Industry is increasingly using technology to increase supply chain efficiency, says Chris van Tonder, CEO of Greendoor Group.“More and more companies are combining data-driven solutions with artificial intelligence to identify bottlenecks, risks, and inefficiencies within their supply chains,” he told Freight News.This, he says, is one way of addressing the challenges that the industry continues to face.“The ever-increasing fuel cost continues to play a significant role not just in the profitability of any transport company, but also results in fuel management issues at various levels within the industry,” explains Van Tonder. “Poor routing strategies, together with the unfavourable road conditions, also contribute to the challenges as this negatively affects the lead times/turnaround times and increases the f leet maintenance costs.”Government and environmental regulations are also presenting challenges, since these are different in each region – and educating staff members about this can at times be a burden.“Security is becoming increasingly important as we have seen a range of incidents, specifically on the North-South corridor,” he says. “Thus we need to see a more visible presence of security and protection forces along the main routes and corridors based on the high-value commodities being transportedon this route – between the borders and Durban in particular.”According to Van Tonder, the fact that there are no bilateral agreements between certain African countries on services related to tolls, border post operating hours, and visa requirements is fast becoming an Achilles heel for industry.At the same time, the sector is becoming a lot more competitive. “Several transporters that serviced only the domestic markets in South Africa have now shifted their focus to cross-border transportation due to the opportunities the current market conditions present,” says Van Tonder. “Despite the challenges we have faced and continue to battle, there have also been some very positive developments in the past few months. There are currently various developments related to the infrastructure in the region that will positively impact the supply and logistics chain in Africa. Railway has become an important focus area as there have been talks to develop and improve the railway system in certain African countries, with South Africa seeming to be a front-runner in this regard. There is also a megaproject planned for the Durban port, with capacity expansion plans to increase the cargo f low of both imports and exports. All this and more bodes very well for our industry.”
