Freight, Logistics & Warehousing June 2022 Edition by SundayTimesZA

JUNE 2022

SHIFTING GEARS IN THE SOUTH AFRICAN ROAD FREIGHT SECTOR INSIDE: AUTOMATED WAREHOUSES I FREIGHT FORWARDING I OMNICHANNEL SHIPPING I REVERSE LOGISTICS I RAIL SAFETY I CYBERSECURITY I YARD MANAGEMENT SOFTWARE I DIGITAL SKILLS I PRIVATISING PORTS

Shell Lubricants Solutions

SHELL LUBRICANTS SOLUTIONS POWERING EFFICIENT FLEETS WHAT POWERS YOUR DRIVE? Partnering with Shell Lubricant Solutions means an end-to-end service going

We continue to invest signiﬁcant resources in developing new lubricants, greases,

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and digital solutions in our commitment to delivering value to customers.

efﬁciencies for your business. We completely understand how lubricants contribute to total cost of ownership. That’s why we believe that there is potential for the right lubrication solutions to deliver signiﬁcant business value by helping lower the cost per kilometre of fleets.

For more information on how we can create value for your business, contact us today.

Shell Lubricants Solutions understands the key pain points for fleet managers. In today’s

Shell LubeCoach

economy, fleet managers need to understand and navigate through various challenges

A customised training programme, led by Shell technical experts with substantial in-ﬁeld

that includes:

experience, which offers practical coaching to customers’ staff on lubricant management techniques.

• How to stay cost-effective and lower total cost of ownership (TCO) • How to improve sustainability and adopt new measures to avoid, reduce and offset emissions

Shell LubeAnalyst A global oil and equipment monitoring service that helps customers assess lubricant

• How to harness data and analytics to improve efﬁciency

condition, identify potential problems, and benchmark equipment performance against

Partnering with Shell Lubricants Solutions means an end-to-end service going beyond

languages, it has more than 60,000 users worldwide, and analyses over 750,000

lubricants to provide solutions for improved cost savings and efficiencies. We understand how lubricants contribute to total cost of ownership and believe that there is potential for lubrication to deliver significant business value by helping lower the cost per kilometer of fleets. From heavy duty diesel engines to transmissions, axles and wheel bearings, every component of a truck or bus made by different original equipment manufacturers (OEMs) has its specific lubrication requirements. OEMs define the minimum requirements for lubricants or greases, but not all products that meet these standards deliver the same level of performance. To ensure that a lubricant or grease delivers consistent performance in the field while meeting OEM requirements, Shell Lubricants conduct controlled laboratory and engine tests, plus countless hours of field testing on all products during the development process. Shell Lubricants Solutions deliver business value through the following lubrication services. Shell Lube Match

comparable oil samples from around the world. Available in 95 countries and 28 samples a year. The service allows customers to monitor equipment without interrupting operations, and provides guidance on interpretation of results Shell LubeAnalyst Shell LubeAdvisor A cost-effective, efficient, and non-invasive service aimed at companies that want to prevent breakdowns and unscheduled maintenance. This state-of-the-art fibre-optic tool enables inspection of key internal engine components, including difficult-to-access areas such as the cylinder head, valves, cylinder walls and pistons without dismantling the engine. All that is needed is to remove the injector or glow or spark plug to gain access. Shell Lubricants technical staff provide a detailed condition assessment, including recommended actions. We are committed to delivering value to customers and thus invest significant resources in developing new lubricants, greases, and digital solutions. A network of collaborations strengthens the innovation capabilities of Shell Lubricant Research & Development teams located in Technology Centers in Shanghai, Hamburg, and Houston.

A free online tool that provides instant lubricant recommendations for a wide variety of vehicles. Available online (www.shell.com/lubematch) or as a mobile app. The most robust oil selector tool in the market, available in 138 countries and 21 languages.

www.shell.co.za/business-customers

Shipping & General Transport Services Shipping and General transport Services was built on the cornerstones of trustworthiness, perseverance and reliability. these are the values that transcends from our leadership to every staff in our employ. everything that is moved from one place to another needs the aid of landside logistics – but behind this simple truth one finds millions of stories. as a logistics company with a 38-year heritage and a fleet of over 100 heavy commercial vehicles on our road network daily,

we believe we are a key contributor to our industries backbone of trade. We ensure that whatever needs to be delivered, gets delivered. a shipment placed in our trust may include life-saving medicines, critical line stoppage components, perhaps a birthday present from a friend, or even hold a company’s entire existence in the form of a prototype. not only do we deliver bulk commodities, machinery, consumer goods, parcels and packages. We deliver containers. We deliver prosperity, we deliver health, we deliver growth, we deliver joy. every day, we deliver. We are proud to be the preferred service provider to most multi-national as well as local, and niche smaller clearing and forwarding agents in South africa. We look forward to being your service provider

For more inFormation: 011 873 4786/7/9 | www.shippingandgeneral.co.za | reganm@shippingandgeneral.co.za | cliveg@shippingandgeneral.co.za

aBoUt miX teLematiCS MiX Telematics is a leading global provider of connected fleet and mobile asset management solutions delivered as Software-as-a-Service (SaaS) to over 790,500 global subscribers spanning more than 120 countries. Founded in South Africa 25 years ago, the company also has offices in the United Kingdom, the United States, Uganda, Brazil, Mexico, Australia, and the United Arab Emirates. It also has a network of over 130 fleet partners worldwide. MiX solutions embrace an integrated approach to telematics, delivering actionable intelligence to solve complex vehicle- and driver-related problems. The company is renowned for its innovative telematics technology and services for the consumer and commercial vehicle markets and

has been recognised as a top global leader in connected fleet telematics. The commercial fleet solutions are built around a web-based software platform and mobile applications, supported by in-vehicle hardware and peripheral accessories. On-demand software services enhance vehicle performance and improve driver safety, fleet security, efficiency, sustainability, and compliance. The consumer offering comprises stolen vehicle recovery and tracking products and services sold under the Matrix and Beame brands in South Africa. These solutions include value-added personal safety and security services such as Crash Alert, Road-Side Assist, and other emergency assistance.

For more inFormation: www.mixtelematics.com |

fleetsa@mixtelematics.com

EDI T ORI A L COMMEN T

JUNE 2022

Published by:

PIcasso Headline, a proud division of Arena Holdings (Pty) Ltd Hill on Empire, 16 Empire Road (cnr Hillside Road), Parktown, Johannesburg, 2193 PO Box 12500, Mill Street, Cape Town, 8010 www.businessmediamags.co.za EDITORIAL Editor: Anthony Sharpe Content Manager: Raina Julies rainaj@picasso.co.za Contributors: Trevor Crighton, Caryn Gootkin, Denise Mhlanga, Tiisetso Tilelima, Rodney Weidemann Copy Editor: Brenda Bryden Content Co-ordinator: Vanessa Payne Digital Editor: Stacey Visser vissers@businessmediamags.co.za DESIGN Head of Design: Jayne Macé-Ferguson Senior Designer: Mfundo Archie Ndzo Advert Designer: Bulelwa Sotashe Cover credit: Shipping and General SALES Project Manager: Tarrin-Lee Watts wattst@picasso.co.za | +27 87 379 7119 +27 79 504 7729 PRODUCTION Production Editor: Shamiela Brenner Advertising Co-ordinator: Johan Labuschagne Subscriptions and Distribution: Fatima Dramat fatimad@picasso.co.za MANAGEMENT Management Accountant: Deidre Musha Business Manager: Lodewyk van der Walt General Manager, Magazines: Jocelyne Bayer

RESILIENCE IS THE SECTOR’S MANTRA

esilience. It’s the measure of one’s ability to recover after a setback. It’s a word you hear a lot in the logistics industry as freight movers work to build resilience across supply chains that have suffered innumerable global and local setbacks. In this issue, we look at how road freight companies are dealing with the growing challenges facing this sector, and how Transnet Rail Freight can address and recover from burgeoning vandalism and theft. In the wake of last year’s ransomware attack on the Port of Durban, we look at how logistics providers are building cybersecurity resilience, before taking a deep dive into the state of South Africa’s ports and what’s being done to stop the bleed of business to other African ports.

Contents

On the technology front, we profile some exciting advances in automated warehousing, along with the role of yard management software in making this essential logistics space more efficient. We follow retailers as they race to keep pace with customer demands for omnichannel shipping, and examine developments in reverse logistics, crucial to these new retail models. And don’t miss our feature on an initiative working to get more women into transport, as well as our rundown of the new skills needed to compete in an evolving logistics landscape. Ultimately, it’s those skills that will help build much-needed resilience across our logistics industry, which will, in turn, build greater economic resilience across the country.

Anthony Sharpe Editor

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12 25 6

Road FREIGHT Business in the sector is on the rise, despite the many challenges it faces.

RETAIL We explore the logistics challenges presented by the growth of omnichannel retail business.

REVERSE LOGISTICS

be reproduced in any form without written consent of the publisher. The publisher is not responsible for unsolicited material. Freight, Logistics & Warehousing is published by Picasso Headline. The opinions expressed are not necessarily those of Picasso Headline. All advertisements/advertorials have been paid for and therefore do not carry any endorsement by the publisher.

FREIGHT FORWARDING Harnessing technology will ensure that freight forwarders remain an effective and vital part of the logistics process.

YARD MANAGEMENT We unpack the benefits and challenges of yard management systems to increase efficiency.

SKILLS DEVELOPMENT What new skills are required for companies to compete in the evolving logistics landscape?

WOMEN IN TRANSPORT There is a move afoot to include more women in the transport industry, we look at an initiative that is running several programmes to assist women in obtaining employment.

Reverse logistics is growing rapidly, we look at the developments, challenges and opportunities in this area. Copyright: No portion of this magazine may

SAFETY How logistics providers are building cybersecurity resilience to prevent costly delays and disruption to their operations.

WAREHOUSING Is South Africa ready for automated warehouses, and can we afford to make the move, given the country’s high unemployment figures?

RAIL What is Transnet doing to address and recover from the vandalism and theft that has plagued the operation?

PORTS South African ports are in desperate need of an overhaul, particularly in infrastructure, management and space.

F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

KEEP ON TRUCKING Business is booming for South Africa’s road freight sector, but so are the challenges, writes ANTHONY SHARPE

outh Africa’s road freight sector is in an interesting situation. Compounding issues with rail infrastructure, management and security have forced greater and greater volumes of freight onto roads. With 80 per cent of goods now moved by road, there are clearly opportunities to be grasped by savvy industry players. However, the sector faces its own raft of challenges too, including soaring fuel prices, reduced consumer spending, poor road conditions, hijackings, labour shortages and demands, pressure to reduce emissions, and the impacts of disruptive technology.

RECOVERY Like so many other industries across the country, road freight is also recovering from the effects of lockdowns and other pandemic-related disruptions, and adapting to doing business in a post-COVID-19 world, says Act Logistics general manager Nicolene Kruger. “The industry felt the wrath of the pandemic to a huge extent: downsizing, retrenchments, doing work at cost to be able to pay salaries, instituting ‘day walkers’ to walk and do collections and deliveries, and even selling vehicles to make ends meet. Although we were marked as essential workers, our client base was unable to pay at a normal rate, which left us with no choice but to become flexible and adjust pricing.” Kruger says Act Logistics has already seen a slow rebound in terms of client demand, but the fact remains that 30 per cent of its client base closed Nicolene Kruger shop due to the impact of the pandemic.

fast fact

While rail payload decreased by 6.9 per cent from 2020 to 2021, road increased by 10.4 per cent. Source: Statistics South Africa

Road Freight Association CEO Gavin Kelly says it is becoming clear that many smaller operators downsized, reduced operations or closed due to COVID-19, and there are constraints in some areas of the industry that were not previously noticed. “Many small to medium transport companies are still suffering the effects of the economic catastrophe caused by the pandemic, while higher fuel prices are adding to the reluctance to spend capex on fleet growth.”

FUEL PRICE A MAJOR CONCERN That reluctance would only have grown at the announcement in early May of an increase in the price of diesel of 88–98 cents per litre, a huge blow to operators across the spectrum.

