Group CEO Alan Dickson describes how the chaos at South African ports during the first half of the year affected the business.
JSE-listed technology group Reunert has set aside over R200 million working capital to guard against further port disruptions that affected its Nashua subsidiary.financial results Reunert is a South African company that manages a diversified portfolio of businesses in the fields of electrical engineering, information and communication technologies, as well as defence and allied technologies.
Describing the challenges during that period, Dickson says: “In our world, we either import raw materials or finished products. In the case of Nashua, we bring finished products and in the case of cables, we bring in raw materials and components.” However, this had two impacts generally across the group, he notes. “One was that it increased our costs, and we had to hold more stock in case of further hiccups going forward. It was a painful exercise for us.
According to Dickson, Nashua orders these multifunction printers three months in advance and the products come in a few containers. This impacted Nashua’s sales and operating profit, and certainly hurt the group’s ICT segment as well as the group, Dickson says.He reveals that together with the CEO Initiative, Reunert has been working together with Transnet to try and resolve these issues.
Nashua Alan Dickson Transnet Multifunction Printers CEO Initiative Port Disruptions Supply Chain
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