The South African logistics industry is a lot like navigating a busy street market: constantly in motion and full of surprises.
For many business owners trying to get ahead in this unpredictable environment, keeping up with the current trends in the logistics and supply chain management industries is a headache they don’t have time for. This article aims to make your life easier as a business owner, and unpack the six trends that are set to shape the future of these industries in South Africa.
Flexible funding helps logistics businesses stay at the leading edge of the industry. Explore Lula’s alternative funding solutions and find out how you can get small business funding to seize opportunities and grow.
Why Is It Important to Know the Latest Trends in Logistics and Supply Chain Management?
South Africa’s unpredictable economic environment means businesses need to stay ahead of logistics and supply chain trends in order to be able to pivot in response to rapid technological and environmental changes.
Knowing about emerging trends, such as the push for sustainability, smarter IT solutions and new easy funding methods can give your logistics or supply chain management business a competitive edge.
The ability to anticipate disruptions and implement innovative solutions can help businesses deal with challenges such as labour shortages, rising fuel prices and supply chain bottlenecks.
It can also help them prepare for more uncertainty in a world that’s dealing with geopolitical tensions.
Dive into the top six trends in the logistics and supply chain management industries set to impact the South African economy in 2025.
Top 6 Trends in Logistics and Supply Chain Management Industries that Could Affect Your Business
The current trends in the logistics and supply chain management industries are particularly sensitive to global and regional external factors that affect supply and demand, shipping, and other aspects of the logistics process.
In the top six trends in logistics and supply chain management outlined here, you will learn about the interconnected impact that global and regional external factors have on trends and how this is relevant for logistics businesses operating in South Africa.
1. A focus on sustainable supply chain management
2024 was a year in which many logistics companies focused on making their supply chain more sustainable, as economically friendly practices moved closer toward being a foundation for business success.
South Africa was among the world leaders in ESG metrics during the pandemic, with three quarters of businesses following them, according to a survey by BizCommunity.
Stricter sustainability laws were the driving force behind this trend, forcing companies to make changes to their logistics operations so they could stay in line with decarbonisation and emissions targets.
Despite this, the South African logistics industry still depends heavily on fossil fuels, and produces high emissions. However, there are several ways to reduce this environmental impact.
A focus on electric vehicles and green energy will allow companies to reduce transport emissions. If using fossil fuels is unavoidable, then route optimisation software like telematics systems can help drivers plan the most energy-efficient routes. These systems also monitor real-time performance. The insights from data can be applied to reduce idling time and increase fuel efficiency.
On a packaging level, switching to sustainable materials can further reduce the industry’s carbon footprint.
Why this trend is important for your business
More aggressive regulations mean companies that neglect sustainable practices risk alienating customers, incurring regulatory penalties, and damaging their reputations.
Embracing sustainability could even become a competitive advantage, as businesses find that it enhances their image and helps build a loyal customer base. As a result, economically friendly initiatives will likely become a pressing concern over the next 12 months.
2. A rise in operational costs
Higher labour costs, a surge in fuel prices, and increased maintenance expenses have made 2024 one of the most expensive periods ever to run a business.
Factors such as retirements and pandemic-driven workforce shifts were the cause of wage increases in particular. The National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) recently finalised a wage agreement that includes an across-the-board increase of 7% for workers in the logistics sector. Additional allowances have been introduced for night shifts, cross-border work, and handling hazardous goods.
While these increases helped to improve working conditions and productivity, not to mention the potential disruptions from industrial action, they are another potential headache for logistics company owners.
Why this trend is important for your business
Many logistics companies are turning to supply chain technology as a way of compensating for cost increases in other areas.
Exploring these developments, while maintaining a happy workforce, looks to be the key to succeeding in an increasingly challenging logistics sector.
3. Digital transformation and AI-driven logistics
The logistics world is set to look a lot different to what it did just a few years ago thanks to the rise of artificial intelligence (AI).
In the South African logistics industry, this means new capabilities to deal with the aforementioned operational costs, including smarter inventory management as AI tech can vastly improve demand forecasting, and adjust stock levels accordingly.
Port community systems (PCS) in South Africa are also benefiting from this technological development, according to a report by In on Africa (IOA), an organisation that promotes African innovation, entrepreneurship and business growth by connecting local talent and businesses to global opportunities. PCS created a unified digital platform that offers real-time supply-chain visibility by connecting shipping, warehousing and other logistics activities.
Mauritius and the Democratic Republic of the Congo (DRC) are already reaping the benefits of PCS, and the imminent adoption of it in South Africa will advance regional logistics further.
On the road, AI not only means smarter route planning, but bots will also upgrade vehicle monitoring and predictive maintenance. AI can detect early signs of wear in vehicles, proactively schedule repairs, and avoid breakdowns, ultimately cutting maintenance costs.