“POOR ROAD CONDITIONS CAUSE BREAKDOWNS, BREAKDOWNS CAUSES DELAYS IN DELIVERIES, DELAYS IN DELIVERIES CAUSE THE CLIENT NOT TO WANT TO PAY. IT’S A VICIOUS CYCLE.” – NICOLENE KRUGER 6

F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

ROA D F REIGH T

“Transporters cannot absorb these increases in costs; they would go bankrupt if they did,” says Kelly. “Increases and decreases in fuel price are always passed on to the customer or client, and in the end to the consumer.” Kelly says increasing fuel costs affect different sizes and types of operations differently depending on the type of vehicle, route, conditions and load. “This can vary between 33 and 51 per cent of operating costs. In the short term, transport costs will see a dramatic rise.”

ENVIRONMENTAL PRESSURES Coupled with rising fuel costs is pressure for the transport industry to find environmentally neutral alternatives to fossil fuels. Kelly says the transport industry has spent the past five years researching, testing and piloting various cleaner energy options. “Most of these are far from ready for immediate use. Some technology still requires modifications to improve reliability, reduce wastage, lower costs, ensure operating efficiencies, and place viable and affordable alternatives on the table for all sizes and types of transport operations.”

ROAD INFRASTRUCTURE NEEDS IMPROVEMENT While some of our road networks remain in excellent condition, the overall condition of road infrastructure has deteriorated across the country, says Kelly. “The majority of regional, district and local roads have started to crumble and collapse. This is due to several reasons – timeous maintenance being the chief culprit, followed by roads carrying loads they were not designed for (more vehicles per day and heavier loads), and general abuse of the roads (overloading, incorrect speeds and stresses, and so forth). “This has increased travel times and damage to vehicles and thus increased risk. It has created less safe conditions and exposed roads to the ravages of the weather, making some impassable during wet periods.” Kruger says fleet maintenance now constitutes a third of the company’s monthly costs. “Poor road conditions cause breakdowns, breakdowns causes delays in deliveries, delays in deliveries cause the client not to want to pay. It’s a vicious cycle. To mitigate these effects, we had to revert to extending our service times – underpromise and hopefully overdeliver.”

images: ISTOCK.COM, SUPPLIED

RAIL NOT UP TO THE TASK While the issues around rail infrastructure have driven a short-term boom in business for road freight movers, Kelly says the situation is not

fast fact sustainable. “The dysfunctional rail system does not benefit the industry or the country. With trains no longer being frequent, reliable or affordable, there is tremendous pressure for the road freight industry to ‘pick up the slack’, but this cannot be sustained by any stretch of the imagination and needs to be rectified.” Kelly adds that any economy requires that the best possible means of transport operate reliably and efficiently. “Thus the various modes – air, rail, road and sea – must complement one another. Rail has not been carrying its fair share of the load for some time, but the recent destruction and vandalism of infrastructure has placed a lot of pressure on the road logistics chain. Thankfully, there are already discussions taking place around modernising and revamping the rail network, and that is where smart truck-rail collaborations will play a future role.”

SAFETY AND SECURITY Hijackings and violent attacks against truck drivers have been a scourge across South Africa for years. Kelly says continuous calls by the industry to the various law enforcement authorities, including direct interaction with various ministers and the president, have seen some small advances in the prevention of attacks against the industry. “Organised fuel and vehicle theft syndicates have been dealt a couple of good blows over the past two years, but sadly these seem to be replaced very quickly. Common, opportunistic criminal acts seem to continue unabated, with operators left to defend their fleets and customers’ goods through various technologies and protection services.”

South Africa’s road freight volumes have fluctuated wildly over the past year, peaking at 63 090 tonnes in November 2021 before dropping to 56 547 tonnes in February 2022. Source: CEIC

Kelly also points to the knock-on effect this has on cargo moving through our ports, businesses considering investing in South Africa, and our potential manufacturing capability. The recent spate of violence, road stoppages and protests relating to foreign truck drivers is also of particular concern. An article published in the Journal of Transportation Security by Thomas Mhlepo, “Attacks on road-freight transporters: a threat to trade participation for landlocked countries in Southern Africa”, identified this as an issue with implications that extend beyond our borders: “Previously considered an internal problem for South Africa as a matter arising from domestic social and economic challenges in that country, the emergence of attacks on foreign drivers and trucks has raised concerns about the future of South Africa as an economic powerhouse, its role as a transit country for landlocked countries, and its relationship with regional neighbours. For the landlocked countries in the region, any instability in South Africa can seriously impact the logistics that sustain businesses and international trade.”

“MANY SMALL TO MEDIUM TRANSPORT COMPANIES ARE STILL SUFFERING THE EFFECTS OF THE ECONOMIC CATASTROPHE CAUSED BY THE PANDEMIC, WHILE HIGHER FUEL PRICES ARE ADDING TO THE RELUCTANCE TO SPEND CAPEX ON FLEET GROWTH.” – GAVIN KELLY F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

HIGH VALUE CARGO TRAINED & EQUIPPED

Nationwide transport & warehousing specialists

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A DV ER T ORI A L SHIPPING A ND GENER A L T R A NSP OR T

Our new-age truck line-up

When passion and purpose harmonise Captivated by the sound of a truck’s air horn from an early age, one young boy followed his passion and today, heads up a dynamic transport business. By Desirae Pillay

n the late 1980s, when many South Africans heard Johnny Clegg’s “Asimbonanga”, it reverberated in their souls and stirred their passions to something deeper. In the streets of a town, south of Johannesburg, a little boy who didn’t know that song yet, heard another sound that stirred in his soul – the blast from the air horn of a truck. Ever since that day, Regan Moodley was captivated and loved to follow that sound whenever he heard it.

A PURPOSE-LED LIFE Now, 39 years later, as the managing director of Shipping and General Transport (SGT), the call of the air horn reverberates for him in a similar way that the notes of Johnny Clegg’s song for Madiba still reverberate for many South Africans today. Now air horns are music to Moodley’s soul on a daily basis. Leading a fleet of over 100 heavy vehicles and a container depot in Germiston,

“WE BELIEVE THAT OUR SUCCESS STEMS LARGELY FROM AN AGE-OLD TRADITION WHERE OLD SCHOOL SERVICE, ENTHUSIASM AND THE ABILITY TO UNCONDITIONALLY TREAT OUR CLIENTS AS THE KINGS AND QUEENS OF OUR WORLD IS INSTILLED IN THE MINDS OF EVERY EMPLOYEE WHO WALKS THROUGH OUR DOORS.” – REGAN MOODLEY 10

F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

Moodley knows what it means to truly know one’s purpose and to live it. He is as passionate about trucks as he is about his family and his South African heritage. His dad, Daya Moodley, started SGT in 1984 in a tiny container during the apartheid era. This was a time when breaking into the transport industry for a person of colour was impossible. All his dad had was the stirring within his soul and R1 000 in his pocket. Almost 12 years later, his only son Moodley followed his own innate passion for trucking and joined SGT. Father and son worked alongside each other, building their individual dreams while creating a company beyond both their expectations. When his dad was ready to step back, he passed the leadership of SGT to Moodley, and this duo set the bar for what a good and honourable legacy looks like. Moodley went on to establish himself as a solid leader for the operations. He is also a gifted businessman with acumen and insight for growth and expansion, and expanded the company to long-distance transport.

PEOPLE PLUS PASSION EQUALS EXCELLENT SERVICE There can be no doubt that SGT’s long-distance services set the company’s trajectory for wider growth and expansion. Amid the air horns, the engines of over 100 vehicles grunt boldly while

SHIPPING A ND GENER A L T R A NSP OR T A DV ER T ORI A L

Daya Moodley and his team back in 1984 with containers as offices.

SGT’s new corporate head office.

Regan Moodley

HIS BOYISH FASCINATION WITH TRUCKS IS AS EVIDENT AS HIS PASSION FOR EVERYTHING AND EVERYONE HE CARES ABOUT. entering or exiting the yard. The sound of whirring and whizzing dominates the container depot where the reach stackers and other heavy lifting equipment ensure that containers are safely lifted and handled in the depot until delivery. All this looks and sounds seamless as if one mind is behind the engineering and operating of it all. Yes, one mind conceptualised the vision, but SGT’s great strength is in its team. Like a master conductor weaving notes from many instruments to create one perfect melody, Moodley’s team is unyielding in providing clients with excellent service that is efficient and precise. The yard and the offices are abuzz with staff ensuring attention to detail from customs and excise stops to logistics and ensuring the cleanliness and roadworthiness of the vehicles. Watching this meticulous attention to detail, one wonders what it takes to operate at this level of excellence and what sustains it? Is the legacy of this company and the deeper personal passion for trucks enough for longevity? Moodley’s answer to these questions is in one simple phrase: “We believe that our success stems largely from an age-old tradition

SGT’s very first truck.

where old school service, enthusiasm and the ability to unconditionally treat our clients as the kings and queens of our world is instilled in the minds of every employee who walks through our doors.” These are bold words and high standards. It is also true. SGT has come through the trenches of a pandemic, natural disasters and riots, all of which have created a tumultuous economic climate, shaking the ground of the transport industry. Still, Shipping and General Transport remains anchored, yet vibrating.

passion for everything and everyone he cares about: his family, his company and his country. Shipping and General Transport was built on the passion that continues to move on our roads for 39 years and counting. Perhaps this is not only a story to inspire. Maybe this is a business lesson: to never stop being passionate about what moves us.

Knowing what he moves and what moves him When the Springboks won the World Cup in 2019, Moodley shared that vibration with his community. He led 15 SGT trucks, one for each Springbok, through the southern suburbs of Johannesburg, blaring the air horns in joyous celebration. Today, much like on that day, he remains unapologetically hopeful. Listening to Moodley talk about the past, present and future of his company, the vibration in his deep and steady voice is noticeable when his eyes survey the operations in the yard below. His boyish fascination with trucks is as evident as his

➔ Scan this QR code to go directly to the Shipping & General website.

For more information: 011 873 4786/7/9 reganm@shippingandgeneral.co.za cliveg@shippingandgeneral.co.za www.shippingandgeneral.co.za

F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

AUTOMATION: EFFICIENCY DRIVER OR JOB DESTROYER? International efforts in automation are demonstrating the enormous efficiency benefits of robots. But in the South African context, what does it mean for jobs? By RODNEY WEIDEMANN

fast fact

Source: Martin Bailey, Industrial Logistic Systems

lobally, automated warehouses are at the cutting edge of technology. A good example is the UK’s online-only supermarket, Ocado, which has a vast warehouse manned by some 3 000 autonomous mobile robots (AMRs), all controlled by an artificial intelligence (AI) traffic controller. These robots collect goods from bins, packed according to purchase frequency, stacked 21 deep on a vast grid. This represents a glimpse of the warehouse of the future with robots fetching goods and sending these to human packers for further distribution. The question is: Does South Africa have anything remotely comparable, and if not, just where do we stand with regard to warehouse automation? Gareth Taylor, regional branch manager at Beckhoff Automation, says he is certainly not aware of anything of this relative scale on local soil. “We have a large labour force and, with our job creation challenges, there has been little appetite to go fully automated. After all, the unskilled labour generally involved in warehouse operations is one of our biggest job creation areas.” Martin Bailey, chairman of Industrial Logistic Systems and member of the South African Production and Inventory Control Society, agrees. “Local levels of automation are fairly limited because undertaking such an investment is difficult to justify purely on cost of labour. Moreover, there remain concerns in some areas around potential job losses. There comes a time, however, when customer service and throughput become the driving force; this will, ultimately, drive any decisions to automate.”

