13 minute read
LOGISTICS, FREIGHT AND WAREHOUSING
A supply chain boosted by digital technology FAST FACT 1. Only 22 per cent of companies have a proactive supply chain network.
4IR technology is only useful in the supply chain if implemented 2. Around 43 per cent of small and utilised effectively. TREVOR CRIGHTON investigates why 3. businesses don’t track their inventory. 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.
The 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.
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. ›
Placement and picking are sped up by AI planning in warehousing
“Security and risk control were the goals, but the ancillary benefit has been that we’ve actually been able to track which trucks and drivers have valid licences, as well as understand what that means if the truck gets into an accident.”
Nepgen says the South African freight, logistics and warehousing industry is advanced in terms of the use of handheld devices, enterprise resource planning (ERP) systems, and transportation and warehouse management, but some companies are definitely evolving faster than others.
“Those who are lagging will need to shift in order to stay competitive and maintain service delivery levels,” Nepgen says. “In the parcel express and distribution space, we are seeing clients moving more to in-line automated scanning, weighing and volumising, as well as automated parcel sortation systems. Automated picking, using robotics and automated storage and retrieval systems, hasn’t taken off yet, but I believe this will be the next phase.”
Charles says Crossroads Distribution’s focus is on driver safety, leading them to deploy things like real-time geotagging, which governs the availability of the technology in the vehicles. “The more manual interventions we can remove, the more time and energy can be spent on managing the well-being of drivers. Some of the technology in the vehicles doesn’t switch on until the driver is close to or at the location, so it doesn’t distract them.”
Technology hurdles
Connectivity and network stability come up time and again in discussions around what’s holding back the adoption of technology in the local supply chain industry.
“Connectivity in South Africa is still prohibitive in terms of cost, so much of the country isn’t covered by the major mobile providers – never mind the challenges and huge expense of connectivity when it comes to cross-border transport,” says Du Preez. “5G coverage is growing, but only really in the metro areas. We want to get to the point of having the ‘connected cab’, but can’t because of unreliable and expensive network access. This is key to giving our drivers all the necessary tools to be safe and manage our business more efficiently.”
Du Preez says that, given better connectivity, Crossroads Distribution could deploy tools like artificial intelligence (AI) cameras in-cab, which could help manage distraction and driver fatigue. “These technologies bring safety to the fore, helping to cut down on road incidents for drivers and other road users. Having a communications centre in the cab could help us warn drivers of hazards and inclement weather on the route, and even suggest redirection to maximise safety and efficiency.”
MODERN SUPPLY CHAINS
In a paper titled The Path to a Thinking Supply Chain, Simon Ellis, program vice president for supply chain strategies at International Data Corporation, defined modern supply chain management in terms of “the five Cs”: • Connected: Being able to access unstructured data from social media, structured data from Internet of Things devices, and more traditional data sets available through traditional ERP and B2B integration tools. • Collaborative: Improving collaboration with suppliers increasingly means the use of cloud-based commerce networks to enable multi-enterprise collaboration and engagement. • Cyber-aware: The supply chain must harden its systems and protect them from cyber-intrusions and hacks, which should be an enterprise-wide concern. • Cognitively enabled: The AI platform becomes the modern supply chain’s control tower by collating, coordinating and conducting decisions and actions across the chain. Most of the supply chain is automated and self-learning. • Comprehensive: Analytics capabilities must be scaled with data in real time.
Insights will be comprehensive and fast. Latency is unacceptable in the supply chain of the future. Source: https://hosteddocs.ittoolbox.com/path-thinking-supply-chain.pdf AI IN THE SUPPLY CHAIN
The goal for the future supply chain is to connect all its elements digitally using AI, to enable companies to do more with data, make better real-time decisions and take more informed actions, faster.
AI innovations in supply chain management allow players to: • Identify, assess and address potential disruptions before they occur • Mitigate the impact of unpreventable disruption • Seize upside demand opportunity before competitors • Simulate process optimisation scenarios for better business and customer outcomes • Track inventory for instant visibility into the progress of goods at any point • Provide instant shipment quoting capabilities that reflect actual market rates • Determine shipment damage and when it occurred to recommend the best corrective action Source: IBM
Embracing a tech-led future
Nel believes that blockchain technology is going to change the market eventually, but for the moment, even shifting away from email communication to alerts for milestones would allow the industry to take a quantum leap in efficiency. In terms of Fourth Industrial Revolution technologies like AI, he says that these play a role in the throughput environment of freight forwarding, but have much more weight upstream in the supply chain. “Developing algorithms to tell drivers where to place FMCG stock most efficiently in terms of shifting it quickly works, but in freight forwarding, the best place for AI is in load planning and ship chandlering.”
Nepgen says that supply chain participants need to look at their operations across the board, identify inefficiencies, and understand how they can improve or remove them to lower operation costs and drive productivity. “The best way to remove inefficiencies is to remove mundane tasks and multiple handling, improve ergonomics and keep the solution simple. In South Africa, whatever solution one comes up with needs to be simple, easy to operate, reliable and efficient. It also needs to be foolproof and robust. The technology should furthermore be locally supported with quick response time where possible.”
PROFESSIONAL SUPPORT FOR PEOPLE IN LOGISTICS AND TRANSPORT
Founded in 1919 with a mission to improve industry practices and nurture talent, the Chartered Institute of Logistics and Transport is the leading organisation for everyone who works in logistics, transport and supply chain.
