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Why Enterprises Must Prioritize an End-to-End View of Last-Mile Operations to Remain Competitive

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Archives, Global Logistics, Global Trade Daily

Why Enterprises Must Prioritize an End-to-End View of Last-Mile Operations to Remain Competitive

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Amidst a massive surge in online purchases and heightened consumer expectations, last-mile logistics operations have been thrust into the spotlight for company executives like never before. Organizations across the world have finally taken note of just how critical this function is in enabling enterprise-wide success and – on the flip side – how detrimental it can be to bottom line results if mishandled. 

In an ever-evolving and hyper-competitive e-commerce landscape, Last-Mile – the last leg of fulfillment to reach a customer’s doorstep – has also become the face of the modern customer experience and a way for retail brands and the CEP and 3PL providers delivering their packages to differentiate themselves from competition, delight customers, and keep them coming back for more. As one of the most complex pieces of the overall logistics puzzle, it’s become another facet that executives are doubling down on to ensure seamless, highly efficient delivery experiences.

But while many are integrating and adopting technology that streamlines last-mile execution, not all have leveraged a 360-degree, comprehensive view of exactly where their company’s weaknesses or opportunities lie. In fact, most are adapting almost blindly in a guessing-game of where to prioritize their resources to bolster their strategies and drive ROI. It’s putting businesses at greater risks none can afford today. 

In order to minimize this friction, companies should take more critical and holistic stock of their current last-mile ecosystem, including several key pillars that enable tangible success today and in the future:

Last-Mile excellence

Undoubtedly the trickiest and most costly portion of the delivery journey, the last-mile has the power to transform logistics operations and improve repeat business rates. Thus, taking a critical look at how this function is running and the major challenges companies continue to face in their delivery processes is key. 

For instance, asking questions like: how confident are we in our ability to handle spikes in demand? Are we constantly combating unpredictability in the Last-Mile that we can’t adapt to? Are we looking to provide speedier deliveries than we’re currently able to handle? 

Companies today that aren’t consistently using optimized or automated delivery route planning strategically are likely to answer yes to the above. They’re often at a severe disadvantage than counterparts that are. And the reality is that any attempt at manual efforts today will be wrought with unnecessary hurdles, human error, and risk, especially in the face of high volumes during the peak seasons. Utilizing dispatch management software, for instance, can help automate every stage of fulfillment with secure applications and seamless integrations. This also allows the applications to communicate with each other and use the same data so that systems are in-sync even (and especially) when real-world constraints throw a wrench into original plans. 

In order to maintain that competitive advantage and keep final-mile logistics running efficiently and effectively, industry players need to take full advantage of the technology at their fingertips, including advanced analytics, machine learning, AI, and more, or they’ll lose out. 

Exceptional customer experiences

Because Last-Mile fulfillment deals with customers directly, it’s vital in shaping their view of the entire purchasing experience. For many, it dictates whether they’ll purchase from a brand again. 

It’s incredibly important to evaluate whether customers are actually satisfied with the updates they receive on their order status and the timeliness of their deliveries. If the feedback is consistently negative, and a company identifies major gaps in this area, it’s only a matter of time before it catches up with them. 

An efficient last-mile system can help manage, track, and schedule deliveries, and emerging tech like AI and ML can anticipate needs and constantly adapt to changing environments in real-time. Additionally, implementing a customized slot-based delivery system into current operations and displaying multiple delivery slots will lead to a more convenient delivery experience for customers and more directly satisfy their desires. By prioritizing real-time tracking and a high level of transparency, businesses can drive greater value and less friction for customers. 

An empowered workforce 

As labor issues continue to plague the logistics sector, organizations must understand that drivers are at an all-time premium and will have no issue jumping ship to work with an enterprise where they feel set up for success and long-term growth. And while customer experiences are high-priority, without engaged, productive, and capable talent to make those deliveries – the customer experience aspect will undoubtedly suffer. 

Companies should constantly assess the health and wellness of their drivers to ensure continuity. How important is it for your drivers to sustain optimal levels of productivity?

Do they have all of the tools they need to succeed on routes and have greater predictability in their day-to-day execution? Is there a feedback loop in place for open, candid communication that ensures their voices are heard if they’re unsatisfied or need more? 

