In a rapidly evolving business landscape, logistics companies need to stay ahead of the competition – and this involves investing in and launching new products as a pivotal part of their strategic approach.This proactive stance enables companies to enhance efficiency, optimise supply chains, and foster stronger client relationships, says Paul Danvers, commercial director for Groupair South Africa."Over the past year, we have launched several new products as part of our ongoing commitment to meeting the ever-changing requirements of our clients. We have grown our online express business significantly, where customers now have access to a system to log in and create their shipments as and when required."According to Danvers, the company has also introduced a regular consolidation service from Europe and Asia for import cargo and developed a market-leading position on exports to many vital African markets.UK office opened"In addition, the Groupair brand has opened an office in the UK, and we are now actively working on the same in the US and the Middle East and strengthening key partnerships in Hong Kong and China. As part of the HAE Group, we have global access to a large network of group-held companies, meaning that we can offer multimodal solutions to our customers."This is particularly important considering the ever-increasing fuel cost driven by global oil prices. "There are multiple challenges facing the logistics sector, and cost remains at the top. High interest rates and a weak rand versus key trading currencies have significantly strained importers. It is, therefore, imperative for service providers to be able to offer a variety of solutions to clients."Logistics service providers across the board are dealing with increased operating costs which are, in turn, impacting negatively on profitability. "Risks associated with the road transport sector are significant, and although we do not operate in that space, the impact on the economy ultimately affects all sectors negatively," says Danvers. "The ongoing war in Ukraine has also resulted in supply shortages and raw materials being sourced elsewhere, further increasing the cost of manufacturing and placing more pressure on the supply chain to reduce costs, again impacting negatively on logistics service providers."In these challenging times, many providers are moving away from single-mode service providers to multi-mode solutions. By doing so, they can ringfence customer needs and provide multiple solutions to optimise costs, says Danvers.Focus on automation"The logistics sector is key for our economy and will never cease to exist. Opportunities remain for those service providers ready to adapt to the industry's challenges and ensure appropriate and ongoing negotiations to optimise transport costs. Process automation and a digital strategy are key to reducing costs, and more and more logistics providers are moving away from traditional methods of operation and embracing technology. We are in the middle of doing this via our own self-developed software."He says change is imminent, and companies that are f lexible, agile and able to adapt will remain sustainable. "The South African logistics sector will continue to be relevant, albeit facing economic pressure because of high unemployment, high interest rates and a weak currency. This will result in logistics providers looking inward to ensure that their efficiencies are optimised."For Danvers, an ongoing concern is the road transport network which is at risk due to poor infrastructure and criminal activity. "The government will have to rejuvenate the rail network to alleviate pressure on the road," he says. "There is a push to lessen road transport and to invest in a rail network to mitigate the risks on road transporters and road infrastructure. Given the state of the local economy and the drive to reduce input costs, the logistics sector will increasingly see itself being pushed to deliver lower transport cost options within the supply chain."According to Danvers, the air logistics sector will continue to face pressure due to high global oil prices. He highlights the pivotal requirement for meticulously balanced economics in air transport to ensure airlines and customers find operations viable. "Any sudden or sustained increase will force customers to consider alternative options, such as sea freight. Given the concurrent challenges and delays witnessed at South African ports, customers will be in a dilemma, unable to solely prioritise cost efficiency. Consequently, logistics providers face intensified margin pressures as they navigate this intricate landscape."