AI-powered bots can also improve customer communication, particularly important in e-commerce. Super-efficient last-mile delivery services that optimise delivery times and keep recipients in the loop on delivery statuses and delays will greatly increase customer satisfaction levels.
Very soon, an Internet of Things (IoT) system will connect every aspect of an entire supply chain, providing real-time data across various functions. For instance, sensors that can track inventory levels, monitor vehicle conditions, and capture environmental data will be integral to the day-to-day running of a logistics business.
Why this trend is important for your business
Logistics companies rely on new technology to stay competitive. According to KPMG’s Supply Chain Trends report, 50% of logistics businesses invested in AI applications in 2024, which increases the pressure on those who operate without them.
In the near future, IoT devices will transform logistics workflows with real-time tracking and smarter planning. Starting to adopt AI advancements now will make it easier and cheaper to integrate fully later, preventing a costly catch-up down the line.
4. Warehouse automation and robotics
Automation is revolutionising what goes on behind the scenes in the logistics industry, as it makes warehousing processes faster, cheaper and smarter.
Robotic systems are now the preferred method for handling goods with lightning speed and pinpoint accuracy.
AI is having a major impact here, too. With AI-powered computer vision, sorting and packaging are becoming more precise and efficient, transforming how warehouses operate.
Computer vision enables machines to ‘see’ and interpret visual data from images or videos. Through deep learning and convolutional neural networks (CNNs), computer vision systems learn to recognise and classify objects. This process involves feeding massive amounts of labelled visual data into neural networks, which analyse patterns and improve accuracy.
In logistics, computer vision supports automated inventory level tracking, dimensioning and even safety monitoring. It enables efficient supply chain management by identifying objects, estimating distances and detecting anomalies.
Computer vision applications like autonomous sorting and real-time package tracking are leading us into an era of more efficient, safer and environmentally friendly operations.
Yet, like with all new tech, computer vision comes with challenges. Dr Klaus Dohrmann, VP of Global Innovation & Trend Research at DHL, explains: “As with any technological leap, there are considerations of data security, ethical implications, and the need for upskilling the workforce (with computer vision).”
Why this trend is important for your business
Adopting new warehouse technologies sooner rather than later will provide a competitive edge. Many global logistics players are already using AI-driven automation, so staying ahead locally means positioning yourself for future growth, while also meeting increasing customer demands.
5. Big Data: The backbone of smarter logistics processes
The technological advancements that we’ve spoken about in the previous sections bring one powerful asset to the forefront: big data.
Most of this, however, is fragmented, with data silos, duplication and misinterpretation clogging up supply chain operations.
Logistics providers are starting to discover how useful big data analytics are for getting the most out of this avalanche of data. These models work by collecting vast amounts of data from various sources, like customer transactions, sensor data, social media or even weather reports.
Once the data is gathered, it’s processed and analysed to identify patterns, trends and insights that weren’t obvious at first glance.
The process involves using software tools and algorithms to clean and organise the data so that it’s accurate and useful. Once cleaned, advanced analytics methods such as predictive analytics, machine learning or AI can be applied to forecast future outcomes, optimise operations and make data-driven decisions.
Why this trend is important for your business
We’ve spoken about how AI will help with route optimisation and predicting delivery delays. Big data will be the driving force in this process.
Failure to jump on board may put your business behind its rivals over the next few years.
6. Alternative funding solutions
The unpredictable logistics landscape in South Africa can severely affect a logistics company’s profitability.
Supply chain disruptions and inefficiencies caused by transport strikes often give rise to unexpected expenses that can blindside businesses and force them to either borrow money at high interest rates or transfer it from business growth areas.
To combat this, having quick access to funding is essential for businesses. Whether you’re a growing or established business, knowing how to finance heavy equipment can help you increase output.
Lula’s flexible funding solutions, offers a Revolving Capital Facility and fixed-term funding solution, Capital Advance, that can help meet your business growth needs and adopt the latest technologies. Alternative funders like Lula help businesses break free and provide businesses with transparent, affordable funding.
With a Revolving Capital facility, logistics providers have continuous access to funds, paying a fixed fee only on what they borrow. Subject to affordability, once the initial borrowed amount is repaid, funds can be accessed again without the need for reapplying, subject to a credit assessment.
With flexible funding, your logistics or supply chain management business can streamline operations and maintain stability, despite unpredictable hurdles.
Why this trend is important for your business
Having a ready supply of funds isn’t just a safety net, it can also turn into a competitive advantage.
Businesses that have the confidence to respond to changing market conditions, supply chain disruptions, and other challenges, are more likely to invest in growth and increase their market share.
Find out how flexible funding can help your logistics business grow. Access up to R5 million in funding within as little as 24 hours.
