To remain competitive, South African companies need to adapt quickly and strategically to global trends and forces that shape the way organisations do business and impact the supply chain,” says Detlev Duve, Managing Director of DACHSER South Africa. According to Duve, these forces include more complex, international supply chains, advancing technology, environmental and sustainability concerns, and an increase in rules and legislation.

“With globalisation and a more connected world, the supply chain becomes more complex, with higher risks and greater costs,” says Duve. “The persistent business necessities South African companies face in terms of cost reductions, productivity advances and performance increases make supply chain management a challenging job. Internal management of this process can be overwhelming as the supply chain is still seen as a non-core business function in South African companies. We are seeing local organisations outsource more elements of the supply chain process to a specialist provider. Outsourcing of the logistics function should be a strategic decision that offers a reduction in costs as well as improvements in sales revenue and customer service, building competitive advantage.”

New technology is causing a shift in the South African logistics industry, with logistics providers extending their business functions to offer the optimal combination of technology, warehousing, and transportation services.

The pandemic has only accelerated intensive digital transformation with the need for increased visibility and transparency as the top trend. “Logistics these days is as much about technology as transport,” says Duve. “Across the supply chain, technology that improves information handling and decision making lets organisations gain a deeper insight into trends, customer behaviors and process effectiveness.”

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 emissions through intelligent logistics processes, energy efficiency through the use of energy-saving technologies, and research support for the development of new technologies and concepts for emission-free logistics.

Increasingly strict regulation poses the next challenge for South African supply chain managers. “With the growing complexity of international markets and the significance of security, global and local legislation is imposing stricter regulations on corporations. Organisations have to be ready to disclose information about sourcing and supply chain practices. If non-compliant, they can expect to be handed heavy fines and expose themselves to other legal threats.” “Understanding the impact of these forces on the organisation and working with experts to put appropriate strategies in place will help South African supply chain managers to harness opportunities and preserve long-term competitiveness for the business,” concludes Duve.