zero maintenance costs,” he explains.

Maintaining a truck at zero cost, especially when calculated across a fleet, has the potential to remove significant expenditure from operators’ total running costs, boosting profitability and significantly improving their ability to compete in a highly competitive market. “Across industries, including freight and logistics, construction, mining and agriculture, we know that maintenance costs absorb much-needed revenue and profit. The New Truck Generation has the potential to pay for its own maintenance,” says Erasmus.

It’s total cost of ownership redefined, and Scania South Africa sees it as a game-changer that will help its customers find a sustainable revenue increase while their competitors continue to struggle with high operating costs.

“As challenging economic realities bite, Scania’s sustainable cost efficiencies are driving our customers’ business ambitions and delivering increased profitability, which is helping them achieve otherwise elusive business growth,” says Erasmus.

This doesn’t mean that the impact of the contracting economy plus the pandemic won’t be felt at all. But the New Truck Generation will certainly help soften the blow.

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Focus on Transport

FOCUS on Transport and Logistics is one of the oldest and most respected transport and logistics publications in southern Africa.
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