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AN E-COMMERCE SHAKE-UP
Amazon entering the South African e-commerce market is a game-changer. Consumers gain access to a range of new products and retailers to a range of international markets, e-commerce incumbents have a reason to sharpen their strategies and logistics service providers are forced to up their game. In this issue of Supply Chain Management, we explore the implications of Amazon’s South African expansion for stakeholders across the supply chain.
Another major development is the announcement of reforms to the regulations governing relationships between the public and private sectors, with the goal of facilitating partnerships and investment for crucial infrastructure projects.
Regulations are also in the spotlight when it comes to road transport, as we look at the bene ts of implementing the Road Transport Management System in terms of safety, eet management and load optimisation.
Optimisation is also being achieved through automation — a topic we explore in two articles looking at how robots can facilitate smoother product handling and warehouse operations.
Speaking of product handling, we look at how rail is reshaping the logistics of perishable produce in Johannesburg, and close off by asking what fruit exporters need to grow the industry.
Anthony Sharpe, Editor
9 E-COMMERCE
Amazon’s arrival on local shores is shaking things up for consumers, retailers and logistics providers.
14 RAIL
Rail is reshaping the logistics of perishable produce in Johannesburg.
17 POLICY
Reforming public procurement regulations to unlock private-sector participation in infrastructure projects.
18 STANDARDS
How Road Transport Management System certi cation can improve safety and operations.
21
WAREHOUSING
The product handling sector is embracing automation to streamline logistics.
24 TECHNOLOGY
A recent study highlights the pain points for warehouse operations—and potential solutions to these.
26
AGRICULTURE
Fruit exporters represent a major contribution to the economy, but they need better rails, roads and ports.
SKILLS DEVELOPMENT IS CRITICAL FOR AFRICA TO RISE AS A GLOBAL SUPPLY CHAIN HUB
With the rise of protectionism and reshoring in a world impacted by economic nationalism and geopolitical tensions, Africa’s supply chain environment is at a critical junction marked by exciting opportunities and daunting challenges, writes THATO MOLOI , president of SAPICS, the supply chain industry body
The African continent has the potential to become a powerful link in global supply chains, but strategic investments in infrastructure, technology, sustainable practices and skills development are vital. Forward-thinking businesses that recognise Africa’s vast potential amid today’s shifting supply chains and new trade dynamics are investing in areas such as skills development, sustainability and technology. SAPICS’s work enables and supports the drive to rewrite Africa’s role in global supply chains.
Since 1966, SAPICS’s unwavering mission has been to elevate, educate and empower supply chain professionals in South Africa and across the continent. It is more important than ever as we have the chance to seize this opportunity for Africa. Strong, reliable,
resilient supply chains are powered by skilled, knowledgeable and suitably quali ed people.
EDUCATING AND CERTIFYING PRACTITIONERS
SAPICS provides Southern African supply chain practitioners access to a range of internationally recognised certi cations and high-quality, impactful short courses. SAPICS is the Premier Elite Channel Partner in sub-Saharan Africa for APICS – part of the United States-based international supply chain management body ASCM (The Association for Supply Chain Management). SAPICS is also a global af liate of the DDI (Demand Driven Institute), the IBF (Institute of Business Forecasting) and ISCEA (the International Supply Chain Education Alliance). These global organisations all promote best practice methodology for the supply chain profession. Through these partnerships, SAPICS provides the best supply chain education content available globally. It is delivered through a network of carefully selected SAPICS Authorised Education Partners.
SAPICS’s education offerings include the APICS CPIM (Certi ed in Production and Inventory Management), CSCP (Certi ed Supply Chain Professional), CLTD (Certi ed in Logistics, Transportation and Distribution) and CTSC (Certi ed in Transformation for Supply Chain), among many others. The CPIM is considered the premier certi cation for internal supply chain business operations. The CLTD programme addresses the burgeoning need for standard benchmarks in the rapidly changing logistics, transportation and distribution industries. The APICS CSCP programme is the rst and only supply chain certi cation that encompasses the end-to-end global supply chain. CSCP designees gain the skills to effectively manage the global supply chain activities that involve suppliers, plants, distributors and customers worldwide. The CTSC programme provides the essential knowledge to help employees effectively manage an end-to-end supply chain transformation project.
Thato Moloi
African businesses aiming to compete on the global stage and striving to see Africa rise as the supply chain powerhouse many predict must align with global environmental standards. Integrating sustainability into supply chain and logistics is therefore a growing imperative in Africa. Recognising this, SAPICS education includes a masterclass in the best practices and solutions to build a sustainable supply chain – provided in partnership with ASCM – as well as ISCEA’s Certi ed Sustainable Supply Chain Professional programme.
To address the continent’s supply chain skills de cit, SAPICS is working to grow its network of Authorised Education Providers across Africa. SAPICS is also rolling out new initiatives and partnerships with universities aimed at upskilling and empowering young graduates and professionals for career success. It is imperative to build a pipeline of talent in the critical supply chain eld, but many graduates lack the skills, resources and experience to capitalise on opportunities in the profession. To address this, SAPICS launched a drive to engage with key stakeholders to explore strategies and collaborations to ensure the competency of supply chain management students. One of its objectives, as an industry body, is to create a pathway and provide support to ensure that academia and the supply chain requirements of the private and public sectors are aligned for mutual bene t and advancement.
The outcomes of these discussions include the establishment by SAPICS of supply chain chapters or desks at selected universities. SAPICS offers support and resources, arranges events and provides opportunities for dialogue and personal and professional development. It also facilitates industry’s involvement in research at universities.
