So much has changed in the world of logistics, but the main challenge remains finding the most efficient ways for logistics providers to manage unpredictability within supply chains.

This means striking the delicate balance between speed, customer demands, and profitability. In uncertain times such as these, it also means being able to take a long-term view of doing business in this sector. Technology and tools can help us make more accurate predictions and improve visibility but at the centre of it all is human ingenuity – a factor that technology will never replace.

The 2023 Warehousing Vision Study by Zebra indicated that 80% of organisations reported a need to invest in new technologies to remain competitive. The same study found that for 61% of organisations, the most optimal solution to operational efficiency lies in partial automation and augmentation, combined with human experience and expertise.

In South Africa, a large proportion of growth within the logistics industry can be attributed to the expansion of the e-commerce market. Fueled by increasing consumer demand during the pandemic years, the sector has made substantial investments into technology and infrastructure to strengthen logistics capabilities and meet changing consumer and business demands.

According to a study by Ken Research, some of the most business-critical technology has been applied in fulfillment centres, last-mile delivery services, warehousing solutions, and freight management systems.

However, competitive advantage lies not in the tools themselves but in the quality of decision-making they enable. Optionality, which is the ability to adapt routes, suppliers, and capacity in response to change, matters more than automation for its own sake.

In this regard, there are several scenarios in which human decision-making can be a make-or-break factor. For example, while technology like artificial intelligence can be used to analyse large datasets to manage predictable, routine tasks, human experts are essential in times of unforeseen disruption.

Human experience also draws on the ability to understand context and weigh-up scenarios in which tradeoffs and compromises need to be made. In these cases, solutions are often nuanced and more complex than algorithms can grasp.

Another all-important factor to consider is the role that human experts play in managing factors such as workplace safety and employee wellbeing. Human supervisors on the ground are crucial in helping teams manage their workload, make effective decisions, take the appropriate safety measures, and mitigate risk factors to the benefit of both the workforce and the business.

At the core of every good logistics provider is the ability to solve problems. Technology and tools can certainly help us with this, as they always have, but the most resilient future for the industry relies on human-machine collaboration, where data informs decisions, but people apply experience, judgment, and accountability to determine the best course of action.

Nelson Teixeira, Managing Director of Operations for Sub-Saharan Africa at FedEx