At the end of the day, most drivers just want to feel like they can do their best work under what has become incredibly stressful conditions. Without taking account of the onboarding processes in place, the resources and solutions that eliminate resented unknowns, and the incentives from employers to do a job well-done, last-mile operations will struggle to excel. 

Upholding sustainable promises 

A recent report from MIT indicates that 23% of brands face pressure from investors to improve their end-to-end supply chain sustainability. Not only are brands facing pressure from investors, customers are also seeking out companies committed to sustainable business practices and the environment. This function is no longer a “nice-to-have” today; it’s business-critical to remain competitive and profitable. 

Enterprises must therefore prioritize sustainability across the entire fulfillment chain. From a technology standpoint, this includes factoring in carbon emissions when planning daily routes and using the right tools to optimize those routes and reduce the number of miles driven, ensure optimal load capacity, and minimize reattempts or failed deliveries that contribute significantly to carbon emissions. 

From an operational standpoint, companies should also consider utilizing micro-fulfillment centers and bring them closer to consumers, as well as parcel lockers that reduce carbon emissions. They should also invest in EVs, and other tactics that save on greenhouse gas emissions and reduce a businesses’ overall carbon footprint.

Above all, sustainability should be a top strategic pillar for every organization today and be seen as a win-win-win for organizations, customers, and the general public.  

Harnessing the power of advanced analytics

With the help of advanced analytics and deep intelligence, brands, retailers, CEPs, and 3PLs have the opportunity to leverage these technologies to become more efficient and make better informed decisions across the board. AI and ML have the power to transform final mile operations and give leaders that coveted 360-degree, end-to-end view of their logistics practices. 

Prioritizing such visibility can streamline Last-Mile operations, increase customer satisfaction, contribute to sustainability efforts, and allow leaders to make better decisions for the long term health of their business by leveraging large volumes of on-ground data.

Achieving this sort of visibility however, particularly in the Last-Mile operations, is undoubtedly no easy feat. Nonetheless, it has the power to revolutionize all facets of a business, giving an upper hand to those who take this challenge, helping them to achieve a competitive edge, become profitable, and enable delightful consumer experiences at scale.  

Author Bio

Nishith is the CEO and founder of Locus and drives business strategy and innovation at the company. He is responsible for business expansion across geographies and heads operations globally. Prior to founding Locus, he worked with Amazon, building algorithms to counter credit card fraud. He also co-founded PinChat, a location-based conversation platform.

Nishith holds a Bachelor’s degree in Electronics and a Master’s in Economics from BITS Pilani. He is a published author in the field of experimental physics and has patents in Machine Learning.

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Archives, Global Logistics, Global Trade Daily

Wheeled Container Freight Storage Presents Major Problems for Shippers

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Shippers need to prepare for the additional stress on chassis pools and an excessive amount of box detention

 ITS Logistics, today released the February forecast for the ITS Logistics US Port/Rail Ramp Freight Index. This month the index forecasts that there will be significant complications with freight being stored on wheeled containers in the US, as well as limited ocean chassis equipment.

These charges are less than ideal given the weaker consumer demand and pressure to lower the cost of goods sold in an attempt to process the historically high inventory levels. It is expected to ripple through earnings for Shippers creating further challenges in the new year. Rail service disruptions have also impacted export schedule reliability, resulting in a shortage of containers moving from ports to inland rail yards.The news comes just as the Federal Maritime Commission (FMC) prepares to enforce the Ocean Shipping Reform Act in the new year by conducting further investigations into carriers. Currently, the FMC is working through more than 200 complaints against carriers, as they are being denied cargo space and facing rising detention and demurrage fees. The agency saw almost $2 billion in detention and demurrage complaints in 2022, and carriers have already refunded $700,000.

ITS Logistics offers a full suite of network transportation solutions across North America as well as omnichannel distribution and fulfillment services to 95% of the U.S. population within a two-day timeframe. These services include drayage and intermodal in 22 coastal ports and 30 rail ramps, a full suite of asset and asset-lite transportation solutions, omnichannel distribution and fulfillment, and outbound small parcel.

