As road freight operating costs hit an all-time high, now, more than ever, it is critical for all operations to be visible and transparent. So says Alex Terre’Blanche, project lead at Forte Transport Solutions (FTS).Speaking to Freight News, Terre’Blanche says it is important to utilise resources effectively, which is why cumbersome industry processes should be digitalised.“Currently, the vast majority of the last-mile logistics and fast-moving consumer goods (FMCG) sector has no visibility with regard to their f leet, load execution, proof of delivery, refuelling or incidents. Drivers provide updates via a phone call or a message to headquarters. This results in laborious manual backtracking regarding load invoicing, driver hours and exception management. It all happens with pen and paper, and it’s a nightmare to keep track of.”Considering that the current contribution of freight logistics to South Africa’s economy is estimated at 13.5% of GDP – much higher than the international average of 8% to 10% – the increased cost of logistics is unaffordable.Jan Havenga, professor of logistics at Stellenbosch University, says the challenge for South Africa is that even if rail were to triple the current volume of freight movement, it is estimated that road transport would need to increase by 180% to meet the projected freight demand levels in 2043. This shows how essential it is for logistics operations to run in a cost-effective manner.According to Terre’Blanche, it was initially difficult for logistics operators to implement electronic devices in their businesses to control and monitor workf lows. So, many of them refrained from making the switch from pen and paper to faster digital systems for delivery execution, invoicing, checklists and exception management. “Manual systems are inefficient and inaccurate, they duplicate administration tasks, and papers can go missing. This results in payment delays from customers as well as in restricted cash f low and a lack of visibility when it comes to operational regulatory processes.”Terre’Blanche advises logistics operators to consider moving to digital solutions in order to improve the efficiency of their businesses. He says allowing for more visibility and transparency will ensure that their resources are used more effectively.“At FTS, we have launched a solution to the many challenges faced by the road freight sector,” he says. “By introducing cost-effective route and order sequencing, and enforcing optimised electronic workf lows, we provide operational visibility through accurate data capturing, a legally binding electronic proof of delivery, the digitalisation of operational tasks and real-time monitoring. “This is solving the many industry headaches we’ve had in the past.”Terre’Blanche says road volumes are increasing despite record-high operating costs, especially in the face of rapidly expanding e-commerce. “As road freight volumes are increasing, so too is the challenge of managing the operational side, f leet efficiency and reporting. Companies that are not focusing on their ability to optimise operating processes and reduce inefficiencies will be unable to compete or grow within this industry.”He says it is imperative for logistics operators to look at software solutions such as FTS’s FLOW, a mobility workf low and automation system that provides organisations with end-to-end visibility into their operations.
