[BizTrends 2016] Logistics trends with Lelanie Prinsloo

Lelanie Prinsloo

"Logistics itself is my passion. It is the energy of movement, and essential in our economy and everyday existence," says Lelanie. We wanted to know what Prinsloo thought of what is to come this year.

What are your most significant industry trends for 2016?

Lelanie Prinsloo: There are four main predictions for Global Freight Logistic organisations come 2016 according to the advisory firm Gartner Inc. namely:

1. More than 50 percent of global logistic organisations will be required to systematically report verified emissions and environmental data. (Governments are set to continue to enact environmental legislation that has a profound impact on Logistic operations).

2. Pressure on logistic companies to have chief compliance and risk management officer in place will be increased and it is believed that even with added pressure by 2016 less than 10 percent of global logistic companies will have this in place.

3. 20 percent of supply chain management organisations will adopt a supply chain execution convergence application strategy. (This will play a role in helping SCM organisations adopt a platform that enables them to model, orchestrate and synchronize end-to-end logistic processes).

4. Slower global trade growth will force shippers to adjust from proliferation to optimisation of international flows.

What do you think will be the game-changing trend in 2016?

Prinsloo: Collaborative relationships. The ability to market underutilized capacity has given birth to new virtual market platforms for shared supply chain services. This is a game-changing trend because it will reduce overheads through third-party partnerships and provide new revenue streams for asset-heavy companies.

What do you hope to see less of in 2016?

Prinsloo: Negative profit margins in the logistic industry, high and unpredictable oil prices and a lack of economic growth, unstable fuel price fluctuations.

What do you hope to see more of?

Prinsloo: As predicted by IATA in their five-year forecast, international freight volumes are expected to increase. Air Cargo remains as vital to the global economic system as ever and an increase in global freight movement will be a welcome relief to the existing overall risk to the economic outlook.

Is there any particular piece of legislation, movement in the market, etc. that you think will have a significant effect on the industry?

Prinsloo: Transport and logistic sectors are increasingly recognised as key to stimulating trade, supporting business efficiency and stimulating growth. It also plays a vital role in the nation's competitiveness and their connectivity with the rest of the world.

The government is increasing its focus on transport and infrastructure by developing rail networks, investing in road upgrades and network planning, planning an extension on airport capacity expansion as well as an increased infrastructure on ports for the shipping industry. In an era of accelerated globalisation, with both consumers and businesses demanding better and more cost-effective transport options, an integrated transport strategy is a necessity.