The ITS Logistics US Port/Rail Ramp Freight Index forecasts port container and dray operations for the Pacific, Atlantic, and Gulf regions. Ocean and domestic container rail ramp operations are also highlighted in the index for both the West Inland and East Inland regions. Visit here for a full comprehensive copy of the index with expected forecasts for the US port and rail ramps.

About ITS Logistics

ITS Logistics is a premier Third-Party Logistics company that provides creative supply chain solutions with an asset-lite transportation division ranked #23 in North America, the #11 drayage and intermodal provider, a top-tier asset-based dedicated fleet ranked #39, and innovative omnichannel distribution and fulfillment services. With the highest level of service, unmatched industry experience and work ethic, and a laser focus on innovation and technology–our purpose is to improve the quality of life by delivering excellence in everything we do.

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Archives, Global Logistics, Global Trade Daily

Critical Supply Chain Risks to Look Out For in 2023

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With how many hits the global and local supply chains have taken these last few years, it is only reasonable to fear what 2023 has in store for us. Well, let’s take a look at the critical supply chain risks to look out for in 2023 to see how bad things might get and what could be done to deal with the problems.

The potential return of COVID

The first and one of the most critical supply chain risks to look out for in 2023 is, without a doubt, the potential resurgence of the COVID pandemic. Now, it is true that COVID never really stopped being an issue. However, the potential for a full-blown pandemic to repeat itself is not inconsiderable. This has many people involved in the logistics business understandably worried. The last pandemic had such adverse effects on the supply chain that it is still recovering. So, a repeat of the event would almost be guaranteed to set back at least some of the progress that’s been made toward improving the situation. Unfortunately, the only real response to this is trying to account for the effects of the pandemic ahead of time, which has very limited effectiveness and depends too much on hypotheticals. 

 

Lack of skilled workers

That the lack of skilled workers is one of the critical supply chain risks to look out for in 2023 is not particularly new. And yet, it very much remains one of the most annoying risks to deal with. This is because it’s an indirect effect of the previous pandemic wave and has left businesses floundering to shore up their employee rosters. This scramble to compensate for the lack of skilled workers means that a lot of important strategies, such as some of the ways to cope with the capacity crunch, are untenable. Trying to operate in such a manner relying on untrained employees is asking for trouble. This means that employee training has become more important than ever. Yet, even that mitigates problems partly because a lot of employees receive the training provided only to ‘trade up’ in favor of bigger companies. 

The threat of further inflation

Inflation, of course, remains a serious problem that’s more than just looming on the horizon. We are already living through its disastrous effects on the supply chain. But, the realistic chances of it growing worse are enough to alarm most business owners. The one thing to be thankful for is the opportunity to plan for it now. And you can do so by trying to strike up long-term contracts with suppliers. If you can secure a long-term contract, you can, through it, at least mitigate the effects of any sudden price spikes. Unfortunately, there is little to be done about what inflation means for operating costs. That they can get higher at any time spells trouble for smaller businesses without enough capital to play with. 

Global port congestion and problems with ocean freight

Unfortunately, we also encountered the next on our list of critical supply chain risks to look out for in 2023: global port congestion. This, too, was a result of the previous pandemic and part of the reason why a new one is feared. The delays caused by various ports getting shut down or quarantined resulted in mass congestion of the waters. This then caused its own delays in turn. The cascade of events might repeat itself in 2023, even if the cause is not a pandemic. After all, the surge in interest in ocean freight due to its competitive prices compared to other transportation options means that an already strained infrastructure, especially in the US, might start struggling to handle the burden placed on it. It is also unreasonably hard to plan for this eventuality since most of the causes can’t be easily fixed.

Warehousing shortage

The proper distribution of goods being slowed down can also lead to the following problem: a warehousing shortage. Due to the slowed consumption and lower demand due to climbing prices, we are seeing some of this. Warehouses are stuck with old stock. And business owners must either get rid of it quickly or look for more warehouse space. Of course, warehousing space being a limited commodity, it is very difficult to obtain. This has led to other solutions being put into effect, such as efforts to optimize distribution centers as a way of minimizing storage time and speeding up the turnover of goods. In turn, this is, ironically, making the demand for skilled employees we’ve already mentioned even higher.

