The frightening numbers
We are sitting on a youth unemployment time
bomb With a world population of 7.36 bn, over 24% (1.76 bn) is aged between 15
and 29. Most live in developing countries and are unemployable due to lack of
skills. In Africa these numbers represent an opportunity, not a threat.
Youth unemployment- threat or opportunity?
The overlooked obvious revealed
Particularly where South Africa is
concerned, the logistics industry is
well placed to light a fire of radical, constructive change in very much the
same way as Clem Sunter’s “High Road – Low Road” addresses to business were
able to in the ‘80s.
We recognise that a
primary cause of youth unemployment is a lack of skills.
We also acknowledge
that South Africa is not about to become a world leader in information
technology (or for that many any industry which requires high levels of
technological input) anytime soon. Our focus should rather be on developing or
reviving primary industries where there is potential which for various reasons is
not being fully realised.
3rd and 4th
party logistics providers add value to the businesses of buyers and sellers of
goods by ensuring that these goods are moved from supplier to buyer at the
right place, right time and at a viable cost. As such this is a derivative
industry which traditionally relies on the existence of buyers and sellers in
local and international markets in order to provide their services. In other
words 3rd and 4th party logistics providers rely on the presence
of established supply chains before they can offer their services.
This is where out of
the box thinking is indicated. Any visit to a downtown supermarket will show
how much fruit and vegetables are imported either from elsewhere in Africa or
further afield, but not South Africa. Not 15 years ago this country was a net
exporter of these products.
By contrast, the
Kenyan cut flower industry started growing in the 1970’s. The country’s horticultural
sector currently ranks as one of the economy's fastest growing industries, the
third largest foreign exchange earner after tourism and tea, a trend that saw
the industry rise to approximately 40% of export earnings over the past ten
years with export volumes reaching 220,000 tonnes in 2014. Imagine what that
has done for the Kenyan logistics industry.
An important factor in
the success of any project involving agriculture is the realisation that,
relatively speaking, farming is the easy part: what is important is total
control of the supply chain from the time the crop is harvested until it is
sold to the consumer.
This is where the
opportunity presents itself: due to various factors there is a surplus of arable
land in South Africa where those who own that land are unable, through a lack
of resources and business expertise, to produce crops which are marketable. By
partnering with such landowners the logistics provider is able to use his
network of local and overseas contacts to establish markets for products which
could be produced by the farm owners in question and then establish viable
businesses along that supply chain in order to serve the markets which have
been established.
In developing such projects a key factor in
ensuring their sustainability is training: the development not only of the
means of production (the farm and the downstream processing facilities) but
also the competence to manage those supply chains.
From concept to cash: how much of the supply chain
does the 3- 4PL own?
It has been said that there is money to be
made in unsettled times. By developing their own supply chains, 3rd
and 4th party logistics providers create their own opportunities
while providing real solutions to the youth unemployment time bomb.
The question is- how many 3 and 4PLs are up
to this challenge?
Has this sparked some creative ideas?
Please share
What other economically sustainable
solutions come to your mind?
Please join the discussions on www.charlesrdey.blogspot.com.
