The complete paperless operations is the only choice that the supply chain has in order to work seamlessly as the world continue to grapple with the Covid 19 pandemic whose end game is unknown, the industry stakeholders have warned.
Exchange of documents is no longer healthy since the virus can sit on the paper. Various systems the government agencies and private sector have created must now start talking to each other as the country embraces e-commerce, KenTrade Chief Executive Officer of KenTrade, which operates an online cargo clearing platform, said.
He said this when he addressed industry through a virtual meeting KenTrade organized to discuss effective utilization of e-commerce for trade facilitation in the era of COVID-19
He also asked the government institutions to start trusting systems and rid of the industry paperwork that is still being used in parallel to the already automated operations.
“Systems that the industry has created should be integrated and start speaking to each other. The industry does not have a choice,” Wangora said, adding that the IT technologic has revolutionised supply chain, in the developed world and regional economies can benefit from such major breakthroughs such as block chain.
Although the logistics industry has over the last decade made significant strides in automating cargo handling operations, Covid 19 should serve as a catalyst to consolidate the gains so far made, Kenya Maritime Authority (KMA) Head of Commercial Shipping, John Omingo said.
KMA has already developed regulations for enhancing efficiency which provides a platform of having fully automated cargo handling operations.
With over 21 million online shoppers in Africa and at an 18 percent annual growth compared to the global rate of 6 percent, e-commerce will play a significant role in the coming times in the continent.
“The future of trade is in technology. Time and speed are of essence and companies must allow their staff to be creative to competitively remain in business,” Dr George Kidenda the managing director of Freightlogix Kenya said.
The last mile component of the logistics chain takes about 53 percent of the total costs and firms can increase their profit by leveraging on technology to cut these costs, Kidenda noted.
“The issue of digitization was spoken about 15 years ago. The industry should seize this opportunity. Opportunities are just like windows and doors they open and close,” Mr Silvester Kututa, Chief Executive Officer of Express Shipping & Logistics said.
Although most of the government agencies have fully automated, the same cannot be said of the private sector. For instance, Kenya Ports Authority (KPA) fully automated its cargo handling operations in 2007, KenTrade has created an online platform that brings over 12,500 users on the board, with Kenya Revenue Authority (KRA) now integrating Integrated Custom Management System (iCMS) with other key agencies. However the private sector in Kenya is yet to create systems to integrate each other.
According to Peter Masinde, Inland Container Depot manager, importers have not been fully taking advantage of the automation of the port to clear cargo round the clock, which would ease the process and save the industry high demurrage charges they pay for delays.
According to the Shippers Council of East Africa (SCEA), as the region seeks to automate operations, there is also a need to interrogate how the partner states can relate as trade partners.
Delays at the border crossing posts has seen the region incur huge cost due to high truck turnaround time, with transport cost to Uganda, Kenya biggest trading partner going up by US $ 1000, according to SCEA Chief Executive Officer Gilbert Langat.