SAPICS acts as a conduit for all industry sectors to connect and obtain information. SAPICS corporate members have come to the party, too, and through SAPICS, advise educational institutions on project work and vacation work opportunities for students. SAPICS is creating a database of these opportunities, and universities and students will have access to this information.
ANNUAL SAPICS CONFERENCE
Education in all formats is made available by SAPICS and in-person events are a signi cant aspect of practical education. The annual
ABOUT SAPICS
Since 1966, SAPICS has worked to elevate, educate and empower the community of supply chain professionals in South Africa and across the continent. This is done via membership, events, the annual conference, education courses and workshops through Authorised Education Providers, and others. SAPICS is registered in South Africa as a not-for-profit company. Its mandate is to ensure that any profits made are used towards the continual development and overall benefit of individuals and organisations in the supply chain management profession.
The annual SAPICS Conference is the leading event in Africa for supply chain professionals and is now in its 47th year. The 2025 SAPICS Conference takes place in Cape Town from 8 to 11 June 2025. www.sapics.org.
SAPICS Conference is Africa’s leading event for the supply chain profession. Now in its 47th year, this important gathering takes place in Cape Town from 8 to 11 June 2025.
It offers vital learning, networking and knowledge-sharing opportunities for everyone involved in the diverse aspects of supply chain management. This is a must-attend event for all supply chain practitioners at all levels and for anyone working with the supply chain profession. Whether a chief supply chain of cer or an experienced, senior supply chain manager, a supplier to the industry or someone simply eager to learn and grow, this is your opportunity to be at the forefront of our profession.
More than 750 supply chain managers from 30 countries across Africa and around the world attended the 2024 SAPICS Conference in Cape Town in June 2024.
For the rst time, Demand Driven World will be held as part of the SAPICS Conference. Demand Driven World is the world’s top convention focused on Demand Driven methods and applications. This compelling combination offers SAPICS 2025 attendees a unique opportunity, enabling them to attend two globally recognised events at the same time, in one location.
The 2025 SAPICS Conference theme is “Innovation in Motion”. This year’s theme re ects the imperative for organisations to innovate and strive for the agility and adaptability needed to respond rapidly to potentially chaotic changes and disruptions in today’s turbulent supply chain landscape. In the face of continuous technological advances, shifting global dynamics and the pursuit of seamless ef ciency, customer
satisfaction and sustainability, one thing is clear: innovation is a must-have for supply chain managers.
SAPICS 2025 will bring together industry experts, thought leaders and professionals from around the world and across the supply chain spectrum to share their insights and expertise in compelling presentations, panel discussions and practical workshops. Attendees can expect to learn from the brightest minds and the most in uential voices in supply chain management as they explore the trends, technologies and strategies driving the future of the supply chain management profession.
To nd out more or to register for the 2025 SAPICS Conference, contact event organiser Upavon Management.
Email: info@upavon.co.za or Tel: +27 11 023 6701
THE AMAZON INVASION
The arrival of the e-commerce juggernaut on local shores is shaking things up for consumers, retailers and logistics providers, writes ANTHONY SHARPE
Amazon has revolutionised e-commerce, growing from its humble beginnings in Jeff Bezos’s garage as an online bookseller to a marketplace for just about anything, not to mention that it’s the world’s fth-largest company by market cap.
Love it or hate it, Amazon has reshaped the way people shop across the globe, and now in South Africa, too, Amazon.co.za was launched in May last year, opening the door for local shoppers to access a wealth of international brands and local companies to enter international markets in a new way.
It makes sense. With increasing internet penetration and mobile adoption, e-commerce in South Africa has transformed from a niche industry into a signi cant economic driver, growing 30 per cent in 2022 alone. This year, the number of e-commerce users is projected to reach 11.7 million, with that gure growing to an estimated 21.52 million users by 2029, according to Statista.
A bigger pie for all Amazon’s arrival is only set to accelerate that growth, with knock-on effects across the logistics, warehousing and retail spaces. It also means more competition for incumbents.
Takealot has the largest share of the market, at 15-20 per cent, followed by Checkers at 12-15 per cent, Woolworths at 8-10 per cent and Superbalist at 5-6 per cent, according to a Boston Consulting Group report published in November 2024. Of all of these, Takealot is the clearest parallel to Amazon, with its vast category of goods, particularly those in the disposable income category.
The great thing about growth is that it bene ts everyone, explains Arthur Goldstuck, founder and CEO of World Wide Worx. “As the e-commerce pie grows, there’s the opportunity for newcomers to get a slice from organic growth of the market, as opposed
THE AI ADVANTAGE
As reported by Industry experts weam.ai, The Verge, Sustainability-Beat (UK) and theaiinsider.tech, Amazon has employed artificial intelligence (AI) in a number of ways to improve its supply chain.
Faster deliveries: as seen during 2023’s Cyber Monday, when demand forecasting and warehouse restocking based on historical data enabled quicker shipments. Robotic inventory management systems like Sequoia have sped up inventory management by 75 per cent, and reduced employee effort by 15 per cent and processing time by 25 per cent and cutting CO2 emissions by 1 million tonnes in 2020.
Minimising packaging waste: Amazon’s AI-driven Packaging Decision Engine analyses product data and customer feedback, helping to eliminate more than 2 million tonnes of packaging materials since 2015. Processes like computer vision tunnelling automate defect detection and packaging decisions, streamlining workflows and reducing delays while enhancing sustainability.
