{"id":31937,"date":"2023-02-10T13:59:54","date_gmt":"2023-02-10T13:59:54","guid":{"rendered":"https:\/\/www.africa-press.net\/south-sudan\/all-news\/enhancing-logistics-and-warehouse-service-provision-in-east-africa-through-responsive-solutions"},"modified":"2023-02-10T14:32:44","modified_gmt":"2023-02-10T14:32:44","slug":"enhancing-logistics-and-warehouse-service-provision-in-east-africa-through-responsive-solutions","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-sudan\/all-news\/enhancing-logistics-and-warehouse-service-provision-in-east-africa-through-responsive-solutions","title":{"rendered":"Enhancing logistics and warehouse service provision in East Africa through responsive solutions"},"content":{"rendered":"

Africa-Press – South-Sudan. <\/strong><\/span>The business sector is right to be concerned by the prevalence of low awareness of supply-chain security issues and the fact that not many businesses apply supply-chain security measures. If at all they do, it is usually determined by the customers and industry factors.<\/p>\n

The supply chain risks are categorized as high-probability or low-impact risks, which represent events that are part of the day-to-day functioning of a business or supply chain. By and large, these are mainly operational risks, such as pilferage, thefts in transit, even attacks on drivers, the takeover of the cargo by false carriers, and fraud.<\/p>\n

There are also low-probability or high-impact risks that include events such as terrorist attacks, organized crime, contraband of weapons or goods, and some others outside the scope of supply chain security, such as natural disasters. Such events can cause serious damage and negatively affect the functioning of supply chains.<\/p>\n

Businesses usually take out insurance as a reactive response to high probability or low-impact risks. Players in the logistics and warehouse industries are generally aware that the risks associated with their profession can be transferred to insurance. However, they are mostly unaware of the nuances of using insurance mechanisms effectively.<\/p>\n

Many smaller logistics and warehouse service providers (LWSPs) who buy insurance do it because it is compulsory and are sometimes unaware of the basic concepts of insurance such as indemnity, insurable interest, proximate cause, deductibles, and subrogation. There are also significant gaps between the logistics and warehouse industries\u2019 perceived needs and the insurance solutions purchased. This renders LWSPs practically unprotected or partially protected when claims arise.<\/p>\n

The regulatory framework governing LWSP in East Africa is slowly developing, except for Burundi and South Sudan. Uganda: except for the warehouse industry, the logistics industry in Uganda does not have a regulator. The absence of a sectoral regulator or dedicated mechanism to redress the grievances of logistics service providers and their customers, or of any mandate requiring transporters to insure their cargo, is pronounced.<\/p>\n

In contrast to mandatory provisions requiring these segments of these two industries to insure their liability exposures, no such compulsion has been placed on shippers and cargo owners to insure cargo while carried in vehicles.<\/p>\n

Tanzania, on the other hand, has the Land Transport Regulatory Authority, which is the regulator of the land transport sector (in particular roads, railways, and cable transport). The railway services and system are operated and regulated by the Tanzania Railways Corporation, while the marine transport sector is independently regulated by the Tanzania Shipping Agencies Corporation.<\/p>\n

Maintenance of satisfactory and effective insurance coverage against losses, injuries, or damage is required of any regulated service provider. The warehouse industry is licensed by the Tanzania Warehouse Licensing Board, and the regulator of the industry is the Warehouse Receipts Regulatory Board.<\/p>\n

As is the case with Uganda, Kenya does not have an established body to regulate the transport industry, especially the logistics industry. The warehouse sector is regulated by the Warehouse Receipts System Council. In Rwanda,the regulation of the transportation section (in terms of persons and goods) is the mandate of the Rwanda Utilities Regulatory Authority (RURA). Among its other functions, RURA regulates the transportation of persons and goods, including its licensing. The warehouse system in Rwanda is regulated by the Capital Market Authority of Rwanda.<\/p>\n

The law requires mandatory licensing of all warehouses and warehouse receipt operators and insurance of warehouses and goods against fire and other insurable risks. South Sudan and Burundi seem to be the only countries that have not yet enacted laws that govern warehousing. There are also no known public bodies that regulate these industries.<\/p>\n

And like, Kenya and Uganda, they do not have established bodies to regulate the transport industry, especially the logistics industry.<\/p>\n

Logistics and warehousing play a critical role in the supply chain and the economy. In these times where supply chain security has emerged as a business, research, and administrative concern, disruptions caused by reactions to the supply chain security risks, such as the closure of borders, airports, etc., affect a number of businesses.<\/p>\n

This causes delays or cancellations of goods deliveries, resulting in losses for businesses and the economy. Moreover, the means of transport and entire transport network are susceptible to being used by unauthorized persons for unlawful activity, such as smuggling of prohibited goods, while the occurrence of natural risks is unpredictable and unavoidable, as has been the case with the outbreak of the COVID-19 pandemic.<\/p>\n

The crucial role of the LWSPs in the supply chain must be underscored. LWSPS must be made aware of their obligations and risks\/liabilities, risk transfer to insurance, and gaps between the needs of LWSPs and the insurance solutions purchased by them. Innovative solutions should be developed to bridge the gap in the needs of the LWSPs.<\/p>\n

There is a need to also inform policymakers and organizations to implement measures that boost the performance of the LWSPs in the supply chain through responsive insurance solutions.<\/p>\n

 <\/p>\n

Source: The City Review South Sudan<\/b><\/p>\n

For More News And Analysis About South-Sudan<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Sudan. The business sector is right to be concerned by the prevalence of low awareness of supply-chain security issues and the fact that not many businesses apply supply-chain security measures. If at all they do, it is usually determined by the customers and industry factors. The supply chain risks are categorized as high-probability […]<\/p>\n","protected":false},"author":84,"featured_media":31936,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[234,265,233,3862],"class_list":["post-31937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-sudan","tag-south-sudan","tag-supply-chain"],"yoast_head":"\nEnhancing logistics and warehouse service provision in East Africa through responsive solutions - South Sudan<\/title>\n<meta name=\"description\" content=\"The business sector is right to be concerned by the prevalence of low awareness of supply-chain security issues and the ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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