TRENDS AND CHALLENGES Neil Gouveia, sales director at Zebra Technologies Africa, notes that South Africa remains the largest and most sophisticated warehousing and logistics market across the continent, with a stable demand for warehousing and logistics assets. “For example, e-commerce is growing fast, which will drive warehouse automation and digitalisation to meet increased customer demand. “Reports suggest South Africa faces a supply chain and logistics labour shortage,” continues Gouveia. “This could also drive automation as operators are faced with the need to do more with fewer frontline workers, along with the need to

F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

The major international players in the warehouse automation space are Knapp, Dematic, SSI Schaefer, and Interroll.

create better employee experiences to retain the staff they have.” Automation is also likely to be driven by the need for faster delivery to end customers, with e-commerce creating new expectations around productivity and efficiency. Taylor says labour remains the key difficulty, with many companies hesitant to disrupt job creation. “Automation in other parts of the world is moving rapidly to the use of AI. South Africa and the continent, on the other hand, will likely be the last to move in this direction because of this desire not to lose jobs. “This is not to say that South Africans do not implement automation in a variety of industries and at impressive scales. However, when it comes to unskilled labour, if a person can do the job instead of a machine, it will likely remain this way for the foreseeable future.”

“WE HAVE A LARGE LABOUR FORCE AND, WITH OUR JOB CREATION CHALLENGES, THERE HAS BEEN LITTLE APPETITE TO GO FULLY AUTOMATED.” – GARETH TAYLOR

WA REHOUSING

“E-COMMERCE IS GROWING FAST, WHICH WILL DRIVE WAREHOUSE AUTOMATION AND DIGITALISATION TO MEET INCREASED CUSTOMER DEMAND.” – NEIL GOUVEIA INVESTING IN AUTOMATION As for what is required should one wish to invest in automation, Taylor says that infrastructure stability, such as electricity provision, is vital. “Then one needs to ensure that the equipment involved, like the IPC controller, is powerful. Backups for redundancy are needed, in case the controller fails. Robots, like those used by Ocado, also definitely don’t come cheap. Other investments you will need to make include hiring installation technicians and possibly a programmer to write the controller code. Clearly, it is something that can easily become costly.” Gouveia suggests that creating a smarter warehouse starts with workers on the frontline and the operation’s system of record, the warehouse management system. “You should then add automation to the flow of data and physical assets alike. With all this in sync, visibility of operations is increased, along with real-time guidance and decision making to achieve data-driven performance.”

When it comes to the “what” and “how” of investment decisions, Gouveia adds that companies need to work with an experienced partner who can help them assess their level of automation maturity, their current needs and opportunities, and can provide them with the appropriate hardware and software solutions.

EYE ON JOBS In the South African context, discussions about automation will invariably remain focused on the potential for job losses. But there is less to fear here than one might think, says Gouveia, explaining that robots can take on the work that humans really don’t need or want to do, such as running back and forth to ensure materials, goods and cardboard boxes get to the right place at the right time. “Our VP of robotics automation, Melonee Wise, has told me that one business saw productivity rise up to 70 per cent higher within days of augmenting its workforce with AMRs. For another, AMRs translated to a 25 per cent increase in throughput, while a major logistics company said they saved its

images: ISTOCK.COM, SUPPLIED

Recognising the importance of tech In a recent survey by Zebra Technologies of over 1 400 IT and operational decision-makers, the following key statistics were noted with regard to the present and future state of warehouse operations. • 80 per cent noted that new technology is needed to increase speed, accuracy and efficiency through labour optimisation to keep up with e-commerce demands and be competitive in the on-demand economy. • 90 per cent of organisations surveyed aim to get the most from modernised warehouse management systems by 2024, using their functionality for labour planning and management. • 80 per cent agree that they need to modernise, but admit they are slow to implement new devices and technologies, and thus need to map a plan to maximise data-driven performance. Source: https://connect.zebra.com/warehouse_vision_study_EMEA

OCADO’S ROBOTIC WAREHOUSE STATISTICS • 49 796 square metres • 3 000 robots • 5mm of clearance between robots • Bins stacked 21 deep • Order preparation in only 15 minutes • Order accuracy is over 99 per cent. Source: Sciencetimes.com

team nearly 34 000km in ‘manual travel’ each day – and that was in a single distribution centre.” Better yet, says Gouveia, is that this has created the opportunity to employ people who may not have been able to work in labour-intensive roles in the past – which might be the only way to fill all those open jobs. “One nonprofit organisation that offers skill-based training and warehousing services has empowered hundreds of visually impaired workers to work independently simply by deploying AMRs to move empty carts and assist with case picking.” Bailey is equally upbeat. “Far from killing jobs, the statistics around automation show the exact opposite. Companies that automate grow faster, become more competitive and are more successful, which, ultimately, leads to them employing more people.”

craneage & rigging Nationwide transport & warehousing specialists

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MiX VISION AI

THE FUTURE OF VIDEO TELEMATICS

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Improve safety, increase eﬃciency and reduce operating costs with MiX Vision AI, an intelligent dashcam solution for ﬂeets of all sizes and types.

Monitor and reduce risky driving behaviour Decrease risk of collisions and collision severity Reduce insurance-related costs Increase fuel eﬃciency Reduce maintenance costs

ﬂeetsa@mixtelematics.com www.mixtelematics.com

HOW TELEMATICS ADDS VALUE TO FLEET OPERATIONS Modern ﬂeet management embraces an integrated approach to telematics that oﬀers far more than viewing your vehicles on a map. Fleets operate in highly regulated environments full of risks and complex challenges, from high fuel consumption to driver safety concerns and costly maintenance requirements.

leet management solutions combine basic telematics with additional tools or enablers and value-added services to deliver actionable intelligence that enable businesses to overcome complex vehicle- and driver-related challenges. The solutions have become essential for operating assets efficiently, no matter the size or industry. Continuous technology advancements are driving greater awareness and adoption of telematics in global fleets across all industries. The telematics industry has grown significantly in the past years due to the increased demand for advanced telemetry solutions that provide improved safety, increased efficiency, and reduced expenses. MiX Telematics solutions such as MiX Fleet Manager Premium, have a tracking module that provides a real-time view of a vehicle’s position – whether it’s stationary or on the move – and which driver is behind the wheel. It also shows information relating to speed, driving direction, ignition status, driving violations, past trips and more. The solution’s robust reporting capability enables data to be reviewed and analysed in detail as well as in dynamic and customizable formats. Reports include movement, location, and trip and utilization reports, as well as driver scoring, fuel, event violations and cost analysis reports. Since 1996, MiX Telematics has successfully developed an extensive suite of fleet management solutions, with an understanding that each business and industry have different needs. Key to this success has been remaining abreast of the latest technological innovations, both locally and globally. Telematics and fleet management software are continuously advancing with features such as the integration of voice capabilities, data analytics with BI (Business Intelligence), 5G network enhancements, and Artificial Intelligence (AI) integration with dashcams for enhanced driver behaviour monitoring to optimise safety and prevent accidents emerging as one of the most popular new fleet management solutions.

Newer technological developments have served as a catalyst for greater innovation and showcase just how innovative we can be, says Henry Smith, Fleet Sales Director for Africa.

MiX Vision AI Dashcam - In-cab, driver-facing AI dashcam detects risky driver behaviour to alert the driver and ﬂeet manager of fatigue warnings, phone usage, smoking and distracted driving which help prevent accidents.

One of the key solutions developed by MiX Telematics in the past year, which showcases the enhancement of Artificial Intelligence (AI), is the MiX Vision AI dashcam solution. The launch of MiX Vision AI introduced the next generation of video telematics. MiX Vision AI is an advanced dash camera with a built-in artificial intelligence (AI) processor to detect risky driving behaviour that could lead to accidents, including distracted driving like mobile phone use, fatigue, seatbelt usage, smoking, unsignalled lane departure, unsafe following distance and even warning of imminent forward collisions. MiX Vision AI cameras are equipped with Advanced Driving Assistance (ADAS) and the AI Driving Coach provides drivers with real-time in-cab feedback on every trip. The video footage and telemetry data are accessible via the MiX Fleet Manager online software platform and mobile app, which can then be used as a coaching tool to continuously upskill drivers and improve driving behaviour. The platform can also provide real-time vehicle and driver location and trip data, including driver transgressions and driving behaviour. Fleet operators can also manage their drivers’ legal requirements such as driver’s licenses and PDPs, in addition to their vehicle’s legal requirements such as licence renewals and roadworthy certifications. An extension of the benefits offered by the MiX Vision solution is the MiX Vision Bureau Service (MVBS), a dedicated team of video analysts focusing solely on the MiX Vision solution. The MVBS service is available in two tiered versions, namely Silver and Gold. The Silver tier focuses on the health status of the cameras, while the Gold tier emphasises driver coaching. This tracks progress via dashboards and trend reports. The latter consist of Health Check Reports, Summary Reports, Incident Overview Reports, Driver Scoring Reports, and Escalation Reports. The main benefit of a video-based safety programme is that it is essentially an extension of your telematics solution. It promotes proactive, as opposed to reactive driving-event management.

Value-added services help clients realise the full benefits of their fleet management system and derive maximum value. The Premium solution is compatible with a flexible range of services, add-ons and accessories by MiX Telematics that address various concerns. Solutions such as the MiX Track and React control room service and the MiX Insight Analyser BI reporting solution.

MiX Insight Analyser – The platform is designed to be user-friendly and has a dynamic visual interface that analyses data directly pulled from the MiX Fleet Manager platform.

MiX Insight Analyser is a fully customisable online BI platform that enables fleet managers to use Big Data to answer pressing fleet questions and make informed operational decisions by presenting relevant and accurate fleet data in a simplified way.

MiX Track and React – A 24/7 outsourced control room service used to mitigate risk and ensure safety of vehicles and drivers on behalf of the client.

The online dashboards and telematics data provided by MiX Insight Analyser is vitally important for the daily operational decisions that businesses have to make,” says Gert Pretorius, CEO & Managing Director, MiX Telematics Africa. “The active ﬂeet data is used to detect trends, monitor vehicle utilisation and driver behaviour, as

The MiX Track and React bureau service is a 24/7 control room service that helps fleet operators effectively manage drivers, vehicles, and cargo in real-time. The bureau service performs round-the-clock monitoring of critical driving event notifications to swiftly identify and correct risky and inefficient driving behaviours. Serious incidents, like hijackings and vehicle theft, can be escalated immediately, thereby increasing fleet, cargo, and driver safety, and reducing any potential loss or harm. MiX Track and React provides a variety of benefits for fleets of all sizes and in all types of industries including reduced risk, improved compliance, safer drivers and fleet and reduced fuel consumption. The value of the MiX Track and React control room lies in their ability to lessen risk and provide you with much-needed peace of mind, allowing you to focus on other areas of importance while enjoying the advantage of foresight.

well as fuel consumption; considerations that have become even more important during the pandemic and the current economic climate, concludes Pretorius.

Businesses with vehicle fleets are utilizing telematics to improve efficiency, asset security, and driver safety, as well as to mitigate risks and ensure compliance with industry-specific regulations and policies. Among the numerous benefits are increased productivity, cost savings on fuel, accident reduction, increased driver engagement, and improved customer service and satisfaction. Telematics data provides a holistic view of the fleet and assists in identifying opportunities to increase productivity and efficiency. There are numerous advantages that can be derived from the use of telematics solutions, but the most significant is the overall effect on the bottom line.

Contact MiX Telematics today to find out how their solutions can help you make crucial changes to your fleet. +27 11 654 8000 | fleetsa@mixtelematics.com | www.mixtelematics.com

SPECIALISED RISK MITIGATION AND DRIVER COMPLIANCE FOR YOUR FLEET with the MiX Track and React Bureau Service

MiX Track and React is a 24/7 control room service that helps fleet operators in South Africa effectively manage drivers, vehicles and cargo in real-time. Ultimately increasing the visibility of your fleet and giving you greater control over what happens when they are out on the road. This bureau service performs round-the-clock monitoring of critical driving event notifications to swiftly identify and correct risky and/or inefficient driving behaviours. Serious incidents, like hijackings and vehicle theft, are escalated immediately, reducing any potential loss or harm, and providing you with much-needed peace of mind.

Benefits for fleets of all sizes and across all types of industries: Reduced risk • Improved compliance • Safer drivers • Reduced fuel consumption Proactive change management • Increased productivity • Greater return on investment

SPEAK TO A CONSULTANT! ﬂeetsa@mixtelematics.com www.mixtelematics.com

Everything everywhere all at once The growth of omnichannel retail in South Africa has required shifts in logistics operations that aren’t without their challenges, writes TREVOR CRIGHTON

t’s no surprise that one of the outcomes of COVID-19 lockdowns was the exponential leap of e-commerce as people couldn’t or didn’t want to visit physical retail stores to buy goods, resulting in the global e-commerce market growing by 19 per cent in 2020 and 22 per cent in 2021. The overnight change had a knock-on effect in the logistics space with increased usage and expectations of speedy delivery under often challenging circumstances.

