Strong demand for integration and automation

South Africa’s courier, express and parcel (CEP) sector is growing at an unprecedented rate as e-commerce drives parcel volumes higher. However, increased volumes are not necessarily translating into greater profits, as operators face rising costs and pricing pressure. According to Easy Clear general manager Michael Henning, operators are increasingly turning to automation and digital solutions to process growing volumes efficiently, control costs and remain competitive. “The rapid digitisation of the CEP sector, as well as the broader logistics and supply chain industry, has accelerated technological development. Automation of the cross-border customs-clearing process is not new to Easy Clear. We pioneered this with early technology adopters, enabling seamless and scalable customs submissions to the South African Revenue Service,” he said. “More recently, we introduced our file-management console, which enables users to manage exceptions more effectively. It also provides greater visibility of deferment usage, helping companies manage their cash flow and anticipate when deferment accounts need to be topped up.” The need for automated customs processing is becoming more urgent as revenue authorities reconsider the duty exemptions traditionally applied to low-value parcels. “The traditional value-based de minimis exemption is becoming less relevant as revenue authorities lower or remove the thresholds below which imported goods are exempt from duties. This is paving the way for formal, declaration-based bulk customs submissions,” said Henning. “At the same time, major online retailers are increasingly adopting a Delivered Duty Paid model, under which duties and taxes are settled before the parcel reaches the customer. This supports a more convenient and predictable customer experience.” He said competition for parcel volumes was also increasing demand for faster, more flexible deliveries. “As a software solutions provider, we are seeing strong demand for integration and automation in the CEP sector. Changes in Incoterms are also increasing the need for effective exception management and demand forecasting.” Henning said the composition of parcel volumes was also changing, with business-to- consumer deliveries increasingly replacing traditional business- to-business volumes. “More consumers are shopping online and buying directly from overseas sellers. Mobile commerce and digital payment solutions have also made the entire process, including returns, easier and more customer focused,” he said. In South Africa, however, much of this growth remains concentrated in urban areas. Unlike many international markets, the country has not experienced the same uptake of parcel lockers and collection points, with consumers still favouring home delivery. Henning said smart lockers and other out-of-home collection points nevertheless presented an opportunity to reach digitally connected consumers outside the major urban centres. Customer expectations are also placing pressure on delivery networks, with consumers increasingly demanding same- day, next-day or time-specific deliveries, as well as the ability to track parcels in real time. Henning said CEP operators therefore needed to improve route planning and shipment visibility. This was driving investment in route-optimisation software, artificial intelligence, digital proof of delivery, real-time tracking and automated customer communication. LV