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COMPANY OVERVIEW

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National Logistics Management (NLM) & Materex were both founded in 1995

National Logistics Management (NLM) & Materex were both founded in 1995 with the objective of entering the evolving market of outsourced logistics functions.

The companies have grown steadily in this period and we now clear, receive, warehouse, control and distribute goods for a number of major companies from our premises in Deal Party, Port Elizabeth.

Over the past 8 years, we have become increasingly involved in JIT operations in the motor and allied industries with regular “line-side” deliveries of components and raw materials.

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Warehousing & Distribution

One of the key aspects of logistics, which we have marketed strongly, is that of outsourced warehousing and distribution. These functions have traditionally been handled in-house and on-site by companies. However, the current trend is for companies to appoint third parties to handle such non-core activities.

The major arguments for this are firstly; the client can fully concentrate on his core business.

Secondly, where there are storage space constraints, particularly with production expansion programs, the third party can provide off-site storage space at a very competitive price vs. the costly construction of additional warehousing on-site.

Thirdly, the third party taking over such activities has a vested interest in supplying the very best service, which is both efficient and cost effective. If they are not able to do this then they will loose the contract and be out of business! Hence, the client has the leverage in obtaining the best service possible at the right price!

JUST-IN-TIME (JIT) SUPPLY

Over the past 8 years, we have become increasingly involved in JIT operations in the motor and allied industries with regular “line-side” deliveries of components and raw materials. We have also seen a major increase in the supply of raw materials as consignment stock where this stock is held at our warehouse on behalf of the supplier (local or overseas) and subsequently called off by the end user on a JIT basis. The end user only then pays for the material once it has been called off. The supplier generally carries the shipping, transport and storage costs to the warehouse, with the end user paying only for the subsequent transport charge from our warehouse to their plant.

Hence, for the end user, the advantages are; a reduced raw material inventory and storage requirement, an improved efficiency in raw material capital expenditure and a reduced necessity for the monitoring and control of these materials, as this feature is handled by ourselves at our warehouse.

We believe this is increasingly the way companies will go in order to achieve additional cost efficient supply and all that this entails e.g. Reduced lead times, faster response to component/material call-off’s, improved control over the material, accuracy, quality checks, reduced damage and shrinkage, efficient material management and reporting.