UNDERSTANDING OMNICHANNEL In omnichannel retailing, customers expect to move freely between online store, brick-and-mortar store and mobile devices, with the freedom to choose how and when they receive their orders. Omnichannel retail was on the rise before the pandemic, but now it is essential, rather than a nice-to-have. “This means that retailers need to plan not only for an integrated, online ordering service, but also associated services like logistics, customer service, network design and service response logistics,” says Alicia Weber, lecturer in the Department of Applied Management at UNISA. “Delivery is the only physical touchpoint the retailer has with a consumer, therefore it could be argued that delivery could significantly impact the customer’s

fast fact

In the “toy, hobby and DIY” online space in South Africa, Takealot has an estimated 10–15 per cent e-commerce market share. Source: eCommerceDB

perception of omnichannel retailing. As a result, efficient logistics management becomes crucial for retailers intending to adopt it.” Weber says it’s difficult to compare the South African omnichannel landscape with those of developed countries. “The number of active and frequent online shoppers in South Africa is drastically lower compared with developed countries. That means delivery densities are low. Low delivery densities create obvious challenges, starting with cost. Online shoppers are notoriously sensitive to delivery price; around 54 per cent abandon baskets once the delivery cost has been calculated. Additionally, around 83 per cent of customers state that free delivery is the most important factor when ordering online. This places a huge burden on omnichannel retailers as they have to drive and plan for deliveries situated far apart, while customers expect the service to be Alicia Weber offered free of charge.”

“RETAILERS NEED TO PLAN NOT ONLY FOR AN INTEGRATED, ONLINE ORDERING SERVICE, BUT ALSO ASSOCIATED SERVICES LIKE LOGISTICS, CUSTOMER SERVICE, NETWORK DESIGN AND SERVICE RESPONSE LOGISTICS.” – ALICIA WEBER 18

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RE TA IL

LAST-MILE GROWING PAINS That last mile of the delivery process is perceived as the most expensive and least efficient aspect of the supply chain. The logistics of last-mile distribution are often outsourced to third parties, but customers still expect perfect and cost-effective fulfilment of their orders. True omnichannel requires an integrated approach with an overview of stock in fulfilment centres and stores, and the ability to fulfil an order and ship it quickly and cheaply. Ownership and integration of that last-mile process is a key reason for e-tailers like Takealot experiencing huge growth. The company purchased Mr Delivery in 2014 and has integrated it as its delivery arm. “For me, the biggest last-mile challenge would be to sustainably offer a service that meets customers’ needs in terms of cost,” says Weber. “In South Africa, retailers like Checkers, Woolworths and Dis-Chem have developed ‘within-the-hour’ delivery services, but these require large capital investments from their parent companies.” In the last-mile context for industry, Savino Del Bene national warehouse and distribution manager Darryl Zeelie says that their customers aren’t holding as much stock in stores as before, so their logistics partners have had to beef up staffing at their warehouses and optimise floor-picking and put-away strategies. Savino Del Bene is primarily responsible for maintaining supply to tyre retail stores countrywide. “We’ve maintained service-level agreements throughout the last two years, but found that to achieve that, we’ve had to be more flexible with capacity, fleet and configuration,” Zeelie says. “Communication has also proven to be key, with stores automatically updated on arrival times, giving them full visibility and the ability to track vehicles and plan for customer supply.”

images: ISTOCK.COM, SUPPLIED

THE SOUTH AFRICAN CHALLENGE Weber says that the South African market is unique because extensive retail areas are being developed in the suburbs, mainly because of a lack of public transportation systems and suburbanisation. This means that South African customers have several closely located retail stores to choose from, which decreases the need for online retailing. A local pandemic-era success story is Checkers’ Sixty60, which Weber says has done a phenomenal job of offering customers a seamless and reliable shopping experience. “They have shown the importance of integrating all organisational functions in creating an

omnichannel experience, from quick, clever marketing to informing customers when opening the app that it is cheaper to have your groceries delivered than to drive to a store and purchase them. Also, when your driver might be running behind, you get a WhatsApp notifying you of the new ETA. Effectively integrating key supply chain functions is a complex and challenging task, but they have achieved it, resulting in some remarkable innovations. I believe that they have raised the bar regarding what South African consumers now expect of an online retailer; other retailers will need to up their game or play catch-up for a long time.” Zeelie says the public has become accustomed to fast delivery times, something they’ve had to factor into their supply chain management. “Everything boils down to cost. If we get a request that a particular tyre needs to get to Nelspruit from Johannesburg by a specific time, we cost it accordingly. If approved, we can meet almost any request and not default on our service-level agreement. If a client walks into a store and wants a product, we need to work with our suppliers to make a plan.”

CLOSING THE OMNICHANNEL LOOP Returns (or reverse logistics) in omnichannel retailing are an important element in closing the “shopping loop”. “Free and easy returns become a key decision-making criterion for customers, particularly for fashion products, where the ‘fit’ of a garment is difficult to translate within online shopping parameters,” says Weber.

“Another issue with returns in omnichannel retailing is that while retailers often outsource last-mile delivery, not all partners have the ability to handle returns,” says Weber. “In such instances, a product exchange may require three vehicle deliveries to complete the transaction: one to drop off the original product, one to pick up the return, and one to deliver the replacement product. Such a laborious returns process represents neither a seamless experience for the customer nor a cost-effective return solution for the logistics function.” Zeelie says that reverse logistics affects lead times and capacity planning. “We receive instructions from a client to perform a reverse logistics function with very specific items and quantities, so we plan accordingly. When their needs change, and the driver arrives to find a different set of requirements, that shifts things, so it’s vital to keep communicating and aligning.” He says that one of the greatest reverse logistics challenges is keeping loads full, rather than having a vehicle return to the warehouse with only a few products. “We’ve analysed certain routes and taken them internal rather than relying on third parties, this has increased our market share and produced better lead times. We can be more flexible regarding the kinds of vehicles we despatch, and we work with our partners to adapt to these challenges.”

Customs Stopped Services

fast fact

Amazon reported a near 200 per cent rise in profits to R95-billion in 2021. Source: New York Times

Nationwide transport & warehousing specialists

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www.shippingandgeneral.co.za 011 873 4786/7/9

GROWTH, CHALLENGES

AND OPPORTUNITIES IN SOUTH AFRICA Reverse logistics, where goods are returned from the end-user to supply chains for repair, replacement or recycling, is growing in South Africa, thanks to a well-established retail base. By DENISE MHLANGA

n most industries, reverse logistics is relatively new, and although South Africa still lags behind developed European and American markets, e-commerce is accelerating the sector’s growth. “Reverse logistics is gaining traction in some sectors of the economy and will become an essential business function as more companies adopt efficient processes,” says Justin Manson, sales director at Webfleet Solutions. He says South African companies need new ways to turn reverse logistics into a profitable part of their business instead of being a liability cost. Sujeet Morar, partner at Kearney, says major retailers like Pick n Pay and Checkers, along with e-commerce platforms like Takealot, have reverse logistics services that are quite efficient

Sujeet Morar

in urban areas. “The outlook for reverse logistics is positive, underpinned by growth in online sales and changes in consumer behaviour.” Retailers like Checkers and Pick n Pay offer to remove plastic bags, containers and batteries for Justin Manson recycling when customers buy products online. Meanwhile, as part of its World Without Waste strategy, Coca-Cola South Africa will provide a transport subsidy for logistics collections in rural areas. Tarsus Distribution is working towards implementing a strategy to manage the return of used toner cartridges. Manson believes there is a huge recycling potential, especially in the electronic goods

“THE OUTLOOK FOR REVERSE LOGISTICS IS POSITIVE, UNDERPINNED BY GROWTH IN ONLINE SALES AND CHANGES IN CONSUMER BEHAVIOUR.” – SUJEET MORAR

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fast fact

With R9-billion revenue in 2021, Takealot is South Africa’s biggest e-commerce player, followed by Superbalist (R1.27-billion) and Woolworths (R852-billion). Source: eCommerceDB

sector, including recycling goods or refurbishing, then selling them. “There’s also a massive reverse logistics component in the waste management sector whereby waste removal companies apply these processes to separate and recycle materials.” He adds that South African waste management companies are doing an exceptional job in this regard.

DRIVERS OF REVERSE LOGISTICS Morar says that within the food and beverages, construction and retail sectors, reverse logistics drivers differ. With food and beverages, these are cost reduction and environmentally sustainable packaging as well as cost recovery from unsold/past sell-by-date food and beverage products that can be sold to employees at a discount. Companies could also look at revenue generation from the sale of recyclable materials like plastic and tins. Manson says packaging businesses can also find ways to pick up used bottles from clients for recycling and reuse purposes, for example. Within the construction sector, waste management and recycling are some key drivers. In retail, specifically fashion and consumer electronics, establishing effective return policies influences customers’ purchase decisions, driving customer loyalty. Value capturing is another aspect where companies like Apple

RE V ERSE L OGIS T IC S

fast fact

Takealot and Gumtree were the top-visited online shopping websites in South Africa in 2021. Source: South Africa B2C E-Commerce Market 2022 report

OMNICHANNEL HAS MADE REVERSE LOGISTICS MORE CHALLENGING AS RETAILERS AND SUPPLIERS HAVE A LOT TO CONSIDER TO MEET CUSTOMER SATISFACTION AND EXPERIENCE.” – NATHALIE SCHOOLING promote the trade-in of older iPhones, from which parts are recycled, says Morar. Nathalie Schooling, CEO of customer experience company nlightencx, says the responsibility to the customer is important, and businesses that fail to approach the reverse logistics process with the customer in mind stand to lose market share. “Often the focus is on moving goods forward, but closing the loop with the customer at the end of the sale is just as important.”

customer satisfaction and experience.” However, omnichannel also provides the opportunity for the use of innovative technology to help streamline processes. Morar says challenges include limited local capability with a high reliance on third-party logistics, lack of functional integration and compatible IT systems to transfer product return information between parties, lack of supply chain integration and senior management buy-in to execute reverse logistics and financial barriers. He adds that Nathalie Schooling established e-commerce CHALLENGES AND OPPORTUNITIES retailers can develop end-to-end Schooling says logistics process management of reverse logistics clients cite a lack of information systems like like after-market services to promote a warehouse management software as the positive customer experience and drive cause of delays in a seamless reverse logistics customer retention. customer experience, adding that integration For many businesses, reverse logistics is seen leads to better inventory tracking and reporting as a cost, but there are opportunities, such as systems. She says this is a relevant element proper processes, to create additional revenue in the omnichannel environment, where streams, says Manson. Many businesses don’t clients’ demands need to be met quickly and know whether to recycle, refurbish or dispose from any location. “Omnichannel has made of products once returned – and therein lies reverse logistics more challenging as retailers the opportunity. and suppliers have a lot to consider to meet

images: SUPPLIED

REVERSING SUCCESSFULLY Webfleet Solutions’ Justin Manson, Sujeet Morar of Kearney, and nlightencx’s Nathalie Schooling agree that an important goal for businesses is customer satisfaction and retention. Customers are more inclined to deal with the company if the return process was painless and their complaints regarding defective products were handled efficiently.

“In the construction sector, for example, the objective would be selling surplus material at building sites to achieve additional revenue goals. In European markets, one of the goals is meeting legislative requirements,” says Manson. Revenue generation by recapturing the value of returned products through reuse, repair or refurbishment, and

Retail stores can create e-commerce platforms through a third-party integrator, such as listing on Takealot or Shopify with reverse logistics capabilities, thus gaining new customers and promoting customer loyalty. Morar says beverage companies, for example, can introduce reverse logistics within their fleet for used bottles, cans and packaging. “This helps improve sustainability efforts and promotes a circular economy, resulting in waste reduction and decreased energy consumption.”

