How Blockchain Is Revolutionizing the Logistics & Transportation Industries.

 

Blockchain technology is improving transportation and logistics, making companies more efficient and profitable by improving workflow!

The problems blockchain are addressing.

From dispute resolution to administrative efficiency and order tracking, blockchain has the answer to the problems that have been plaguing the transportation industry for decades. 

Let’s explore some of these issues.

• Every day, there are billions tied up in disputes for payments in the transportation industry.
• Processing and administration costs have risen to as high as 18% of transportation’s overall costs, due to over-reliance on paper transactions and out-date technologies.
• 89% of trucking companies have six trucks or fewer. This causes the industry to struggle with matching shippers (demand) with carriers ( supply).

How blockchain enables efficiency and cost-saving in business operations for the Industry.

Let’s explore the ways blockchain technology is already improving the industry:

• New Blockchain-enabled platforms will allow easy coordination of documents on a shared distributed ledger, making physical paperwork largely unnecessary.
• By using smart contracts, approvals and customs clearance can be quicker and more efficient, reducing processing times for goods at customs checkpoints.
• Organizations need updated, secure and authentic data to make decisions. Blockchain ensures trustworthy data across the transportation and logistics ecosystem, since the entire network contributes to data validation.
• With rising demand for same-day and one-hour delivery services, traditional tracking technologies will not scale. Blockchain technology provides a scalable, immediate solution for order tracking and authentication.

Is Blockchain And the Logistics Industry a Match Made In Heaven?

Companies in the logistics and transportation industry sink or swim based on their ability to adapt to consumer needs, and implement new technologies that help them increase efficiency and lower the costs of shipping.

In the past year, blockchain technology has emerged in the world of trucking and logistics as a solution to some of the major inefficiencies that have plagued the industry for decades.

But there’s one problem:

For most business owners, blockchain is no more than a buzzword, and its applications can be obscure and difficult to understand.

It’s all over the news and it seems to be taking over and revolutionizing every industry.

But what is blockchain technology? And more importantly, how can it be applied to the transportation industry in a way that benefits both business owners and consumers?

In this post, we’re going to explore how blockchain addresses some of the major issues in trucking and is set to revolutionize the industry.

Why Has Blockchain Crossed Into the World of Transportation and Trucking?

20 years ago, if you were to tell a trucking expert about the amount of innovation that would hit the trucking, logistics and transportation industry over the next two decades, they would be ecstatic.

If you were to tell that same expert the level of demand for same day shipping and the volume of online transactions leading to expedited delivery, they would be speechless.

The industry has come a long way.

Technological and procedural developments in logistics have bolstered the transportation industry’s ability to efficiently service an all time high in demand — all while adjusting to an evolution in consumer preferences and expectations concerning delivery time and cost.

Even so, the trucking industry is far from perfect.

And that’s where blockchain technology comes in to save the day.

 

Let’s explore some of the key areas in which the industry struggles in terms of efficiency, cost and service to the end user.

Opportunities For Improvement In The Trucking Industry

Transportation Payment And Dispute Resolution

Every day, there are billions tied up in disputes for payments in the transportation industry. To put things into perspective, that’s equivalent to the GDP of a small country.

For an average invoice, a company must wait 45 days on average before receiving payment. Many businesses have millions of dollars tied up in their accounts, which they could be using to advance their business, improve delivery times and better serve end users.

Administrative Costs

Processing and administration costs have risen to as high as 18% of transportation’s overall costs, due to over-reliance on paper transactions.

IBM and Maersk performed an experiment where the companies tracked a shipping container of flowers from Mombasa, Kenya, to Rotterdam, the major port in the Netherlands.

They found that just a simple refrigerated shipment went through more than 30 different organizations and required over 200 separate communications. Any lost form or delayed approval could hold up the container in port indefinitely, or get it lost altogether.

LTL Inefficiency

90 percent of trucking companies worldwide have six trucks or fewer. This causes the industry to struggle with matching shippers (demand) with carriers (supply).

Due to this issue, it’s estimated that truckers drive 29 billion miles per year with partial or empty truckloads. In case you were curious, that’s equivalent to just over a million trips around the full circumference of the earth.

