The rapid rise of Uber –
which has fundamentally
challenged the taxi
industry – should send
a clear message to the business
world at large about embracing
change and thinking strategically
in the face of the string of
megatrends confronting it.
For the logistics industry
technology, big data, e-commerce
and the internet of things are just
some of the potential ‘disruptors’.
And while many megatrends
may seem so far away that we
don’t necessarily have to deal with
them right now, nothing could
be further from the truth, says
Barloworld Logistics marketing
executive Kate Stubbs.
“A few years ago Uber was an
almost unknown brand. They
are now looking at parcels and
are viewed as one of the largest
logistics companies in the world,”
said Stubbs.
“It’s a fabulous business model.
Effectively they are controlling
information and connecting
people but they don’t own any
assets.”
There are several other concepts
that currently seem as far-fetched
as Uber did a few years ago – but
they will become real very quickly.
“Autonomous vehicles are being
tested in many countries. We need
to ask what that means from a job
and from a safety perspective. It
will take a while to come into the
mainstream but
it’s coming.”
Major car
manufacturers
and several
technology firms
have announced
the commercial
production of
highly automated
vehicles starting
in 2017,
according to a
report released recently by the
International Transport Forum.
Many observers expect a wide
range of models on the market
by 2030 although it is unclear
to what extent these will be
capable of self-driving in all
circumstances.
Another example is 3D printing.
“We can all buy a 3D printer right
now – and the impact is fascinating.
It fundamentally changes the supply
chain. We’ll either be printing our
goods in our own homes or setting
up a warehouse with 3D printers
and distributing from there.”
Then there’s
the advent
of robots.
“Amazon
already has
over
15 000
robots
operating in
its facilities.”
And
while local
players
believe that such solutions
are not realistic in the short
term, the reality is that all
of these things are coming
faster than we think, says
Stubbs, “which is why we
need to embrace change
and start thinking more
strategically.”
And that’s at all levels –
from a personal level, an
industry level, a company level
and a country level.
“These elements talk to the
different skill sets that are
required and the
talent dearth
which is a
major issue
locally and
globally.
We need
different
competencies – analytical, change
management and strategic ability.”
This is particularly relevant in
the South African context where
the industry is facing a plethora
of new regulations that will
fundamentally affect the supply
chain.
“There’s the new labour
relations act with regards to
labour brokers, the new BBBEE
codes, e-tolls, the truck ban,
consignor/consignee legislation,
carbon emissions … the list is
endless.
“With all these new legislations,
now more than ever industry
and government need to find a
way of constructive engagement.
While there’s been a huge outcry
about the proposed truck ban
from the road transport industry,
it will also critically affect the
ports – and goods won’t reach
retail shelves for consumers.
The down-the-line implications
haven’t been thought through and
we need to find a way of engaging
constructively.”
What becomes very relevant,
says Stubbs, is how you lead in
uncertainty. “There is no normal
– and mitigating your risks in an
uncertain environment demands
agility.”
It’s about forming smart
partnerships, collaborating,
finding different ways to run the
business, and finding the right
people with whom to partner for
a solution.
One of the statistics in the
Supplychainforesight survey
undertaken by Barloworld
Logistics revealed that 30% of
respondents did not feel that
their organisations were at risk
from market and technology
transformations, which means
they had either strategised to
deal with the threat of change
or did not understand or believe
that the changes were likely to
impact them.
Clearly only those who have
the strategies in place are likely
to survive.
INSERT & CAPTION
There is no normal — and
mitigating your risks in an
uncertain environment
demands agility.
– Kate Stubbs
