L OGIS T IC S, F REIGH T A ND WA REHOUSING
A supply chain
boosted by digital technology FAST FACT
4IR technology is only useful in the supply chain if implemented and utilised effectively. TREVOR CRIGHTON investigates why
1. Only 22 per cent of companies have a proactive supply chain network. 2. Around 43 per cent of small businesses don’t track their inventory. 3. Some 67.4 per cent of supply chain managers use Excel spreadsheets as a management tool. 4. On average, US retail operations have a supply chain accuracy of only 63 per cent. 5. Due to the COVID-19 pandemic, the estimated value for out-of-stock items in 2020 was R17.4-trillion. Source: Zippia
Automated conveyor systems speed up stock movement in the modern warehouse.
T
he focus of the modern supply chain is on the management of data, services and products, which are bundled into solutions. Whereas historical supply chain management revolved around “where and when”, 21st-century supply chains rely on product and service quality, delivery, costs, customer experience and profitability. According to IBM, a typical supply chain system accessed 50 times more data in 2017 than just five years earlier – and that number has inevitably skyrocketed over the course of the last two pandemic-affected years. Modern supply chains need to take advantage of massive amounts of data generated by its processes. This must be analysed properly, in real time, with a focus on optimisation at each step.
Pandemic acceleration Neptek MD Richard Nepgen says that the deployment and adoption of technology in the supply chain has been phenomenal over the last two years. “Challenges in shipping, reducing handling and touching of items and paperwork, long lead times to get stock from manufacturers, and e-commerce growth have accelerated this exponentially.” Crossroads Distribution CEO Arend du Preez says that for companies that already had an eye on the future, the pandemic has accelerated the adoption of technology by about a year. “We had been focusing on harnessing the power of technology in our supply chain for a while, but sped up things like the electronic processing of documentation from our customers, which we’re now able to integrate into our system in any format.” The acceleration of technology wasn’t only in the supply chain steps themselves, but also in terms of how companies adapted to operating under lockdown and riot conditions.
According to IBM, a typical supply chain system accessed 50 times more data in 2017 than just five years earlier – and that number has inevitably skyrocketed over the course of the last two pandemic-affected years.
Crossroads Distribution uses geotagging to ensure that some of the in-cab tech is only available once the driver arrives at their destination, to minimise distractions.
Leaders and laggers South Africa has a reputation for being advanced in certain technological spaces and lagging in others. Crossroads Distribution IT manager Warren Charles feels local logistics is a case of the former. “We use a lot of advanced technology, which positions us as leaders in certain aspects, while some local companies are leaders in their sectors. That said, there are a lot of companies not using modern technology at all – the split between the two sides is quite dramatic.” ZacPak MD Willie Nel says that areas like access control have been boosted over the last five years, leading to the gathering of a lot more information from a fairly simple technological change. “There’s been a lot more focus on prearranged visiting times to avoid congestion. That’s led to us gathering more information in terms of our clients’ trucks and drivers, when we scan licences as part of the process. ›
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2022/03/16 10:40 AM
