Page 27 - Logistics News July 2019
P. 27

The Courier Industry





















                                                       th
          EVERYONE’S GETTING excited about the 50            its current poor showing of 0.8 percent GDP
          anniversary of Neil Armstrong’s ‘one small         growth. Moves are afoot to compel all items to
          step’ and the ‘Woodstock’ of Jimi Hendrix,         move through the postal service.
          Joni Mitchell and Crosby, Stills and Nash.           Courier does not covet the carriage of
            Down here on earth, those who can                letters, but it is instructive to note that the
          remember those events as they happened             taxpayer-funded Post Offi  ce, which enjoys a
          were also party to another life-changing           monopoly thanks to the 1998 Act, is shrinking
          event, also not far short of its half century. In   its number of outlets and employees while its
          1973, Federal Express unzipped its hub-and-        need for fi nance increases. It is also struggling
          spoke express parcel concept and the world         with outdated capital equipment and recently
          of business got the afterburners it had been       had to cope with a backlog of up to 60 million
          craving.                                           items, which took months to clear. One only
            In an exciting development, business could       hopes urgently needed items among them
          now move time sensitive and high value             were few.
          parcels faster and more securely than through        Conversely, the free-enterprise courier
          postal services. The courier industry was born.    industry – paid for by willing buyers and
          One large step for mankind.                        sellers – continues to grow with new added-
            Today, few lives in South Africa are             value products in cold chain, high value,
          untouched by this indispensable industry, the      contamination-free, ships spares and other
          fastest-growing sector in transport. From early    niches. To do so, it imports equipment and
          beginnings, it’s come to dominate express          procedures from leading countries in the
          distribution, aided by the partial liberation of   world. And the avalanche continues of online
          aviation and the proliferation of competing        ordered electronics, fashion, books, gadgets,
          daytime airlines and dedicated overnight           household items, spares – volumes undreamt
          freighters.                                        of in the pre-internet days when the outdated
            In automotive workshops and service              1998 Act was written.
          stations, parts departments keep inventory to        To cope with this unprecedented demand,
          the bare minimum to save costs. As vehicles        the industry has become the leader in
          are booked in, mechanics order needed parts        upskilling, recruiting young South Africans
          for immediate just-in-time next-fl ight delivery    and training them for jobs in this vibrant
          from centralised distribution centres.             sector. Working with the Transport Education
            When vehicle off  road (VOR) or aircraft on      Training Authority, it has pioneered numerous
          ground (AOG) emergencies occur in remote           new industry-specifi c National Qualifi cations
          places, engineers rely on the courier industry     Framework-approved qualifi cations from entry
          to collect and deliver necessary components        to B.Com level. So, the future of the express
          same day or overnight, wherever the need. No       parcel industry seems assured.
          one would dream of posting them.                     The sole cloud on the horizon is that while
            Clinics and hospitals are not all able to        the two service regimes are distinctive and
          aff ord expensive medical equipment, so this is    scarcely overlap, the SA Post Offi  ce (reserved
          often fl own from point to point as necessary.      postal services) and the courier industry
          And, of course, urgent medicines are ordered       (unreserved postal services) are both subject
          from central distribution. Plus, the courier       to the Independent Communications Authority
          industry helps keep patients alive and well        of South Africa (ICASA). Comparing oranges
          through home delivery of chronic or topical        with apples should not be a problem were
          medication.                                        it not for the fact that the SA Post Offi  ce
            The game has changed irrevocably, but,           regards the courier industry volumes as its
          sadly, not everyone has realised that. Luddites    lunch and is determined to capture them by
          continue to oppose this industry with its          force of law.
          tsunami of express parcel deliveries without         As Neil Armstrong, Joni Mitchell or Jimi
          which our economy would struggle below             Hendrix might have said in 1969, “Go fi gure.” •



          July 2019  |  Logistics News                                                                        25
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