South Africa’s manufacturing and logistics sectors are at a critical juncture. The country’s logistical grid is under perpetual stress – with persistent disruptions, ongoing (albeit slowly improving) port delays, rising costs, uncertainty around energy, and infrastructure failures now a regular part of the operating environment.
In this context, the ability to adapt with speed grants an invaluable competitive advantage, but, more than that, it is a core requirement for survival. True responsiveness is about more than just fast communication; it's about addressing the systemic and human factors that create communication "lag" in the first place.
The cost of communication lag
The cost of this lag is high and often underestimated. When updates are delayed, it slows down stock adjustments, production schedules, rerouting, and maintenance coordination.
As a recent University of Johannesburg working paper on digitalisation and productivity highlighted, empowering employees with real-time information is essential to improving business performance – especially when sudden and unexpected external factors are already threatening cashflows.
But for many organisations, the communication systems supporting their frontline workforces working in these rough economic seas are not up to the task – and the reasons for this go far deeper than a lack of technology.
Why operational updates are delayed
Why are operational updates so often delayed or fragmented in our most vital industries? In my experience, it’s rarely due to a simple lack of data. It’s to a large extent due to a systemic disconnect between information, learning, and behaviour. Many organisations operate with what can be described as an "information ecology" that is siloed and outdated.
Critical information may be available at a management level, but it fails to reach the driver on the road or the operator on the production line, creating a pervasive and costly communication bottleneck. This fragmentation is often a result of deeply ingrained cultural and structural impediments: a "silo mentality," bureaucratic red tape, and not prioritising a unified digital space where every employee can access a single source of truth.
Impact on South Africa’s logistics grid
Consider the state of South Africa’s logistics grid and the subsequent performance of exports that are heavily influenced by it. According to Dr Juanita Maree, CEO of the South African Association of Freight Forwarders, in 2025, the country is losing an estimated R1bn a day in missed trade opportunities due to port delays, rail disruptions and related infrastructure bottlenecks.
In the latest trade balance update from Sars for June 2025, the YTD cumulative trade deficit of R991 billion has actually worsened by 1,5% compared to the same period in 2024. There have been improvements, yes, but we’re operating from a woefully low base. Companies need every bit of efficiency they can get, and the responsibility has, for better or worse, fallen to them.
Communication lag and frontline efficiency
While the challenges are complex, a key contributing factor to the struggles in logistics and manufacturing is the communication lag between management and frontline employees in such a volatile environment.
It’s quite common knowledge that, in general, even a small delay in updating, say, a delivery fleet about a road closure can lead to hours of lost productivity. What if the issue is even more unexpected and even more disruptive?
In 2023, Transnet suddenly couldn’t carry freight by train along several key northern corridors due to mass faults and breakdowns. ArcelorMittal’s steel mills that depended on that network had to shut down for extended periods as a direct result of Transnet’s issues.
In general logistics, if even an hour delay due to road closures is commonly accepted as a huge disruption to schedules, what does a week’s week-long and complete loss of logistical access for a business come down to? In ArcelorMittal’s case, alternatives weren’t available, but communication can still help mitigate the blows such crises deliver.
Effective information delivery
The most effective businesses in South Africa ensure that critical updates are sent to the right people at the right time. It prevents information overload and ensures that only relevant information reaches those who need to act on it with speed and confidence.
Beyond targeted messaging, a successful information ecology also addresses the most basic failures in communication: a lack of clarity and transparency.
Internal barriers to agility
The biggest barriers to operational agility in the key economic sectors of logistics and manufacturing aren’t always or exclusively external, despite how it seems. They are often internal, fueled by outdated communication processes that create or exacerbate delays and frustration.
The next frontier in operational responsiveness
The next frontier isn't just about faster alerts or increased crisis management skills; it is about cultivating a dynamic information ecology, addressing the complex interplay of human factors, and fostering a relentless, embedded commitment to continuous organisational learning.
Armed with that kind of foundation, traversing South Africa’s unique business dynamics and challenges can become substantially easier than you might think.
