On the 10th and 11th of October, the Road Freight SME Summit was held at The Focus Rooms in Modderfontein, provided a vital platform for discussions focused on supporting small and medium-sized enterprises (SMEs) in the road freight and logistics sectors. The event featured key speakers sharing insights aimed at addressing challenges and unlocking growth opportunities within this critical industry.
The event was opened by Mark Makhubalo, the chairperson of the Road Freight SME Summit addressing the accomplishments of the year:
- Hosting masterclasses addressing key industry pain points.
- Launching a podcast, On the Road Podcast to showcase SME success stories and provide mentorship.
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YouTube: https://youtube.com/@smeroadfreightsummit?si=3ywXIs6NSl8RmMiA
- Expanding partnerships for tangible support to SMEs.
- Facilitating networking and knowledge sharing.
Partnership with ABSA
A significant milestone was our partnership with ABSA, which sponsored five SMEs to exhibit at the Smart Procurement World event. The participating businesses included:
- Lirro Transport
- Zibuse Transport
- Mamoja Trading and Projects
- Rambait Waste Management
He was then followed by Kgalaletso Tlhoaele, Head of Enterprise Development at ABSA Group, highlighted the promising future for SMEs through collaboration. Tlhoaele emphasized that ABSA’s Enterprise and Supplier Development (ESD) program provides resources for SMEs, especially those owned by women and youth. “Collaboration among corporate, government, and stakeholders is essential to unlocking opportunities for SMEs,” he stated.
Discussions continued with speakers addressing barriers to success in the road freight industry. Mihlali Gqada from the Department of Transport stressed the importance of regulatory compliance, explaining that regulations should enable rather than hinder business growth. Gavin Kelly, CEO of the Road Freight Association (RFA), noted that most RFA members are SMEs and emphasized that compliance is crucial for sustainable governance. Oliver Naidoo from JC Auditors highlighted that the cost of compliance is a necessary investment for long-term business stability, while Musa Ndlovu from NBCRFLI pointed out the industry’s challenge in attracting younger talent due to unprofessional working conditions.
The summit also focused on fleet optimization and efficiency. Edward Hoffman from DP World emphasized the importance of data collection and fostering a proactive safety culture. SME owners were urged to stay actively involved in their operations and continuously seek knowledge to enhance their business practices.
A panel discussion on strategies for sustainable growth addressed challenges such as financing and market access was moderated by Kamogelo Mampane. Malesela Tloana from Alter Clique Energy and Bernard Vilakazi from ABSA Group underscored the need for specialized support for SMEs, with Vilakazi outlining ABSA’s commitment to financing and non-financial support through market access and skills development programs.
As Day 2 began, discussions centred on critical challenges for SMEs in the road freight industry, moderated by Mark Makhubalo. The Opening Panel Discussion cautioned operators against exploitation in subcontracting. Panellists like Khumo Mosathupa emphasized the need for due diligence before signing contracts, while Gerhard Marais discussed the risks posed by middlemen who can deplete contract value. Marcio Issufo shared cautionary tales of ghost companies and underinsurance, urging SMEs to conduct thorough research.
In the Shielding Your Fleet panel, moderated by Annah Manugu, experts like Sharne Liebenberg and Wayne Witherspoon stressed the importance of selecting the right insurance and leveraging technology for real-time decision-making. Maintenance and insurance were identified as foundational elements of fleet sustainability, with Drikus Joubert and Tsepo Ndlovu advising SMEs to invest in comprehensive insurance and perform diligent pre-trip checks.
The Profitability Session featured Mpho Nkhumeleni from Isuzu Motors and Siven Moodley from FNB, who emphasized the need for SMEs to choose the right assets for their contracts and adapt to emerging fintech innovations in fleet management.
The summit concluded with a Workshop on Tyre Management, led by Keith Phelps from Dunlop & Sumitomo Rubber. He highlighted the importance of proper tyre selection for fuel management and overall operational costs, emphasizing, “Incorrect tyre usage can lead to increased costs and missed delivery deadlines. Remember: Maintenance; Maintenance; Maintenance.”
Testimonials
Malesela Tlouana noted, “We explored innovative approaches to overcoming industry challenges and harnessing opportunities for growth. Thank you to everyone who participated in the engaging discussions.”
Mpho Nkhumeleni from Isuzu Motors remarked, “The summit provided a remarkable platform for connecting with dedicated entrepreneurs and engaging in insightful discussions.”
Nomsa Mokoena from Faithrich Logistics expressed, “The discussions focused on critical subjects that provide resilience and support fleet management.”
Refiloe Papo added, “What an informative and well-planned summit. Congratulations to the organizers!”
The 2024 Road Freight SME Summit serves as a critical platform for SME leaders to gain insights into operational stability, cost management, and industry best practices within the evolving road freight sector.
For more information visit the website, https://www.smeroadfreightsummit.co.za/