E-COMMERCE GROWTH Globally and in South Africa, the pandemic has further accelerated e-commerce growth. “The shift to e-commerce is benefitting the reverse logistics industry as return rates are much higher than in brick-and-mortar sales,” says Morar. Improvements in this regard will drive increased online shopping and new retail business models such as curated shopping try-on services. Schooling agrees that e-commerce has led to an explosion of reverse logistics because it is easier to buy products online. “People buy different sizes, styles and colours, knowing they can return these if they don’t like them.” Manson says companies have improved turnaround times in getting products to the customer, the warehouse and manufacturer as efficiently as possible. “Understanding data analytics in real-time helps businesses understand their return rate and how they can improve the customer experience.” For Morar, having the software and network management expertise is critically important in developing an end-to-end reverse logistics process, enabling cost savings driven by stock optimisation with fewer write-offs, faster returns processes and higher residual sales values.

reducing the cost of sales and operating expenses such as reusing components, recycling, and reducing shipping and administrative costs are some of the typical goals achieved by reverse logistics, says Morar. Others include optimising transport usage and vehicle movements, reducing inventory levels through product recovery, waste reduction and improved sustainability.

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Get your goods moving. Contact us today! +27 31 028 0043/+27 81 594 0310 | Admin@tfcf.co.za | www.tfcf.co.za

Committed to great freight excellence! We offer customs clearing and freight forwarding solutions with peace of mind in an ever-changing world. Customs clearing. Professional clearing services for import and export, ensuring the efficient release of your goods.

shipping solution for you, with a choice of full container load and less than container load options.

Forwarding. Securing the most cost-effective methods to transport your goods with friendly assistance for the necessary document preparation to get your consignment ready to move.

Vessel chartering. If you need to lease a vessel, we’ve got you covered with voyage charter, time charter and bareboat charter options.

Warehousing and transport. Ensuring safe storage of goods with our dedicated warehousing solutions as well as providing tailored transportation to suit your needs. Sea freight. No matter the size of the consignment, we have the right

Air freight and plane chartering. Sometimes time isn’t always on our side; this is why we offer record-time deliveries with strategic routes for those tight deadlines with our air freight solutions. Bulk shipment. We have the expertise to cater for quantities too large to fit into a container, be it dry or liquid bulk.

t op f reigh t A DV ERTORI A L

RISING THROUGH THE TIDES Preparing for the worst-case scenario while hoping for the best outcome

istory has shown that just about anything can happen as the world has been experiencing a series of challenges, from the COVID-19 pandemic and resultant lockdown restrictions to natural disasters. These occurrences have called into question the prevailing systems and have forced organisations to rethink how they operate The recent floods in KwaZulu-Natal are a clear indication that now more than ever, all sectors have to prepare for an unpredictable future.The success of any brand lies in its credibility and trustworthiness, which is built on the foundation of the customer getting their products at the right price and delivered in the right condition and on time. Therefore, freight is an essential pillar in the supply chain to achieve this.

ENSURING YOUR SHIPMENT IS SET UP FOR SUCCESS • Prior planning. While there is a high demand for the now, the importance of planning ahead can never be overrated. The 5 Ps – Prior Planning Prevents Poor Performance – still significantly impact any undertaking. • Full declaration of consignment. No matter how simple the goods may seem to be, it is of the highest importance to declare goods categories precisely. If you are not the manufacturer, you need to be fully aware of the components of the consignment. • Contingency plan. While no one can guarantee the future, historical events in the different aspects of freight provide data that can assist in avoiding

hiccups along the way. Transparency is key for all parties involved as it is crucial to be aware of all the risks and how these can be handled in the best possible manner should an incident arise. We at Top Freight pride ourselves on taking care of your goods, ensuring safety, flexibility, efficient communication and timeous delivery. With our skilled team and strong networks, we ensure your peace of mind regarding delivery. Top Freight offers freight solutions with peace of mind in customs clearing and freight forwarding.

WAREHOUSING AND TRANSPORT We offer dedicated warehousing solutions to a wide array of clients spanning various industry sectors. We cater for their unique warehousing and transportation needs, including cold storage solutions, pallet and bulk storage, dangerous goods and hazardous chemicals solutions, and storage of delicate and medical devices. Over and above this, we link you to the most reliable and suitable carriers, and we handle and process your shipment with expert precision and efficiency.

transport large quantities over long distances across the globe. Some advantages of sea freight are that it’s easy to manoeuver heavy and large goods with ease, and it’s the most carbon-efficient freight solution. We also specialise in vessel chartering – categorised into voyage charter, time charter and bareboat charter. When it comes to bulk shipment, this refers to the transportation of goods in large quantities, loaded directly into a vessel without individual packaging. Such goods are generally classified as dry bulk or liquid bulk, for example, iron ore, petroleum products and grains.

AIR FREIGHT AND PLANE CHARTERING Air freight is the fastest freight solution. Bearing in mind that this is the most costly form of transportation, Top Freight Clearing & Forwarding is committed to ensuring security and efficiency when transporting your cargo while at the same time remaining cost-effective. To reduce delays, we prioritise finding the best route and chartering a plane to meet your schedule.

SEA FREIGHT • FCL (Full Container Loading) • LCL (Less than Container Loading) • Vessel Chartering • Bulk Shipment Sea freight is a method of transporting large quantities of goods using carrier ships. The goods are firstly packed into containers and then loaded onto a sea vessel. This method of goods transportation is a cost-effective way to

➔ Scan this QR code to go directly to the Top Freight website.

For more information: +27-31-028-0043 admin@tfcf.co.za www.tfcf.co.za

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F REIGH T F ORWA RDING DHL is taking freight forwarding into the future with Saloodo. Freight forwarders need to keep up with advancing technology, blending it with the human touch.

MOVING FORWARD The effective harnessing of technology and the personal touch will ensure that freight forwarders remain an essential part of the logistics value chain, writes TREVOR CRIGHTON

STRONG LINKS “In broad terms, ‘logistics as a service’ includes services that make up the entire freight industry,” says New Horizon Freight Solutions director Rayolin Pillay. “As a freight forwarding and customs clearing agency, we facilitate moving cargo, by any means that customers require or prefer, and customs clearing into and out of South Africa and any other country via Rayolin Pillay a network of agents.” Homashni Naidoo, head of road freight for DHL South Africa’s new digital freight marketplace Saloodo!, says that logistics is a crucial part of the supply chain. “As DHL, we are here to link goods from suppliers and manufacturers with sellers and distributors, and eventually buyers.”

SPEED, EFFICIENCY AND VALUE Naidoo says that digital solutions in the logistics space help increase real-time global visibility of transport services across end-to-end supply chains. “During the past two years, it was key for us to remain very agile and have the ability to adapt to difficult circumstances. DHL Global Forwarding has upgraded its transport management system to speed up and simplify

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fast fact

The volume of goods transported by land in South Africa increased by 11.6 per cent in June 2021 compared with June 2020. The corresponding income increased by 12.8 per cent over the same period. Source: Statistics South Africa

The freight forwarding and customs clearance sector makes a major contribution to facilitating trade in South Africa and co-ordinates over 80 per cent of South Africa’s international trade. Source: South Africa Freight Forwarding Industry Analysis 2021

a bit extra for personal service and expertise. “As a smaller company, we can offer customers the personal touch where they deal with a dedicated controller, not a team of people where their file is shuffled through multiple departments.”

HUMANITY WILL NEVER BE REDUNDANT

In terms of adapting their offering to remain part of the value chain into the future, Naidoo says that Saloodo! is focusing on a few factors such processes, increase responsiveness, eliminate as product design, research and development, paper, and operate more efficiently.” and advertising. “We are continually assessing Pillay acknowledges that increasing the value we create due to the increased digitisation has begun to threaten parts of the competition for high-quality products, industry and forced many players to justify their maintaining low costs and delivering usefulness. “Many threats are emerging, like excellent service.” apps that connect providers to clients directly, Pillay says the entire logistics industry needs so it’s essential to adapt and not limit ourselves to adapt, and it’s up to freight forwarders to to one area.” innovate to remain relevant. “As human beings, we do what we can, and we can still make PRICE VERSUS QUALITY mistakes, but a computer program can also The battle of low price against quality of service only do what you tell it. At the moment, humans continues in the freight forwarding space, remain the best decision-makers but Naidoo believes that because computers and software customer service has always in our space can’t yet analyse a been about maximising problem and give the best solution. value. “When our customers “We shouldn’t regard technology see the worth in every as an enemy in the industry. Its interaction, we gain more usage is inevitable, so we should leverage to implement prices work to integrate it and capitalise that are mutually beneficial.” on the benefits it delivers to be Pillay says there’s a mix able to offer better, cheaper a of customers who focus nd more effective service solely on the bottom line and to customers.” those who don’t mind paying Homashni Naidoo

“WE ARE CONTINUALLY ASSESSING THE VALUE WE CREATE DUE TO THE INCREASED COMPETITION FOR HIGH-QUALITY PRODUCTS, MAINTAINING LOW COSTS AND DELIVERING EXCELLENT SERVICE.” – HOMASHNI NAIDOO

images: supplied

reight forwarders have always formed an essential part of the logistics process, acting as intermediaries between senders and receivers of goods. Designated as an essential service under South Africa’s COVID-19 regulations over the past two years, they now face a challenge in the form of technology.

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RAIL SAFETY INFRASTRUCTURE DENISE MHLANGA shares that despite the mounting challenges around safety infrastructure, Transnet has a plan to turn the tide

n 2021, Transnet Freight Rail (TFR), the largest operating division of state-owned enterprise Transnet, reported an increase in cable theft and vandalism across its rail network, resulting in significant train delays across the country, which severely affected its operations. The division saw rail volumes reduced due to constrained demand, cable theft, power failures, vandalism, adverse weather and derailments. “Transnet Freight Rail has experienced a 179 per cent increase in security-related incidents in the past five years alone, and it’s costing the division a lot of money to keep operations running,” says Sibu Majozi, TFR spokesperson. Majozi says TFR’s security spend and replacement costs for stolen infrastructure have rapidly increased over the same period. “In the current financial year alone, Transnet Freight Rail has spent more than R2-billion to protect infrastructure across its rail network.” Between January and October 2021, TFR lost more than 1 000km of copper cable through an average of 600 theft and vandalism incidents per month. Majozi says over 1 000 trains were cancelled due to security incidents often taking place during peak traffic periods and high volume corridors, especially in the NorthCor (where TFR moves coal), CapeCor (manganese), and the Central Corridor, which connects all the corridors, adding that lost volumes can never be recouped. Theft and vandalism of substations, resulting in delays on freight movements, are hitting TFR’s revenue, which was down to R39.448-million in 2021 compared to R44.729-million in 2020. During the same period, rail volumes were reduced to 183.3 million tonnes from 212.4 million tonnes in 2020. This is especially concerning considering TFR is the biggest contributor to Transnet’s revenue, recording 51 per cent or R34.3-billion in 2021.

images: supplied

INCREASED SECURITY Majozi says TFR has improved security on its rail track infrastructure through partnerships with law enforcement agencies, private security companies, and other forums and industry bodies to help cover more than 30 000km of rail networks countrywide. She adds that safety and reliability are important factors in ensuring customers trust their rail cargo to reach their intended destinations, therefore TFR has intensified its efforts to invest in state-of-the-art security to safeguard rail infrastructure. TFR has formed co-operative technical teams with customers in each corridor, improved the security of wagons in transit to limit access to cargo, and is investing in technology to ensure

Sibu Majozi

RAIL THEFT BY NUMBERS • In 2021, Transnet said rail volumes were reduced due to constrained demand, cable theft, power failures, vandalism and adverse weather and derailments. Transnet Freight Rail cancelled 1 190 trains as a direct result of security-related incidents. • Transnet reported that between January and October 20201, it lost 1 000 km of copper cable and an additional 55km of cable was stolen in the two weeks leading up to 10 November. • Costs to replace a kilometre of stolen cable are estimated at R1-million, which works out to about R5.5-million in cable-related expenses daily.

that incidents such as copper theft are eradicated, particularly on the Natal Corridor and Central Corridor. “We have also invested in technological solutions like drones to curb and/or deter criminal activities on the TFR railway network, and this is starting to pay off,” says Majozi. In March 2022, TFR said seven suspects had already appeared in court for cable theft in Modimolle, while another suspect was sentenced to 13 years in prison for cable theft in August 2020. Since the beginning of March 2021, 70 suspects have been arrested thanks to intensified efforts by the joint operations with law enforcement agencies. “We continue to engage with all stakeholders and law enforcement agencies such as the South African Police Service to help fight this scourge. TFR firmly believes that the introduction of railway police and the judiciary meting out of harsher punishment in prosecutions will go a long way in reducing crime across the network,” says Majozi.