Sustainability concerns

With environmental concerns becoming a more pressing issue, governments throughout the world are trying to implement measures that will force businesses to comply. While generally a good thing, some of the projects, such as reducing emissions, have the potential to hit supply chains hard. With limited freedom to chart frequent shipments of goods, it would be difficult to revitalize the supply chain properly. In fact, some of the work that is already done might come undone. Thus worsening issues we’ve covered, such as congestion and warehousing shortages.

Difficulties with forecasting

The final of the critical supply chain risks to look out for in 2023 is the difficulty forecasting demand. With the instabilities of the supply chain and the instabilities the other risks can cause, it becomes increasingly hard to properly get ahead of demand or even properly understand it. This can easily cause losses and further damage the global supply chain. Even those who understand the supply chain well enough to stay on top of demand have something to fear, however. Namely, cost forecasting becomes a lot more difficult when inflation can cause spikes in prices, which means that your previously flawless budget might suddenly fall short of the strain placed on it.

Moving forward with the supply chain of 2023

From what we covered about the critical supply chain risks to look out for in 2023, it becomes clear that most of the risks are a result of external influence. So long as the economy and global health remain relatively stable, we can expect the supply chain to withstand the year relatively unscathed. The opposite, however, would nullify a lot of progress made since the pandemic to fix things.

Author Bio

Miles Gregory is a successful logistics business owner who works closely with Helix Move VA and knows how to avoid risks and maximize profits. He shares his advice and experiences freely through guest blogs.

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Archives, Global Logistics, Global Trade Daily, News, Uncategorized

Closure of Roads at oPhongolo due to Heavy Freight Vehicles

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According to media reports, the local community has blockaded roads and is preventing heavy freight vehicles from moving in the area of oPhongolo, KwaZulu-Natal. This follows on the heels of a meeting between the oPhongolo Mayor, during which the community demanded close monitoring of trucks by the municipality to prevent a recurrence of the terrible incident last year which cost the country many young lives.

Evidently the Mayor, Bheki Thwala, stated that after the horrific incident, authorities promised they would monitor trucks for speeding and roadworthiness. He said that was done and everything was running smoothly, but the monitoring suddenly stopped.

The first question that arises is: which authorities is he referring to (if not the local municipal traffic force itself), and the second is: why did the authority stop the activity? Additionally: whilst the authorities were monitoring, was there a change in the behavior of the targeted road freight operators, and when the authorities withdrew – did behavior revert back to what it was before the authorities were active?

The Road Freight Association (RFA) has repeatedly called on the authorities (at various levels in government) to address the issue of non-compliant operators (transporters), as well as to deal with any offences that are committed – especially where such offences may be repeatedly committed and are the root cause for incidents that occur.

It surely is logical that, given the huge increase in coal transport by road through the area to Richards Bay, that the Provincial traffic authority would allocate more resources to the routes that are now carrying far more vehicles.

Transporters are now faced with situations where routes are barred by communities (who in themselves are acting illegally / unlawfully) and those transporters who played no part in the recent tragedy. Some, even having contributed freely to the communities in their hour of devastation and sorrow, are now tarred with the same brush and are prevented from operating their compliant, legal and safe businesses.

This is neither fair, nor in any way legal.

There are very clear and focused legal requirements and parameters for operating road freight vehicles on public roads. The regulations contained in legislation need to be consistently and firmly applied, monitored and those operators (transporters) that ignore these requirements must be dealt with. Decisively. The law-abiding operators must be allowed to continue their operations without hindrance from parties and groupings who have no role in the control and monitoring of road freight traffic matters.

“The closure of the road is a move by the community to call all relevant stakeholders to come and engage [with] them regarding the matter,” said Thwala. Hopefully this will include the Provincial traffic authority which needs to restore the control of road traffic matters back to the mandated authorities and to ensure that non-compliant road users are dealt with – including those who block the free flow of traffic.

Thwala said he met the community and also spoke with truck authorities about the road closure. It would be interesting to note to which truck authorities the Mayor had spoken in an effort to resolve this – unless he is referring to the operators that run coal vehicles through the oPhongolo area.

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Archives, Global Logistics, Global Trade Daily, Ocean Ports

Propane Council Encourages Ports to Apply for Inflation Reduction Act Funding

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The Propane Education & Research Council (PERC) encourages ports to adopt propane equipment with the funding available through the Inflation Reduction Act of 2022 (IRA).

