Page 139 - Risk Report 2024

7. Energy 8. Logistics

The sector is resilient against the energy crises to date but will Prevailing theft and infrastructure vandalism compromise
have real difficulty to cope with a grid failure, which will impact the sector’s service continuity and require partnerships with
storage of most products, especially perishables. Transport will other State organs and communities to resolve. In addition,
be less affected unless diesel supply is restricted. Alternative contingency plans must address natural disasters, cyber-
energies (being introduced) are likely to take many years to attacks, labour disputes, and political instability. Such plans
become adequate. Ongoing electricity challenges and rising fuel should include alternative routes or modes (e.g. air versus
costs impact operational cost and threaten the sector’s ability sea), backup power supplies for data centres and warehouses,
to move freight safely and reliably while further exposing the emergency communication protocols for employees and
sector to continuing theft of assets. customers, and procedures for handling customer complaints
or refunds.

9. Food Security 10. Climate Change
Food Security has no direct impact on the Transport and A major emitter, the sector has made significant technological
Logistics Sector (apart from the logical employee wellbeing advances towards carbon efficiencies. Insufficient
impact, which will disrupt the sector, if severe), but the sector implementation leaves the sector exposed, as carbon taxes
has a direct impact on national food security, should it fail. driving decarbonisation and just transition will impact potential
regulatory action and trade flows, while extreme weather events
will increasingly cause interruptions, especially in context of
social equity and inclusivity. Sustainable transport modes
(e.g. rail, waterways, electric vehicles, biofuels, renewable
energy sources, cycling, and walking) can reduce emissions,
while climate smart practices can improve responsiveness to
disruptions caused by extreme weather. Collaboration among
governments, businesses, communities, and civil society
organisations must address environmental sustainability and
social equity concerns.

11. Technology 12. Skills

Technology (AI, blockchain, IoT, Digital Twins, Machine Learning) The sector depends on knowledge workers. The failed education
revolutionises the sector through higher efficiencies, optimised system and inefficient skills development regime pose major
routes, predictive vehicle maintenance, real-time shipment tracking, risks for competitive transport, warehousing, and other logistics
autonomous vehicles, improved safety, and reduced costs. Risks are services, impacting everything from strategic decision-making,
managed by advancing cybersecurity and continuity practices with a operational efficiency, problem solving, adapting to change, to
focus on leveraging opportunities. AI analyse vast amounts of data meeting customer demand. Adequate fleet management resources
to predict demand and traffic patterns, automate processes, optimise and well-maintained vehicles are essential for timely deliveries.
delivery routes, and reduce fuel consumption. Blockchain improves Properly equipped warehouses with efficient storage systems
transparency by securely recording transactions and tracking goods. contribute to streamlined inventory management and faster order
IoT devices enable real-time asset and inventory monitoring, and fulfilment. Advanced technology solutions (e.g. GPS tracking,
predictive vehicle maintenance. Autonomous vehicles disrupt inventory management software, and route optimisers) enhance
traditional transport models through cost-effective freight solutions. efficiency and visibility across supply chains. Experienced supply
Some players leverage technology to match shippers with carriers, chain management professionals optimise processes, reduce
reduce empty miles, and optimise trucking operations. The sector is costs, and improve supply chain performance. Skilled logistics
vulnerable to cyber threats (e.g. ransomware attacks, data breaches) coordinators manage complex logistics networks, coordinate
as it relies on interconnected systems and digital platforms. It needs shipments, and resolve logistical challenges. With increasing
robust measures (e.g. encryption protocols, network monitoring digitisation of logistics processes, employees with tech-savvy skills
tools, employee training programs, cybersecurity audits, incident must leverage digital tools. The sector develops skills despite
response plans, and investment in advanced security technologies institutional constraints through ongoing education programs on
like cloud-based data storage and recovery) to safeguard against areas like managerial leadership, international trade regulations,
cyber risks. warehouse management, industry practices, and technological
advances to equip its workforce.