“IN THE CURRENT FINANCIAL YEAR ALONE, TRANSNET FREIGHT RAIL HAS SPENT MORE THAN R2-BILLION TO PROTECT INFRASTRUCTURE ACROSS ITS RAIL NETWORK.” – SIBU MAJOZI F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

Custom clearing • freight fowarding

Transport • warehousing air freight • Customs consulting

NEW HORIZON FREIGHT SOLUTIONS – THE FREIGHT FORWARDING COMPANY YOU WANT TO PARTNER WITH New Horizon Freight Solutions is one of South Africa’s leading freight forwarding companies, specialising in the clearing and forwarding of import and export of goods domestically and internationally. We offer a complete and innovative approach to meet your specific logistical needs. Our professional team members carefully tailor these approaches to suit our clients’ requirements. We pride ourselves on being able to bring varied components together to obtain the optimal outcome. At New Horizon Freight Solutions, our business goes above and beyond the logistical side. We bring you apt and innovative solutions that develop into solid partnerships. With years of experience in the industry, paired with insight, resources and advice, we can develop a customised solution that will best benefit each client’s unique requirements. To succeed in our mission to be the freight forwarding company that you want to partner with, we strive to maintain: • Competitive rates With considerable experience in the industry, New Horizon Freight Solutions is equipped with the knowledge, network pool and understanding of the broader logistical industry that allows us to bring you contemporary, versatile and agile service while maintaining our commitment to competitive pricing.

• Reliability Finding a company to trust with the domestic or international transportation of your goods is daunting, and the process can be overwhelming to many. Our team is trained to assist both the most seasoned and novice client, executing a high degree of transparency, appropriate explanation and terminology and support to ensure that you understand our processes. We strive to build partnerships with our clients and work hard to develop and nurture these relationships throughout the years by continuously delivering a service that meets your expectations. • World-class customer service Tailoring integrated supply chain solutions between the starting point and the final destination requires effective planning, as well as accurate and timeous flow. We strive to be proactive, consistent and, most importantly, reliable throughout the process, demonstrating only the most proficient processes from the moment you enter our offices. Our global network ensures that our reach is international, and we work with only the best in the industry to ensure our clients receive hands-on, personalised service. With so many freight forwarding companies entering the industry, New Horizon Freight Solutions offers a well-established, reliable and modern service, where we partner with you to obtain only the best possible outcomes. Let our team handle the transportation of your goods soon, and begin building a mutually beneficial relationship – we’ll always go the extra mile.

Ready to get your goods on the move? Contact us today!

Tel: +27 (0) 31 321 5085 | Email: info@nhfs.co.za | Website: www.nhfs.co.za

NE W HORIZON F REIGH T S OL U T IONS A DV ER T ORI A L

STAYING RELEVANT IN EVER-CHANGING TIMES Technology is advancing fast, and freight and logistics operators need to keep pace and adapt to the changes

he import and export industry is constantly advancing with new technology and trends. Not only are we living in a technological age, but also an extremely precarious and turbulent one, making it far more challenging for freight and logistic services to stay relevant and be efficient in handling the hassle-free shipment of their customers’ goods. Highly competent freight and logistic services manage these rapid advancements and unforeseen changes, such as ocean trade routes disruptions and backlogs, fluctuating oil prices and sea freight rates, and adapt to them efficiently through the extensive knowledge of highly trained professionals. New Horizon Freight Solutions offers innovative, modern solutions for all your freight and logistics requirements. We understand the industry, but more importantly, we understand our customers’ needs – this is why we are continuously striving to offer world-class clearing and forwarding services. Through years of experience in the industry, we have acquired expertise and professional knowledge in importing and exporting. We have also learned how to handle the waves of change that frequent the industry, namely: • Increasing competition. The competitiveness in this industry is rapidly increasing with new start-ups and service opportunities. Crowded industries make it extremely difficult for companies to

maintain their competitive advantage and stay profitable. As an established clearing and forwarding service, New Horizon Freight Solutions has years of valuable experience adapting to the consistent, yet inevitable, changes. While we may be established, we still take the time to learn more about the industry and monitor the trends consistently. In addition, we have built multiple solid relationships with our customers over the years and value their loyalty and referrals. • Changing regulations. Changing regulations for domestic and global shipping can put a tremendous amount of stress on the supply chain and service providers. These regulations include customs, inspections, duties and taxes, as well as shipping limits, all of which can affect global trade. New Horizon Freight Solutions adheres to these rules and regulations; however, this takes consistent effort and expertise. Our highly skilled freight forwarding team members are constantly familiarising themselves with the current requirements to ensure clearing and forwarding take place without a hitch and in adherence to the current rules. • Rising transportation costs. A major challenge facing freight companies within the modern supply chain is the sudden changes in expense and general

rate. This can make it hard to provide accurate quotations and determine gross income. It is essential that those in the industry monitor rates, fees and fluctuating costs, such as oil and diesel, to make it easier to budget and quote accordingly Finding new ways to accommodate these fluctuating fuel costs and optimise travel routes is one of the industry’s biggest challenges. New Horizon Freight Solutions keeps a steady eye on the market economy and, while we can’t do much about the fluctuating rates, we can offer you accurate quotations, competitive rates and world-class service. • Technology implementation. The use of technology in the freight forwarding industry is also a challenging change that companies must accept and adapt accordingly. Advanced communication, optimisation and tracking tools are used to manage and move cargo globally. Electric vehicles, advanced tracking systems and supply chain visibility will be introduced to the industry soon. New Horizon Freight Solutions is up to date with the latest freight forwarding technology and has operation plans to ensure that current technology enhances daily operations and ensures the smooth transition of goods. The domestic and international supply chain is currently inundated with challenges it has previously never faced. The effects of the global pandemic, worker shortages, regular route disruptions, trade wars and financial burdens have all changed the way freight forwarding companies operate daily. The freight forwarding company you choose and trust with your cargo must be informed and accommodating of changes and challenges. New Horizon Freight Solutions is a trusted and well-established freight forwarding company specialising in: • Customs clearing • Freight forwarding • Transport • Warehousing • Air freight • Customs consulting At New Horizon Freight Solutions, we roll with the changes, so you don’t have to.

➔ Scan this QR code to go directly to the NHFS website.

For more information: +27 (0) 31 321 5085 info@nhfs.co.za www.nhfs.co.za

F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

CYBERSECURITY IS NOW A

BUSINESS IMPERATIVE Logistics and freight operators rely on data to keep everything running smoothly. Cyber-criminals are now employing ransomware to prevent access to this data. RODNEY WEIDEMANN investigates

ast year, South Africa’s logistics and port operator, Transnet, was the victim of the rising tide of cyber-crime, suffering a significant ransomware attack. The hack disrupted normal processes and damaged equipment and information, culminating in the declaration of a force majeure at the port’s container terminals. Kate Mollett, senior director for Commvault Africa, says the reason an organisation like Transnet was targeted by cyber-criminals was due to the wealth of data required to run a successful logistics operation. “If you consider the Kate Mollett nature of ports and understand how busy they are at all times, it becomes easy to see how malware that prevents operations and systems from functioning can create huge chaos. “Globally, organisations are undergoing digital transformation, and in the freight space, digitisation has been critical in improving the supply chain. However, going digital has opened up new areas of vulnerability that criminals have been quick to exploit.” Roberto Arico, senior sales engineer at Cybereason, adds that the biggest threat from ransomware relates to the operational downtime it causes and the time it often takes to recover from an attack. “In the freight industry, the challenge is that even if you can recover your data from backups, the hours or days this may take will have a significant impact on delivery

times by interfering with the loading and offloading timetables. Moreover, certain goods like fresh produce cannot afford delays if they are to remain viable.”

PREVENTION AND RECOVERY

Roberto Arico While there is no silver bullet solution that can guarantee safety from attack, Arico says the best approach is to combine a range of the best security technologies. “One popular solution is endpoint detection and response, which monitors activity on servers, workstations and other devices to provide the security team with an effective overview of what is happening within the business.” He adds that one should also consider next-generation antivirus offerings and potentially even extended detection and response, which monitors security around solutions like firewalls and cloud-hosted solutions. “It is imperative to upgrade to the most modern solutions; far too many companies today still rely on technologies that were effective as far back as the 1990s. Instead, you should be looking to

“EVEN IF YOU CAN RECOVER YOUR DATA FROM BACKUPS, THE HOURS OR DAYS THIS MAY TAKE WILL HAVE A SIGNIFICANT IMPACT ON DELIVERY TIMES.” – ROBERTO ARICO 28

F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

S A F E T Y A ND SECURI T Y

ATTACKS ON KEY LOGISTICS PLAYERS A cursory media search reveals that numerous massive freight and logistics players around the globe have suffered cyberattacks in the past few years. • A cyberattack infected German rail operator Deutsche Bahn’s systems. • FedEx fell victim to a ransomware attack that cost the company around R4.5-billion. • Danish shipping company Maersk saw IT systems across multiple sites brought down. • The Port of Houston successfully defended itself against a cyberattack last year.

leverage tools like artificial intelligence, which is constantly learning to help you understand and respond to attacks more rapidly.” Mollett notes that when considering a prevention strategy, an organisation should first identify its most important data – information like personal addresses, identity numbers and customer data – and place this at the centre of a “security web” with multiple layers of security surrounding it. “Begin with perimeter security like firewalls and antivirus, and then, as you get closer to the data, ensure you are working within a zero trust framework where everything is essentially treated as a potential threat, so only the minimum access required is ever granted.”

MINDSET CHANGE Carlo Bolzonello, country lead for security provider Trellix South Africa, says the first step in avoiding a ransomware or other cyberattack is to adopt a clear security strategy. “Accept that IT security is fundamental to your business and should never be viewed as a ‘nice-to-have’ or a grudge purchase where you only invest the minimum funds possible. You have to take it seriously and consider the impact of a potential attack on your business and your customers. “It is also crucial to remember that something like the cloud may have received a lot of hype regarding its benefits, but it also introduces new risks. Moreover, not all the tools that secure

“ACCEPT THAT IT SECURITY IS FUNDAMENTAL TO YOUR BUSINESS AND SHOULD NEVER BE VIEWED AS A ‘NICE-TO-HAVE’ OR A GRUDGE PURCHASE WHERE YOU ONLY INVEST THE MINIMUM FUNDS POSSIBLE.” – CARLO BOLZONELLA your business outside the cloud work as well within it.” The second step, says Bolzonello, lies in the mindset change that is required. Essentially, you should work on the principle that you have already been breached, and craft a proper plan to enable you to recover rapidly. “It is important not only to have a security plan, but also to ensure that it is tried, tested and proven. This way, when – not if – a problem occurs, you know exactly what to do to recover rapidly and effectively, and mitigate the threat.” This means running security drills similarly to how you might run a fire drill. “In this way, everyone in the organisation will know what to do and how to do it in a controlled manner without panicking,” adds Bolzonello.