This inefficiency in consolidating LTL loads costs trucking companies millions of dollars every year. It also raises shipping costs for consumers

Next Generation Load boards...

Laaimylorrie.com is a Southern African-based transportation and logistics networking company. The company’s primary goal is to connect transporters and freight forwarders in the Southern African business community. Laaimylorrie.com was launched in 2011 by Andre Klynsmith and Alex Silheu, who aimed to bridge the gap in the transportation and logistics industry in Southern Africa.

Laaimylorrie.com offers a comprehensive online business directory that allows transport and logistics service providers to list their businesses in various categories, including bulk transport, car hire, courier service, emergency services, sea freight, truck sales, and many more. The directory increases businesses’ visibility and exposure, which helps to establish them as trusted and reputable providers of transport and logistics services. Potential customers who find a business on Laaimylorrie.com’s directory are interested in the services offered, which leads to increased potential leads.

Laaimylorrie.com’s freight quote request system allows customers to request quotes from relevant service providers listed within the business directory. This system saves customers time and effort in finding the right service provider and sends out RFQs automatically to all businesses listed within the relevant category, ensuring that businesses do not miss any potential leads.

Laaimylorrie.com is researching blockchain development and integration into its platform and fleet management system. Blockchain technology can provide enhanced supply chain visibility and real-time information on the location, status, and condition of goods. The technology can improve traceability and compliance and create an immutable record of every transaction and movement of goods. Furthermore, blockchain technology can facilitate faster and more secure payments in the transportation and logistics industry, enhance collaboration and efficiency by enabling stakeholders to share data and information in real-time, and improve security by providing a secure and tamper-proof record of all transactions and movements of goods.

The adoption of blockchain technology in the transportation and logistics industry requires collaboration between stakeholders, standardization of processes and protocols, and investment in infrastructure and training. Laaimylorrie.com aims to provide this technology to its users, enabling them to take advantage of the benefits of blockchain technology in their operations.

Laaimylorrie.com also offers a range of other services, including fuel management and trip planning, vehicle tracking, driver management, and other fleet management services. These services help businesses optimize their operations, reduce costs, and increase efficiency.

Laaimylorrie.com also provides training and development programs to help businesses enhance their skills and knowledge in the transportation and logistics industry. The programs cover a range of topics, including compliance, safety, and security, and are designed to improve business operations and profitability.

Laaimylorrie.com is committed to providing its customers with the best possible service and support. Its team of experts is available to assist customers with any questions or concerns they may have, and the company is continually investing in new technologies and services to ensure that it remains at the forefront of the transportation and logistics industry in Southern Africa.

In conclusion, Laaimylorrie.com is a transportation and logistics networking company that connects transporters and freight forwarders in the Southern African business community. Its online business directory, freight quote request system, fleet management services, and training and development programs are designed to help businesses optimize their operations, reduce costs, and increase efficiency. Laaimylorrie.com is also researching blockchain development and integration into its platform and fleet management system, which will enable users to take advantage of enhanced supply chain visibility, real-time information on the location, status, and condition of goods, faster and more secure payments, improved collaboration and efficiency, and enhanced security. Laaimylorrie.com is committed to providing its customers with the best possible service and support and is continually investing in new technologies and services to ensure that it remains at the forefront of the transportation and logistics industry in Southern Africa.

Transport company secures funding to expand

DKN Transport, a level 1 B-BBEE contributor with a 30% black female shareholding, has secured funding from The Engen Convoy Fund to enable this proudly South African privately owned company to unlock additional market opportunities.

Headquartered in Johannesburg since 2004, DKN Transport provides road freight logistics solutions across various industries, nationally and cross-border into Africa. 

With a history of strong financial performance, supported by a professional and capable team, DKN has proven business resilience in a very competitive market and environment.

Transport and logistics organisations have been particularly hard hit over the last 18 months, due to the effect of the Covid-19 pandemic and declining demand.

The Engen Convoy ESD Fund was established to promote broad-based black economic empowerment (B-BBEE) with the objective of maximising socio-economic development through supporting sustainable supply chain transformation.

