Truck fleets face a multitude of risks on a daily basis, from on-road threats like potholes and hijackers to national disaster-level events including floods, fires, load-shedding, strikes and riots. To ensure business survival in an unpredictable operating environment, fleet operators should have a disaster risk resilience strategy in place, as exemplified by City Logistics and its FMCG fleet.
According to Ryan Gaines, CEO of City Logistics: “The business environment in South Africa is fraught with risks. Now that the elections are over, experts in the logistics industry are urging companies to put measures in place to ensure that they can mitigate any risk and uncertainty that may ensue.”
Gaines points out that the last four years have been particularly risky for South African companies. First came COVID-19. Then the July 2021 riots erupted with widespread civil unrest in the KwaZulu-Natal and Gauteng provinces, marked by rampant looting and violence. Businesses were forced to shut down and employees stayed home for safety reasons. The Consumer Goods Council of South Africa estimated the economic damage at R50 billion,” says Gaines.
“In 2022, KwaZulu-Natal experienced severe flooding. This was the province’s most devastating natural disaster on record, resulting in significant loss of life with extensive damage to homes and infrastructure. The economic impact was staggering, with estimated losses totalling R36 billion,” he adds.
“The impact on the logistics sector was immense. City Logistics saw a 31% decrease in volumes as a result of the riots and a 37% decrease in volumes as a result of the floods. However, a month after the floods, City Logistics managed to normalise its operations despite damage to road infrastructure,” says Gaines.
Just this week, devastating floods hit the Eastern Cape while in Kwa-Zulu Natal, a vicious tornado played out its havoc in the Tongaat area.
Compiling a Business Continuity Plan
Achieving risk resilience is all about preparation. When facing risks like political turmoil, natural disasters and social unrest, businesses must ready themselves for unexpected challenges. “Preparation is key to reducing both financial losses and personal impacts. This is something that the logistics industry, a critical backbone supporting key sectors, has learnt over the years,” explains Gaines.
“In order to mitigate risks, companies should compile a Business Continuity Plan (BCP), which establishes protocols and creates prevention and recovery systems for unforeseen circumstances. Each scenario may differ, but the BCP works on building protocols and structures to ensure businesses are prepared for all types of unrest and uncertainty.
“During times of unrest or uncertainty, businesses also need to prioritise open and clear communications across the company. If employees can’t reach work safely due to events like riots, floods or pandemics, they should be able to work from home with full access to company software and tools.
“Finally, during times of increased risk, companies should ensure that staff members have emergency contact numbers and access to additional security for their personal protection,” Gaines concludes.
It’s all good advice for the trucking industry truly does face numerous risks on a daily basis.
