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Procurement becoming evermore powerful in SA logistics/supply chain

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Cargo truck on the road

Gaps still exist in finding the right kind of supplier, but these can be effectively addressed – Bidvest International Logistics.

Johannesburg, 14 July 2021 – There simply is no understating the value of procurement professionals to a business.

As the teams responsible for securing suppliers, they actively put their companies in a more competitive position to make them sustainable both in the short and long term.  In many respects, procurement is viewed as the quintessential facilitator of business strategy.

In South Africa, the need for effective procurement has never been greater.

The country is emerging from more than a decade of destructive graft, and while President Cyril Ramaphosa has a lot of work to do in terms of regaining public trust, there are strong indications that government hopes to work with the private sector to rebuild state enterprises for the good of the country.

For example, the Transnet National Ports Authority is now becoming an independent subsidiary of Transnet, a move that paves the way for greater synergy between the public sector and private enterprise, particularly in respect of procurement and supply chain management systems.

The maritime business community has roundly welcomed the decision, saying the subsidiary would create more opportunities for previously marginalised smaller businesses. 

Government’s new, more trade-focused approach presents a golden opportunity for businesses to work more closely with the state while enhancing their own operations and reputations in the process.

Global transport and logistics company Bidvest International Logistics (BIL) is well versed in procurement and tendering, boasting an international network of 250 offices in 120 countries.

As such, the company is able to offer expert advice to businesses hoping to enhance their existing strategies.

Procurement is a multi-faceted undertaking, as BIL’s team of experts explains.  

Willem Bekker, BIL’s supply chain solutions manager, says from the outset, it is important to relay operational or business requirements to a procurement team in a way that allows it to translate these requirements into a request for tender.

“Procurement teams need to be fully in tune with the needs not only of the division or department, but the business as a whole. Finding a supplier that fits with the division or department’s vision and helps them reach their strategic goals is essential,” Bekker says.

In the view of BIL’s national commercial manager, Lodi Borstlap, there are four distinct challenges that need to be met, namely: allowing poor quality for lower costs; the provision of unclear specifications and requirements; not undertaking supplier assessments; and not fully understanding supplier capabilities.

 “There are ways to overcome these challenges. For example, the use of consumer feedback is helpful in striking a better balance, especially where an acceptable profit margin is reached,” he says.

“Providing clear details or specifications of what your organisation requires also goes a long way in solving the procurement problem. Implementing proper evaluation strategies and assessments both prior to and after selecting the supplier is another way to produce positive results.”

Both Bekker and Borstlap believe operations teams or those doing the work on a day-to-day basis are best placed to brief a company on procurements.

Among their tips for briefing procurement teams effectively are:

  • Communicate full scope of work in person by means of an initial workshop of brain-storming session;
  • Do not rush procurement processes due to tight deadlines – it can end up costing you dearly;
  • Gain buy-in and explain the purpose, aim and goal that the business is looking for long-term improvement and gains, not a short-term win;
  • Involve all internal parties from the onset, not just the finance department (operations, commercial, national functions, Human resources and Information Technology (IT);
  • Ensure full alignment in the company’s overall business goals, and how the supplier fits into the process of achieving these goals;
  • Ensure full alignment on the expected output/deliverables of the process; and
  • Be clear on timelines, and manage these tightly.

This aspect is only part of the process, however, as there is still the all-important matter of submitting an attractive tender.

For Rhett Oertel, BIL’s head of sales, it is critical that the tenderer understands what the objectives of the tenderee are, by asking questions related to the purpose in going out to tender, to understand whether the tenderee is motivated by price, service or product offering. 

“Once you know what the tenderee needs you are positioned to strategise as a team and determine how you’ll meet those requirements and structure an excellent submission. ”

Oertel is also a great believer in looking at things from the tenderer’s perspective.

“The tenderee also needs to have a clear understanding of the reason for going out to tender. Is it to reduce costs or rates? Are they looking for alternatives in the market because of corporate governance requirements. Or are they looking for a new solution or offering? Once a team is aligned regarding the ‘why’ they will be able to drill down into the details, consider bids objectively and ensure that a decision is made that everyone can be confident in because the winning bid has met the criteria and will lead to key objectives being met.

