This dependency has been brought home with the current Covid-19 pandemic which has seen transport becoming even more important than before in keeping the nation fed and the growing economic activity moving.
Limitations, challenges – and opportunity?
Transport operators and logistics service providers have not only had to deal with the ongoing lockdown and the fear of staff members testing positive for the virus, but also limitations in fuel supply. Add in longer than ever delays at the few border crossings that are currently operational, strikes and protests with trucks and buses being burned as well as an expected increase in hijacking and theft as unemployed people get increasingly desperate. We have a massive headache with no end in sight.
Yes, we are resilient, but…
South African businessmen are known to be resilient in the face of economic downturns and the like, but the 2020 pandemic is pushing even some of the most resolute over the edge. Virtually all transport operators and logistics providers are cutting staff while many truckers are reducing the size of their fleets to counter the loss of business. But for some even these actions are insufficient to save the business.
Case study
One of the large companies which has started consultative processes that could lead to its closure is Time Freight. Founded in KwaZulu Natal in 1984, Time Freight has a staff complement of about 1 350 people and operated approximately 400 boldly-liveried yellow vehicles, working through a countrywide network of 90 branches.
The company was already in a fragile financial situation when the pandemic arrived, and this proved what is likely to be the final blow. Time Freight is a part of the DPD Laser Group, which includes the Dawn Wing courier business. The latter, however, is not affected by the probable closure of Time Freight.
Where there is a problem, there is an opportunity
These tough times are providing major challenges to all involved in the transport industry, but the situation is also resulting in plenty of out-of-the-box thinking by management and operational teams to ensure the viability and sustainability of their businesses.
The OEMs and their dealers, together with service providers such as Ctrack, are providing material and moral support to their customers in these demanding times, not only to enable them to face up to current challenges, but also helping them plot the way forward in what will be a very changed business environment.
Re-evaluate, reset
There were those companies where the management teams bemoaned their fate during the hard lockdown, but there are others that used this time to Zoom, Skype and use Teams to hold meetings to reset business plans with immediate effect and even to look into revising two, three and five-year plans. These proactive people and their companies are likely to be the survivors.
Some companies will be even stronger in the new world facing us as they streamline processes and restructure their businesses during lockdown.
Source: First published in Business Fleet Africa – https://Business Fleet Africa
