‘Customs modernisation allows forwarders to focus on supply chain role’

“There is recognition in the new world of the vital role logistics and supply chain management plays in the globalised world – and it affects everyone’s lives,” says author and consultant Barry Saxton. He says freight forwarders are increasingly being expected to play a more active part in supply chain management and the integration of logistics. “The lack of active involvement and participation on the side of forwarders amazes. This is because they either don’t grasp the leading role freight forwarders can and should play or do not see the supply chain and logistics management function as a core activity.” According to Saxton forwarders should no longer be focusing just upon international traffic and their role as customs clearing agents. Their role is to be key participants in the managing and operation of South Africa’s supply chains. Saxton says no longer can a country or an industry or an individual company regard itself as an isolated and insulated entity. “They are part of a network that relies on each party for its vitality and ability to endure and perform its functions. The effectiveness of those supply chains or networks determines the success of the business entities that are its integral components.” According to Saxton freight forwarders in South Africa have to reassess, refocus, change and adapt to this new role – or face the risk of being left behind and being economically uncompetitive. “One of the biggest factors facing the industry is the role of freight forwarders as customs clearing agents. With new technologies and new approaches from the authorities, the future of this role is likely to change. The risk and reward contemplated in the future Customs Modernisation Act will, I believe, see a diminishing role for the freight forwarder as a customs broker.” He says this will allow forwarders to focus on their growing role as supply chain experts and logisticians. “Freight forwarders have inherently got the many skills necessary to become leaders in the logistics and supply chain management industry.”