Preventing product damage: Amazon’s “Project P.I.” integrates generative AI and computer vision to detect product defects, ensuring specifications like size and colour are correct and automatically identifying flaws before shipping. This reduces return costs, improves inventory accuracy, and enhances customer satisfaction and loyalty.
to wrestling customers from existing players. From Takealot’s perspective, if it can maintain its market share as the market grows, that becomes more and more valuable.”
Rising to the challenge
Nevertheless, there was no way Takealot could not respond to the threat of the Amazon juggernaut.
AMAZON IS THE WORLD’S FIFTH-LARGEST COMPANY BY MARKET CAP.
“Takealot has been honing its strategy for years, but it has been extremely active and aggressive in tightening this strategy since Amazon’s arrival,” says Goldstuck.
He observes that Takealot has not just broadened its range, but also put more thought into careful curation of its categories. “If you look at single malts, for example, it’s amazing to see how well they compete with specialist liquor outlets.”
Aside from more products, Takealot has introduced far more opportunities for deals, says Goldstuck. “If you investigate Takealot’s deals of the day and unboxing specials, the company has made it even more compelling for customers to go hunting for bargains, a characteristic propensity of South African shoppers.”
It has also forced the incumbent to up its logistics game. “Its delivery service has become more aggressively competitive,” says Goldstuck. “The acquisition of Mr D enabled Takealot to provide same- or next-day deliveries. Whereas in the past, we were accustomed to three-to- ve-day times for an express delivery, it’s now common to get overnight delivery at the same price.”
Rising tide
While Takealot acquired Mr D in order to boost its capabilities, Amazon has partnered with The Courier Guy and DPD Laser. Goldstuck says that the impetus this provided for these companies to ramp up their services represents one of the most important developments in South African logistics for many years. “It required them to expand their infrastructure, such as increasing the number of vehicles on the road along with pickup and drop-off points.”
This has bene tted not just Amazon, but the rest of the market, too. “It’s a rising tide that lifts all boats, in that other logistics providers had to improve their services in order to compete effectively with the companies that grew thanks to their partnership with Amazon,” says Goldstuck.
This is good news for businesses across the board, but especially small to medium enterprises (SMEs), which can now enter the e-commerce market knowing that there is supportive infrastructure. “There is now a far greater range of options at a better price,” says Goldstuck. “Businesses that sell on Facebook Marketplace, for example, would do their ful lment on case-by-case negotiation, and be subject to high costs for intercity deliveries. Now, with services like pudo, Pep Paxi
Arthur Goldstuck
SOUTH AFRICA’S E-COMMERCE PENETRATION RATE IS SIX PER CENT.
and PostNet, the costs have come down dramatically, while the convenience and level of service has improved vastly.”
Access to global markets
Of course, for local businesses wishing to extend their reach beyond South African shores, Amazon represents a golden opportunity. “Takealot doesn’t necessarily access markets in the United States, Germany or Australia, for example, but Amazon does,” says Fritz Arndt, founder and CEO of South Africa’s rst full-service Amazon agency, uid/sa. “For some South Africans, supporting a large American company like Amazon might seem distasteful, but it’s really supporting a South African enterprise populated by South African businesses, large and small.”
Arndt says Amazon enables South African businesses to scale to an extent that simply is not possible on a domestic platform. Moreover, he adds, there is a rst-mover advantage for companies that get on board now. “If you list on Amazon in other countries, you have to spend an enormous sum to penetrate Amazon’s most competitive marketplace, the United States. Other markets are less competitive, but still expensive. This is known as pay to play: if you don’t spend on advertising, you won’t get any visibility and you won’t get any sales.”
amazon.co.za, however, is the only site that isn’t pay to play — at least not yet. “If a South African business lists on Amazon.co.za now, it’s possible to secure top rankings in your category without spending more than R10 on advertising,” says Arndt. “As Amazon’s market share develops, you can use the credibility you’ve built with Amazon to hold that ranking.”
The long game
Amazon’s share is growing steadily, but it’s clear the giant is willing to play the long game. “When Amazon enters a new country, it doesn’t expect to grow steadily,” says Arndt. “It doesn’t mind not making a pro t while it integrates and develops.”
Given the positive knock-on effect on the e-commerce sector as a whole, Arndt believes Amazon’s greatest challenge isn’t competition. “It’s the economy. Amazon doesn’t have control over that. Disposable income might decrease if things get worse, or at least not grow at expected rates. This would stymie its growth, as most of the products sold on Amazon fall into the nonessentials category.”
Nevertheless, there is plenty of room to grow in South Africa. “South Africa’s e-commerce penetration rate is 6 per cent, up from 1.9 per cent ve years ago,” says Arndt. “It’s a low base, but a fast-growth environment. Amazon can just grow into the new market share that’s coming.”
SUPER DELIVERIES FOR SUPERMARKETS
Online sales of fast-moving consumer goods have grown hugely since the advent of the COVID-19 pandemic, which forced many consumers into online shopping for things they would have previously bought at a supermarket.
Checkers Sixty60, in particular, has grown explosively in recent months, with sales leaping 47 per cent in the second half of 2024. “Sixty60 introduced a brand new model where fulfilment takes place at store, so every store in effect becomes a warehouse,” says Arthur Goldstuck of World Wide Worx. “That has proved to be the most effective strategy of all.”