When responding to a tender, Oertel suggests that the operational aspects of a tender be drawn up by the operations or logistics team.

“These will then need to be mapped against the current business processes to ensure that all aspects are covered. Once this is done, include the procurement and finance teams to ensure that their interests are covered and to ensure that the tender is thorough and complete.”

In terms of finding the best possible supplier, BIL supply chain solutions engineer Ishan Hutheram says businesses should always look for those that stand out for their innovation and willingness to go the extra mile.

BIL suggests the quality of a procurement team’s find can be evaluated on several criteria:

  • Measure the performance of the supplier on value, and not just cost;
  • Allow the supplier to also provide feedback on the process and success of the business relationship;
  • Measure compliance of the supplier to the original proposal;
  • Customer satisfaction;
  • Supplier lead times;
  • Continues Improvement; and
  •  Vendor or supplier availability, flexibility and consistency.

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Logistics

Runway to Railway Puts Innovation and African Identity at the Heart of Infrastructure

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Runway to Railway panel discussion.

Smarter infrastructure, better connected transport systems and airport experiences that reflect African creativity were at the centre of Runway to Railway: Project Maverick, held at the Vineyard Hotel in Cape Town on 22 October 2026. The gathering brought aviation, technology and creative perspectives into a discussion about how innovation can improve infrastructure and the experience of the people who use it.

Held under the theme Simply Connect Africa, the event forms part of the Runway to Railway vision conceived by Anna K Hecart, founder and director of Connected Group. The platform brings different sectors together to explore connections between infrastructure, business and opportunity across the continent.

Panel discussion, from right to feft at Project Maverick: Dirk Ackerman, moderator; Nicholas Ferguson, Executive Managing Director, RSA Aero; Hasnain Motlekar, Acting Chief Executive Officer, BCX; and York Ning, Director, ICT Marketing & Solution Sales Department, Huawei South Africa.

Raising the Bar for African Infrastructure. Panel participants: Dirk Ackerman, moderator; Nicholas Ferguson, Executive Managing Director, RSA Aero; Hasnain Motlekar, Acting Chief Executive Officer, BCX; and York Ning, Director, ICT Marketing & Solution Sales Department, Huawei South Africa.

“Runway to Railway began with a belief that Africa’s progress depends on the connections we make between people, industries and ideas,” said Hecart. “We are pleased to announce the Runway to Railway Expo for November 2027. Our ambition is to bring the people shaping transport, infrastructure and technology together with investors and creative businesses to explore practical solutions and build partnerships that move Africa forward.”

The Expo is being developed as a meeting place for aviation, rail, logistics, infrastructure, technology, tourism and design professionals, alongside investors and public-sector stakeholders. Partners can expect opportunities to showcase their capabilities and connect with potential collaborators. Attendees can look forward to discovering innovations, exchanging ideas and exploring how better connected infrastructure can support African business and communities.

Anna K Hecart, Founder and Director of Connected Group and visionary behind Runway to Railway, addresses the attendees at Runway to Rail.

Anna K Hecart, Founder and Director of Connected Group and visionary behind Runway to Railway, addresses the gathering.

The infrastructure conversation brought the airport development perspective together with the technology expertise of BCX and Huawei. It considered how closer collaboration can support better passenger experiences, reliable operations and the practical delivery of connected infrastructure.

“The decisions that shape a passenger’s journey are made across many different organisations,” said Ackerman. “Bringing developers, operators and technology partners together early helps us see how those decisions fit together and where collaboration can make infrastructure work better.”

“An airport is part of a much wider economic network,” said Ferguson. “Its development needs to consider how people arrive, how businesses connect and how the surrounding region benefits. Innovation should support that wider purpose while making the everyday experience more efficient and welcoming.”

“The value of connected infrastructure lies in what it enables people and businesses to do,” said Motlekar. “Reliable networks, secure systems and useful information need to work together. Planning these capabilities from the outset helps organisations improve services and respond as demand changes.”

Gavin Rajah delivered the closing remarks, extending the conversation to the quality and character of retail experiences at African airports. He highlighted the opportunity to bring greater creativity and a stronger expression of African identity into spaces that shape travellers’ first and last impressions of a destination.

