‘The most important keyword is resilience’
What priorities should we set to ensure that our supply chain is reliable, digitised and decarbonised? Logistics expert Andy Connell envisages the future of the industry.
Remaining resilient in difficult times, decarbonisation, digitalisation, artificial intelligence (AI) and fair, future-proof value chains are enormous challenges in fresh produce logistics. At the end of the trade show on Friday, logistics expert Andy Connell, Managing Director at A-Bar-C Services, gave a presentation on the Logistics Hub Stage entitled ‘The coming decade: resilience and renewal in fresh produce logistics’, in which he spoke about how the industry should respond to these challenges.
Logistics expert Andy Connell talks to Logistics Hub about the future and the challenges facing all players along the supply chain. Copyright: Mese Berlin
‘The most important keyword is definitely resilience,’ said Connell. ‘No matter who you talk to, from which country or about which market, the general consensus is that there have always been problems, but that the industry has faced extreme challenges in the past four or five years.’ But it has recovered. ‘What we are very good at in logistics is dealing with circumstances. Where we need to improve is in anticipating and preparing for things,’ said the expert.
Lack of government regulations
On-time delivery used to be the norm, but today it is more of a distant goal. Overcrowded ports, lack of access to the Red Sea, and restrictions on the Panama Canal mean that we have to be adaptable and inventive, creating new options. This could mean distributing cargoes among different shipping companies or calling at different ports, even if it results in financial losses.
Turning to another important future topic, decarbonisation, Connell sees consensus on the necessity and some progress, but adds: 'So far, it is mainly NGOs that are doing all the work. There is a lack of uniform government regulations, and thus often a lack of pressure on stakeholders to implement measures.'
Thanks to AI, money, energy and waste are being saved
The expert has high hopes for digitalisation and AI. “My home country, South Africa, is a global leader in issuing digital certificates for all documents along the value-added chain. Just think of the wealth of data this alone creates, which can be used for analysis and modelling predictions,” said the expert.
Data platforms and models would enable producers and freight forwarders to plan more effectively, handle orders and deliveries more efficiently, and thus reduce waste, costs and energy usage. ‘AI will greatly optimise the supply chain and bring greater security to all involved,’ said Connell.
There are many remarkable innovations, particularly in storage and transport, such as dynamically controlled atmosphere (DCA) systems. ‘This organic solution can replace non-recyclable sulphur dioxide films in containers, which are a major waste problem,’ said the expert. He is certain that exciting times lie ahead.