Sun Feb 05 2023 10:09:47 GMT+0200 (South Africa Standard Time) - QikTruck Media
The Future of Cross-Border Logistics: What South African Businesses Need to Know
The globalisation of business has created both opportunities and challenges for companies all over the world. With South Africa's strong manufacturing base, it has become increasingly attractive to companies looking to take advantage of its highly-skilled workforce and diversified industry sectors. However, the development of cross-border logistics and an inter-continental supply chain can be a major challenge. It requires an enterprise-wide “mindset shift”, a knowledge-base and resources, and of course, comprehensive operational strategy and planning.
Cross-border logistics and the corresponding supply chains involve complex technology-enabled services, and much more intricate operations and processes than localised logistics. They are related to aspects like tariff agreements, security protocols, customs, regulatory compliance, international standards, not to mention the sophisticated operations from transport, warehousing and distribution, to payment servies. The need for a high degree of collaboration, speed and accuracy is paramount.
Given its dynamic geographic location, South African businesses are well-situated to benefit from their access to the African markets and the booming global trade. The importance of cross-border logistics and its effects on global economies will continue to grow. According to a recent report, titled ‘The Future of Logistics: Constraints, Opportunities and the Digital Transformation of South African Supply Chains’, South Africa’s International Trade Outlook posits that, by 2030, cross-border logistics demand will become more pronounced in Africa. The report also indicated that digitally-driven commerce is leading the way to facilitate cross-border trade and cooperation.
So, what does this mean for South African companies looking to take advantage of these opportunities? First, it helps to have a strong partner with the proven capability to handle international exports and imports. The next step is to have a clear understanding of the regulations governing cross-border transport and the rules and controls of the target country. Full compliance must be adhered to, otherwise criminal and/or financial penalties may apply.
The use of technology to enable robust cross-border trading and logistics has become increasingly commonplace in South African businesses. The internet and mobile technology applications, for instance, have made customs, preparation and communication processes quicker and more reliable. The growing adoption of e-commerce and digital customers, as well as integrated digital technologies, has enabled better communication between logistics providers and customers.
Quality is also the key. If goods are not up to the mark, they may be returned, resulting in lost time and money. Therefore, it is critical to ensure that goods are of a high standard and quality and that they are correctly labelled and packaged to reduce any risk at destination. Experienced providers know how to maintain high standards and can also provide added value by providing shipping documentation.
The transportation of goods between borders stands out as the principal operational challenge for companies looking to do business internationally. Shipping goods by road, ocean and air provide respectively the fastest, cheapest and most reliable transportation methods. For South African businesses, there are other factors such as travel time, estimated arrival time and the cost of transport which must be considered when deciding on the transportation method.
In conclusion, it is clear that the future of cross-border logistics is immensely promising for South African businesses that are looking to increase their trade, and expand their presence in global markets. With the right partner, organisations have the suitable resources, technical capabilities, and the necessary experience to access global markets and build collaborative relationships to build a successful, sustainable business. At QikTruck, we understand the complexities of cross-border logistics and provide a digital solution that helps businesses easily and securely manage complex logistics operations across Africa. Our integrated automated solution simplifies the process of finding, booking and shipping goods helping South African businesses to effectively compete in global supply chains.
If you need assistance with your cross-border logistics needs, QikTruck can help. We are an on-demand truck and driver hire platform that makes it easy to move goods from one border to the next. With real-time tracking, our customers can see their goods in transit and are always in control of their delivery times. When it comes to cross-borders logistics, trust the experts at QikTruck to get you where you need to go.