Moving forward, Goldstuck expects to see store pickers, who are responsible for collecting and delivering the goods, given more effective tools to complete their orders, perhaps even their own dedicated or automated tills. “The bottom line is that we are likely to see a continued honing of strategies for fulfilment in South Africa, and we’ll continue to have some of the best supported online shoppers in the world, particularly in urban areas.”
Fritz Arndt
Transforming the perishable produce supply chain
Rail is reshaping the logistics of perishable produce in Johannesburg, writes CLAUDIA CUTURI , CEO of CTI Logistics and Cold Store
Rail transport presents a viable and sustainable alternative to road transport for imports and exports of perishable produce. The existing railway infrastructure from Johannesburg to Durban (and vice versa) provides a robust foundation for this transformation, offering several advantages over road transport.
The perishable rail supply chain, from Johannesburg to Durban (exports) and Durban to Johannesburg (imports) is operating successfully, providing a reliable, cost-effective and environmentally friendly solution.
Terminal station
Take the Johannesburg City Deep terminal, for example. This terminal is an inland port, meaning that when an export container arrives, it is plugged in at the terminal and stacked for its destined vessel. The terminal has 48 plug points, all supported by a backup generator, available for perishable cargo. The temperature of the containers is monitored by Transnet around the clock, and the Perishable Products Export Control Board (PPECB) also inspects the containers in the terminal.
The terminal’s streamlined processes ensure minimal delays, allowing for quick and ef cient container movement. CTI Logistics ensures the drivers have all the necessary documentation and the containers have been pre-advised. The truck will then stack the container. At City Deep terminal, reefer trucks get priority to enter the terminal, so there is no standing time compared to Durban port. This
process is so ef cient that the same truck can load at CTI Cold Store three times in one day.
The terminal’s staff are highly dedicated to operating the reefer trains, demonstrating a strong commitment to maintaining the integrity of perishable cargo. The equipment is well maintained, allowing Transnet to load a reefer train in 45 minutes for all 48 wagons.
Once all containers are loaded onto the train, technicians plug in all the reefer containers, which run off one large generator. Once the train is loaded and the technician is satis ed that all requirements have been met, the train will depart at its allocated booking slot on the rail line, KwaZulu-Natal Corridor, in time to meet the target vessel of the cargo.
Priority line
The perishable cargo train is classi ed as a high-value cargo train, so Transnet pays a lot of attention to the train once en route. There is a technician on board the train, ensuring all the containers are running at the required temperature. The train also gets priority on the KwaZulu-Natal Corridor rail line. Transnet Freight stays in constant communication with Transnet Port regarding the target vessels and the timing around bringing the train into port. A major advantage is that the train bypasses intermediate handling and goes directly into port, reducing transit time and minimising potential delays.
Once all the export containers are in port, the same train will collect the import perishable cargo and bring it up to Johannesburg City Deep terminal, where it will be plugged in while waiting for collection.
CTI Cold Store is an integral part of the reefer train, ensuring that clients’ product reaches export protocol temperatures before loading containers. The cold store is responsible for preparing, accurately loading, and ensuring compliance with all regulatory and quality standards, including PPECB inspections. CTI Cold Store is located ve minutes from the rail terminal, within a sixkilometre radius of the container depots, which assists with ef ciencies and cost savings.
CTI collaborates with clients, exporters, freight forwarders, depots, shipping lines, and Transnet to ensure cargo is ef ciently packed and stacked, enabling timely reefer train departures to meet Durban port schedules.
The reefer train innovation on the KwaZulu-Natal Corridor represents a signi cant leap forward in the transportation of perishable cargo by offering a reliable, cost-effective, and environmentally friendly alternative to road transport. As the demand for fresh, high quality products continues to grow, reefer trains will play an increasingly vital role in ensuring that goods arrive at their destinations in optimal condition, bene ting producers, distributors, and consumers alike. CTI’s vision is to ensure that the City Deep Terminal and reefer rail runs at full capacity.
The Container Corridor links the Port of Durban with the Gauteng economic hub through a 688km long rail network.
Claudia Cuturi
Strengthening public-private partnerships
Reforming public procurement regulations is key to unlocking private sector participation in infrastructure projects, writes sector head JACKWELL FERRIS , senior associate KELOABETSWE SELEKA and associate CHARLES GREEN of Cliffe Dekker Hofmeyr
Infrastructure is the backbone of economic development, acting as a catalyst for trade within a country and across its borders. As such, it is imperative that the state puts in place innovative regulatory measures that will facilitate investment through the participation of the private sector in key public infrastructure projects such as roads, ports, railways, energy and other trade-related infrastructure. These are some key steps to follow.
Attracting investment for infrastructure
As with many African countries, there is an ongoing need for the South African government to ensure that the country’s ageing public service delivery systems have the capacity to cater for the growing population, by securing investment for upgrades.
This is especially true in contexts where government does not have the scal space to use public funds to invest in capital-intense public infrastructure. This was evident in Johannesburg last year, when the public institutions mandated to provide water and sanitation services con rmed that they do not have the necessary funds to commission the required upgrades on the water network. Left unattended, this will result in dire consequences, with the potential for total collapse of systems such as water and electricity. Attracting private sector investment is crucial for bridging the gap.
Collaboration is key
So, what is the solution? How does government unlock funding for infrastructure in South Africa? To succeed, it must reinforce its collaboration with the private sector. This can be achieved through regulatory reforms to remove bureaucratic obstacles, by creating a transparent system with investor-friendly requirements, and by providing some level of certainty that the private sector will obtain nancial returns in developing public infrastructure.
