Page 4 - Logistics News - September October 2022

T H OU GHT L E A D E R SHIP

Responding to forces that

impact the supply chain

Major disruptions to supply chains caused by the impact of the COVID-19 pandemic have driven
companies to make their supply chains more resilient.

“ o remain competitive, South African The pandemic has only accelerated intensive digital

companies need to adapt quickly and
Tstrategically to global trends and forces that transformation with the need for increased visibility and
transparency as the top trend. “Logistics these days is as
shape the way organisations do business and impact the much about technology as transport,” says Duve. “Across
supply chain,” says Detlev Duve, Managing Director of the supply chain, technology that improves information
DACHSER South Africa. According to Duve, these forces handling and decision making lets organisations gain a
include more complex, international supply chains, deeper insight into trends, customer behaviours and process
advancing technology, environmental and sustainability eff ectiveness.”
concerns and an increase in rules and legislation.
Environmental impact is a growing political, corporate
and client concern. “We are seeing increased legislation,
a focus on social responsibility, governance and a call
from customers for high environmental principles,” says

Duve. “These environmental elements have an influence
on the supply chain in a number of ways. To ensure
long-term success, supply chain managers must own
sustainability.” DACHSER climate protection practices focus

on efficiency, innovation and inclusive responsibility to help
achieve the global community’s long-term goal of net-zero
emissions. This includes the avoidance of greenhouse gas

“With globalisation and a more connected world, the emissions through intelligent logistics processes, energy
supply chain becomes more complex, with higher risks and efficiency through the use of energy-saving technologies and

greater costs,” says Duve. “The persistent business necessities research support for the development of new technologies

South African companies face in terms of cost reductions, and concepts for emission-free logistics.
productivity advances and performance increases make
supply chain management a challenging job. Internal Increasingly strict regulation poses the next challenge
management of this process can be overwhelming as the for South African supply chain managers. “With the growing
supply chain is still seen as a non-core business function in complexity of international markets and the significance

South African companies. We are seeing local organisations of security, global and local legislation is imposing stricter
outsource more elements of the supply chain process to a regulations on corporations. Organisations have to be ready
specialist provider. Outsourcing of the logistics function to disclose information about sourcing and supply chain

should be a strategic decision that offers a reduction in costs practices. If non-compliant, they can expect to be handed
L O GI S T I CS NEWS service, building competitive advantage.” organisation and working with experts to put appropriate
as well as improvements in sales revenue and customer

heavy fines and expose themselves to other legal threats.”
“Understanding the impact of these forces on the
New technology is causing a shift in the South African
logistics industry, with logistics providers extending their
strategies in place will help South African supply chain
business functions to offer the optimal combination of

technology, warehousing and transportation services. managers to harness opportunities and preserve long-term
competitiveness for the business,” concludes Duve. •
2 SEP T E MB E R/O CT O B E R 2022 www .l o g ist i csn e w s .c o .z a