The fund, which is proudly managed by established small business development specialist Edge Growth, supports SMEs both within and outside of Engen’s database by providing growth funding for both capital expenditure and business development.

“Traditional logistic companies are still critical enablers to achieving economic growth within the African and South African business eco-system,” comments Hitesh Dullabh, Investment Associate at Edge Growth. “Given the economic impact of Covid as well as the disruption caused by recent events in the country, this investment comes at a great time to contribute to growing the broader logistic supply chain in South Africa and job creation over the long-term”

Through this funding, DKN will be able to expand their fleet size and market offering, with additional job creation as a result.

“We are really pleased about this investment into DKN Transport, which has come at an opportune time, given the tough economic environment we find ourselves currently operating within,” says DKN Director Nevenka Naidoo. “This funding will allow us to continue to drive our customer centric ethos thereby strengthening our key client partnerships, as well as support us in being a prolific employer,” she says.”

 

 

Ways to improve delivery operations overnight

There are several ways technology can be used in the last mile to help your business improve the quality, speed and efficiency of deliveries. 

 But not all solutions can be turned on overnight, and not all are financially feasible for small-to-medium-sized businesses (or budget-constrained large companies, for that matter). 

However, there are four things you can do to improve the efficiency and outcomes of delivery operations almost instantaneously using mobile technologies likely already used in your operations today.

Streamline routing

There are too many orders coming in and too many drivers on the road these days to haphazardly dispatch drivers. And drivers shouldn’t have to guess which roads are best to travel on any given day, even if they are just gig economy contractors. Giving them company-owned rugged devices equipped with easy-to-use dispatch and navigation features is critical to keeping them safe and on time.

For example, a large-screen handheld mobile computer or tablet with GPS could help drivers navigate around traffic jams while sending real-time location updates back to the dispatch team and to the customer monitoring the status of a delivery. Simple voice features such as push-to-talk (PTT) allow for instant, safe communications with the store or warehouse while in transit. And the right software applications can help drivers get to and from the right places at the right time as new pickups and drop-offs are requested.

Minimize the time spent at each stop

Turnaround times are scrutinized by every delivery company. Shaving seconds off each drop can go a long way when you’re up against the clock. That’s why it’s so important to load vehicles correctly up front. But giving drivers a mobile device that allows for a clean scan of parcel barcodes on the first trigger pull also goes a long way to increasing efficiency once they’re on the road. For those delivering non-bar coded items such as food from a local restaurant or a flower arrangement, it can be beneficial to have a handheld mobile computer equipped with a high-resolution camera and/or contactless signature capabilities to capture proof of delivery.

Reducing customer contact

With social distancing still a best practice, many delivery drivers are now being asked to drop items outside doors without ever seeing who comes out to retrieve them. This has made technology use essential to order completion.

A combination of GPS tracking and push notifications using rugged mobile computers can alert customers when delivery drivers are approaching. This allows the customer to guide the driver to a specific drop point to ensure proper distancing is maintained and/or prepare to come out and retrieve the items immediately after the driver returns to his or her vehicle.

If a signature is still required for high-value or high-volume items, such is often the case for direct store deliveries (DSD), a contactless receipt solution should be considered as it helps to keep both delivery personnel and customers safe and socially distanced. Drivers can get a customer signature and issue a receipt without any physical contact whatsoever with the recipient.

Depending on the app design, the only steps customers may need to take to acknowledge delivery is pull out their own smartphones and scan a barcode or QR code presented on the courier’s mobile computer screen. The parcel information and signature line can then appear on customers’ devices for order acceptance. Each recipient’s identity is confirmed, and a valid delivery receipt is generated in real time on the courier’s device.

Improve trust and accountability

Though you may trust your team members and third-party delivery service providers, customers may not. When customers report issues related to delivery delays, missing orders, tampering or damaged goods, you must be able to get to the bottom of things quickly. Delivery drivers can use rugged mobile computers to document every action taken during order fulfillment.