The Chartered Institute of Logistics and Transport (CILT) comprises 35 000 members in 35 countries. We are committed to giving individuals and organisations access to the tools, knowledge and connections vital to succeed in logistics, transport and supply chain management. Through our educational suite of programmes and our commitment to high standards, we help professionals at all levels to grow, develop their careers and access better jobs.
OUR INTEREST GROUPS
OUR MEMBERS
Our members come from all sectors of the profession including logistics, transport, supply chain operations, policy and infrastructure. They are all connected in that they are involved in either the movement of goods or the movement of people.
We provide a pathway for development within these key areas via the CILT Competency Framework. Having clear career pathways and roadmaps results in positive choices and an understanding of what is required to be relevant and successful. Next Generation is a CILT programme, a forum comprising young professionals within the transport, logistics and supply chain industries. If you are a CILTSA member under the age of 35, you automatically belong to the Next Generation Group. The Next Generation programme was created to allow young people who work or study in these industries to network and develop their professional careers. Join CILTSA’s YP Next Generation today and be a #Game Changer in your fi eld. Stay abreast of the latest news, insights and events within and around the transport, logistics and supply chain industries. Bring your ideas and innovative solutions for transforming our industry and take the Institute to the next level. Join us today and change your life, enhance your career and transform the industry.
The value proposition of CILT Next Generation is to: • ensure that students currently studying logistics and transport are connected to the private sector for further practical training • create an environment that is meaningful and supportive for young professionals within the industry • produce academically researched papers and journals for the logistics and transport industry that can be discussed on different platforms • create a pool of researchers within the logistics, transport and supply chain industries who work alongside the private sector to address industry challenges. With the signing of the Africa Continental Free Trade Agreement, CILTSA Next Generation SA is working with CILT Next Generation groups from other African countries. This team is creating an information portal for access by both the private and public sectors. #If it is to be, it’s up to you.
Sandile Khoza CMILT - Champion: CILTSA Next Generation
BENEFITS OF CILTSA MEMBERSHIP
• Professional designations – get the local and international recognition you deserve: MILT/CMILT/FCILT • Connection • Professional voice • Professional recognition • News and publications • Personal development
WOMEN IN LOGISTICS AND TRANSPORT (WiLAT)
WiLATSA is a CILTSA interest group designed to support women in the logistics, transport and supply chain industries. It is part of the wider CILT International network with branches in 14 countries and over 1 600 members worldwide. Its vision is to be the most sought-after group for advocacy, professionalism and empowerment of women.
In the transport, logistics and supply chain industry. WiLAT exists to: • promote the status of women in the logistics, transport and supply chain industries • bring together those who support the talent and career development of women • provide a support network and mentoring opportunities for women working in the industry.
Margaret Bango CMILT Margaret Bango CMILT founder of WiLATSA founder of WiLATSA
CILTSA CANDIDACY PROGRAMME
CILTSA’S fully funded professional training programme for women opens international opportunities
The Chartered Institute of Logistics and Transport South Africa (CILTSA) was the rst organisation to receive funding from the Transport Education and Training Authority (TETA) to host the Institute’s inaugural Candidacy Programme in 2017. Through this initiative, 30 women in the transport and logistics industries were of cially enrolled for training towards the International Certi cate in Logistics and
Elvin Harris Transport (CILT) quali cation. They also became student members of CILTSA. After completing their quali cation, the women were also awarded a professional, internationally recognised designation – MILT.
“We know there is a huge skills gap in transport and logistics – it is still very much a male-dominated industry,” says CILTSA president Elvin Harris CMILT. “We need more women professionals. The CILTSA Candidacy Programme is the start of something really good and
CILTSA and WiLATSA Commercial Transport Academy Graduates.
long-term. The responsibility is on all of us to make it work.
“The beauty of this CILT quali cation is that it is international,” he continues. “The institute has a presence in over 35 countries, which means that the candidates achieve both a quali cation and a designation that is portable across the globe. The programme is both theoretical and practical, essential in today’s world.”
CILTSA hosted the second cohort of women on the programme in 2018, which saw 14 ladies complete the programme.
DEVELOPING WOMEN IN TRANSPORT
CILTSA and WiLATSA support the Commercial Transport Academy. The CTA is championing the Women Inspiring Women to Lead in Transport Programme, which offers a CILT quali cation. This USAID-supported programme will train 120 female professionals, 300 women entrepreneurs and 495 female truck drivers.
SOME OF OUR CILT ACCREDITED TRAINING PROVIDERS
BIZZCO: Ansonet van Deventer
(0) 10 001 0283 ansonet@bizzco.co.za www.bizzco.co.za
Commerce Edge: Clintin Chetty
086133-4326 clintin@commerce-edge.com www.commerce-edge.com
Harley Reed: Sonia Weston
011 312-8411 soniaweston@harleyreed.com www.harleyreed.com
IMM Graduate School: Christa Kavungo
011 628-2000 Christa Kavungo christak@immgsm.ac.za
Institute for Quality
011 472 0981 www.iqetd.co.za
➔ Scan this QR code to go directly to the Charted Institute of Transport and Logistics website.
For more information:
087 822 2858 info@ciltsa.org.za www.ciltsa.org.za