Ordinarily, collaboration between the public and private sectors is implemented through procurement mechanisms such as public-private partnerships (PPPs) and private sector participation (PSP). Government has also identi ed the private sector as a potential solution to the infrastructure crisis. Transnet, for example, has started exploring the viability of PSP to operate its ports and rail network.
The Minister of Finance, Enoch Gondongwana, has announced that there will be upcoming reforms to the legislation and policies that regulate the relationship between the public and private sectors to ensure faster delivery of infrastructure that supports economic growth through the expansion of access to basic services and by boosting job creation.
The proposed amendments seek to, amongst other things, simplify the approval process for PPPs, create two distinctive pathways for PPPs (highvalue and low-value PPP projects) and provide clarity on the institutional roles and strengthening capacity of various stakeholders. Signi cantly, they also
provide for a mechanism whereby the private sector can offer unsolicited proposals to government. The insertion of the option for unsolicited proposals shows government’s policy towards doing business with the private sector and demonstrate that South Africa is open to using the private sector for infrastructure development.
We are currently awaiting the gazetting of the proposed amendments to the National Treasury Regulations and the Municipal PPP Regulations.
A single framework
While awaiting updates on proposed amendments, the Public Procurement Act 28 of 2024 (Procurement Act) has introduced a uni ed framework for public procurement in South Africa, including PPP regulations. Section 63 grants the minister authority to regulate PPPs, though its impact on other amendments remains unclear.
The Renewable Energy Independent Power Producer Procurement Programme (REIPPP) stands as an example of a successful PPP. Here, the private sector has helped to develop renewable energy projects. Given the government’s commitment to private sector collaboration, similar PPP models could expand into essential services like sanitation and water. These initiatives are vital for strengthening South Africa’s infrastructure and ensuring sustainable service delivery.
Charles Green
Jackwell Ferris
Keloabetswe Seleka
Driving excellence in road safety
Engen’s Road Traffic Management System certification is a milestone for the transport industry, writes OLIVER NAIDOO, MD of JC AUDITORS
South Africa’s road transport industry plays a critical role in South Africa’s economy, facilitating the movement of goods and services across the country. However, it is also a high-risk sector where safety, sustainability, and compliance are paramount.
As southern Africa continues to grapple with the complex challenges of road safety and ef cient freight transport, the Road Transport Management System (RTMS) stands out as a beacon of success nearly two decades after its inception. Initiated in 2004 as a pilot project to curb overloading, RTMS has evolved into a holistic road transport management system which focuses on vehicle loading, maintenance, regulatory compliance, improving driving behaviour and driver wellness. It has been widely adopted by South Africa’s leading logistics companies along with a host of professional transporters, many of whom have presented case studies showing the notable bene ts.
The South African National Standard 1395-1: RTMS provides a structured framework to ensure that transport operators adhere to best practices in vehicle maintenance, driver wellness, load management and road safety compliance. In a signi cant milestone for the industry, Engen has become the rst and only oil company in South Africa to achieve RTMS certi cation for its entire national eet of heavy vehicles. This accomplishment is not just a recognition of compliance, but also a testament to Engen’s commitment to safer and more sustainable road transport.
Why RTMS certification matters
The RTMS standard is not a regulatory burden, but rather a strategic advantage for
transport operators. It serves as a proactive management tool that enhances operational ef ciency, reduces risks and promotes long-term sustainability. By implementing RTMS, companies can achieve measurable improvements in several key areas:
• Enhanced road safety: compliance with RTMS standards helps reduce accidents, ensuring that drivers, cargo, and road users are better protected.
• Improved eet management: regular vehicle inspections and maintenance reduce breakdowns and operational disruptions.
• Load optimisation: proper load management reduces the risk of overloading, which not only prevents premature vehicle wear but also minimises road damage and environmental impact.
• Driver wellness and compliance: RTMS places emphasis on driver tness and wellness, reducing fatigue-related incidents and promoting safer driving behaviours.
What it takes to be better
There are several lessons to be learned from Engen’s achievement.
• Leadership commitment: achieving RTMS requires buy-in from top management. Bonnie Moyo, Engen’s national transport and logistics manager, saw the need to validate Engen’s Road Transport Safety Operating Guidelines (RTSOG), which govern the company’s dangerous goods transport management system. RTSOG ensures that Engen’s transport operations adhere to the highest safety and regulatory standards, reinforcing the company’s proactive approach to risk mitigation in fuel distribution. Engen’s leadership recognised
the long-term bene ts of certi cation and invested in the necessary resources and training to meet the standard’s requirements.
• Systematic implementation: RTMS is not a quick- x solution but a continuous improvement process. Engen established clear policies, monitored compliance, and maintained detailed records of eet operations to ensure ongoing adherence.
• Employee involvement: drivers and eet managers play a critical role in compliance. Engen ensured that all staff were trained and understood their role in maintaining road safety standards.
• Leveraging technology: data-driven decision-making, eet telematics and onboard vehicle management systems were instrumental in optimising eet performance and ensuring compliance with RTMS.
• Third-party certi cation: independent audits and veri cation, such as those conducted by JC Auditors, ensured credibility and provided objective assurance that Engen complies with international certi cation requirements. Engen’s achievement sets a new benchmark for the transport industry. It proves that RTMS certi cation not only validates industry best practice, but is also bene cial for companies that are serious about safety, ef ciency, and sustainability. As more organisations follow this example, we move closer to a future where South Africa’s roads are safer, eets are more ef cient, and businesses operate with greater responsibility.
