South Africa is in desperate need of a unified and holistic logistics policy.“At present, each mode of transport competes for business instead of it being complementary,” says Warwick Lord, CEO Cato Ridge Logistics Hub. “Each mode of transport has its unique attributes and problems, and these should be blended in the ideal way to get the best out of the South African supply chain. The effective functioning of the supply chain is not ideal in the country due to the lack of coordination at a policy level.”Lord believes the development of a coherent and unified policy will address the real cost of the various transport mode and identify the preferred transport modalities for each product and area.“A plan is needed to coordinate the movement of freight, instead of the free-for-all that is currently in place and that simply leads to uncoordinated truck movements.”Globally there is far greater logistics collaboration, which ultimately leads to lower logistics costs. “The best comparisons are where the government creates the rules of engagement and the private sector plays inside this enabling environment,” Lord told Freight News. “In many of these countries, there appears to be a greater appreciation of all the facets that make up the supply chain and how their interaction is critical in the optimal working of the supply chain. The international players put a very large reliance on the systems that have been created to ensure fair and transparent supply chain functions. A more systematic and data-driven approach is required.”Reducing the cost of logistics and improving efficiency is critical, especially considering the uptick of e-commerce. “Online retail has significantly accelerated due to Covid-19 and the social distancing that this has brought about. This is putting significant pressure on supply chains and creating another opportunity for differentiation for nimble companies,” says Lord. “Checkers' 60/60 delivery is one such product that is having a significant effect. This online purchasing requires greater transparency of the supply chain as the consumer becomes more sophisticated. This increase in online purchasing is putting further pressure on the reverse logistics f lows when goods are returned.”Lord says he is excited about the prospects of the South African logistics environment. “This is due to several structural, historically intractable impediments now being addressed that were previously untouchable. Examples of these are the opening of the Transnet Freight Rail (TFR) network to third-party operators and the call for shipping lines and global majors to invest in the container terminal in the Durban port. This will allow international best practices to be utilised by the world’s best logistics companies in the country’s supply chain.“We need bold decisions like these,” he said.FN4601SDThe best option is where the government creates the rules of engagement and the private sector plays inside this enabling environment.– Warwick Lord“