The U.S. Congress recently passed the IRA, which provides $750 million to ports in non-attainment areas. Ports operating with or transitioning to clean-emission power sources and equipment, such as propane forklifts and vehicles, qualify to apply for the grant.

The bill also extends the Alternative Fuel Tax Credit through 2024, which provides a credit for every gasoline gallon equivalent of propane autogas, or about 37 cents per gallon. The bill not only extends the credits through Dec. 31, 2024, but fleet owners can also apply for credits retroactively for any propane autogas purchases made in 2022. This includes off-road vehicles like forklifts.

Port authorities may be surprised to learn that propane is a clean, reliable and more cost-effective energy solution compared to other options like electric, diesel and gasoline. With rising electricity demands and an unreliable power grid, ports need reliable energy sources that don’t pollute the air. Air pollution from diesel engines in port communities puts families at risk for developing asthma, heart disease, and other serious health problems. Using propane produces 43 percent fewer greenhouse gas emissions than the equivalent amount of electricity generated from the U.S. power grid, according to data from PERC. And unlike batteries, which require precious time to recharge and lose power-holding capacity over time, propane forklift cylinders can last decades.

 

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Archives, Global Logistics, Global Trade Daily, Ocean Ports

Port Congestion on the rise again Amidst Second Felixstowe Strike

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DP World has announced works have started to build a fourth berth at its London Gateway smart logistics hub.

The £350 million ($387 million) project builds on DP World’s £2 billion ($2.2 billion) investment in Britain’s supply chain over the last decade.

Upon completion in 2024, the new berth is set to lift London Gateway’s capacity by a third, allowing it to handle the world’s largest vessels.

London Gateway just handled its 10 millionth container, nine years after opening.

“I am delighted that we have taken the next step in delivery of the new fourth berth and made clear our commitment to investing in and regenerating the areas where we operate,” said Ernst Schulze, UK Chief Executive of DP World.

“Over the next 10 years we have earmarked a further £1 billion ($1.1 billion) of investment in this country. The construction of the new fourth berth is creating 1,000 jobs and London Gateway’s rapidly growing logistics park will employ 12,000 people when it is completed in five years’ time.

“Our investment is a catalyst for the regeneration of one of the most deprived areas in the UK, which is currently in the top decile of deprivation.”

READ: DP World begins work on London Gateway green warehouse

“We are delighted to have been awarded the contract with DP World and to begin delivering this vital piece of national infrastructure,” added Seamus Devlin, McLaughlin & Harvey Civil Engineering Director.

“We bring with us extensive experience in the marine sector and look forward to engaging with our local supply chain and creating jobs locally.”

DP World announced strong financial results for the first six months of 2022, although the economic outlook remains uncertain due to supply chain disruption.

Total revenue for the first half of the year came at $7.93 billion for a growth of 60.4 per cent year-on-year, and 20.1 per cent on a like-for-like basis.

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Archives, Education, Global Logistics, Global Trade Daily, Uncategorized

5 Ways to Save Money While Scaling Your Logistics

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Logistics has always been important to business. It’s key to moving goods from one destination to another. Get something wrong, and it could lead to problems all the way down the line. Today, however, logistics has become much more than back-office fare, taking on a foundational role in whether a business will be a success. Problem is, costs are on the rise within the industry. In the U.S. alone, business logistics saw costs increased by 22.4% for 2021, reaching $1.85 trillion. 

Needless to say, everyone is looking for ways to save money on this aspect of business. But it’s possible to not only cut costs with logistics. Business can also work toward scaling operations at the same time. It’s not an either-or scenario, and the following are often the most logical and cost-effective of options:

  1. Consolidate the shipment of goods. 

While probably the most obvious strategy for cutting logistics costs, it’s still worth noting that shipping goods in a “full container loads” (FCL) is often more cost effective than the alternative of “less than container load” (LCL) — due in no small part to its per volume rates. Even when the whole container isn’t filled to capacity, it can be a more economical option. But this isn’t just a result of shipping rates. 