For example, they can scan a barcode and/or snap a picture of the delivered item when there is no direct handoff, so everyone knows exactly where and when the item was left and the condition it was in at the time of the drop. Built-in GPS tracking could be correlated with those data points to help corroborate timelines or locate packages if orders go missing. Taking a picture at the time of pickup also helps with quality control matters and provides a secondary timestamp if delivery delays are reported even though the order left the store, restaurant or warehouse on time.

Just be sure that whatever mobility solution you choose can maintain a strong signal via Wi-Fi or cellular networks. The moment a delivery occurs, everyone should know.

Global supply chains are a house of cards

 

Covid-19 has laid bare many uncomfortable truths regarding society's overall preparedness for low-probability but high-impact events, especially global ones. These range from issues pertaining exclusively to pandemic readiness (like our domestic capacity to produce personal protective equipment, ventilators, sanitizer and vaccines) to matters that are considerably less esoteric, like the ability of global supply chains to operate regardless of the various stresses put upon them.

The latter goes far beyond the toilet paper supply issue experienced early in the pandemic. It expands to include a whole range of products like lumber and other building materials, tools, foodstuffs, seeds, furniture, cleaning supplies, aluminum cans, jars, pools and pool equipment, chemicals, bicycles, camping gear, household appliances and replacement parts of all kinds.

In many cases supply chains have been simultaneously squeezed on both ends — supply and demand.

Production and distribution disruption

While unscheduled closures of manufacturing and distribution facilities, bottlenecks at borders and sick workers have caused choke points in supply lines, people being cooped up in their homes for months on end have driven up demand for a host of products.

There has also been a simultaneous shortage of labor, particularly in the licensed trades.

Throw in other disruptions, like the massive winter storm in Texas in February, the six-day blockage of the Suez Canal due to the grounded ship Ever Given in March and the six-day closure of the Colonial gasoline pipeline in the United States after a cyber attack in early May.

Read more: Cyber attacks can shut down critical infrastructure. It's time to make cyber security compulsory

Also include the fact that shipping containers are being lost in record amounts for various reasons, with more than 3,000 going overboard in 2020 and the 2021 number already hitting 1,000 by the end of April.

The pandemic has shown us that global supply chains are a huge house of cards: fragile enough on a good day, but prone to come tumbling down
when there’s an unexpected breeze.

This has been particularly apparent with the manufacturing of computer chips.

The demand for microchips

Prior to Covid-19, there was already great pressure on the production of microprocessors, micro controllers, motherboards and the like due to limited global production capacity and greater calls for product. The pandemic has placed additional pressure on an already pressed segment, as production and distribution bottlenecks have been met with increased pandemic-driven demand.

Not so long ago, disruptions in the production of microchips tended to impact only the manufacture of smartphones, tablets, computers, external hard drives and, more recently, flat screen televisions.

Today, however, such disruptions also impact the production of automobiles, as chips are increasingly being used in power steering and braking systems, car infotainment systems and other components. Indeed, both General Motors and Ford Motor Company have idled a number of plants in North America due to the global semiconductor shortage. And being relative newcomers to the microprocessor market, automakers don’t have the clout that other buyers have, often leaving them out in the cold when supplies dry up.

The situation for automakers is only expected to get worse as more and more consumer goods get smart via wifi or Bluetooth connectivity.

The growing list of items that require microchips is disconcerting, as these components are almost solely manufactured in some of the riskiest places in the world from a natural disaster perspective: China, Japan, Taiwan, South Korea, Malaysia, Thailand, the Philippines and California.

This has to change. We need more manufacturing facilities for microchips and these must be located in places with low risk to natural and other hazards.

Securing supply chains

But whether we are talking about microchips, wood chips or potato chips, corporations need to get intimately familiar with their supply chains if they aren’t already: What they get, how often, in what quantities, from whom, from where, how and why. Business continuity, contingency plans and workarounds must be put in place ahead of time to deal with what-if scenarios. Risk managers — either in-house or third-party consultants — need to be in on these discussions, as do boards of directors.

Corporate insurance buyers and risk managers must understand the differences in key insurance coverage, like standard business interruption and contingent business interruption, and ensure that they have proper financial protection in place.

