The Future of Warehousing in South Africa

The increase of online shopping and demand for services such as 'click – and – collect', results in the need for retailers and another warehousing to adapt as the landscape shifts. More than ever, warehousing facilities play a vital role in the overall supply chain process. 

Worldwide discussions centre on automation, greater variety, better systems, more integration, more efficiency and greater flexibility in the industry. When companies such as Amazon and Alphabet Inc.’s Google X unit talk about drone delivery as the next iteration of consumer retail technology, it might seem like an unattainable dream for the future but in reality, this is already happening.

However, in South Africa, we are faced with challenges vastly different from the rest of the world.

It’s not news to anyone the declining Rand as we approach R20 to the US dollar, coupled to declining commodity prices, labour instability, looming junk status and some concerning government decisions, local discussions are likely to focus more on survival.

New thinking will have to be applied to navigate the conversation around capital expenditure in the next five years. And for many, it is going to be a case of trying to ‘do more with less. To maximise warehouse and distribution centres' productivity, operations and IT leaders must be on the same page in terms of technology systems and business processes. Although partial alignment usually exists between IT and operations today, in many instances, there is still a basic technology divide. It starts with differences in the overall assessment of current capabilities and risk perspectives for the future.

As with all challenges, there is always an upside in the form of opportunities. Many companies on the exporting side who manufacture industrial and consumer goods are suddenly able to capitalize on the huge growth potential offered by that steep Rand/Dollar exchange rate. In addition, companies will get better value for money locally, which means investment in new infrastructures in South Africa.

What steps should an organisation be considering in response to the major changes that will impact warehousing operations today and in the next five years? The time to start is now, and the best way to begin is by carefully analysing the issues and evaluating the steps to be taken to help warehouses increase productivity while decreasing costs.

Are you looking for skilled staff to join your team? Communicate Recruitment is a specialized recruitment agency with years of experience in the Supply Chain and Freight industries. We can assist with the sourcing, assessing, screening, and matching of candidates to ensure you find the right fit for your company the first time. Contact us today.