“An African airport should give travellers a real sense of place,” said Rajah. “Our retail spaces can do far more to showcase the continent’s design, fashion, food and craft. We have the talent and the stories. The opportunity is to present them with imagination and the quality they deserve, while creating space for African creative businesses to grow.”

Gavin Rajah, closing speaker, at the Runway to Railway conference, addresses creativity and African identity in the airport experience.

Gavin Rajah, closing speaker, addresses creativity and African identity in the airport experience.

Event photographs

Panel discussion on the the Raising the Bar for African Infrastructure panel at Runway to Railway: Project Maverick.

The Raising the Bar for African Infrastructure panel at Runway to Railway: Project Maverick.

Panelists discuss the Bar for African Infrastructure panel at the Runway to Railway conference.

An exchange during the infrastructure panel discussion.

A panellist contributes discussing Project Maverick at the Runway to Railway conference.

A panellist contributes to the infrastructure discussion.

Presentation at the Runway to Railway conference.

An on-stage presentation during Runway to Railway: Project Maverick.

Guests exchange ideas during the luncheon at the Runway to Railway conference at the Vineyard Hotel.

Guests exchange ideas during the luncheon at the Vineyard Hotel.

Guests following the conference programme at Runway to Railway: Project Maverick.

Guests follow the programme at Runway to Railway: Project Maverick.

Guests enjoying a lunch at the Runway to Railway conference.

Guests seated during the event programme.

Guest listening to a presentation during lunch.

A guest listens during the luncheon.

Guests networking at the Runway to Railway conference.

Guests in conversation during the event.

Guests enjoying the opportunity to network at the Runway

Networking at Runway to Railway: Project Maverick.

Attendees at the Runway to Railway conference standing

Guests gather for a photograph at the Vineyard Hotel.

Guests attending the Runway to Railway conference, while networking outside.

Guests connect outside the event venue.

Attendees at the Runway to Railway conference networking inside the Vineyard Hotel.

Conversations continue between programme sessions.

Focused shot of a man and woman networking at the Runway to Railway conference.

A conversation during the event reception.

Two women networking in a lounge area at the Runway to Railway conference.

A conversation at Runway to Railway: Project Maverick.

*All photographs featured in this article were captured by: Elvis Nyelenzi

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Management

AGOA is Back – But Can Africa Manufacture Its Way Into the Opportunity?

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A South African and US flag sitting on a desk with toy freight vehicles transporting goods. In the centre, lies two shipping containers painted with a South African and US flag with letters on top spelling AGOA.

We all know that global trade is becoming increasingly important. Economies are navigating challenges on multiple fronts, businesses are under pressure to remain competitive, and every opportunity to grow, invest and create new markets must be seized to lead to success.

But what if some of those opportunities are already within reach, and we simply aren’t making the most of them?

For Africa, one such opportunity is the African Growth and Opportunity Act.

AGOA is a U.S. trade programme established in 2000 to strengthen economic and trade relationships with eligible countries in Sub-Saharan Africa. It provides duty-free access to the U.S. market for more than 1,800 qualifying products, spanning a wide range of manufactured and value-added goods, including automotive components, textiles and apparel, agricultural and processed food products, chemicals, plastics, metals and other industrial products.

Following President Donald Trump’s announcement and the subsequent extension of AGOA through 31 December 2028, South African manufacturers have been given additional time and certainty to pursue opportunities in one of the world’s largest markets.

But access to a market is only part of the equation.

The real question is: are we equipped to take advantage of it?

Because securing an opportunity to supply an international customer is one thing. Having the machinery, skills, capacity and processes to fulfil that opportunity – consistently, competitively and at the required standard – is another.

For KNUTH Machine Tools, however, the significance of AGOA extends far beyond the trade agreement itself.

Does the African industry have the production capacity, technology and skills required to turn market access into manufactured exports?

“We often talk about market access as though it is the finish line. It isn’t. It is the starting point. If African manufacturers are going to compete for more international business, we need to build the production capacity and capabilities that allow us to compete -and deliver – at an international level,” says James Fourie, Technical Sales Team Lead, KNUTH SA.

