Inside the invisible engine powering South African retail
Behind every transaction lies an intricate choreography of manufacturing, logistics and distribution – a commercial circulatory system that pulses through warehouses, production lines and delivery routes.
At Cape Union Mart International (Cumi), that rhythm is kept by 900 people working across manufacturing facilities and the distribution centres, orchestrated by a philosophy that prioritises collective intelligence. At the helm of this complex operation is Andy Thorvaldsen, Cumi’s supply chain executive.
For Thorvaldsen, success in logistics is measured by its absence of drama.
“I'm happiest when my job is predictable,” he laughs. “Logistics is all about anticipation and being proactive, thorough proper planning. Everything should be designed and implemented well before it is needed.”
That anticipatory approach is underpinned by relentless data analysis. Cumi operates what Thorvaldsen describes as a fully data-driven supply chain, constantly refining the organisation's capacity for evidence-based decision-making.
The results speak through cost containment: despite inflationary increases of 6-8% since 2019, the retail distribution centre has maintained flat costs per unit over that period.
Local manufacturing, real impact
The company purchases R265m of locally produced goods annually from Western Cape facilities, operating two manufacturing centres – Green Thread, which produces garments for Poetry and Old Khaki, and K-Way – alongside two associated design centres.
A partnership with a 100% Black-owned cut, make and trim (CMT) operation guarantees a set number of production minutes yearly, providing its 150 employees with job security.
“I'm particularly proud of the employment impact of our growth,” Thorvaldsen reflects.
“We employ 900 people in our manufacturing and DC facilities. With an economic multiplier of five in the Cape Town Metro area, the jobs created at Cumi's facilities support approximately 4 500 people in the broader economy. We are providing centres of excellence for people to become the best versions of themselves and access all the opportunities that come with improved earning power. The Group has a real passion to improve lives, and it's hugely gratifying to be a part of that.”
In an industry where many South African retailers source exclusively from overseas, Cumi's domestic production allows rapid response to demand shifts, ensuring products reach customers when needed rather than when shipping schedules permit. It's a competitive edge built on proximity and flexibility.
The physical infrastructure supporting this operation includes multiple distribution centres, one servicing 285 retail stores and another dedicated to online customers.
The retail DC maintains maximum stockholding of 1.3 million units, averaging 400,000 units through most of the year, while the online DC holds an average of 250,000 units.
Positioned as neighbours, the two facilities enable fluid stock transfers to match demand fluctuations. From there, products move to a third-party logistics provider operating a network of regional distribution centres for final delivery to stores and online shoppers.
The power of collective intelligence
But infrastructure and data systems mean little without the human intelligence to interpret and improve them. At CUMI, continuous improvement is the result of a collective endeavour drawing on insights from every level of operation.
“Continuous improvement in our environment is made possible by leveraging the collective intelligence of the entire team,” Thorvaldsen explains.
“We are one, responsive entity. We need to know what the person offloading cartons, picking and packing individual units, or applying labels thinks about their role and possible efficiencies. When you elevate everyone's feedback, you get a multiplier effect. The system starts improving.”
The concept of rhythm pervades Thorvaldsen's thinking about manufacturing and distribution.
He references the Japanese principle of Takt Time (derived from the German word for drumbeat) which governs the pace at which products move through production to meet customer demand. Like a heartbeat regulating blood flow, this operational tempo keeps products and resources circulating efficiently through the system.
Sustainability that scales
Alongside efficiency, sustainability has emerged as a defining priority. When CUMI began rigorously examining its environmental impact, the team identified a significant opportunity in cardboard usage.
The volume of new cartons used to deliver products from distribution centres to stores represented substantial resource consumption. A reuse campaign now sees cartons recirculated annually, each taped and reused three times before disposal.
“We now reuse 300,000 cartons a year,” Thorvaldsen notes. “That allows us to save the equivalent of 600 million litres of water, 3,300 trees, and one megawatt of electricity every year. We avoid sending 720 cubic metres of waste to landfill, and we significantly reduce costs at the same time. Win, win, win.”
A different kind of retail model
In an industry often characterised by offshore production, cost-cutting pressures and transactional employment relationships, Cumi's model offers a different proposition.
Local manufacturing supports local communities, data-driven efficiency coexists with environmental responsibility, and hierarchies flatten to gather insights for further improvement. The result is a steady commercial heartbeat, its rhythm kept steadily pulsing by the energy, ideas and commitment of hundreds of Cumi staff.