Page 25 - Logistics News - August 2021

SUPPLY CHAIN NETWORKS

in fiscal income due to lesser tax contributions, large scale I believe that technology can help us better pre-empt,
disinvestments and slowing FDI flows. This has a ripple mitigate and respond to disasters. Artificial intelligence, for
effect on the state’s ability to foster economic recovery, pay example, could help us collect and interpret important data
social grants and build key economic infrastructure (or even and therefore make better decisions through information.
maintain existing ones). Essentially, the riots make our
economic prospects even grimmer. Additionally, technological integration of our supply
chain networks and distribution could also help the industry
Could this have been avoided? continue to serve the market even when disruptions occur.

I believe that we could have handled the situation better Alternative logistics technologies such as drones could be
and reacted much quicker. However, there are lessons to be used right now to distribute supplies even to risky areas.
learned in a crisis. This situation offers a unique opportunity A deliberate reinvestment into our manufacturing sector
to strengthen our ability to detect and prevent similar will also be key in ensuring that we not only get out of this
uprisings in the future and to understand the root cause difficult situation, but prevent shortages when disruption
of this crisis. I think we can all agree that at the root of the occurs. I also believe that by now the government should have
unrest are socio-economic challenges including high youth realised the importance of SMMEs to our economy, especially
unemployment and poverty, inequality and widespread township economies, and therefore should invest more in
fatigue caused by the pandemic – all being exploited fostering the successes of these businesses.
somehow through the politics of today.
Lastly, still on the subject of diversification of our
Rebuilding our supply chain sector supply chain networks, the country needs to invest in
These disruptions not only affected essential supplies, but the resuscitation of our rail infrastructure, expand on
also affected medical and vaccine distribution, delaying the it and introduce modernised locomotives for efficient
country’s vaccination programme by several months. This transportation of goods. This means improved, dynamic and L O GI S T I CS NEWS
begs the question: Could the supply chain networks and links integrated logistics strategies that not only protect the sector
operate differently to prevent a similar disruption in the from disruptions, but also enable an advanced and efficient
future? service offering. •

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