Skills crisis puts logistics efficiency at risk

Skills shortages are
a critical concern if
South Africa is to
address its increasing
logistics costs.
According to Professor
Jan Havenga, head of the
department of logistics at the
University of Stellenbosch and
one of the authors of the second
Logistics Barometer, while
the country has been the best
performer in the Brics group
for the past few years, logistics
costs are rising in comparison
to countries such as Russia,
India and
China.
“Our
logistical
performance
in comparison
to Brics
countries has
been very
good, but
while they are
improving
their
performance
and rankings
we are moving
in the wrong direction and
our logistics costs are rising,”
he said at the launch of the
second edition of the Logistics
Barometer, a report that
provides a numerical analysis
of trends in logistics costs in
South Africa supported by
insights from logistics industry
specialists and academia.
“To function well in supply
chain management, as in
any other industry, necessary
and suitable skills or what
we call “soft” infrastructure
is required,”
said Havenga.
“Theoretical
skills can
be obtained
through
appropriate
education,
although
funding
is often a
challenge,
while
experience
and practice
cultivate these
skills to contribute to the triple
bottom-line in complex and
multi-dimensional value chain
environments.”
South African supply chain
managers and executives in
the past had the required
experience and know-how
that enabled the industry
to perform well in the
global arena, according
to Havenga. “Knowledge
and understanding of key
operational elements and
the ability to adapt to an
ever-changing environment
has been a key strength of
successful logistics and supply
chain companies in South
Africa for decades,” he said.
“The looming threat is
that the future South African
supply chain generation is at
risk of losing this advantage
due to sub-standard basic
education, underperforming
higher education, and lack
of practical knowledge and
skills transfer in the work
environment.”
He said while there were
some very commendable
initiatives from major logistics
service providers in South
Africa relating to training
and skills development, a
renewed focus on and drive
within these areas would
be necessary to support the
sustainability of the industry
at large.
“At present our math and
science education is ranked
140 out of 140 countries and
education is increasingly a
concern in the country,” he
said. “Skills will be our biggest
long-term challenge in South
Africa. There are many issues
that we have and that impact
on our logistics performance
and cost, but many of these
have some sort of solution on
the table. When it comes to
skills shortages we simply do
not know what to do with
the problem. Unless we
deal with our soft
infrastructure
challenges we
will have a
major crisis
on our hands.”
Havenga
said while hard
infrastructure was also
still challenging it was being
addressed to a certain extent.
“As far as cost reductions
in general are concerned, on
the demand-side we need to
beneficiate more. This is a
central planning fundamental
for job creation and growth,
but also for logistics costs as
beneficiation reduces logistics
costs relative to GDP,” he said.
“We should also, as a
country, spend less on
imported goods, with the same
effect. On the supply-side, the
modal shift requirement is
now more important than ever,
supported by more efficient
logistics, trucks and driving.”
INSERT & CAPTION
At present our
maths and science
education is ranked
140 out of 140
countries.
– Jan Havenga