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Reduced logistics costs require efficient technologies.

Efficient technology vital to lower logistics costs

Reduced logistics costs require efficient technologies - Supply Chain Tribe by Celerity

The logistics industry in South Africa is at a turning point, and investment and innovation are essential to overcoming current obstacles. In order to modernise operations and increase competitiveness, stakeholders are advocating for a radical change as the industry struggles with inefficiencies and infrastructure limitations. There has never been a greater pressing need for strategic investment and cutting-edge technology.

Leaders in the industry are rising to the occasion with innovative ideas and teamwork to meet these demands. Modern tracking systems and redesigned supply chain plans are only two examples of how the movement towards a more robust and effective logistics network is gathering speed.

Professor Jan Havenga, a lecturer in logistics at the University of Stellenbosch and director of the GAIN Group, claims that the average embedded logistics costs for any product in South Africa today exceed 50%. Increasing logistics efficiency will lower costs nationwide and boost competitiveness.

According to Natalie Chippendale, commercial director at Teraka Logistics, inefficiencies in the value chain are mostly responsible for the high cost of logistics. Roads and ports are two examples of vital infrastructure that need to be upgraded significantly in order to meet these problems. Additionally, implementing more cost-effective technologies and procedures might be quite important.

She said Freight News that "improving policy frameworks and streamlining regulations will also be essential to enhance the sector's competitiveness and drive down overall costs."