Engen Petroleum has set a new benchmark in road transport safety, becoming the first and only oil company in South Africa to achieve Road Transport Management System (RTMS) certification for its entire national fleet of heavy vehicles.
Oliver Naidoo
The transformative potential of automation
A recent study highlights the pain points for warehouse operations, while providing potential solutions, writes NEIL GOUVEIA , sales director of Zebra Technologies Africa
Zebra Technologies recently released its latest Warehousing Vision Study, “Elevating Every Move: The Formula for High-Performance Warehousing.” This comprehensive study explores the transformative potential of automation in warehouse operations. Let’s unpack the implications of these ndings for local warehousing and supply chain dynamics.
Key findings
The study highlights the transformative impact of automation on warehouse operations. It reveals that 63 per cent of warehouse leaders globally plan to implement arti cial intelligence (AI) and augmented reality technologies within ve years. The study also shows a strong intention to invest in warehouse modernisation, with 64 per cent globally planning to increase spending in this area over the next ve years. Frontline workers emphasised the necessity of these advancements to meet business objectives, with 85 per cent globally stressing the urgency.
Safety
and workforce capacity
Safety and workforce capacity are major concerns highlighted by frontline workers. The study found that 72 per cent globally worry about safety on the warehouse oor, particularly regarding injuries. Additionally, 69 per cent globally reported a lack of quali ed staff, with concerns about fatigue and exhaustion also prevalent. The solution
lies in leveraging automation to enhance safety and ef ciency, reducing the physical strain on workers and improving overall workplace conditions.
Collaborative robots and mobile technologies
Collaborative robots and mobile technologies are pivotal in resolving workplace issues. Warehouse associates believe that these tools can signi cantly alleviate workload pressures, with 88 per cent globally advocating for their use. These technologies not only streamline operations but also make warehouses safer and more ef cient. Automation and mobile technologies can help attract and retain talent, with 89 per cent globally feeling more valued when provided with these tools.
Benefits of AI applications in warehouses
AI applications are expected to revolutionise several aspects of warehouse operations. The study indicates that 79 per cent globally anticipate AI will enhance safety by detecting potential hazards. Additionally, 78 per cent believe AI will improve quality control and issue detection. Its impact extends to inventory management, with 77 per cent foreseeing improvements in forecasting needs and optimising stock levels.
Growing warehouse space and labour costs
According to Interact Analysis, global warehouse square footage is projected to
SIXTY-THREE PER CENT OF WAREHOUSE LEADERS GLOBALLY PLAN TO IMPLEMENT ARTIFICIAL INTELLIGENCE AND AUGMENTED REALITY TECHNOLOGIES WITHIN FIVE YEARS.
increase by 27 per cent, reaching 3.9 billion square metres by 2030. This expansion, coupled with a seven per cent annual growth rate in warehouse labour costs, underscores the need for technological advancements. As daily order volumes rise, automation becomes essential to maintain ef ciency and meet customer expectations.
Meeting service-level agreements
More than half of warehouse leaders globally struggle to maintain ll rates and prepare orders, while order accuracy and outbound processes represent signi cant operational hurdles. The rise in e-commerce has heightened the demand for faster delivery, making it a top priority for warehouse teams. Automation and technology integration are critical for overcoming these challenges and enhancing service delivery.
AUTOMATION PLAYS A VITAL ROLE IN IMPROVING WORKER MORALE AND PRODUCTIVITY.
Improving worker morale and productivity
Automation plays a vital role in improving worker morale and productivity. The study shows that 81 per cent globally agree that providing technology tools helps exceed productivity goals while reducing physical strain. Automation not only enhances ef ciency but also fosters a positive work environment, leading to higher employee satisfaction and retention.
Supporting warehouse leaders
Zebra Technologies Africa is dedicated to assisting South African warehouse leaders in navigating the complexities of digital transformation. The company provides innovative solutions that enhance automation and streamline operations, enabling businesses to meet evolving customer expectations, and is committed to ensuring that South African warehouses remain competitive and ef cient in the market.
#WEAREEVO
Checking back: 4 great uses for Evo Shuttle
Hundreds of customers have put their trust in the Evo Shuttle. Whether it’s for storing small parts, fulfilling orders or providing parts for production, the automatic storage system is there to support our customers’ processes with its top performance and maximum flexibility. Today, we’d like to introduce four applications for the Evo Shuttle in different industries to show just how flexible our system is.
Beauty & Lifestyle
ARVATO: OMNICHANNEL FULFILLMENT FOR PREMIUM BEAUTY PRODUCTS
As one of the leading third-party logistics providers (3PLs), Arvato uses innovative technologies to develop bespoke solutions for their B2B and B2C customers. This is also exactly how we developed an automation solution for the DOUGLAS Group in Hamm, Germany in a project focused on consolidating six warehouses into one central one that would fulfill orders for all distribution channels, supporting the DOUGLAS Group’s omnichannel strategy and facilitating continued growth.
The pride of this omnichannel solution is the Evo Shuttle 2D. Worldwide, it’s the largest 2D shuttle solution in the cosmetics sector and offers top flexibility while making the most of the available space, storing and retrieving 12,500 containers per hour. Upon retrieval from double-deep storage, containers are transported onward for further picking. The system allows Arvato to handle significant differences in order structures and flatten peaks, making it ideal for the stringent requirements of omnichannel fulfillment in the beauty and lifestyle sector.
