Page 19 - Logistics News - March_April 2023

S UP P LY CH AIN

Trends that are reshaping

supply chains

The need for flexibility and agility is becoming key to servicing clients, say Bidvest International
Logistics experts Rhett Oertel and Marcus Ellappan.

he logistics industry battled a number of Another trend that emerged in 2022 and should
challenges in 2022, least of all the war in become even more prevalent this year is environmental,
TUkraine and turmoil over China’s strict social and governance (ESG) compliance. “ESG will
COVID-19 policies. That said, the world also emerged remain for years to come as companies focus on reducing
from the worst of the pandemic, meaning that supply their carbon footprint and their overall impact on the
chains returned to some degree of normality despite environment. The emphasis on ESG is at the forefront
the conflict in Eastern Europe. Within this context, a of a lot of discussions nowadays as companies look to
number of significant developments occurred within the partner with people who, like them, invest in green
industry itself and the impact of these is anticipated to technologies and initiatives,” Oertel says. This will entail
be felt this year and beyond. companies needing to be more involved in the entire life
cycle of products and packaging.
From a shipping perspective, acquisitions by
shipping lines last year changed the landscape to some For South African businesses, load shedding and high
extent. The lines were highly profitable between 2019 fuel prices remain a huge problem. As a result, Ellappan
and 2022, and many used some of their profits to enter expects to see them focusing a lot more on efficient
various landside logistics businesses – from warehousing management of fuel usage and renewable energies.
to transport and IT-related services.Going forward, this “Burning fuel in generators is not the way to go.”
shake-up is expected to create new alliances within the
industry, with old alliances becoming new competitors. The industry is, of course, keeping a watchful eye on
tensions between certain countries as in the event of
Another major development last year was the these escalating, new policies that impact trade could
increased adoption of technology and automation be introduced. Trade agreements or changes in tariffs,
to drive efficiencies and reduce costs. According to for example, will affect the flow of goods and the cost of
Bidvest International Logistics (BIL) Head of Sales doing business. “Companies need to be aware of these
Rhett Oertel, in 2023, technology adoption will keep developments and strategically apply the required focus
driving supply chain companies in the direction of on the aspects that will impact their market in the most
automation while increasing visibility, improving effective way,” Oertel maintains. “All in all, supply chain
predictive analytics and ultimately optimising supply business models seem to be changing and the need
chains.“The impact of blockchain, artificial intelligence for flexibility and agility is becoming key to servicing
(AI) and electric vehicles in the supply chain industry clients. E-commerce is continually growing. This, in the
will be ongoing. Blockchain is in use in trade financing end, leads to the demand for faster and more flexible
and contract execution and is even tracking to AI use and reliable supply chains.” Ellappan agrees: “Coming
in the supply chain to help with forecasting.” This view out of COVID-19, together with various global supply
is shared by BIL Director Marcus Ellappan, who says chain issues, businesses are forced to become more L O GI S T I CS NEWS
with the logistics industry under constant pressure to efficient. The benefits of digital transformation, risk
reduce costs, businesses increasingly will be looking at management and ESG will most certainly talk back to a
automating processes. business’s bottom line results and sustainability.” •

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