In a world of uncertainty over Covid-19, the one thing that is certain is that the logistics sector will be key to recovery, says Dr Andrew K Jenkins, principal lecturer, The Business School, University of Huddersfield. In the foreword to the Namibia State of Logistics 2020 Report, Jenkins writes: “While some industries have closed completely, or have had economic activity dramatically curtailed, the good news is that the logistics industry is resilient. “Essential supply chains have continued to operate, goods have been transported and delivered, and trade has continued to take place, allowing businesses, communities and individuals to survive.”The 2020 report focuses on the impact of Covid-19 on the Namibian logistics sector.“The Covid-19 of 2020 has had a devastating impact on the health of the peoples of the world as well as their trade and business; it has also had a major impact on all aspects of logistics and supply chains – both global and local,” write the authors in the executive summary.The report found that, prior to Covid, the logistics industry was following Namibia’s economic trajectory as measured by i t s G D P.Although “weakened,” the Namibian logistics sector has “sur v ived ”.Pressure on the logistics sector was evident before the Covid-19 shutdowns.Logistics’ added value as a proportion of gross domestic product reached a peak of 3.3% in 2016 and then fell steadily to 3% in 2019. According to the National Accounts (Namibia Statistics A genc y, 201 9), transport and storage made a relatively higher contribution to the logistics value addition relative to GDP compared to other logistics sectors.Leaders in the logistics industry were asked by the Namibian-German Centre for Logistics to list the most serious impacts of Covid-19 on their business.They were, in descending order, revenue loss due to lower volumes, border delays, loss of clients, and human resources (leave, layoffs, testing, pr o t o c ol s). A “worrying” 30% of respondents did not have a post-Covid recovery plan in place.Those that did would focus on cost-cutting, including supply-chain optimisation through agility, local sourcing, stockpiling, establishing partnerships and benchmarking.