For one, total transit time can be cut by anywhere from four to seven days. The container is transported directly to the destination, after all. There’s also less handling time, as the container isn’t shared by any other vendors and thereby doesn’t require deconsolidation. Naturally, less handling can minimize the risk of damage to any of the goods. All in all, this can translate into cost savings for a business. 

However, there will be times when LCL may be more advantageous for a business, as there are expedited shipping options and can add more flexibility to logistics. 

  1. Explore pooling freight. 

Similar to consolidating shipments, many businesses are making moves toward freight pooling. Sometimes referred to as pool distribution, this strategy is also a method of consolidation. But instead of a single vendor, multiple businesses consolidate “less than truckload” (LTL) freight or partial shipments for delivery to a regional pooling center or warehouse, where the goods are then sorted and delivered to their final destination. 

On its own, multiple businesses splitting the transportation costs can provide significant cost savings. It also provides businesses the opportunity to pool multiple orders for a specific market that will then be sorted and delivered from the regional pooling point, which too provides cost savings — especially when compared to multiple LTL freights. Beyond that, using pool distribution can reduce distribution costs when pooling freight to a specific market, as the shipment is already in the region. 

Other benefits can be found in transit time, handling fees, and even reducing the number of freight loads at docks. 

  1. Upgrade the logistics tech stack. 

Digital transformation is upon us, and a legacy tech stack could very well be holding your operations back. In fact, many of the technology solutions available simply won’t work as well when integrated on top of an outdated logistics tech stack. Moving to a modern, cloud-based system may be the solution. The options are many, unfortunately. So, time and attention should be paid to the selection process. 

First and foremost, look of a third-party provider that offers a single, connected platform, where everyone involved in your operations can access the information across the supply chain. Greater visibility should help you avoid any redundancies or duplicated activities that could be reducing productivity and efficiency — while driving up unnecessary costs in the process. 

Data integration will also be an important feature, as it provides a means for capturing and analyzing logistics data to derive insights to inform strategies going forward. The potential for identifying bottlenecks alone can be of great benefit to the bottom line. The same can be said for price discrepancies, route optimization, last-mile delivery accuracy, and so on. 

Besides, the artificial intelligence (AI) offered with many of today’s technologies offer the opportunity to use advanced analytics to find areas for cost improvements outside of the traditional solutions. You understand what’s happening, why it’s happening, and how to make adjustments to improve efficiencies. 

  1. Control fleet costs. 

When it comes to cost savings with logistics, businesses often overlook one of the most critical components: the fleet itself. Poor decisions are made in terms of both acquiring and deploying equipment. Acquiring in particular can be especially problematic, as the main consideration for equipment purchases is price. “Am I getting a deal?” 

Not that cost isn’t important, but other factors are at play when determining the direction of a purchase, such as reliability, durability, maintenance, and so on. For example, many of today’s medium-duty trucks are powered by an international DT466 engine, largely due to its power, affordability, and reliability. It’s also possible to do an “in-chassis” rebuild on the engine, which can be much more economical for preventative maintenance purposes. GM 6.6L Duramax is also a popular choice, as it offers a quieter ride, a good amount of horsepower, and higher efficiency — with lower emissions, on top of that. 

When it comes to semi-trucks, the Detroit 60 series often tops the list. It’s an inline-6 four stroke diesel engine with fully integrated electronic controls, offering a good balance between fuel efficiency, longevity, and performance. It can run anywhere from 1 million to 1.5 million miles before requiring any major work. 

  1. Conduct regular audits. 

A good old-fashioned audit can tell you a lot about operations, particularly when it comes to freight. If you haven’t yet automated the process, the time to do so is during a rebuild of your logistics tech stack. It can bring all your invoices and transactions together into a single, centralized platform, allowing you to monitor and flag rating errors, fee errors, weight inconsistencies, duplicate charges, and even unapplied discounts.

Like any other aspect of business, logistics will continue to evolve. It’s never a “set it and forget it” endeavor, requiring regular attention beyond your attempts to scale. New technologies will emerge, new processes will come to light, and new disruptions will likely shake up the industry again and again. But the one thing to remember about logistics is that it always holds the potential for savings. It’s all in the attention paid to this aspect of operations. 

