AI and digitalisation in logistics: Opportunities and challenges abound

December 14, 2023

Artificial Intelligence and digitalisation offer massive opportunities for the transport and logistics sector but, asrevealed by a recent webinar, it won’t all be plain sailing…

Artificial Intelligence (AI) and digitalisation have emerged as transformative forces for Africa’s logistics, transport, and supply chain industries. The recent webinar hosted by the Chartered Institute of Logistics and Transport: South Africa (CILTSA) on 30 November shed light on the vast opportunities presented by AI and digitalisation, while addressing the challenges hindering their immediate impact.

Reza Suleman, lead – futures practice at Africa International Advisory, underscored the need for business outcomes, upskilling, education, and broader ecosystem collaboration involving partners, suppliers, and the public sector. He also warned against the potential threat of technology surpassing human capabilities. “Technology on its own is a fantastic opportunity, but it is not the solution for all the challenges we are currently experiencing; it needs people to drive it,” he emphasised.

CEO of ISB Optimus, Munyaradzi Husvu, delved into the transformative influence of AI and digitalisation in the logistics, transport, and supply chain industry. Despite acknowledging recent growth and advancements, he highlighted several challenges, particularly in regions like South Africa. Citing a skills shortage as an impediment to effective AI implementation, he emphasised the benefits of AI in enhancing businesses across the supply chain.

Husvu added that South Africa faces quite a few challenges that make it hard for AI and digitalisation to be implemented. These include data availability, privacy concerns, high implementation and maintenance costs, insufficient investment in research and development, and limited local technical expertise.

Munyaradzi Husvu, CEO of ISB Optimus, said the skills shortage is an impediment to effective AI implementation in South Africa.

Gerhard van Zyl, group operations director at Asimotech, expressed concern that AI may hinder innovation and problem-solving skills in younger generations.

Henry Smith, sales director: fleet (Africa) at MiX Telematics, highlighted the transformative power of AI in planning, executing, and optimising the movement of goods, outlining the tangible benefits businesses would gain.

Reza Suleman, lead – futures practice at Africa International Advisory, warned against the potential threat of technology surpassing human capabilities, emphasising the role of people in driving technological advancements.

Gerhard van Zyl, group operations director at Asimotech, expressed concerns that AI may hinder innovation and problem-solving skills among younger generations. He urged a balanced approach, cautioning against over-reliance on AI and digitalisation.

“We need to have backup plans and be wary of making everything centred around AI and digitalisation,” Van Zyl warned. “We need to find the balance between where we automate, where we use AI, and where we are going to still employ human beings. Challenges such as the lack of training for plumbers, electricians, welders, and boiler makers in Africa have resulted in a massive skills shortage around the world. These are not things that can be solved with robotics and automation; this already shows that we have a huge task in upskilling people in South Africa in the coming 10 years.”

Henry Smith, sales director: fleet (Africa) at MiX Telematics, echoed the sentiment that technology alone cannot fix supply chain problems. “There are three critical ingredients for successful digital transformation: the right digital talent, adjusted business models and processes, and the right mix of technology,” he pointed out.

Smith highlighted the transformative power of AI in planning, executing, and optimising the movement of goods, outlining the tangible benefits businesses can gain through real-time insights, improved forecasting, optimised inventory levels, and reduced transportation costs, as well as enhanced customer service.

While emphasising the immense potential of AI and digitalisation for Africa’s logistics sector, the webinar recognised the challenges demanding immediate attention. The consensus among experts is clear: a balanced approach combining technological innovation with human skills and collaboration is key to unlocking the full potential of AI and digitalisation in the African logistics landscape.