South Africa’s logistics sector is right up there with the best the world has to offer, according to Paul Lawrence, managing director South Africa for Tigers Global Logistics.Lawrence told Freight News that from a technology point of view most companies such as Tigers were able to replicate solutions globally. “Our technology is at the forefront of development. As a tech-driven company we have to keep up with the ever-changing climate of innovation and technology,” he says.
“One thing that we could improve on in South Africa is to drive more automation and efficiencies, but this is a cost versus service conundrum. Service levels are at the top of the list of important factors when we analyse customers' online experience. We still face certain challenges in South Africa to find the sweet spot.”
Commenting on the high cost of logistics locally, Lawrence says at a macro level the lack of adequate infrastructure and trained personnel impact on port productivity, resulting in delays which are often passed through the supply chain. “The slow modernisation of government agencies causes delays in the import process. The lack of manpower in these organisations increases the cost to the importer for examinations and releases. The inefficient rail system to Gauteng, for example, has forced cargo to move to the road, impacting on road infrastructure as well as increasing direct cost of transport.”
On a micro level, the cost of labour versus automation remains an issue.
“There are mistakes in system setups meant to drive efficiencies, while more system integration in the supply chain is required. Costs of final-mile deliveries to outlying areas also remain high.”
Despite the challenges, Lawrence is upbeat about the prospects for the South African logistics sector – especially in light of the increased movement of brick and mortar businesses and start-ups to e-commerce.“We are very positive as our economy and shoppers gravitate more towards the e-commerce experience. South Africa is relatively young as an online e-commerce market, but it is growing significantly. Covid-19 has pushed more companies down this road. Change is good. Logistics needs to be flexible, adaptable, and agile to service this changing environment.”
The company, he says, therefore continues to develop and enhance Smarthub: Connect, its client visibility platform which allows the full visibility and integration of a client’s freight, logistics, and e-commerce needs.“We also use ScanPack, a software application, in each of Tiger’s warehouse facilities – either in conjunction with our Warehouse Management System (WMS) or with direct SIC (standard integration component) messages to fulfil contract logistics orders for our customers.”
The purpose of this application is to provide quality assurance during the packing phase of operations – and it serves as the point of integration to last-mile couriers as well as the generation and printing of courier labels and other customer-specific documentation.