Home
FacebookTwitterSearchMenu
  • Subscribe
  • Subscribe
  • News
  • Features
  • Knowledge Library
  • Columns
  • Customs
  • Jobs
  • Directory
  • FX Rates
  • Categories
    • Categories
    • Africa
    • Air Freight
    • BEE
    • Border Beat
    • COVID-19
    • Crime
    • Customs
    • Domestic
    • Duty Calls
    • Economy
    • Employment
    • Energy/Fuel
    • Events
    • Freight & Trading Weekly
    • Imports and Exports
    • Infrastructure
    • International
    • Logistics
    • Other
    • People
    • Road/Rail Freight
    • Sea Freight
    • Skills & Training
    • Social Development
    • Sustainability
    • Technology
    • Trade/Investment
    • Webinars
  • Contact us
    • Contact us
    • About Us
    • Advertise
    • Send us news
    • Editorial Guidelines

Logistics disruptions call for review of sources

15 Dec 2022 - by -
0 Comments

Share

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • E-mail
  • Print

The disruption and disjuncture of global logistics networks have had a major impact on African economies, according to Duncan Bonnett, a partner at Africa House.“The disruption to supply chains due to ongoing Covid-19-related lockdowns, particularly in China, as well as the ongoing war in Ukraine, have hit Africa hard,” he said. “Not only has it raised the cost of manufacturing, but many businesses have been disrupted, not being able to manufacture due to the inability to source materials timeously.”Imports into the continent have also been hard hit by supply shortages and price increases in China and Europe. “The ongoing disruption to the supply chain and hampering of manufacturing has caused a lot of frustration for companies who have not been able to deliver projects on time and within budget. Normal trade has become more expensive, with containers destined for Africa having to be rerouted to Europe or North America or even Asia.”Bonnett said the cost factor, in particular, had a negative impact on the continent. “One can easily get away with a 5% increase in cost in Europe, but in Africa that is simply not the case – and many countries can’t afford the increased costs this has resulted in.”He added that many countries on the continent had experienced increases in transportation and commodity costs in general, as well as the undersupply of certain commodities.Many companies had to deal with inventory f luctuations – and higher lead times were just about a given.In these times it has become important to revisit supply bases to identify alternative sources of products – or even to look at multi-sourcing strategies.In Africa, where transport delays are common, companies have had to move away from the just-in-time model to ensure they have stock at all times.

Sign up to our mailing list and get daily news headlines and weekly features directly to your inbox free.
Subscribe to receive print copies of Freight News Features to your door.

December 2022 Compendium

View PDF
Billions committed to Africa’s electricity grid
15 Dec 2022
Private sector supporting port development
15 Dec 2022
Electronic payment at borders a top priority
15 Dec 2022
Renewable energy projects on upward trajectory
15 Dec 2022
Kenya office bolsters East Africa presence
15 Dec 2022
Lowering logistics costs demands range of interventions
15 Dec 2022
Pandemic intensified rising debt levels
15 Dec 2022
Digital literacy is a non-negotiable
15 Dec 2022
Natural gas and LNG could be game changers
15 Dec 2022
Positive signs of infrastructure upgrades
15 Dec 2022
AfCFTA still a work in progress
15 Dec 2022
Logistics disruptions call for review of sources
15 Dec 2022
  • More

FeatureClick to view

Durban & Richards Bay 6 June 2025

Border Beat

Cross-border payments remain a hurdle – Masondo
30 May 2025
BMA steps in to help DG and FMCG cargo at Groblersbrug
21 May 2025
The N4 Maputo Corridor crossing – congestion, crime and potholes
12 May 2025
More

Featured Jobs

New

Estimator DBN

Tiger Recruitment
Durban
05 Jun
New

CargoWise Specialist

Switch Recruit
Eastrand
05 Jun
New

Estimator

VDM Cargo Solutions (Pty) Ltd
Brackenfell, Cape Town
05 Jun
New

Sea Freight Import Controller

VDM Cargo Solutions (Pty) Ltd
Brackenfell, Cape Town
05 Jun
New

Supply Chain Specialist

Lee Botti & Associates
Cape Town
04 Jun
More Jobs
  • © Now Media
  • Privacy Policy
  • Freight News RSS
  • About Us
  • Advertise
  • Send us news
  • Contact us