The first wave of the coronavirus hit everyone unexpectedly. While some businesses were awake and had planned for such an event, others were caught sleeping. With China, the global centre of manufacturing shutting down, companies were left in a state of crisis. Even though logistics worldwide had previously seemed to be robust and well-established, the global lockdowns have exposed the real state of it.
We are now in the midst of the second wave and businesses need to adjust in order to overcome this crisis effectively.
It is not only about the ability to produce goods it is also about the ability to meet the demand for them. Consumer buying behaviour changed over the pandemic period. The needs and wants of people changed and there was an increase in demand for products, that up until that point, had not been considered popular.
For companies to survive these new realities they had to optimise their response by adopting new supply chain resilience and agility capabilities.
The five most effective strategies are:
Stop the delay of information along the supply chain
Communication between the parties in the supply chain is paramount to meeting demand timeously. Any change in the process of supply needs to be reacted to as quickly as possible to eliminate any losses.
Companies needed to adopt a real-time communication system sooner rather than later. An effective system is a hotline or a what-app group. All members of the supply chain need to be on board with the system for it to work.
All routine processes or down-to-earth tasks should be automated
Customers will continue to want to pay low prices or feel like they are getting value for money for products and services. As a result, businesses will need to ensure they operate efficiently and frugally when it comes to using capital and when it comes to manufacturing capacity.
It is important to automate routine processes and free up the time of professionals, in the supply chain, so that they are able to address more important problems like developing a new sales strategy and customer relationship management.
Down-to-earth tasks can be managed by machinery and software. By adopting machinery and software, to manage these routine tasks, you improve the agility of the supply chain and lower the costs of the business’ logistics.
The supply chain operates more efficiently and cost-effectively. Products/services will have maximum added value and consumers will view them as worth the price they pay.
Data should be visible immediately / in real-time for all suppliers along the supply chain
All data along the supply chain should be visible immediately. There should be no delay in the passing on of data and information. This eliminates wasting the time of staff and delaying processes.
It assists with meeting demand timeously, effectively and cost-efficiently.
A database of all interactions that gives access to relevant, up-to-date information about the current processes and status of different shipments, in real-time, is a powerful tool on the way to combatting post-pandemic supply chain disruptions.
Unity of the Workflow
One platform should be used by everyone so that no data is lost. It is imperative to eliminate the possibility of errors for the system to be successful.
Help desk and training
All staff or professionals along the supply chain should have access to training on the system. Training videos and a help desk should be available for immediate assistance should anything not be functioning properly.
Laser Cutting Systems in Shipbuilding & Supply Chain impacts
Shipbuilding, a craft as ancient as our love for the sea, is witnessing a heartwarming embrace of old and new. Cargo ships themselves are one of many crucial parts of the supply chain.
We talk a great deal about the freight aspect of maritime shipping however one less studied element is how we can use certain technologies to make the creation of these fleets more efficient and the effects this has on the supply chain.
Enter the laser cutter, a modern marvel making waves in this age-old industry. Let’s dive deep into how this tool, with its humming precision, is becoming the best mate for shipbuilders and how the supply chain benefits from it.
1. Precision Meets Passion
Think of Laser cutting systems as the skilled artist’s brush in a shipbuilder’s hand. Their finesse ensures that ships are crafted not just robustly, but also with an attention to detail that would make any craftsman proud.
Supply Chain Ripples:
Thanks to these machines, there’s less scratching of heads and more nodding in approval. Fewer reorders of materials mean smoother sails from design boards to docks. This also means less cost is wasted on reordering materials and thus a less expensive component of the supply chain is produced.
2. Quick Production Times
These aren’t your granddad’s tools. They fly through sheet metal at great speed, proving that modern tools can keep up with the high seas demands.
Supply Chain Ripples:
Quicker construction of cargo ships means that more assets can be added to the existing supply chain expanding capacity and ensuring the supply chain can keep up with demand.
3. Less Material is Wasted
]They’re the embodiment of ‘waste not, want not’. With their precision, every bit of metal finds its purpose.
Supply Chain Ripples:
Less scrap means not just savings, but also fewer headaches about what to do with leftovers leaving us with a greener production of our ships.
