'Industry must collaborate to cut logistics costs'

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