Recent years have seen massive advancement in technology for the logistics industry which has always been notorious for its heavy reliance on manual processes. Freight News spoke to Michael Henning, sales director of EasyClear, about technology trends in the industry.FN: Digitalisation has introduced new ways of handling data – what has been the impact on clearing and forwarding? MH: The Fourth Industrial Revolution (4IR) and the digitalisation of the supply chain has been accelerated by the Covid-19 pandemic, bringing into sharp focus the existing gaps in the process and submission of manual documentation due to legislation and misaligned processes. Revenue authorities have had to quickly align and coordinate regionally to prevent the spread of the pandemic through these manual processes. This in turn has led to innovative measures and the acceleration and adoption of the South African Customs Union (Sacu) Authorised Economic Operator (AEO) and South African AEO programmes. Clearing and forwarding agents have been in a position for the most part to integrate and share data through digital channels, facilitating trade and the exchange of data for a more efficient supply chain.FN: How does South Africa compare with the rest of the world when it comes to technology? MH: South Africa, I believe, is on par with the rest of the world. On the continent it is certainly ahead where technology is concerned. IT connectivity remains a challenge, which has been identified and taken up by Sacu participants. It certainly creates or is a non-tariff barrier for trade and must be addressed and overcome if the continent is to implement an effective African Free Trade Area (AfCFTA) and promote trade. South Africa is one of the leading countries on the continent with the adoption of 5G and other connectivity, though infrastructure remains the constraint in the furthest or more remote border regions. When it comes to technology and the private sector, they remain ahead of the pack, leading with innovation and ideas to create a more resilient supply chain.FN: The Internet of Things (IoT) is often brought up in conversations – what does it mean for freight forwarding though? Where are we in South Africa with this? MH: In my opinion IoT is still a largely unknown or misunderstood concept. It has huge potential and benefit for forwarding and clearing as it connects the supply chain, providing visibility, monitoring and decision-making in real time.FN: Robotics and machine learning are other futuristic trends that are on the horizon. What is your outlook for the clearing and forwarding industry with reference to this?MH: We have clients who have implemented robotics (AI) and machine-learning solutions with which we are currently integrating. This is an exciting futuristic trend that we will see more of in this industry. You certainly are already seeing such applications automating the warehouse management system (WMS) space currently.FN: I also want to ask you about cloud-based solutions. Some say the freight industry will exponentially increase productivity as data becomes more readily available? Is this the case?MH: I agree that the freight industry is set to exponentially increase its productivity as cloud-based, and better yet truly web-based software as a service (SaaS) applications are adopted, since they enable staff to work remotely and access data anywhere and at any time with a simple internet connection, thus enabling IoT. FN: And finally blockchain? How big a development is this in the freight sector and what do you think the outlook is for this?MH: There are various blockchains and different platforms available. The freight sector has already seen the uptake of this within the sea freight environment and there are private sector initiatives for the implementation of a blockchain within the retail environment. I believe that this trend will continue and you will see more and more public/ private participation in this development going forward.The freight industry is set to exponentially increase its productivity as cloud-based, and better yet truly web-based software as a service (SaaS) applications are adopted.Michael Henning
