It's no secret that 2022 has brought with it some serious challenges to the transport and supply chain, as well as many other, sectors. The tail end of covid, its resultant shutdowns, and drop-offs in demand have brought significant challenges. Russia's invasion of Ukraine has brought further challenges. Inflation exacerbated by rising oil and fuel prices has only added pressure to the system. The cost of securing freight is another challenge in South Africa given that we are experiencing a peak in hijackings. Add load shedding to the mix and it really does result in a challenging landscape in which to operate. Nucleus has generators at all of our inhouse operations, but there's no guarantee that the businesses and individuals we deliver to do. This adds time and hence further cost pressures.
That's all well and good to understand, but pointless without seeking solutions. Nucleus is all about finding solutions to our client's problems, and our 4pl(SCaaS) business model grants us more flexibility in dealing with problems than our competitors have. The fact that we use a range of suppliers to deliver clients' products also means that we mitigate the risk of a client losing more stock to theft. Supply chain providers that own all of their own machinery/vehicles, need to use that machinery, regardless of the environmental and operational scenario changes and challenges. We are not locked into the use of a fleet of vehicles. So our system can adapt rapidly to use the best suppliers for differing parts of the supply chain, as well as for the current challenges they face. The volume of the freight moved across all of our customers also enables clients to leverage better rates and service levels than they could themselves. They can focus on their businesses and what they do, rather than excessively worrying about their supply chains. It also enables our suppliers to focus on moving the types of freight and services that they are best at.
The business model has proven and continues to prove itself over the last two decades. And has only been proven further the stronger the macroeconomic headwinds have gotten in the last two years.