Data is the new diesel

From a US$7.22-billion global telematics boom to Spar’s ambitious Eastern Cape rollout, JACO DE KLERK discovers that the data-driven revolution in supply chains is no longer coming – it’s already here.

Not so long ago, a warehouse manager’s most sophisticated tools were a clipboard and a radio. Today, that same manager may be watching a real-time AI-powered dashboard that tells them exactly which forklift is overdue for a service, which delivery route will save the most fuel and which product on the shelf is about to run short – all before the first truck has even left the yard. The transformation is global in scale, and South Africa is very much a part of it.

According to a new report by global market research and consulting firm The Business Research Company (BRC),  the global warehouse vehicle telematics market – the technology that connects forklifts, trucks and warehouse equipment to centralised data platforms – is set to reach US$7.22 billion by 2030, expanding at a compound annual growth rate of 18.3%. That is not the growth rate of a niche technology finding its footing – it is the growth rate of an industry becoming indispensable.

“Several factors are contributing to this positive trajectory, including the rising popularity of same-day and next-day delivery services; a stronger focus on boosting labour productivity and workforce efficiency; and increased investments aimed at enhancing supply chain resilience and redundancy. Additionally, growing commitments to sustainability and energy efficiency, along with the heightened requirement for real-time data to support informed decision-making, are further accelerating market growth,” BRC points out.

“The forecast period is also expected to witness increased adoption of AI-powered predictive maintenance, machine learning-based route and task optimisation, cloud-native fleet management platforms with centralised analytics, advanced 5G connectivity for high-throughput telemetry and video analytics integration for monitoring operator behaviour and ensuring safety,” it continues.

This revolution isn’t only taking place abroad; South Africa is also firmly in the running. “The past few years have tested every supply chain worldwide. Load-shedding, water shortages, fuel volatility and global disruptions have forced South African retailers to rethink what resilience truly means,” explains Arno Haigh, national logistics executive at the Spar Group.

“At Spar, those lessons have become the blueprint for our next-generation logistics model – one designed for agility. Whether it’s re-routing deliveries during power cuts, providing water to drought-affected communities, or mobilising trucks during national crises, our logistics teams have learned that flexibility is the heartbeat of reliability. We no longer plan for ‘what if’. We plan for ‘when’,” he elaborates.

This philosophy has accelerated the group’s embracing of predictive analytics, route optimisation and warehouse automation. “We’re deploying predictive analytics to improve accuracy in demand forecasting and replenishment. Real-time route optimisation tools cut kilometres travelled and fuel burned. Inside our distribution centres, automation and AI-driven dashboards are speeding up throughput, reducing handling costs and enhancing visibility across every product movement,” says Haigh.

“Our most significant project – the integration of a new tech system across our national network – is redefining how information flows through the business,” he reveals. “The next distribution centre, in the Eastern Cape, goes live in July 2026. Each subsequent rollout brings us closer to a fully connected logistics ecosystem where pricing, stock and subsidy data are visible instantly to buyers, warehouse teams and retailers alike.”

It’s all about traceability: the ability to know where a product is, where a vehicle is and what the data says about both – in real time and at every point in the chain – is becoming the norm rather than the exception. For consumers, traceability means confidence in food safety and product provenance. For retailers, it means tighter inventory management and reduced waste. For logistics operators, it means smarter maintenance scheduling, better fuel management and fewer costly surprises.

For small and emerging suppliers hoping to access national markets, digital traceability can be the infrastructure that makes scaling viable – providing the documentation and data continuity that larger buyers require. Haigh is particularly emphatic on this point. Spar’s distribution model doesn’t only serve the group’s own interests – it is built to carry independent retailers and small producers along with it.

“A core part of Spar’s logistics ecosystem is its ability to connect local suppliers with national markets. Efficient distribution centres and digital traceability allow small producers to scale sustainably, meeting national demand without compromising on quality or timing. This ‘local-to-national’ flow strengthens South Africa’s food security while driving inclusive economic growth – proof that logistics can be both efficient and equitable,” he explains.

Technology is a tool, however, not a substitute for capability. The warehouse telematics boom is being built on a foundation of skilled operators who understand what the data means and how to utilise it effectively. Spar’s “playpen” innovation model – where teams test new systems in real-time environments before full rollout – reflects a change-management philosophy that keeps people at the centre of digital transformation.

“Technology may drive the transformation, but people sustain it. Our change-management process begins with practical, hands-on training to ensure that every warehouse operator, driver and planner can use new systems confidently. The goal isn’t to replace experience with software – it’s to amplify it. The more intuitive our systems become, the more empowered our teams will be to innovate on the ground,” says Haigh.

This isn’t a minor point. One of the persistent risks of rapid technology adoption is that systems outpace the people who are supposed to use them – creating frustration, workarounds and ultimately poor return on investment. The organisations getting this right are those investing in training and adoption as seriously as they invest in the technology itself.

Looking ahead, the convergence of telematics, AI, 5G and blockchain-enabled traceability points toward a logistics landscape that is almost unrecognisably different from the one that existed a decade ago. Spar is already exploring some of those frontiers. “We’re also exploring smarter delivery windows – extending into late-night operations to cut congestion and fuel usage, while accelerating cash flow between suppliers, retailers and consumers,” notes Haigh.

“Automation will continue to reduce waste and cost. Localisation – through micro-distribution and regional hubs – will bring goods closer to communities,” he continues. “Circular logistics will make reverse supply chains a norm, not a novelty, and traceability – powered by blockchain and AI – will make the entire value chain more transparent, from farm to fork.”

So, while the US$7.22 billion figure may be striking, it is ultimately a proxy for something more fundamental. Diesel powered many centuries of commerce but, if the data coming out of warehouses, trucks and distribution centres is any indication, the next revolution has already started: commerce powered by data.