For manufacturers across sectors such as automotive, mining, engineering and energy, increased export opportunities could mean greater demand, making it essential to optimise operations, improve productivity and strengthen production capacity.

From Market Access to Manufacturing Capacity

The renewed focus on AGOA comes at a time when manufacturers globally are under pressure to produce more efficiently while controlling costs and maintaining consistent quality.

For African manufacturers, the opportunity is therefore not simply about exporting more. It is about being equipped to manufacture more competitively.

There are plenty of ways manufacturers can improve how competitively they operate. It can start with something as simple as identifying production bottlenecks, reducing downtime or getting more out of existing equipment. For others, it may mean improving production planning, reviewing tooling and processes, upgrading ageing machinery, introducing CNC technology or investing in automation.

Just as importantly, manufacturers need the right skills to make the most of these improvements and ensure that technology translates into real gains on the shop floor.

“Manufacturing competitiveness starts long before a product reaches the shipping container,” says Ruan Cowley, Managing Director of KNUTH SA. “It starts with the equipment, the people operating it and the processes behind it. If AGOA creates additional demand, manufacturers need to be ready to respond to that demand, and that requires investment in production capability.”

This is particularly relevant for businesses that may currently be operating with limited capacity or processes that are already under pressure.

A manufacturer receiving an opportunity to supply a larger international customer cannot necessarily scale simply by adding another order to the production schedule. Increased volumes can expose operational inefficiencies.

The result is that market access can quickly become a manufacturing-capacity challenge.

The Machinery Question

For more than 100 years, KNUTH Machine Tools has been part of the global manufacturing industry, working alongside manufacturers as production methods, technologies and market demands have evolved.

That experience has shown that improving manufacturing competitiveness is rarely about one machine or one investment. It is about understanding the operation as a whole.

For machine shops and component manufacturers, technology can play an important role in that process. Modern CNC machinery, for example, can improve consistency, reduce manual intervention and support the production of more complex components. But the right technology depends on the needs of the individual operation.

“Buying a machine is not the same as improving a manufacturing operation,” says Fourie. “You first need to understand where the constraints are. It could be capacity, workflow, skills, tooling, programming or simply the way a process is being managed. Once you understand that, you can make more informed decisions about where technology can add real value.”

That broader approach becomes increasingly important as manufacturers look to compete for international business.

Ultimately, the goal is not simply to have more technology on the factory floor. It is to build more capable, efficient and competitive manufacturing operations.

“International competitiveness isn’t built overnight,” says Cowley. “It requires manufacturers to make decisions today that improve their ability to compete tomorrow. That includes machinery, skills, service, maintenance and the ability to keep production running.”

A Window – Not a Guarantee

AGOA’s current authorisation runs through the end of 2028, while the United States has also begun a process to consider how the programme could be modernised.

That means manufacturers should view the current environment as an opportunity to assess their readiness rather than simply waiting for export demand to appear.

AGOA is also not the only preferential trade opportunity available. Through agreements and arrangements such as SACU, SADC, the African Continental Free Trade Area (AfCFTA), the SADC–EU Economic Partnership Agreement, the SACUM–UK Economic Partnership Agreement, SACU–EFTA and SACU–MERCOSUR, South African businesses have access to a range of regional and international markets under preferential trading conditions.

The markets are there. The opportunity is there. The question is whether African manufacturing is ready to make the most of it.

For KNUTH, that means encouraging manufacturers to consider a more fundamental question: If a new international opportunity came across the desk tomorrow, would the factory be ready to produce it?

The market may open the door. Manufacturing capability determines whether you can walk through it.

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Logistics

SAFLA Launches Gauteng Region With Eric Pillay Appointed As Chairperson

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Group photo of: Arend du Preez: Vice Chair of SAFLA, Gavin Kelly: CEO of the Road Freight Association, Jonathan McDonald: Vice Chair of SAFLA’s and Freek van Rooyen - Partner: Shipping & Logistics at Shepstone & Wylie.

The South African Freight and Logistics Association (SAFLA) has launched its Gauteng region, appointing Eric Pillay as regional chairperson and placing stakeholder engagement, border delays and port bottlenecks at the centre of its agenda.

