In conversation with
Mr. Ralf Rolle

FDI Spotlight: Please tell us more about Dovetail?

We are the leading logistics software provider in the transport, warehouse and logistics sectors. Our clients see us as having the ‘IT differentiator’ within the industry and since Dovetail’s inception in 1994, we have formed a lasting connection with clients and have a strong footprint in South Africa, including the SADC region.

It has been tough in the logistics industry in Southern Africa over the last three and a half years. Companies within the industry have had to work harder, merge services when needed and increase their tendencies to collaborate, as well as get up to speed with the latest technologies. We have done this successfully with our clients.

Our core logistics software includes FreightWare Transport Solution, Accellos 3PL Warehouse Management Solution, MobileControl ePOD Solution and the eDocs Document Management Solution.

We understand our market and competition which keeps us relevant and ensures that our clients benefit from the latest technology with our solutions. You have to stay one step ahead by creating innovative solutions which constantly meet the needs of the logistics industry.

If you look to Africa, where Dovetail is increasingly getting more involved, you see an increasing number of 3PL (third party logistics) multi-client warehouses being built. We are excited about these developments in the market and have been aligning ourselves strategically to capitalise on such opportunities. For example, this is where our Accellos 3PL Warehouse Management Software adds immense value, which is a solution designed to help logistics companies manage high volume, multi-product, multi-principle warehouses with varied degrees of complexity related to managing the storage and distribution of the various products.

What are your goals and strategies for the next five years?

Africa is a clear expansion strategy for us, especially the SADC region and the East African corridor. Our current clients are also moving into various African countries – or already have a considerable presence – which aligns perfectly with our growth plans. Our clients are constantly improving their strategies and we are able to foster these changes.

Recently, Dovetail was selected to assist a new client in Botswana with implementing logistics software to meet the market’s transport and warehouse challenges. Furthermore, one of Kenya’s top courier companies implemented our FreightWare Transport and MobileControl ePOD software across their national footprint, which includes over a 100 depots. The project was such a success and their return on investment so impressive that we submitted it for recognition and as a result, we won the Top Logistics Achiever award 2016 and Logistics Gold Award 2016. The judges were especially impressed that we were a South African company working successfully in other African countries.

We have also implemented our Transport and Mobile software in the Swaziland Post Office courier division, and in late 2016, we signed FedEx as a new client in Zimbabwe.

One of our big focusses and expansions include going into the East African Corridor; we see huge potential for organic growth in this region. We want to put as many of our products and innovations in this market in the coming year to support the growing infrastructure demands.

We also want to make bigger in-roads into Nigeria. Due to Nigeria’s abundant petroleum resources, it is better placed than many of its African neighbours to increase the share of fiscal resources going into infrastructure. Strong infrastructure creates an ideal platform for growth in logistics and therefore we will establish a presence in this market to become a commercially known brand providing transport and warehouse software solutions.

Can South Africa create and fulfil its potential as the premier infrastructure and trade gateway into Africa?

Definitely. The fact is that we are certainly a great entry point into Sub Saharan Africa and we have seen that a company like ours is making great in-roads into the continent.

However, we have to be careful; while other African countries like to deal with South Africa, we must remain true to our vision and above all, remain humble as we live in a global marketplace. We are strong in Africa, but there are a lot of other countries that are also competing for the same business in Africa. Fortunately, the perceived risk keeps many competitors out which gives Dovetail a significant opportunity for expansion.

We have also seen that South African businesses are not always well presented in Africa. We need to put more emphasis and thought into our unique position as Africans. Some Asian countries have a strong focus on doing more business in Africa with a strong presence in many African countries. Therefore, while some African countries may want to give South Africans the business, we as South Africans need to become more bullish and focussed. I believe Dovetail, as a South African business, can be an example of what can be achieved.

Regarding partnerships, we are building the Dovetail brand so that global companies can see that we have a considerable African footprint, that we are gaining traction and continuing to add value with our practical software solutions. Therefore, considering the value we are creating in South Africa and into Africa we believe Dovetail Business Solutions is well positioned to have discussions with potential investors.

What does an investor need to know about Dovetail?

We provide the logistics software solutions to clients who are innovative and who want to change the game; we can provide for their unique requirements by building software solutions adaptive to the client’s needs. Therefore I’m of the opinion that investors can take positive signals in Dovetail as we invest our time and energy in worthwhile, value conscious, well positioned and profitable projects.

We invest in clients who invest in growth and, while we work mainly with software, many of our clients spend a lot of time and money to train and invest in their people. We have always admired the extent to which our clients invest in skills development and transfer of knowledge and therefore we pride ourselves on the fact that our software is two pronged: client as well as people friendly.

From a pure logistics point of view, e-commerce is only starting to grow in South Africa. I am not even talking about the whole of Africa. South African companies will need innovative and reliable software to keep up with the ever changing and demanding landscape, thus creating additional opportunities for us to capitalise on. This is key for investors as we are a dynamic and ever changing organisation.

What is your approach to human capital and skills training?

One of our strategies that we are very excited about, is our annual in-take of leaners, in other words the high school leavers and interns, the university graduates. We train and equip them with the necessary skills in order to have a head start in the logistics industry. Students need companies to at least give them that one chance in a very competitive job market.

My opinion is that the South African government should make the environment more conducive for both businesses and job creation. A collective effort will go a long way to assist potential job seekers. It is important in Africa to put more time and money into on-the-job training and development, the upside of this is that there will be more skilled staff which is a benefit for all stakeholders. Dovetail is active in providing opportunities, experience and practical development in the workplace which is essential in supporting the job market and upskilling the South African youth.

What role should the private sector be playing in supporting infrastructure development?

First and foremost the private sector companies, especially those in transport and logistics, should be taking a greater interest. For example, we need more business initiatives that does not isolate the public sector but rather work towards collaborative solutions. This can be done by becoming part of a body that can engage correctly with all stakeholders and secondly play a more supportive role to the workers and government.
South Africa can furthermore become more attractive to the world by upping their volumes of production and exports.

Lastly, having an active private sector that works with government – and vice versa – as well as a country that prioritizes infrastructure development across all platforms will actively promote job stimulation. This will, in turn, ultimately and actively flow in and through logistics.