Become a member
Join FABCOS today
Become part of a growing number of corporate's that together with FABCOS are working to find a profitable balance between:
- The legacy of our past and the demands of a prosperous future
- The incompatible characteristics of the informal and formal
economies of SA - Established traditions and new ways of doing things
- Township, rural and suburban dynamics
Pillar 3: LOCALIZED DISTRIBUTION
Based on concerns expressed by members, FABCOS appointed TIPS (Trade and Investment Policy and Strategies) to undertake research and investigate the impact of rising food and fuel prices on SMMEs in South Africa. The report concluded that because of the nature of the factors that influence fuel and food prices, different responses are required. The fuel price is largely determined by developments on international commodity and currency markets, and there are only limited interventions that can be made by the South African government (apart from revitalizing or creating non-oil based modes of widely accessible transport). Therefore, the response to rising fuel prices by small businesses has to be a business one. There are several ways in which small business can ameliorate the impact of rising fuel prices on their direct business costs, and these are largely related to ownership of modes of transport, which could be facilitated via a group scheme, such as FABCOS. More specifically, small businesses will feel a significant positive impact if they are able to transport goods at a lower price and are better able to predict what those prices may be. One solution in this regard could be a not-for-profit transport business, owned by a small business organization, operating on behalf of its members. Other possible solutions include bringing collective pressure to bear on wholesalers to either provide subsidized deliveries to small businesses or to set up more localized distribution systems, in return for a buying commitment from their customers.
FABCOS has since established an owner-driver scheme, which works closely with FABCOS depots to deliver food and beverage orders to member businesses.