4. Every Piece in Its Place
In shipbuilding, every section is a piece of a grand puzzle. With lasers in the mix, each piece of metal can be precision-cut to fit any section of the ship.
Supply Chain Ripples:
Fewer misfits mean less time wasted going back and fixing the problem. This is music to the ears of everyone, from the shipyard to the suppliers saving time materials and precious resources.
5. Remember These High-Tech Tools Need TLC Too
As sophisticated as they are, they’re a bit like pets. Give them care, and they’ll purr (or, hum) along perfectly.
Supply Chain Ripples:
This means the supply chain needs to have a soft spot for machine maintenance, ensuring parts and services are always on standby to service the machines that improve overall supply chain efficiency.
6. Greener Supply Chain
Beyond their precision, they’re a wink to our green future, less waste and more sustainable practices mean a greener supply chain as these tools begin to see more and more use.
Supply Chain Ripples:
As shipbuilding turns a shade greener, the supply chain is now on the lookout for eco-friendly partners. What this means in effect is that clients and brands who sway to the more eco-friendly side will be more likely to do business with a partner that shows an ecofriendly initiative.
7. Cost Savers
They might ask for a few extra pennies upfront, but the symphony they bring to shipbuilding often makes it worth every cent.
Supply Chain Ripples:
With a vision on the horizon, there’s a gentle nudge for more flexible payment dialogues, keeping an eye on long-term gains.
In a nutshell, the dance between laser cutters and shipbuilding is a sight to behold. A balance of tradition and technology, proves that even in an industry as seasoned as shipbuilding, there’s always room for a new partner.
Risk Management Logistics in South Africa’s Supply Chain
South Africa’s bustling roads, humming ports, and busy warehouses tell tales of a nation always on the move.
But amidst this hive of activity, there’s an underlying concern that often gives logistics professionals sleepless nights: crime, theft, and fraud. Let’s explore this issue, not just as numbers or percentages, but as challenges that have real-world implications for businesses, employees, and consumers alike.
Understanding The Real Threat on The Roads
Picture this: a trucker navigating a long and isolated route, the horizon painted with the setting sun, and suddenly confronted by criminals. It’s a scenario that’s sadly not too rare in South Africa. These aren’t just thefts; they’re personal stories of danger and loss.
Criminals are known to target freight vehicles such as trucks on our roads for their valuable cargo. This is no exaggeration but instead an ever-growing problem in South Africa. This is illustrated by the number of truck hijackings growing between a period of 10 years truck hijackings have moved up from 943 per year in 2013, to 1996 hijackings per year as of 2023.
The Ripple Effect of Theft and Fraud on South Africa’s Roads
1. Drives up Costs
Businesses often foot the bill for these unexpected losses and this cost is then passed down to the consumer.
2. Delays and Disruptions
A single theft can push back deliveries, throwing off schedules and disappointing waiting customers. Even worse as an example of the ripple effect, if the delivery is a critical product say parts for vehicles, we face the reality of employees not being able to drive to work if their cars need these parts, and a disruption to another unrelated parts of the supply chain as a result.
3. Causes Trust Issues
When incidents multiply, trust erodes. Customers might think twice before choosing a service with a history of frequent losses.
4. Insurance Headaches
As claims go up, so do insurance premiums, making the cost of doing business a bit steeper. which hurts large parts of the supply chain that depend on having valuable items insured.
Digital Threats in a Modern World
In an age where you can track a shipment on your smartphone, cyber threats have become a silent, invisible menace. From rerouting shipments to impersonating vendors, the digital highway has its own set of bandits.
1. Stay One Step Ahead with Tech
Real-time GPS isn’t just a fancy tool, rather it’s your eyes on the ground, ensuring goods are always on the right path.
2. Empowering Our People
By educating staff and drivers about potential risks, we’re not just offering training; we’re equipping them with shields against scams and threats.
3. A Helping Hand from the Law
Strong ties with local police can make a world of difference. It’s like having a guardian angel looking over each shipment.
However, in the context of South Africa, it may be more beneficial to enlist the help of private security to guard your shipments, particularly if the items are of high value.
