GlobalSupplier - Daimler

22
South Africa Project
Divisional Manager for Mercedes-Benz Commercial Vehicles, Dr Jan
Lourens (left) congratulates Charles Madondo on becoming the proud
owner-driver of a new Actros-driven autocarrier rig, with Motor Vehicle
Carrier (MVC) directors Liam Hickey and Andy Kamffer.
A key part of rebuilding South
Africa’s post-apartheid economy
has been to economically empower
South Africans who were
prevented by apartheid laws from
setting up economically viable and
competitive businesses in the past.
Recently, DaimlerChrysler South Africa
became a partner in an unusual
empowerment project in vehicle transportation.
The project involved handing over
ownership of 11 new motor vehicle
carriers, worth about R1,4-million each, to
their drivers, who all come from previously
disadvantaged backgrounds.
The project combined the resources of
DaimlerChrysler Services, DCSA’s Mercedes-Benz
Commercial Vehicle Division,
McCarthy Truck Centre, a transport
management company, Motor Vehicle
Carriers (MVC), Auto Carriers, who
transport most of DCSA’s vehicles, and
French trailer manufacturer, Lohr.
The 11 carriers consisted of Mercedes-Benz
Actros 2535 L 6x2 trucks pulling
customised Lohr auto-carry trailers.
The R15-million deal is a significant Black
Economic Empowerment (BEE) project that
will see the drivers starting their own
viable businesses, with the potential
for growth. Infact, for two of them,
Stephen Jones and Charles Madondo, their
businesses are showing signs of growth
already -- they were taking delivery of their
second vehicles.
Empowering
Transport
Suppliers
Real empowerment. BEE is an integral
part of DaimlerChrysler’s supplier
development strategy in South Africa, and
the policy recognises and regards the
previously disadvantaged black business
sector as partners in economic prosperity.
DCSA’s policy further states that the BEE
of its suppliers will give opportunities
to the entrepreneurial talent that exists
in the disadvantaged communities, which
will result in the equitable redistribution of
business opportunities.
It is the same values that have driven Auto
Carrier Transport to embrace BEE.
Managing Director of Auto Carriers, David
Taylor, wants to put right the wrongs of the
past, but also believes strongly that that
empowerment projects must add real value
by improving efficiencies and increasing
knowledge and skills.
“Simply adding a couple of black directors
to a company’s board, or giving a company
an African-sounding name, does not add
up to real empowerment”, says Taylor,
quickly adding that some genuine BEE
schemes have failed because they had
not been managed properly or adequately
financed.
Taylor said Auto Carriers decided some
years ago to subcontract vehicles in its
transport fleet to entrepreneurs to boost
black empowerment and the new rigs will
more than double the number of owner
drivers in their fleet, to account for about
10% of the company’s turnover.
“We want these entrepreneurs to become
business people in their own right and
build capital. For this reason, we will
increase the percentage rate of owner-drivers
in the future,” he said.
The owner-drivers will be subcontracted to
transport vehicles by Auto Carriers.
Getting the right people. A project like
this can only be effective if people with
the right qualities have been recruited, particularly
if the business involves driving
a R1,4-million rig carrying a load worth
double that amount over difficult roads and
long distances. Drivers also have to know
how to load and unload their valuable
cargoes properly without the smallest
scratch.
This was where MVC became involved.
MVC owner, Liam Hickey, had been the
transport manager for a major oil company
and knew the industry very well. He
also recognised the importance of good
recruitment and training if BEE in
transport was to be realised. Together with
Andy Kamffer, he founded MVC, which
specialises in owner-driver management,
as well as the selection and training of
prospective owner-drivers.
“Liam provides the support needed to
run the business well,” Taylor explains.
“Although the owner-drivers start off as a
small business, but as they grow bigger
over time, they have to add value to our
business as well. They must also be given
the chance to perform and be rewarded.”
Auto Carriers guarantees a minimum
distance for the owner-drivers to cover