Page 7 - Logistics News March 2018

Feature

Embracing the evolution

of supply chains

By Zak Sivalingum, FNB Regional Head in Gauteng East
Discover six considerations to keep South Africa competitive in freight forwarding
and logistics.

SUPPLY CHAIN has become one of the key may fi nd that customs makes use of cutting
strategic hubs of many companies’ activities; edge systems to ensure rapid clearance, other
business is now conducted in a world where related stakeholders are either not using the
players as far away as Turkey and China same system or have no access to the existing
are able to compete with a South African system. This increases the time required to
company successfully in terms of price when move cargo, it also increases opportunity
moving goods from point to point. This for fraud and in the end, hits the respective
indicates that freight forwarding and logistics business and consumers the hardest.
work on a new set of rules in the 21st century;
breaking with tradition may just be the only
way to remain a player in a sector that has no
borders.
Zak Sivalingum, FNB Regional Head in
Gauteng East, shares six areas that should be
addressed in order for South Africa’s freight
forwarding and logistics industry to remain
competitive. These six areas were recently
discussed with stakeholders from the logistics
industry where the focus was around some of
the challenges as well as opportunities that
currently exist in the industry.
1. Adopting technology and a millennial
mindset: Technology has made it easier and
more cost-eff ective to use specifi c tools to
move freight. Making use of optimisation
engines, routing and scheduling tools can
ensure that cargo is distributed timeously and
with optimal capacity, helping to decrease the
overall cost of moving goods between two
points.
2. South Africa’s infrastructure impeding
competitiveness: There is a general lack
of infrastructure, which puts South African
companies in the top end of pricing.
Government initiatives such as the Durban
Dig-Out Port and Tambo Springs in Ekurhuleni
are a step in the right direction; however, the
predominant form of delivery mainly makes
use of roads infrastructure as opposed to rail,
which is far more expensive.
3. Alignment between government and
business: Better alignment between business
and government could improve the speed
and process of transfer of cargo. Where you

16 March 2018 | Logistics News