ARVATO IS EVO
Variant: Evo Shuttle 2D
Application: Omnichannel, B2B and B2C
Storage locations: 132,000
Active SKUs: 70,000
Delivery window: Same-day or next-day delivery
Performance: 5,500 orders / hour, 400,000 items / day
THE RISE OF THE MACHINES
The product handling sector is embracing automation to streamline logistics and meet growing demands for efficiency and innovation, writes
HEIMO ROBOSCH , executive vice president of KNAPP
In the current economic climate, consolidation in the product handling technology sector is being driven by a number of crises and uncertainties. However, the medium- to long-term outlook remains positive, with the sector powered by labour shortages and the need for global competitiveness.
Automation is being embraced as a key solution to the sector’s challenges, with a focus on technologies that can adapt to workload uctuations, reduce training times and automate non-value-adding tasks.
A prime example of this trend is the use of autonomous mobile robots (AMRs) in storage and logistics. These robots, equipped with advanced sensors and arti cial intelligence (AI)-based navigation software, can autonomously handle complex internal transport jobs, signi cantly increasing ef ciency and compensating for personnel shortages. This technology is particularly bene cial in environments with high demand for fast delivery, diverse product ranges, and easy integration of returns. In combination with automated small parts Goods to Person Systems like Evo Shuttle, KNAPP networks different production areas simply and intelligently.
Automating automotive production
Magna, one of the largest automotive suppliers in the world, highlights the signi cant bene ts of automation in terms of ef ciency, speed, product handling and data processing at its production site for side mirrors in Germany. To keep pace with the changes in logistics and to be able to operate exibly with a high level of vertical integration, Magna opted for an automation solution from KNAPP.
Part of the new system is the storage and picking system, Evo Shuttle, implemented in combination with Open Shuttles for container transport. The solution supplies production and assembly just-in-time and just-in-sequence. The new small parts warehouse, with 20 300 storage locations, is connected to six Open Shuttles, which supply the decentralised production workstations. This solution, which combines an automated warehouse with autonomous mobile robots, allows Magna to design its processes in a much simpler and more ef cient way, and makes it possible to respond more quickly to customer requests.
The multifunction Pick-it-Easy workstations can be used for the put-away process or for assembling, depending on the workload. Thanks to the simplicity of the system, its operation is clear and easy for staff to operate.
The autonomous and exible Open Shuttles reduce in-house traf c and integrate seamlessly with the environment. The Evo Shuttle is designed to accommodate future growth.
The storage system can be expanded in terms of both storage locations and workstations. It is, moreover, a simple matter to introduce connections to further production lines with the Open Shuttles. When more performance and throughput are called for, more shuttles (including more Open Shuttles) can be added to the storage system. This solution makes it possible to increase the depth of added value and improve exibility, thus offering added value for Magna’s customers.
Integrated solutions
Companies like KNAPP are leading the way with all-in-one portfolios that offer comprehensive solutions covering everything from order ful lment to storage technologies, seamless software integration and long-term service, combined with AI-powered data analytics to provide management and staff with the right information at the right time. Demands such as fast delivery, greater product ranges, greater customisation in orders and an easier integration of returns require dynamic and fast shuttle systems, and a higher degree of automation in general. Against this backdrop, it is important that logistics is not viewed merely as a collection of isolated technologies, but rather as complete concepts in the form of an all-in-one portfolio. This is precisely where KNAPP has focused its attention in recent years, with the aim of perfecting its toolkit.
ROBOTS, EQUIPPED WITH ADVANCED SENSORS AND ARTIFICIAL
INTELLIGENCE-BASED NAVIGATION SOFTWARE, CAN AUTONOMOUSLY HANDLE COMPLEX INTERNAL TRANSPORT JOBS.
Heimo Robosch
From farm to port:
South Africa’s fruit logistics challenges
Fruit exporters represent a major contribution to the economy, but they need better rails, roads and ports says JAMES FRANCIS
The fruit industry is a cornerstone of South Africa’s agricultural sector and a strong contributor to employment, exports and gross domestic product, but it has faced serious logistical challenges for some time. Honing in on South Africa’s citrus industry, is the future a cornucopia of fresh fruit or rotting produce?
A bountiful industry
The local citrus industry delivered over R44-billion in exports during 2023 and is the second-largest global citrus exporter, according to the Observatory of Economic Complexity. The European Union, United Kingdom, United Arab Emirates, Russia, and the United States are all substantial clients. Overall, citrus is South Africa’s eleventh mostexported product.
In spite of this, the citrus market is facing a complex web of logistical challenges that threaten its global competitiveness. Extreme weather events, social unrest, logistical shortfalls and load shedding have caused both production disruptions and severe price in ation.
The journey from the orchard to the export market is fraught with unnecessary obstacles, primarily stemming from the underutilisation of rail, over-reliance on road transport and port inef ciencies.
“An independent study by the Bureau for Food and Agricultural Policy, released in February, found that the combined direct and indirect cost of inef cient logistics to the citrus industry was a staggering R5.27-billion during the 2024 season alone,” says Justin Chadwick, CEO of the Citrus Growers’ Association (CGA). “This represents a debilitating loss of foreign revenue to the country and a setback to creating desperately needed jobs. The huge cost makes it clear that large-scale public-private partnerships at ports across South Africa are urgently needed.”
Spoilt logistics
Challenges with citrus logistics can be divided into three areas: railway, road, and ports. The nation’s extensive rail network, once a crucial artery for fruit exports, has fallen into disrepair. Problems started in the mid-2000s, when a switch in shipping container systems created problems transporting fruit, reducing the use of rail for moving fruit exports to ports from 90 per cent to less than 1 per cent.