Finally, and from a big picture perspective, society needs to get a better idea of where choke points exist (both at the manufacturing and distribution levels and in the physical world) so these can be addressed, eased or even eradicated. Further, we need to do more research into understanding how consumers behave in the face of crises. The emerging fields of behavioral economics and decision science have much to contribute to this discussion.

It’s a different world out there, a more interconnected, and a more dangerous one. And we are currently learning the hard way that global supply chains don’t operate on autopilot.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Supply Chain Excellence Awards Launched

 

Leading industry organizations have joined forces to launch the Africa Supply Chain Excellence Awards, which will recognize the vital role played by supply chain management and honor and celebrate the outstanding achievements of organizations and individuals working in the field in Africa.

Entries are invited in a range of categories, from innovation, sustainability and digitization to transport and e-commerce. Businesses and supply chain experts have until the end of February 2022 to enter.

In addition to advancing and promoting supply chain management and enabling industry collaboration and knowledge sharing, this initiative has been developed to help youth in need to enter the supply chain profession. The awards program me has been set up as a not-for-profit entity and funds raised will go towards the creation of sustainable bursaries for individuals needing support to study and pursue careers in the supply chain profession.

Growing recognition of the key role that supply chains play

Through the Africa Supply Chain Excellence awards and the collaboration and awareness that they will generate, as well as the opportunity for industry benchmarking, the organisers aim to boost the standards of all supply chain role players. This will contribute to the development and promotion of globally competitive supply chains that will drive economic growth on the African continent.

The programme also aims to drive awareness of the growing imperative to "green" supply chains and ensure that all supply chain components – from sourcing and procurement to distribution – are sustainable and environmentally responsible.

The organisations that have partnered to launch the Africa Supply Chain Excellence Awards are the African Centre for Supply Chain, the Chartered Institute of Logistics and Transport, the Council of Supply Chain Management Professionals (CSCMP), The Road Freight Association, the South African Association of Freight Forwarders (SAAFF), South African Express Parcel Association (SAEPA) and SAPICS (The Professional Body for Supply Chain Management).

Some of the categories in which organisations and individuals can submit entries are:

• Excellence in Supply Chain Education and Youth Programmes
• Innovative Supply Chain Projects and Operations
• Supply Chain Sustainability (Green) Award
• Responsible Sourcing and Procurement Award
• Supply Chain Digital Transformation
• Excellence in Transport Award
• Marketing, E-Commerce and the Supply Chain Relationship
• Judges Spotlight Award

The principal sponsor of the Africa Supply Chain Excellence Awards is the Institute of Marketing Management (IMM) Graduate School. BidAir Cargo, Commerce Edge, Imperial Logistics and Unitrans are also supporting the initiative as category sponsors.

A distinguished panel of judges has been appointed and the awards will culminate in a gala event to celebrate the achievements of the winners.

SA truckers take to Cape Town's highways

 

 

A group of protestors connected to the Cape Town Truckers Freedom Drive took to the City's highways in convoy on Saturday.

 

 Local traffic services, along with the South African Police Service (SAPS), were seen en-route as the group moved along the M5, N2, R300 and the N1.

The freedom convoy is the first of its kind in the country, and asks government to bring an end to Covid-19 restrictions and vaccine mandates.

The convoy began at 11am and ended peacefully at 2pm.

In stark contrast, demonstrators who peacefully occupied the downtown core of Ottawa on Saturday, in a stand against pandemic restrictions, were confronted by Canadian police who used pepper spray, stun grenades and horse troops to intimidate and clear crowds. One elderly lady on the frontline was trampled by a police-mounted horse, and later died of her injuries.

More than 47 arrests were made in Ottawa on Saturday morning as police moved to disperse the blockade in front of parliament and the prime minister's office.

One report stated that in the event a parent at the protest is arrested and there is no one to look after their child, they would fall under the care of Children’s Aid.

Invocation of emergency powers

Canadian Prime Minister Justin Trudeau on Monday invoked emergency powers, which gives the Canadian government wider authority to stop the protests. Trudeau authorised banks and financial institutions to temporarily freeze the accounts of those suspected of supporting the blockades, without obtaining a court order.