Pillay, owner of Pro-Active Shipping & Freight Solutions, will lead the region’s efforts to strengthen industry representation and improve engagement with the organisations that influence cargo movement. “We work closely with SAFLA nationally to ensure that our issues are addressed,” Pillay stated, outlining how the Gauteng chapter will connect regional concerns with SAFLA’s countrywide advocacy and engagement.

The official launch breakfast at the Johannesburg Country Club in Woodmead, brought together freight and logistics colleagues and key stakeholders to mark the establishment of a regional platform supported by SAFLA’s national structures.

A Collective Voice for Gauteng

Pillay said the chapter responds to clearing and forwarding companies’ need for a collective voice in their dealings with organisations such as the Border Management Authority and other state-owned enterprises and shipping lines. Its first-year priorities centre on improving stakeholder relationships to boost trade and support regional growth, with border and port delays receiving immediate attention.

Pillay’s longer-term vision focuses on stronger partnerships and efficient cargo movement across Gauteng’s supply chains. “Transport is key to keeping the economy going and I would like to see increased cargo volumes moving efficiently, freely and safely.”

SAFLA Gauteng welcomes companies operating in clearing, forwarding and transport in Gauteng. Smaller and emerging operators can use its platform to raise concerns and access support in navigating industry challenges.

Regional Action Supporting National Reform

SAFLA chair Arend du Preez highlighted the association’s commitment to strengthening regional representation within a unified national framework. “By strengthening our regional representation, we ensure that local concerns are heard, local expertise is utilised, and local solutions can be developed while still benefiting from national support and coordination,” du Preez explained.

He emphasised constructive engagement between industry participants to identify the causes of disruption and resolve operational pressure points. “At the end of the day, our objective remains simple,” he said. “Cargo must move.”

Economic Regulation, Fair Access and Transparent Pricing Highlighted

Guest speaker Ian Bird, Transport & Logistics Focal Area Lead at Business for South Africa, addressed the business-government partnership and progress on logistics reforms, placing the regional launch within the broader effort to improve South Africa’s freight system.

Bird’s presentation highlighted the importance of effective economic regulation, fair access and transparent pricing in encouraging investment. “Effective regulation builds confidence and unlocks investment,” Bird highlighted in his presentation.

Ian Bird: Transport & Logistics Focal Area Lead – Business for South Africa – presenting at an event.

Ian Bird: Transport & Logistics Focal Area Lead – Business for South Africa

He also stressed that to deliver the freight volumes so urgently needed by the economy will require both improving the rail network for Transnet and private Train Operating Companies, as well as implementing a comprehensive program of structural reform.  The growth in rail volumes will be driven by general freight, which by it’s very nature requires more complex supply chains being developed, operated and managed.

For SAFLA Gauteng, these national priorities reinforce the value of sustained regional engagement with supply chain stakeholders and coordinated escalation of members’ concerns.

SAFLA’s Gauteng chapter aims to help remove bottlenecks, reduce the costs associated with delayed cargo and support trade competitiveness through practical collaboration. Members can also raise local operational issues through SAFLA’s national structures.

Commenting on the launch, Road Freight Association (RFA) CEO Gavin Kelly said the RFA’s MoU with SAFLA means a “stronger, more coordinated industry voice,” while Warwick Lord, chairperson of the Multimodal Inland Port Association (MIPA), added that MIPA “looks forward to working with the association for the benefit of its members and the industry.” Paul Matthew, CEO of the African Meat Importers and Exporters Association added: “Importers and exporters depend on efficient, well-represented freight forwarders. We are proud to partner with SAFLA”.

Headshot of Warwick Lord: Chairperson – Multimodal Inland Port Association (MIPA)

Warwick Lord: Chairperson – Multimodal Inland Port Association (MIPA)

“It means a great deal to me to be part of SAFLA,” continued Pillay. “The industry has been longing for a voice to air their issues and now we have it.”

Portrait of Eric Pillay: Owner - Pro-Active Shipping & Freight Solutions

Eric Pillay: Owner – Pro-Active Shipping & Freight Solutions

Portrait of Paul Matthew: CEO – African Meat Importers and Exporters Association

Paul Matthew: CEO – African Meat Importers and Exporters Association

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