The future of the Logistics Industry: Shifting patterns
During a transformative era for the transportation and logistics industry, Afrirent Holdings has emerged as a proactive player ready to navigate the waves of change. The sector faces a convergence of new technologies, market players, customer expectations, and business paradigms, presenting a landscape ripe with both challenges and opportunities.
Committed to remaining at the forefront, Afrirent Holdings, a customer-centric fleet management service provider, is dedicated to enhancing its capabilities and expertise. This commitment underlines the company’s determination to not only adapt but thrive in a dynamic environment, ensuring it remains a reliable partner in meeting the ever-evolving needs of its clients.
This determination is what Senzo Tsabedze, CEO of Afrirent Holdings, attributes their success and longevity in the industry to. “With more than two decades of hands-on experience, Afrirent proves the profound impact of strategic transport logistics and fleet management, a driving force actively shaping South Africa's economic landscape. This would not be at all possible without the team's skills, innovation, and unmatched customer service. Each member of the Afrirent Mobility line of business contributes to our success. We tackle industry challenges head on, always striving to deliver value and strengthen bonds,” adds Tsabedze.
Drawing on two decades of industry expertise that originated with just two trucks, this 100% black female-owned enterprise has flourished into a formidable force. Twenty years on, Afrirent Mobility manages a substantial fleet of nearly 12,000 cars, trucks, trailers, and superlinks. The service offering is with both public and private sector clients. The enterprise strikes a harmonious balance between cutting-edge technology solutions and robust reporting and fleet control systems, offering its clients an unprecedented level of visibility into their fleet operations. The incorporation of futuristic systems stands as a pivotal component of their strategic approach, demonstrating their commitment to elevating services and seamlessly adapting to the ever-evolving market dynamics.
According to IOT analyst firm, Berg Insight, a strong growth period for fleet management in South Africa is expected in the years to come. The number of fleet management systems in active use is forecasted to grow at a compound annual growth rate (CAGR) of 12.6 percent from about 2.0 million units at the end of 2021 to reach 3.6 million units by 2026.
However, the sector is not without challenges. Logistics companies are facing an era of unprecedented change as digitisation takes hold and customer expectations evolve. This brings about both risk and opportunity. Globally, the industry is experiencing redefining trends in new technology, new market entrants, new customer expectations, and new business models.
Subsequently, modern technology, such as the Internet of Things (IoT), Artificial Intelligence (AI), Mobility-as-a-Service, and Electric Vehicles (EVs), has brought substantial changes to fleet management and logistics.
“Our goal is clear, to fuel a thriving South African economy. The focus for our lines of business is on using technology and innovation collectively to enable efficiencies in our processes. Fleet management and transport logistics are critical components in achieving this goal,” adds Tsabedze.
The South African Police Service (SAPS) in June 2023 announced the latest quarterly crime statistics for the second quarter of the year – 1 January to 31 March 2023 – noting that 5,119 cars were hijacked over the three-month period. This equates to approximately 57 cars being stolen in the country every day. To this end, Afrirent has developed Afritracker, a cutting-edge vehicle tracking and fleet management approach with a recovery rate of 90%.
Afrirent also provides an alternative to traditional vehicle financing, through the Sobantu Rent-to-Own initiative. This allows you to rent a vehicle over a period instead of getting tied up in stringent loans.
“At the core of what we do, our commitment to being a partner to our client’s journey is the ethos that has sustained us over the years”, concludes Tsabedze.