4. Bolstering Our Digital Walls
Just as we lock our doors at night, we need to secure our digital gateways with regular updates, strong passwords, and layers of encryption.
5. Safety Nets
Insurance isn’t just paperwork, it’s a promise of recovery. It’s vital to have a plan to bounce back when things go south.
South Africa’s heart beats with trade and commerce. As we further carve our niche in the global market, our logistic pathways need to be not just efficient but also safe. Addressing crime and fraud is more than just a business strategy, it’s a commitment to our partners, employees, and every individual awaiting a delivery.
While challenges loom large, our combined efforts—driven by technology, trust, and teamwork can craft a safer, brighter future for South African logistics. After all, every challenge overcome is a story worth telling.
South Africa’s Cold Chain Logistics Challenges
From biting into a juicy apple from a local supermarket in Johannesburg to receiving crucial medicine in a Cape Town clinic.
Behind these everyday moments, there’s a hardworking system called the cold chain, making sure products stay fresh and effective from where they’re produced to where they’re consumed. Now, while South Africa is doing its best to keep things cool, this system isn’t without its share of hiccups.
The Cold Chain Explained
Cold chain storage is a vital segment of the supply chain system, designed to maintain a consistent temperature for products that are sensitive to heat or temperature fluctuations.
Think of it as a relay race where perishable items, like vaccines or fresh produce, are passed from one cold environment to another, ensuring they remain as fresh as possible and effective from the moment they are produced to the moment they reach the end consumer.
The primary function of cold chain storage is to prolong the shelf life and ensure the safety and integrity of temperature-sensitive products. It’s a lifeline for various industries, from food and pharmaceuticals to certain chemicals and agricultural produce.
Consequences of not Having a Cold Chain
Without a properly maintained cold chain, food items could spoil, and medicines could lose their efficacy, leading to health risks and financial losses. The cold chain ensures products remain in their optimal condition, benefiting businesses and consumers alike.
The Main Challenges to Cold Chain in South Africa.
1. Energy Grid Challenges
The first and most pressing challenge to the cold chain in South Africa is the poor state of the electricity grid. Keeping things cold means machines are running around the clock, and they guzzle power!
With frequent power outages known locally in South Africa as load-shedding, coupled with our rising electricity prices, this means that the products which need the cold chain become more expensive because of the rising cost of transporting and storing them.
2. Challenges While in Transit
It’s one thing to transport goods in buzzing cities like Durban or Cape Town. But when you venture into some far-flung corners of South Africa, things can get a bit bumpy. The main concern on our roads is the potholes that can damage or even halt a refrigeration vehicle while on the move.
On the other hand, in more rural areas even basic roads can be missing. This means it becomes more difficult for cold chain products like medicine to reach these communities leaving them vulnerable to otherwise treatable conditions.
3. A Need for More Cold Chain Experts
Running a cold chain isn’t just about big refrigerators. We need experts who know the ins and outs of temperature management and can handle sensitive products with care. There’s a bit of a talent hunt going on in this sector right now.
4. Rules, Rules, and More Rules
The government, always looking out for our well-being, has set some strict standards for cold storage. This is great for ensuring quality but can tie businesses up in a bit of red tape, especially the small guys just starting.
5. Theft of Goods
High-value goods like medicines attract some unsavoury attention. We’ve got hijackers and thieves eyeing the loot, adding another layer of challenges to keeping the chain secure in South Africa.
6. Infrastructure Upgrades Needed
Modern tech could be our knight in shining armour, streamlining operations. But it’s not always easy to bring in the latest tools, especially when initial costs are high and everyone’s still learning the ropes.
7. Money Matters Investment Needed
The volatile economy makes businesses think twice before investing in cold chain upgrades. A little financial stability could go a long way to improving investment in South Africa’s cold chain.
Keeping South Africa’s cold chain running smoothly is a bit like organizing a massive ice cream party on a hot day – it’s challenging but oh-so-important! With some collaboration, innovation, and dedication, we’re hopeful for a frostier and more efficient future. After all, that juicy apple and life-saving medicine are counting on it!