Debate in parliament over the emergency powers resumed on Saturday, and a final vote is scheduled for Monday.

Late Saturday, an alleged legitimate social-media posted on behalf of Canadian truckers, called for all Canadian truckers to stop hauling from today (21 February) until Trudeau resigns and/or the Liberal Party appoints a new leader; until vaccine mandates are lifted and until the Canadian government revokes the Emergencies Act. It called for all Canadians to not work on 21 February and 22 February in solidarity.

There has since been no update on this alleged development from news agencies.

Driver shortage offers truckers a opportunity to grow income

Due to the shortage of truck drivers - along with the other factors brought on by the pandemic - trucking companies are doing everything they can to hire and retain qualified drivers. 

To combat the shortage, trucking companies and recruiters are trying a range of tactics, including increasing pay.

Arnoux Maré, managing director at Innovative Learning Solutions discusses the opportunity truck drivers are presented with to fill in the skills shortage gap in the transport and logistics industry and increase their earnings by leveraging their training and experience.

The transportation industry like most sectors is still reeling from the effects of the pandemic and a contraction of the economy. However, as the country gears up to reclaim some semblance of normality, drivers are presented with an opportunity to not only fill the skills shortage gap present in the transport and logistics industry but can leverage their training and experience to increase their earnings

"Professionally trained drivers are in high demand as the industry aims to regain the losses suffered under the various lockdown levels and stifled economy. Drivers which fall in this category have specific skillsets such as, driving in wet conditions; economical driving; heavy goods vehicle braking; straight reverse and ally docking," explains Maré.

The Department of Labour published its minimum wages for South Africans who drive as wholesale and retail truck drivers, in February 2021. Code 14 drivers who worked in more populated municipalities could expect to earn no less than R 6,083.53 a month. However, this figure is not reflective of what more experienced drivers can earn in South Africa.

Data sourced from salary website Indeed shows that the base salary for a truck driver is closer to R10,324 per month in South Africa – or roughly R124,000 a year and comparative salary information from PayScale shows that the average pay is slightly lower at R98,225 a year, or R8,185 a month.

Upskilling drivers

The more qualified a driver is the better efficient they become, this also extends to their reliability leading to increased productivity which positively impacts their employers’ bottom line, offering them a huge negotiation advantage over their peers without the necessary training.

"It is not just the drivers who stand to benefit from having skills that set them apart. Businesses that invest in the development of systems and staff, increase their functionality and gain valuable data and insights over the industry and competition.

"As companies also seek to trim costs, being leaner and more capable of doing more with less will likely be more commonplace. This includes improving recruitment processes to ensure drivers beyond the technical know-how required of all drivers also have necessary soft skills such as communication, motivation and customer services," concludes Maré.

SAB owner-driver programme to empower SA truck drivers

 

South African Breweries' (SAB) owner-driver programme, in collaboration with Wesbank and Man trucks, is set to handover over six trucks to its beneficiaries. 

The programme will see drivers lease and operate their own trucks to distribute SAB's products from its various depots to retail outlets.

Sab aims to empower and equip entrepreneurs with vital business skill.

 

Also providing access to finance geared to build and create sustainable businesses that grow their communities.

"Owning and running an effective truck business needs a strong understanding and knowledge of company costs, attending to strict vehicle maintenance and quality controls and intensive preparation for the various expenses necessary to run a transport business like mine," says truck recipient, Gift Sithole. "Fortunately, the learnership programme I went through with SAB, prepared, and equipped me with logistics, financial and people skills to help manage and grow my business."

Creating sustainable businesses

Sphe Vundla, corporate brand director, says:

"A thriving SMME sector, powered by entrepreneurship and partnerships is central to the growth of the economy. We believe that through innovating the alcohol supply chain with initiatives such as the owner-driver programme, SAB has and will continue to positively impact the lives of individuals and communities across the country."

"Around 65% of our deliveries are done by owner-drivers, many of whom have gone on to own more than one truck. This programme has time and again, proven to be a winning recipe for all concerned: drivers are empowered, they create sustainable jobs for many others, and Sab gets its products to market. We are exceptionally proud of success stories like Gift’s."

