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Gareth Hardy

The Automotive Industry, Logistics and more

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Industry knowledge make logistics consulting services more effective

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“To effectively offer consulting services in logistics, import/export and manufacturing, detailed industry knowledge and experience is essential. We can add significant value to these industries by providing expert advice on various technical elements of the value chain”, says automotive and logistics consultancy BCE Consulting co-founder Brian Verwey.

Correctly using tariff codes for importing and exporting, and managing incentive applications also improve the success and impact of initiatives, like the Department of Trade and Industry’s incentives for the Automotive Production and Development Programme, duty refunds, and tax and customs processes.

“BCE has nine years of experience in advising and managing various industrial and tax processes for our focus industries. We typically spend a few days with senior personnel in a company to determine their processes and products, and delve down to the transactional level of their operations.

We then compile a report detailing our observations and our recommendations.

Smaller companies can also benefit from using a consulting service, as mistakes can cost more, while lost opportunities are also more significant”, he adds.

“These consulting services aim to improve the non-core aspects affecting a business, which is where we add value.

Most companies are very good in their core operations, but not as strong in their non-core elements. However, effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks,” notes Verwey.

The automotive and manufacturing industries are under significant pressure, but can reduce margin pressures and undue costs if they regularly interrogate their transactions to the latest requirements and incentives.

Non-compliance with SARS regulations holds a significant risk for all companies. “Specialist logistics companies compete effectively by understanding their clients’ needs in detail and providing a valuable service for them. Similarly, manufacturers must also be aware of all the potential incentives they could access, as well as the nuances of import/export transactions, tax, duties and tariffs to ensure they gain the maximum value from their exports.”

Verwey says that tariff codes, in particular, are not updated or interrogated regularly, and that an incorrect initial tariff code or a change in tariff code could have an adverse financial impact on companies bottom line, and are often undiscovered by management.

Further, the Customs Control Act has a material impact on importers and exporters, and BCE Consulting is educating its clients and partners about the upcoming changes to the Act to ensure that their processes change accordingly without impacting on operations.

“Typically, once we have provided a client with our detailed recommendations, the client tends to remain a long-term customer. We have been able to improve compliance at 100% of the clients we have consulted to. Specialist advice, with thorough knowledge of the industries and client operations, helps us to provide good value to their businesses,” he concludes.

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Guest Sunday, 19 August 2018