Is your warehouse smart, sustainable and skills-powered?

Supply chain industry body SAPICS urges African businesses to assess this vital supply chain link.

For decades, warehouses across much of Africa have been viewed primarily as functional cost centres – simply places to store stock… often underinvested and largely invisible to boardroom strategy. That mindset is changing globally and supply chain industry body SAPICS warns that African businesses risk falling behind if they fail to recognise that today’s warehouses are strategic investments that enable growth, resilience and competitiveness.

From cost centre to strategic asset

As geopolitical tensions, nearshoring and shifting trade dynamics push global companies to diversify sourcing and manufacturing, Africa has an opportunity to position itself as a viable regional and global hub. However, this opportunity will only be realised through investment in ports and transport corridors, as well as in modern, efficient, sustainable and skills-powered warehousing.

Warehousing has evolved from a passive function into a critical enabler of supply chain performance. Decisions about warehouse location, capacity and technology now shape distribution networks, determine speed to market and influence flexibility and resilience in the face of disruption. In a world of just-in-time and increasingly resilience-focused hybrid logistics models, omnichannel retail and complex cross-border supply chains, the warehouse has become a strategic lever. Warehouse sustainability is also a crucial component of environmental, social and governance (ESG) frameworks, directly affecting carbon footprints, operational costs and corporate reputation.

When warehouses fail, the chain breaks

According to SAPICS, warehouses that do not operate optimally can undermine the entire supply chain. Effective warehouse management ensures the availability of the right goods, in the right quantity, at the right time – as well as their safe storage and delivery in perfect condition. When warehouses underperform, customer satisfaction, cash flow and brand reputation are all at risk.

This pressure is intensifying as consumer expectations continue to rise. Customers increasingly demand customised products, full transparency and ever-faster delivery. These demands expose inefficiencies in warehouse layout, processes, systems and skills – inefficiencies that many African operations still struggle to overcome.

Demand rising, capacity tightening

Market data underscores the growing importance of warehousing. Knight Frank’s Africa Industrial Market Dashboard shows that in key markets such as Johannesburg, Nairobi and Lagos, occupancy rates for modern warehouses have climbed to around 85%, up from 78% in the first half of 2023. Prime warehouse rentals in Johannesburg have risen by 7%, signalling strong demand while highlighting supply constraints in quality, fit-for-purpose facilities.

The strategic importance of warehousing is also reflected globally. In the DP World Global Trade Observatory Annual Outlook Report 2026, logistics executives ranked warehousing and logistics hubs as the operational area most in need of infrastructure investment. This reinforces the view that warehouses are no longer peripheral infrastructure, but central to trade competitiveness.

The growing complexity of reverse logistics

One of the most underestimated pressures on warehouses is reverse logistics. With the rapid growth of e-commerce across Africa, return volumes are rising sharply. Globally, up to 40% of goods bought online in some categories are returned, compared with just 5 to 10% for in-store purchases. SAPICS notes that these higher return rates can require up to 20% more warehouse space and labour to handle inspection, repackaging, refurbishment or disposal.

For African warehouses that were not designed with reverse flows in mind, this creates congestion, higher costs and operational complexity. Smart warehouse design, flexible layouts and digital tracking systems are increasingly essential to manage both forward and reverse flows efficiently.

Technology needs talent

Technology alone will not close Africa’s warehousing gap. SAPICS emphasises that skilled people are critical to unlocking value from investments in automation, AI-enabled warehouse management systems and data analytics. Today’s warehouse managers require a blend of operational expertise, digital literacy, problem-solving ability and a strong understanding of sustainability.

To address this skills gap, SAPICS offers targeted education for warehouse employees, supervisors and managers. Its flagship Basic Stores & Stock Control (BSSC) course is widely regarded as a foundation for sound warehouse management, equipping learners with practical knowledge to improve efficiency, accuracy and control on the warehouse floor.

Sustainability starts inside the warehouse

When it comes to supply chain sustainability, SAPICS advises that the warehouse is one of the most impactful places to drive change. “The push for greener supply chains often focuses on raw materials and transport, but reducing energy use in factories and warehouses may be more achievable and can have a substantial impact on an organisation’s carbon emissions,” it explains.

“Supply chain sustainability leaders increasingly cite facility energy consumption as one of the most effective levers for reducing emissions. While material and product use are significant contributors, organisations typically have greater control over decisions relating to energy sourcing for their facilities.”

In South Africa and other regions facing energy constraints and rising electricity costs, such investments are not only environmentally responsible, but operationally essential.

A crossroads moment for African warehousing

Recognising the imperative to drive sustainability in supply chains, SAPICS also offers a masterclass on best practices and solutions for building sustainable supply chains, presented in partnership with the US-based Association for Supply Chain Management (ASCM). In addition, it offers the International Supply Chain Education Alliance’s Certified Sustainable Supply Chain Professional programme.

Warehousing in Africa is at a crossroads. Rising demand, changing trade patterns and evolving consumer expectations present both challenges and opportunities, says SAPICS: “Warehouses that remain underinvested risk becoming bottlenecks that limit growth. Those that are smart, sustainable and skills-powered can become powerful catalysts for economic growth, business success and job creation.”