 

 

Saving South Africa's trucking industry

While the social-economic environment in South Africa, which is marred by an abnormally high rate of unemployment, cannot be ignored or dismissed for some of the social ills, there have also been elements of criminal opportunism.

The state of the heavy haulage industry in SA

The past 18 months have not been any easier for the sector. The continuance of sporadic torching of trucks and attacks on truck drivers,

 service delivery protests and looting, the lockdown and various restrictions associated with the Covid 19 pandemic have further crippled the industry.

Due to the restrictions and limitation of transportation of essential goods during the hard lockdown, transporters have seen a massive drop in their turnovers, with most having to downsize and some even permanently closing. Those who are lucky enough to still be operational now have to stretch their staff and chase deadlines, which places further pressure and fatigue on drivers due to the long hours on the road – a major concern.

Proactively mitigating risks

With these challenges, Santam Heavy Haulage, as an insurance partner to the trucking industry, for example, has sought to educate both clients and brokers on how to better manage and mitigate risk in order to keep insurance premiums at a minimum. Insurance has traditionally been viewed as a grudge purchase, but recent events have highlighted the critical role it can play in minimising financial loss.

Being in the digital age, technology has become an important part of any business and the trucking industry is no exception. Telematics should be a necessity for transporters, not only for data collection but also for proactive risk management, with various safety features being incorporated in most new model trucks.

Route planning, which requires information gathering, is also important. Where intel has been collected on planned attacks on trucks, Santam has always tried to share the information with our stakeholders to enable them to avoid certain routes. We also rely on law enforcement and private security companies to offer security in identified hot spots.

To be successful, businesses need to prioritise their people’s wellbeing. Drivers are the driving force behind the trucking industry. Entrusting them with assets and cargo worth millions requires that they are equipped with the necessary skills, a conducive working environment, and regular access to medical check-ups to help them make better health choices.

With the rapid advancement of technology, driver training has become vital not only to sharpen driving skills, but also to familiarise drivers with the new model trucks that are constantly being introduced to the market. Encouraging drivers to take regular stops during trips helps to reduce fatigue, which in turn minimises the chances of collision, which may lead to unwanted downtime in an already strained economic environment.

Whilst we consider ourselves specialists in HCV and cargo insurance, we are operating in an ever-changing landscape that present new challenges on a daily basis, some never experienced before. This has compelled us to be flexible in our thinking and the way we do insurance. With various interactions, discussions, and collaboration with all stakeholders, we can ensure the sustainability of the industry. We must adopt a partnership, future-fit approach.

With the recent extensions in the validity of expired driver’s licenses, most of the drivers have not had to do their medical check-ups in a while in order to renew their professional driving permits (PRDPs), which is a health and safety hazard. These factors are highlighted by the rise in the number of single-vehicle accidents, which can be attributed mainly to driver error. This has been the main reason why, over the past few years, Santam has collaborated with the Road Traffic Management Corporation (RTMC) to advocate for driver wellness.

Why transport sector needs to dive into digital to deliver value

A GMA study conducted in 2019 found that by 2025 Gauteng’s roads would be so congested that traffic on the freeway would slow down to 10 kilometers an hour. This means that it will take four hours to travel from Pretoria to the city center in Johannesburg.

Fueling transformation

"The transport sector needs to heed the call for digitization within the next five years in order to deliver value to the customer and make sure that transport is a catalyst for economic growth through smart infrastructure, integration and technology," he said. "The challenge is to use technology to connect the infrastructure we already have."

An engineer with more than 22 years of experience in infrastructure, energy and mining – predominantly in the railway environment – Kgobe remarked that establishing partnerships with the private sector and the proper government entities will enable smart mobility, allowing for an easier and quicker commute and enabling the sector to extract the most out of the freight economy.

Thomas Snyman, Huawei senior account representative, added that facilitating smart mobility would require an integrated transport system connected across all transport modes, not only for commuters but also freight.