Author’s Bio

John Clifford is a managing partner at Big Bear Engine Company, which has deep roots in the heavy-duty diesel industry — most notably in the remanufacturing and machining of large diesel engines. Their master engine builders all have 30+ years of experience building and working on diesel engines. They specialize in three medium-duty engine models: Cummins 4BT, Cummins 6BT and Caterpillar 3306. The company has also established itself as an industry leader catering to the 4BT Jeep Swap and Off-Roading Communities.

 

Logistics specialist Crossroads has announced the candidates for its 2022 Gen Z/Millennial Graduate Program designed to invest in the future
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Crossroads Announces Gen Z/Millennials Graduate Program Candidates for 2022

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Logistics specialist Crossroads has announced the candidates for its 2022 Gen Z/Millennial Graduate Program designed to invest in the future of the business. Xitsunduxo Baloyi, Lerato Malaza, Khabonina Ndhlovu, Daniel Sesinkclee and Dante Simonato were handpicked by Chief Executive Officer Arend du Preez for the Programme that engages particularly with the Gen Z and Millennials generations. More than 50 applications were received for the Program.

The Gen Z/Millennial Program is about fast-tracking and training potential leaders and innovators engaged with the latest advanced technology into the company, while minimizing the generational divides that could exist within its workforce.

The unique program kicks off with six weeks of intensive training, as the five graduates are inducted into the Crossroads business. Called “The Bootcamp”, graduates attend face-to-face business classes and engage with skilled business educators, mentors, managers, and executives. Each graduate is allocated a life coach and mentors to guide them throughout the Program.

Speaking at the launch event, Dr Anna Mokgokong, Chairperson of Community Investment Holdings (CIH), said that creating opportunities for the youth, particularly women, was a brave and necessary call for companies to answer. Particularly in industries such as logistics, which has always been dominated by men. It is a mammoth and noble task. She stated that if a seed of education and opportunity is being planted, then a bounty of skilled workers will be reaped. That is their goal for the program called ‘The Bootcamp’.

In today’s challenging job climate, education alone is not always enough. There must also be opportunity and drive to grasp the opportunity. She emphasized on the need to create spaces for new energy, new thinking, and new ideas as that was the root of innovation and progress.

CIH, a shareholder in Crossroads, is a 100% black owned, women led company with a consolidated group turnover in excess of R20 billion, diversified between healthcare, ICT, power and energy, logistics, mining and infrastructure development.

Crossroads developed the Gen Z/Millennial Graduate Program as part of its ongoing effort to keep training up to date with the changing business environment. Graduates in the program are expected to perform at exceptionally high levels – maintaining a pass mark of 80% or higher during the Program that concludes in June this year. After the six-week intensive Bootcamp, graduates are placed in various departments in Crossroads for the remainder of the Program, as they continue to be assessed and remediated to ensure they are allowed to find their niche within the business.

Joe Madungandaba, Community Investment Holdings Group CEO, commended the Program, saying more initiatives were needed to boost employment, develop skills and create opportunities for young people. He pointed out that there is a need to grow and identify the talents in the country. There are almost eight million unemployed graduates in South Africa and no one affords them any opportunities. Initiatives like this offered by Crossroads offers real employment opportunity to graduates willing to work hard. He insisted that identifying talent, training and developing fit-for-purpose skills was essential to change the face of employment in South Africa. He mentioned that one of the scarcest resources in the world is people. There are many opportunities out there. What is needed are deliberate strategies to grow and employ specifically trained people within the organizations.

According to Madungandaba, should the Gen Z/Millennial Graduate Program prove successful within Crossroads, it will be rolled out across the more than 50 companies that CIH invests in. They are committed to finding opportunities for graduates within the various sectors where they are present. Should a graduate not find a fit in a specific sector, they can target another based on their skills and interest.

Crossroads has a long tradition of training and nurturing talent, ensuring its employees have the necessary tools to make an impact from the outset of their careers. Learning is a lifelong embedded culture within the company. Welcoming the four women and one man to the Crossroads family, du Preez said the Gen Z Graduate Program demonstrated the company’s commitment to investing and future-proofing the business.

He stated that they look forward to developing these energetic, resilient and persistent young graduates as they prepare them to be ready for a tough and demanding industry.