BUILDING RESILIENCE A critical part of data security lies in proper backing up of critical information. Mollett gives the example of ransomware, which aims to encrypt your company’s information, forcing you to pay to have it released. If you keep copies of all critical data on separate devices, you are more likely to be able to mitigate the impact of such an

images: ISTOCK.COM, SUPPLIED

THE 3-2-1 BACKUP RULE The principle behind the 3-2-1 data backup plan is always to maintain three copies of your data: two stored locally (but on different storage media) and one copy off-site. Commvault’s Kate Mollett adds that generally, your primary backup copy is stored in your data centre for quick recoveries, with a second copy kept on different infrastructure, such as tape or disk media, to ensure there is no single point of failure. “Lastly, you should periodically upload your data to an off-site cloud to serve as your third copy. We like to speak of creating an ‘air-gap’ here to protect against cyber-hacking or ransomware. An air-gap strategy means that one copy of your enterprise’s data is maintained offline so it cannot be accessed remotely, hacked or corrupted.”

fast fact

Ransomware is a type of malware that prevents or limits users from accessing their system, either by locking the system’s screen or by locking the users’ files until a ransom is paid. Source: Trend Micro

attack. “We always recommend utilising the 3-2-1 rule, which keeps copies in different places and on different types of media, to mitigate the threat of ransomware.” Ultimately, freight organisations, like any other data-driven business, must view business resilience and data security as a business issue rather than an IT problem. “This means adopting a data governance approach to determine what data is high value and what risks are associated with these assets,” says Mollett. “Finally, approach the security of such data from a risk management mindset: implement zero trust, consistently educate employees around the dangers of phishing and social engineering, and implement the 3-2-1 rule for data storage.”

dangerous goods transportation

Nationwide transport & warehousing specialists

F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

www.shippingandgeneral.co.za 011 873 4786/7/9

TAX SERVICES AVAILABLE: •

Dispute resolution with SARS

•

Customs and excise

•

Penalty and interest remission applications

•

Voluntary disclosure programmes

•

Deferred payment arrangements

•

Compromises

•

Write oﬀs and suspension requests

•

Transfer pricing

•

Tax opinions, ruling applications, tax structures

•

Dispute resolution and engagements with SARS

•

Tax inquiries

•

Preservation orders

•

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•

Review applications

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Third party appointments

•

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Contact our specialist tax consultant: Carina Fourie (PR0107273) T: (011) 887 4713/4/6 E: carina@orelowitz.co.za www.orelowitz.co.za

Ya rd m a n agemen t

KEEP MOVING

WHAT’S HAPPENING IN THE YARD? Yards play a critical link in logistics, but are often sites of costly errors and delays. Caryn Gootkin explores how yard management systems can increase efficiency

images: supplied, istck.cm

he goal of a yard is to get trucks in and out as quickly and safely as possible with the right goods on board, says Neil Gouveia, director of Zebra Technologies Africa. “There’s a range of challenges at each stage of operations because yards are busy places with vehicles, goods, and people coming and going. When one process fails, it can have a domino effect, affecting more aspects of the operation and the ability to deliver shipments on time,” he explains. Lack of truck arrival visibility causes costly delays. “On entry, the vehicle and driver must be identified and associated with a transporter or customer as a delivery or collection, and the documentation should be validated,” says Renko Bergh, co-founder of Forte Supply Chain Solutions. “This must happen in real-time to avoid delays. Parking areas are ‘expensive’, so ensuring the right vehicles enter the facility and get processed effectively is crucial.” “Other challenges include congestion in the face of rising e-commerce and rapid delivery expectations, maximising yard space, and reducing worker downtime,” says Gouveia. “Africa has additional challenges around transport infrastructure,

including significant distances between cities and goods collection, storage and drop-off locations, and the varying levels of business maturity across transport and logistics companies.”

BENEFITS OF A YARD MANAGEMENT SYSTEM A robust yard management system (YMS) can automate many of these processes and link in to both the warehouse management system (WMS) and transport management system (TMS). Bergh says that YMS can reduce inefficiencies by: • accurate data capture with real-time validation • correct sequencing • automated decision-making that eliminates the need for human intervention • real-time identification of deviations and triggering of appropriate remedial action.

Mobility is instrumental to the success of a yard management system (YMS). “Whether that’s enabling communications through Push-to-Talk on frontline worker handheld computers, adding radio-frequency identification tags to trailers to automatically track their location inside the yard, or sending alerts to workers on their mobile devices,” says Neil Gouveia, director of Zebra Technologies Africa.

A PHASED APPROACH Phasing in a yard management system realises the benefit early in the deployment process. “Having a modular solution and a configurable platform allows for a phased approach so you can realise immediate benefit with managed and minimised disruption to the operation,” says Renko Bergh of Forte Supply Chain Solutions.

THE TECHNOLOGY YMS can be stand-alone or a feature within WMS and TMS offerings. “The solution should include mobile terminals for data capture at specific locations. Radio-frequency identification (RFID) and tracking technology may be added to allow for resource identification in specific areas,” says Bergh. Real-time location solutions and RFID are increasingly being used to automate larger and more complex operations. “YMS uses automation in conjunction with barcodes and RFID tags to streamline the entire process and accelerate movement of trucks and trailers through the yard,” says Gouveia. “Rugged tablets, handheld computers, and vehicle-mounted computers provide frontline workers with the visibility, data insights, and communication tools needed to make the right decisions in real-time.”

“YARDS ARE BUSY PLACES WITH VEHICLES, GOODS, AND PEOPLE COMING AND GOING. WHEN ONE PROCESS FAILS, IT CAN HAVE A DOMINO EFFECT, AFFECTING MORE ASPECTS OF THE OPERATION AND THE ABILITY TO DELIVER SHIPMENTS ON TIME.” – NEIL GOUVEIA F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

DIGITAL SKILLS NEEDED TO STAY

AHEAD IN SUPPLY CHAIN From robotics in warehouses to computerised shipping and tracking, the supply chain industry has changed for the better. Tiisetso Tlelima looks at what new skills are required in today’s market

echnology has tremendously changed the profile of the supply chain and logistics sector. With the advent of the internet of things (IoT) and artificial intelligence (AI), robots and automation have taken over many supply chain activities. “Many of the old jobs are either not being done at all, or they’ve been replaced by a different skill set,” says Marzia Storpioli, supply chain management lecturer at IMM Graduate School. The movement of goods and information in the warehouse is controlled almost completely electronically, meaning less of a need for individuals to work in the warehouse. “A warehouse manager today doesn’t walk up and down the aisles to try to find something; he reads a code on a device that tells him where to find a product and how many there are,” explains Storpioli. She says the most comprehensive use of technology in the supply chain sector involves increasing visibility of either information or events, enabling decision-makers in the supply chain to make better or faster decisions than previously. “Movement of information is primarily what enhances the performance of the supply chain,” says Storpioli. “For instance, when transporting a wood product, technology can identify the source of that product very quickly and confirm whether the product is from a natural forest or a man-made forest.” This means that roles have changed dramatically, making computer skills central to many of the players in the supply chain.

KEEPING PACE WITH CHANGE Michelle Neilson, investor relations executive at logistics provider Super Group, says digital competence and innovation excellence have become more important in a COVID-19-restricted world, putting technology at the heart of strategic development and delivery. “Regardless of sector, industry or geography, the pandemic has accelerated the

pace of change and the speed at which organisations have had to digitise their customer and supply chain interactions to accommodate new behavioural norms and market demands.” As a result of this rapid technological change, the sector has to ensure that employees develop an expanded skill set that includes understanding robotics, AI, IoT and augmented reality. The ability to analyse and convert big data into business intelligence to better predict and leverage shifts in demand, anticipate changing customer needs and make faster, more insightful decisions has become of paramount importance. “Real-time data must be leveraged to drive real-time insights and swift decision-making, which requires an agile mind, system and solution,” says Neilson. Chenai Muhwati, supply chain honours programme co-ordinator at IMM, agrees that analytical skills have become increasingly important in the sector. “Logistics or supply chain practitioners need to look at the data they’re acquiring and get more visibility of what’s happening in real-time. It’s also important that managers are able to adapt. When you look at drivers, for instance, if there’s heavy traffic or bad weather

“MANY OF THE OLD JOBS ARE EITHER NOT BEING DONE AT ALL, OR THEY’VE BEEN REPLACED BY A DIFFERENT SKILL SET.” – MARZIA STORPIOLI 32

F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

SK IL L S DE V EL OPMEN T

TOP ONLINE COURSES IN SUPPLY CHAIN

conditions, managers need to analyse this data and notify drivers on time to change routes so that there’s no delay in the delivery of products.” Unlike in the past, when employees only had to know what the warehouse manager did, today, they have to know all the activities in the entire supply chain because the industry is more integrated. Procurement has to understand what the end-user needs and what the supplier can provide. Against this ever-changing digital backdrop, it’s equally important to maintain focus on behavioural skills such as collaboration, problem-solving, time management and leadership. “These portable skills require concerted effort to master and help employees stand out from the crowd,” says Nielson. Furthermore, Neilson believes honing these skills will make employees more mobile within the workforce, both vertically and horizontally, enabling them to adapt quickly to a constantly changing work environment.

images: ISTOCK.COM, SUPPLIED

A MOVING TARGET Bearing in mind that the supply chain sector is a moving target that changes rapidly, it’s important that education institutions adapt their courses accordingly and provide up-to-date information. Students need to acquire a higher certificate in supply chain management, a course that sensitises them to and provides awareness of supply chain activities, as a basis to enter the sector, says Storpioli.

The IMM Graduate School Higher Certificate in Supply Chain is an entry-level, 12-month supply chain course covering academic literacy, business management, business numeracy, international trade, operations management, supply chain management, and transport and logistics. The TransAuto Academy Online Fleet Management Course caters for new fleet managers who want to learn while they work. There are no fixed test dates or task deadlines, and students work through the 12 modules at their own speed. Content includes fleet management principles and concepts, operations management, and fleet selection and acquisition. One of the most respected courses in the industry, the UNISA Programme in Road Transport Management offers an in-depth education in all aspects of fleet management. The course aims to develop an understanding of transport management and the principles of the efficient operation of transport enterprises with focus on economic aspects, regulation, operations, marketing, costs, tariffs and financing. Sources: IMM Graduate School, TransAuto Academy, UNISA

fast fact

The global supply chain market is expected to experience a compound annual growth rate of 11.2 per cent from 2020 to 2027. That means a market value increase from R235-billion in 2019 to R557-billion in 2027. www.zappia.com

“It’s also important that the course has an international focus because we live in a globalised environment where events in China or the United States directly influence South Africa.” Nielson thinks that in addition to skills development initiatives that focus on the digitisation of the supply chain for drivers, warehouse workers, fleet managers, and logistics executives, the development of behavioural skills within the sector should also be prioritised. “A balanced IQ/EQ approach is required to develop a well-rounded, highly skilled, highly capable employee who can both collaborate and execute.” Moreover, companies should make sure that their training budgets are centred on the creation and enhancement of core technical and behavioural competencies of all staff to effectively engage in initiatives and activities that support the company’s strategic objectives. Nielson adds that skills development is no longer a top-down initiative; the

development of employees takes place vertically, horizontally and bidirectionally, so it is essential that organisations create a culture of learning to keep up with the pace of technological change. She thinks this can be achieved by continuously familiarising employees with digitisation developments and the impact they have on client delivery, competitive advantage and sustainable growth. “The creation of a learning culture is essential to equip and engage employees. An organisation’s culture must allow for experimentation, knowledge-sharing and continuous improvement.”

“REAL-TIME DATA MUST BE LEVERAGED TO DRIVE REAL-TIME INSIGHTS AND SWIFT DECISION-MAKING, WHICH REQUIRES AN AGILE MIND, SYSTEM AND SOLUTION.” – MICHELLE NEILSON F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

abnormal transportation Nationwide transport & warehousing specialists

www.shippingandgeneral.co.za 011 873 4786/7/9

The South African

Association of Freight Forwarders Established in 1921, The South African Association of Freight Forwarders (SAAFF) is a national association with members throughout the Republic of South Africa. Freight Forwarding plays an essential role in international trade and our members are dedicated to facilitating this activity through their involvement in international supply chain.

SAAFF’S VISION

SAAFF’S AIM FOR 2022

Our vision is to be the APEX body for Logistics, Freight Forwarding, and Supply Chain management, not just in South Africa but in SubSaharan Africa as well.

SAAFF aims to play a decisive advocacy role and help to identify non-tariff barriers, also providing scalable solutions. Moreover, SAAFF aims to pinpoint and address areas where there is a lack of cooperation and coordination among industry bodies and public and private sector stakeholders by fostering trust and mutual understanding.

