Compiled by Eamonn Ryan from the presentation transcript
At the 2024 GCCA Africa Cold Chain Conference held on August 23 in Cape Town, following a panel discussion there was a presentation by Jan-Cornell van Ekris, based in Amsterdam, NH, NL, is currently an owner and commercial director at Boltrics. It focused on the African Free Trade Agreement (AfCFTA). This is Part 5 of a five-part article.
The discussions at the GCCA Africa Conference underscored the intricate relationship between policy, trade dynamics, and technological advancements in addressing the challenges of intra-African trade. While the AfCFTA presents a promising framework for regional economic integration, the successful realisation of its goals will depend on a coordinated approach to infrastructure development, institutional strengthening, and technological investment. Stakeholders must work collaboratively to create an environment conducive to growth, ensuring that Africa can fully leverage its trade potential.
Jan-Cornell van Ekris from Boltrics discussed the challenges facing the cold chain industry, particularly from an IT perspective. He highlighted several key drivers for IT investment within the sector:
- Cost efficiency and labour shortages: Increasing productivity while reducing costs is paramount. With labour costs rising—currently accounting for 35% of operational expenses—companies are motivated to invest in technology to enhance efficiency. Furthermore, labour shortages in warehouses and offices are constraining business growth, making it essential to rely less on manual resources.
- Cybersecurity concerns: As the threat of cyberattacks looms, the importance of robust cybersecurity measures cannot be overstated. Ransomware, DDoS attacks, and data breaches are significant risks that all businesses must address. Ensuring software is up-to-date and training staff to recognise potential threats are critical steps in safeguarding operations.
- Compliance and certifications: Companies in the supply chain face increasing demands for certifications such as ISO 27001 and Star Alliance certifications. These standards are essential for ensuring data security and maintaining trust among partners. As clients and regulatory bodies prioritise these certifications, companies must invest in compliance measures to remain competitive.
- Data management and governance: The exponential growth of data has created a pressing need for robust data governance frameworks. Companies must manage not just the quantity but also the quality of data, ensuring accurate and timely information exchange with stakeholders, including government authorities. With regulations tightening, particularly in sectors like citrus, businesses need effective data management strategies to comply and enhance decision-making processes.
- Real-time information needs: Customers increasingly demand real-time visibility into the supply chain. This requirement necessitates investments in technology that can facilitate faster decision-making and improve operational efficiency. According to research, 34% of businesses are focusing on accelerating their decision-making processes through IT enhancements.
- AI and integrated solutions: The integration of AI into supply chain operations is becoming essential. However, leveraging AI effectively depends on the availability of high-quality data and seamless integration across systems. Companies that can harness AI will gain significant advantages, yet many are still unprepared for this shift, with projections indicating that less than 25% will be ready for full AI integration by 2026.
- Adoption of industry cloud solutions: The move toward industry-specific cloud solutions is gaining momentum. These solutions can streamline operations, reduce maintenance burdens, and enhance agility. Despite current challenges, Gartner predicts that 70% of enterprises will adopt industry cloud solutions in the coming years, reflecting a significant shift in operational strategies.
Collaborative approaches to problem solving
Recognising the interconnected nature of these challenges, Boltrics has adopted a collaborative approach by forming a ‘peloton’ of companies in the cold chain industry. This initiative encourages participants to share resources, risks, and efforts, fostering a community-driven solution to the industry’s most pressing issues.
Van Ekris concluded by inviting attendees to learn more about Boltrics’ initiatives through an upcoming online webinar organised in collaboration with the GCCA. This platform will provide further insights into the company’s solutions and strategies for navigating the complexities of the cold chain sector.
As the industry continues to evolve, the emphasis on technology, collaboration, and compliance will be crucial for companies aiming to thrive in a competitive landscape. By addressing these challenges collectively, stakeholders can enhance efficiency, reduce costs, and ultimately drive growth in the cold chain industry.