"Enabling interoperability through smart ICT will fuel the transformation of railway, air and road transport as well as South Africa’s ports. A fully connected rail, road, air, and port system achieved through unified data sharing using smart technologies like cloud computing, big data and IoT will improve on efficiencies, ensure greater safety and security, and provide a better customer experience at a lower cost," said Snyman.

Integrated systems

"For example, we are currently sitting with a situation where traffic management cannot monitor road conditions, drivers are unaware of road conditions ahead and traffic lights cannot flexibly adjust to road conditions, while current technologies to identify traffic violations can often be thwarted by fog, strong lights or low-resolution cameras paired with high-speed drivers," he observed.

"By introducing advanced technologies connected over fast networks managed by smart algorithms we could reduce congestion, identify areas that need maintenance, and improve road safety in real time."

Snyman added that 5G networks would be a core component in enabling an integrated transport system as its greater speeds, lower latency and scalability would allow for better communication across all transport modes. Recently, Huawei signed a cooperation agreement with Vodafone and Hungary’s East-West Intermodal Logistics Services to build Europe’s first smart railway hub using a 5G private network for internal communication and technical equipment networking management.

Huawei ICT senior specialist, Rose Moyo, said: "To ensure work mobility, you need to be looking at providing internet access and connectivity at any time and not be trapped within a fixed domain so that even when people are working remotely operations can continue."

She noted that significant investments in ICT would accelerate substantial upward momentum in South Africa’s GDP, but noted that digital transformation in industry was not isolated and must be led by the national digital transformation strategy. Meanwhile, Snyman added that as an experienced provider of transport solutions in more than 40 countries and regions across 5 continents, Huawei would continue to lend its expertise and services to support the transformation of South Africa’s transport sector.

 

 

Imperial enters strategic partnership with MiX Telematics

 

MiX Telematics (JSE: MIX), a leading global SaaS provider of connected fleet management solutions, today announced an agreement to be the preferred telematics provider for Imperial (JSE: IPL), a leading African focused provider of integrated market access and logistics solutions. 

This strategic business partnership allows for the alignment of data and reporting across Imperial.

Imperial has been a long-standing customer of MiX Telematics for more than 10 years. The new agreement means that MiX’s premium solution will be implemented across Imperial’s entire fleet for its proven risk management benefits. The telemetry data provided is integrated seamlessly into Imperial’s management systems, providing an overall view of operations, allowing for rich data analysis and the identification of trends for continuous efficiency improvements.

In addition, the MiX Track and React bureau service will be utilised to ensure safe vehicle and driver operations. The fleet’s safety and monitoring are further enhanced with the MiX Vision camera solution and MiX Vision bureau service, the benefits of which are greater visibility and insights into Imperial’s vehicles and drivers in real-time.

“Our expertise in fleet telematics and security services adds value to Imperial’s business and is testament to how successful our solutions are at meeting the specific requirements of a leading logistics provider. Together, our advanced artificial intelligence powered technology solutions present new growth opportunities for both businesses,” says Gert Pretorius, Managing Director at MiX Telematics Africa.

 

 

Trucking the Freight Industry

Trucks with valuable freight travel South Africa as well and neighboring countries continuously. Across South Africa truck hijackings and cargo theft is being reported on the daily – as much as 90% of these hijackings involve an inside source tipping off criminals with crucial information.

Over the last decade, the freight industry reported 11,112 truck heists, an average of 1,110 within a year. 

The top commodities being stolen during 2018/19 included soybeans, diesel, yellow maize, and biscuits – costing the economy R10 billion a year.

Trucks carrying alcohol also see a large number of hijackings and attacks, especially over the Easter and festive months when sales spike and prices rise. The truck robberies have become more violent with many criminals presenting themselves as police or traffic officers bringing vehicles to a standstill, and once criminals have stopped a truck it is at their mercy. Small arms and high calibre weapons are being used by these criminals – making these syndicates “sophisticated” and able to strike with an unprecedented level of precision and force.

Apart from the freight on board, criminals also target trucks to strip the parts. The freight industry incurs major financial losses on top of COVID-19 and drivers become reluctant to drive unsafe routes or times.