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Logistics & Transport Trends

#BizTrends2018: The king's demand dictates

Throughput is imperative in business. The challenge is to mitigate barriers negatively impacting throughput.
Harry van Huyssteen
Harry van Huyssteen

The mitigation process also is a challenge should the stakeholders operate in an unintegrated and unaligned process. Mandatory collaboration is orchestrated through legislation and regulation.

The Draft White Paper for National Rail Policy in South Africa will be presented to Parliament in 2018. This might not have a direct impact on our GDP in 2018, but surely many alignments and planning will commence to leverage on things called upon in this draft, for example:

  • Devolution of rail services from national to provincial and local authorities
  • Development of side branches and associated concessions
  • Introduction of competition on rail
  • Introduction of standard gauge on main routes allowing for high-speed rail services and double stacking

You can get the document here.

The customer is king!

Or, shall we say: The king’s demand dictates.

Digital transformation is changing the ball game substantially. The king’s demand and decision-making processes are influenced by ease of access to secure commerce and a pleasant experience. The brand is not necessarily the ultimate choice anymore, but the experience in making the decision.

The textile industry might still have a competitive edge in that of customers still having to find the right size and fit, but the bricks and mortar scenario is going to change. This will have an impact on the logistical supply chain. It's expanding and becoming more volatile.

Yesterday's business becoming tomorrow's stock levels

The last mile now becomes the customer’s doorstep. Yesterday’s business is becoming tomorrow’s stock levels.

The role technology is playing in enabling this platform for commerce is instrumental from both the demand and supply perspective.

The industry will align with this transformation. A few examples are:

  • Authorities and operators will provide infrastructure for commuters to transact while in transit
  • Retail will make sure they have an online presence to compete. They will now have to compete internationally with consumers having access to international options and delivery channels
  • Courier companies will become prominent delivering the last mile
  • Proximity marketing will be deployed by more retailers to capture the customer’s attention as soon as possible
  • Big data will enable retailers to track and predict customer behaviour

Authorities and business leaders moving closer to each other

Authorities and business leaders are moving closer to each other. A shopping mall, suburb, medical centre, etc. cannot be built in isolation anymore.

The Spatial Planning and Land Use Management Act of 2013, amongst others, provides for the redressing of the imbalances of the past, and to ensure that the system for spatial planning and land use management promotes social and economic inclusion.

Planning for the future should have a positive impact on the public, on everybody.

Business will have to leverage on this positive trend providing for integrated platforms and infrastructure reaching all spheres of civilisation.
Big data

Again, big data will play a major role in this. Where and when are people moving for how long and why? What is their experience during the process?

Businesses and authorities will have to ask themselves how they can make life easier for them.

Read more Logistics trends articles in the BizTrends2018 special section.

About Harry van Huyssteen

Harry van Huyssteen has a diverse background with experience in training, in senior management, strategic business development and management consulting. His experience spans the private and public sectors mainly in education, broadcasting, IT management, health and transport. He started the Transport Forum almost 11 years ago as a business development initiative for the state-owned arivia.kom. This initiative soon became an asset for networking and content provision in the South African transport sector: www.transportsig.com
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