South Africa’s logistics
performance is declining at
a “worrying rate” and it is
clear the country needs to up
its competitiveness to vie for
trade globally
This was the main
message from a Logistics
Business Breakfast held in
Johannesburg recently.
“In 2012,
South Africa
was rated 23rd
out of 160
countries in the
World Bank’s
Logistics
Performance
Index (LPI).
By 2014 it had
slipped to a
ranking of 34.
We need to
aspire to a top
10 ranking,”
said guest
panellist, Keith
Horn, who oversees strategic
client solutions for logistics
major, Savino Del Bene South
Africa (SDBSA).
He commented that
South Africa had the skills
and capabilities to meet the
target, but this was currently
not reflected in performance
and service levels. “The LPI
looks at six sub-indicators
– customs efficiencies,
infrastructure, international
shipments, logistics
competence, tracking and
tracing and
timeliness –
to measure
performance.
If we as an
industry look
at two or three
points to
improve upon,
we will be able
to dramatically
turn things
around,” said
Horn.
He believes
the industry
needs to find
a way to better manage the
high transport costs by, for
example, optimising inbound
and outbound transport.
“This can be achieved if
logistics operators are
prepared to work together
and consolidate loads,” said
Horn.
Improving the flow of
business intelligence to
all logistics stakeholders
would also go a long way
towards enhancing
competitiveness. “Sharing
knowledge, information
and skills makes us
a stronger industry,
to everyone’s mutual
benefit,” he said.
Horn added that
the logistics industry
could further up its
competitiveness by
getting to know its
customers’ businesses
and adapting its service
offering to their needs.
He said customers
wanted their logistics
service providers to offer
more than just freight
movement. “These days,
they want a company to
manage their inventory
and help manage their
assets efficiently. They
need the industry to help
them become more agile
and offer an integrated,
pro-active response to their
needs,” said Horn.
He pointed out that in
a changing environment
logistics companies did
not have the strength to
meet customers’ rapidly
evolving and highly
demanding needs. “But this
can be achieved through
industry integration and
collaboration.”
INSERT
Inbound and
outbound transport
could be optimised
if logistics operators
were prepared to
work together and
consolidate loads.
– Keith Horn