We aim to bring exceptional value to our members and the industry by actively engaging in research and development initiatives, fulfilling a significant advocacy role, and providing capacitybuilding opportunities. 2022 is a new year, with new chapters, new beginnings, and new horizons to pursue, overflowing with a plethora of opportunities for each one of us to make indelible impressions in our international trade landscape and sow the seeds of development, modernisation, and process improvement in our compliance environment.

SAAFF further has a strong directive to progress in projects involving SMART borders, AEO programme implementation, education, and awareness. With the help of trusted business partners, SAAFF aims to capitalise on big data and expertise to stitch the supply chain together to improve visibility and help foster a safe, competitive, and resilient industry.

CAPACITY BUILDING

PROJECTS

with the Public/Private Sector Representatives

with Recent Achievements

We have noticed an incredible need for capacity building throughout our journey, engaging with our members and public sector representatives. Many of the issues that industry stakeholders face are due to a lack of knowledge on various topics, including best practice, policy coherence, international and local standards, and customs procedures. As a result, SAAFF has taken the initiative to launch its first ever training academy (SAAFFTA) in 2021, which offers targeted training solutions and capacity interventions for professionals and businesses in freight forwarding, logistics, customs, and the extended supply chain industry. SAAFF further recognises the important role technology plays in improving the linkages between all role players in the supply chain and the overall efficiency and, therefore, aims to play a significant role in providing futuristic skills development. In addition, SAAFF has long been the sole custodian of the FIATA Diploma in South Africa, collaborating with approved training providers. Other initiatives include the SAAFFSARS Strategic Partnership: Operational Excellence, Building Capacity & Improving Compliance.

Control Tower monitoring the port’s capacity and performance to provide an overview of operations at the port of Durban for both container terminals. Port Health Statistics aims to provide a month-onmonth update on clearance times at OR Tambo for a sample group, giving an overview of Port Health’s stops and timeframes. Weekly Cargo Movement Reports that provide the industry with a snapshot of the flows of the ocean, air, and cross-border road cargo in and out of South Africa. AEO-S Compliance Drive to increase the number of AEO-S accredited clients and in so doing, assist SAAFF members to build capacity in our collaborative efforts to produce AEO-S compliance accredited clients. Extended Role Players in the Supply Chain (ERSC) private sector working group (ERSC-PS-WG) has been formed to address and remedy the current challenges plaguing our current international trade landscape.

The Architects of Supply Chain

Contact SAAFF to enquire about our strategic projects, membership and benefits

For more information visit www.saaff.org.za or contact our office on +27 11 455 1726 saaffcommunications@saaff.org.za

WOMEN IN T R A NSP OR T

DEVELOPING AND EMPOWERING FEMALES TIISETSO TLELIMA finds out more about the Women Inspiring Women to Lead in Transport initiative, launched eight months ago

esse Solomon, a 32-year-old home-based care practitioner from Atlantis, Cape Town, never thought she would see herself behind the wheel of a big truck. She believed the transport industry was too male-dominated and hard to penetrate. Little did she know she would one day be attending a funded course to become a truck driver. Solomon found out about the Iron Women course from a friend recruiting women in her neighbourhood. “When I heard I could go for a code 14 driver’s licence and become a truck driver, I thought, wow, I should change careers,” says Solomon. When accepted into the course, Solomon had not even driven a car. Although she failed her drivers’ licence, she isn’t giving up and hopes to own a trucking business one day.

PEDAL TO THE METAL Solomon is among the first batch of Iron Women being trained and mentored to become truck drivers through the Women Inspiring Women to Lead in Transport initiative. Championed by the Commercial Transport Academy (CTA), the programme was awarded almost R30-million in August 2021 to develop 915 women in the transport sector as female professionals, entrepreneurs and truck drivers over three years. The project comprises three structured programmes: Iron Women, CTA Excellence and Run With It. The initiative is the brainchild of CTA founder Nicci Scott. “After I sold my transport business to a JSE-listed

Jesse Solomon

THE IRON WOMEN PROGRAMME AIMS TO EMPOWER 495 WOMEN FROM POOR COMMUNITIES SUCH AS DELFT, ATLANTIS, DUNOON, KHAYELITSHA AND THEMBISA TO BECOME TRUCK AND BUS DRIVERS.

F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

organisation, I focused all my attention on the academy and started programmes specifically to develop female truck drivers,” she explains. Scott wanted to diversify her workforce, but had challenges finding women who wanted to be in the long-haul trucking industry, so she started working with the truck manufacturers to run learnerships for women. Volvo funded the first project to develop 20 women; it was a huge success, with all earning their licences on the first attempt and 70 per cent finding jobs in the industry immediately. The Iron Women programme aims to empower 495 women from poor communities such as Delft, Atlantis, Dunoon, Khayelitsha and Thembisa to become truck and bus drivers.

DEVELOPING EXCELLENCE The CTA Excellence programme – a partnership between CTA and Salt UK – focuses on the development of 120 juniorto middle-management women employed in the transport sector. The eight-month programme covers warehousing, operations, supply chain and logistics. “We need to develop and upskill these women so that they have the opportunity to grow within their organisations,” says Kas Govender, shareholder and compliance director at CTA, adding that at the end of the course, successful learners will be awarded an international diploma in logistics and transport. “We were only supposed to take 40 women for the first batch, but because the demand was so high, we placed 99.”

UP AND RUNNING Run With It involves developing 300 women entrepreneurs who own a bakkie and want to get into the courier space. “We also had women who owned buses in the scholar transport space who want to grow into the bus sector, so it’s quite diverse,” explains Scott. The attendees go on an eight-month mentorship programme tailored to their needs, where they learn how to manage their businesses. “Kas and I weren’t ecstatic about the outcomes, so we are making changes to the programme this year, including bringing in a new party with different insights and a different way of dealing with entrepreneurs.” Scott says that many women leave the industry largely because of the hostility and judgement they face from men. “There is a very conservative mindset that is not ready for women in the industry.”

images: supplied

Iron Women celebrating their graduation and the support of stakeholders.

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PRIVATISING OUR PORTS Last year government announced that Transnet’s National Ports Authority would be privatised in an effort to modernise and improve efficiencies at the ports. CARYN GOOTKIN looks at how this could help

ith most of a coastal country’s imports and exports passing through them, ports are, in many respects, the economic drivers of an economy. “If our ports aren’t working efficiently, it drives costs right up, and these costs end up being passed on to consumers,” says Andrew Pike, head of ports, transport and logistics for South Africa at Bowman Gilfillan. “Cape Town is one of the, if not the, worst-performing container ports in the world based on a World Bank report. Some of the issues that have never been dealt with satisfactorily include weather delays, space usage and availability, and maintenance planning. Management issues are also a challenge. It follows that economic growth and employment in the Western Cape are both hampered by these inefficiencies.”

LACK OF MAINTENANCE AND INEFFICIENCY CAUSING DELAYS Part of the problem is that critical infrastructure has not been maintained, and there has not been enough investment in new infrastructure. “The ports suffered greatly from the corruption and state capture that afflicted Transnet, as well as significant capital underexpenditure,” says Alderman James Vos, mayoral committee member for economic growth in the City of Cape Town. “This led to a lack of equipment and insufficient maintenance of the equipment that was there. As a result, exports of Cape Town-made goods were delayed. Imports and exports from the port of Cape Town amount to R150-billion annually.”

“THE PORTS SUFFERED GREATLY FROM THE CORRUPTION AND STATE CAPTURE THAT AFFLICTED TRANSNET, AS WELL AS SIGNIFICANT CAPITAL UNDEREXPENDITURE.” – ALDERMAN JAMES VOS 38

F r e i g h t, L o g i s t i c s & w a r e h o u s i n g

fast fact

The 2020 World Bank Container Port Performance Index report listed Cape Town as the fourth-worst-performing port in the world – at 347 out of 351 global ports in terms of global container port performance (using both the statistical and administrative approaches), lower than any other port on the continent. The port of Durban fared even worse, ranking last using the administrative approach, and 349th using the statistical approach.

In addition to delaying critical inputs for Cape Town’s manufacturers and hampering their ability to export products, port inefficiencies have hit fruit exporters particularly hard. “Fruit is one of the main export products out of the port of Cape Town,” says Vos, “and the inability to process these exports efficiently results in our fruit growers being less competitive and losing out to producers from other parts of the world.

P OR T M A N AGEMEN T

An aerial view of Durban harbour, South Africa.

“These inefficiencies restrain the metro and province’s economic and employment growth and come at a time when we desperately need to be bolstering both. Port efficiency is also critical to the various industries linked to the ocean’s economy. As a city, we support the call for privatisation of this critical infrastructure as it would reduce the burden of cost on the state – and thus taxpayers – and ensure steady economic growth.”

PORTS IN NEED OF A PLAN During last year’s announcement, Public Enterprises Minister Pravin Gordhan said that Transnet must secure R100-billion infrastructure investment into South Africa’s ports over the next five years, largely through private sector partners and investors. But, after almost a year, progress has been slow in securing private partnerships for the country’s major ports. “On 16 August 2021, the Department of Public Enterprises

A container freight ship riding high in the water, tied up alongside the quay, in the process of unloading its freight of containers by gantry crane in the harbour of Port Elizabeth, South Africa.

PUBLIC ENTERPRISES MINISTER PRAVIN GORDHAN SAID THAT TRANSNET MUST SECURE R100-BILLION INFRASTRUCTURE INVESTMENT INTO SOUTH AFRICA’S PORTS OVER THE NEXT FIVE YEARS, LARGELY THROUGH PRIVATE SECTOR PARTNERS AND INVESTORS. announced a master plan ‘currently undergoing consultation processes’ for the Port of Durban, ‘which will seek potential private investments of R100-billion into the port over at least the next ten years’,” says

images: SUPPLIED

STACKING UP AGAINST OTHER SOUTHERN AFRICAN PORTS Various criteria can be used to rank ports. “One of the important measurements is ship waiting time,” says Andrew Pike of Bowman Gilfillan. “Given that ship charter rates are anything up to R740 000 per day, any waiting time costs money, which is passed on to the consumer through freight rates. We have significant delays in the major South African ports, especially Durban, Richards Bay and Cape Town. Ports like Maputo and Walvis Bay don’t have those delays, which makes them more attractive to ship operators.” Loading and discharging rates are also very important measures of productivity, and these too are often below par in South Africa, says Pike. “However, neighbouring ports like Maputo and Walvis Bay cannot handle the volumes that South African ports can, which is why they only tend to attract ships that would otherwise have called in South Africa when there is significant congestion at our local ports,” says Pike. “Having said that, we have seen a lot of new investment going into Maputo, Matola and Walvis Bay. The latter has just put out a request for proposals to privatise and expand its new container terminal, so the neighbouring ports will continue to eat South Africa’s lunch.” Many economic consequences flow from carriers choosing to offload at neighbouring ports instead of South African ports. “These include higher import costs because of higher port tariffs for certain cargoes; delays arising from longer transit times, bearing in mind border crossings and longer distances for the cargo to travel in some instances; and loss of port revenues for South Africa, which in turn hampers Transnet’s ability to fund new developments,” says Pike. “However, if it costs less for the carriers to discharge or load elsewhere, one could also expect logistics costs to be less for consumers, so that could be a trade-off.”

Pike. “We have yet to see a final master plan, so I can’t comment on how the proposed investment is to be allocated. However, on 11 February 2022, a quotation request was issued by Transnet as the first step for the selection of a terminal operator for Durban Container Terminal Pier 2, and possible development of a further container terminal. This will require the appointed bidder to make a substantial investment into the container sector, but will effectively privatise that terminal.” Western Cape Minister of Finance and Economic Opportunities David Maynier has added his voice to that of Vos in calling on government to provide updates on private partners for the Port of Cape Town. “The president’s announcement in his State of the Nation address of an October deadline for private partnerships for the Durban and Ngqura Container Terminals was welcome,” says Vos. “But what is being done for the port here in Cape Town? We are aware that Transnet is busy finalising its plans to upgrade infrastructure and improve operations, however, there still exists some uncertainty around procurement and implementation timelines. From our side, we are urging Transnet management to prioritise this procurement and drive implementation, as we continue to become less competitive with every day delayed.”

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