Most of these shipments — as much as 99 per cents — now take place by road. According to Fruit South Africa, this
Delays at Durban and Cape Town’s harbours have cost the fruit industry billions in lost revenues.
EFFICIENCY AT THE SOURCE
Citrus growers may be facing issues when moving produce across the countries and onto ships for export, but they generate substantial efficiencies during growing, harvesting and transport by reusing components.
For example, the pallets used for shipping produce can create “empty miles” as they need to be shipped back to the original site once the produce has been offloaded, then stored for future use. They can also be damaged, creating a cost pressure for farming operations.
Specialised logistics companies, such as CHEP, resolve this issue by providing an ecosystem of reusable pallets. The farms order the pallets beforehand, and once used, CHEP collects them from the shipping destination. It maintains the pallets, using its scale and multiple locations to make them more affordable.
represents around 135 000 road truck trips annually: 480 million kilometres at a cost of R969-million, increasing transport costs by 47 per cent since 2009.
The fruit sector and state stakeholders have been working on the issue, but it’s not simply a case of adopting container standards. Delays, inef ciencies, mismanagement and corruption, and rampant cable theft and vandalism have made railways less competitive and accessible.
Switching to road transport has added more issues. Road infrastructure suffers from rapid deterioration, increased maintenance costs, and higher transportation expenses. Chronic under-maintenance is a constant issue, especially in the more rural provinces where citrus growers are concentrated, such as Limpopo and the Eastern Cape.
Commenting on this impasse between the reliance on roads and underdeveloped rural networks, Chadwick says that “urgency is needed, especially because of the scale of the increases in production,” referring to the CGA’s prediction that output will rise by 25 per cent over the coming years. Road freight is not ideal for fruit shipment, and delays caused by traf c jams and poor conditions can result in spoilage of time-sensitive produce.
The problems don’t end when the freight arrives at ports. Durban and Cape Town are South Africa’s two key fruit export hubs, but both rank alarmingly low in the World Bank’s Container Port Performance Index. The problems here are complex, though many relate to underinvestment and mismanagement, leading to delays in cargo handling, customs clearance, and vessel turnaround times. Such issues are detrimental for most products, but for fruit, they are often terminal.
Green shoots
Addressing these logistical challenges requires a multifaceted approach. There is much at stake: the citrus sector expects to create thousands of new jobs as exports ramp up, forecasting that by 2032, the industry will produce 260 million cartons, generating 100 000 sustainable jobs and R20-billion in foreign exchange earnings.
Revitalising the railroad network through infrastructure upgrades, improved service delivery and enhanced security measures is crucial. Investing in road maintenance and expansion, particularly in rural areas, is equally essential. Streamlining port operations and investing in modern infrastructure will enhance ef ciency and reduce delays.
Stakeholders are tackling the situation, and public-private partnerships are delivering the best solutions, says Chadwick. “While the ndings of the impact assessment are deeply concerning, the CGA views this as an opportunity to collaborate with stakeholders and implement effective solutions. Public-private partnerships are the only long-term way to ensure logistical ef ciency.”
Such partnerships are underway, such as the Tonnage Off Tar initiative that encourages better shipment logistics to move more fruit back onto railways. There are also proposals to improve railway operations: for example, the Africa Railway Industry Association noted that by improving signalling technology on a 710km rail corridor between Johannesburg and Durban, which currently uses 50-year-old technologies, transport times can reduce from 3 days to 10 hourss — meaning more revenue for national railway operator Transnet.
EXTREME WEATHER EVENTS, SOCIAL UNREST, LOGISTICAL SHORTFALLS AND LOAD SHEDDING HAVE CAUSED BOTH PRODUCTION DISRUPTIONS AND SEVERE PRICE INFLATION.
Roads also stand to bene t, invigorated by the Government of National Unity’s fresh energy. South Africa’s new Minister of Public Works and Infrastructure, Dean Macpherson, tweeted in July last year: “My message is simple. I want to turn our country into a massive construction site that drives growth which creates jobs. We want to see building cranes in every town and city.”
Apart from initiatives to restructure underperforming state infrastructure units and claw back wasteful expenditure, the department is also launching improvements such as Mpumalanga’s Road Maintenance Management System (MMS), a centralised digital solution that streamlines road maintenance activities.
South Africa’s ports have arguably been receiving the most urgent attention following dismal performance reports. Examples of these improvements include introducing new gantry cranes at Cape Town’s container terminal, increasing Durban Port’s tug eet, and accelerating private sector participation in managing port facilities.
Ready to ripen
The fruit sector is actively driving change. For example, the CGA has been instrumental in reducing freight rates for shipments, a welcome reprieve for producers.
“In 2022, four out of ve citrus growers made a loss, largely because of a massive increase in shipping rates, which was also related to the pandemic. In 2023, things looked somewhat better. But in 2024, the CGA was instrumental in facilitating new shipping services for South African citrus growers. The additional new services by Hapag-Lloyd and MSC were a huge success in the 2024 season and certainly increased ef ciency and competition in the market,” says Chadwick.
The citrus sector welcomes the enthusiasm to address the country’s logistics shortfalls, but there is no room for complacency if the country wants to bene t from the sector’s growth.
“While there has been progress by Transnet in the last year, speci cally container terminal ef ciency and the underutilised rail network remain serious impediments to growth in our industry. Because citrus production will be increasing in the next few years, the ports especially must be able to handle the increasing volumes,” Chadwick concludes.
