Page 32 - Logistics News - Issue 01 - 2024.indd

OP I N I ON

Compliance is more than just

legitimacy or excellence

By Petrus Gerber, Supply Chain Solutions Manager at Bidvest International Logistics

How and why logistics companies using compliance can play a role in building the heart and
soul of our nation.

f South African logistics firms hope to compete in both the thousands of vehicles to the EU each year, will need to select
local and global market, they need to embrace compliance, supply chain partners that are fully compliant.
Inot only in terms of laws and regulations, but also social
aspects that impact the world around us. It is important to Not adhering to environmental regulations in Europe can
understand that compliance is not only the responsibility of directly impact the country’s vehicle manufacturers and, by
a company’s compliance officer, but of every single person extension, the jobs they can offer South Africans. Figures
within the organisation. from the South African Association of Freight Forwarders
show that for the week ending 20 October, 14 percent fewer
Our logistics sector is bound by numerous regulations and vehicle units were exported than in the corresponding period
with very good reason. Accidents and incidents that occur last year, further illustrating that the sector cannot afford
can be highly detrimental to a business. In 2022, for example, non-compliant partners.
a South African online retail company made headlines for
all the wrong reasons after being found in contravention of Then, of course, there is being compliant with South
the Occupational Health and Safety Act, with general safety Africa’s laws and policies, including employment equity, BEE
regulations and hazardous chemical agent regulations and addressing the divide between rich and poor – highly
violated at its Gauteng warehouse. complex social aspects that also require high levels of
compliance. South Africa’s governance record is also not the
On the transport side, there have been several major truck best given what transpired during the state capture years,
accidents on the N3 corridor resulting in the loss of life. In so a company will not be doing the country any favours if it’s
one case, the vehicle was found to be unroadworthy, while in pursuing corrupt relationships.
another, it was established that the driver had been on duty
beyond the specified number of driving hours. There are several aspects companies need to consider
when it comes to compliance such as the area in which
Companies that fail to comply with regulations they are operating. Where hazardous materials are being
accordingly find themselves facing a significant threat of stored, for example, there needs to be an understanding of
heavy fines, reputational damage or, in some cases, jail time the regulations, certifications and permits that need to be in
for owners and directors. place and a checklist to ensure every box is ticked.

In recent years, the need for logistics firms to comply Laws and policies may also change, which is why it is
with environmental legislation and regulations has grown crucial for logistics firms to closely monitor government
exponentially, with policies in place to reduce the planet’s gazettes. Firms would also do well to bolster their
carbon footprint. From January 2024, companies falling compliance efforts by implementing standards under the
within the European Union will be taxed heavily if they fail International Organisation for Standardisation. Regular
to reduce their carbon emissions. These laws will impact auditing ensures compliance, which, in turn, assures clients
South Africa as the country’s motor industry, which exports that the business is above board in its operations. •

30 I S S UE 01 – 2024 www .l o g ist i csn e w s .c o .z a