Silk provides Port Logistics services in Melbourne, Sydney and Brisbane using its own Port Logistics capability, however, in Perth and Adelaide these services are currently provided through third-party operators. Silk is looking to establish its own Port Logistics capability through organic and/or acquisition opportunities in these two locations.
Silk’s warehousing services are delivered by a mix of permanent employees (full-time, part-time and fixed term contracts) and contracted labour, ensuring capacity and costs remain flexible and responsive to customer demand.
Silk’s distribution services are provided primarily through a virtualised fourth-party logistics (4PL) platform that allows the Silk to match third-party transport businesses with its clients’ distribution requirements. The Company maintains visibility on these deliveries through real time tracking using the ONE Network platform.
The Company has a strong preference towards rental/leases and transport contractors rather than owning its fleet and operating equipment. However, where specialised equipment is not available for rent/lease or the financial circumstances favour company ownership, assets are purchased. All of Silk’s warehouse facilities are leased, often with racking owned by the landlord. This asset-light business model delivers impressive returns on capital, and demonstrates the productivity of Silk’s business.