IOT Supplychain Visibility Test 947

 

Supply Chain Visibility real-world experiment @ Ride Joburg 947 Cycle Challenge

This past weekend was one of the highlights of the cycling calendar in Johannesburg, South Africa. The Virgin Active Ride Joburg 947 Cycling Race (https://ridejoburg.co.za/)  took place on Sunday 20 November 2022.

Some quick facts:

• Ride Joburg 947 cycling race is the world's second-largest timed cycle race (after the Cape Argus which is the biggest of its type)
• The Ride Joburg 947 race typically draws between 20 000-30 000 competitors, but this year the ridership might have been slightly lower - we have not yet been able to confirm the accurate number of participants for 2022
• This year’s route distance was extended from the traditional 94.7 km to a somewhat more challenging 97 km (60.27 miles) and took place at an altitude ranging between 1400 to ± 1740 meters above sea level.
• Sunny Highveld summer conditions prevailed with temperatures exceeding 30°C (86° F) in places

 

Data from Strava - an app for sports people (for comparative purposes)

Real-time tracking

Cogniplex decided to put Tive’s Solo 5G™ tracker to the test, under real-world conditions - during the Ride Joburg 947 Cycle Race. 

• 1x Tive Solo 5G tracker was discretely slipped into a Cogniplex Ride Joburg mountain bike rider’s backpack, safely nestled between energy bars and energy drinks for the ride.

The tracking unit  

      The Tive Solo 5G tracking unit is small and discreet

• Weight                                     100 grams
• Accuracy:

• Cellular                        500 m
• WiFi geolocation          50 m
• GPS                             5 m

The tracking unit placed inside the backpack

What sets the Tive unit apart from other trackers is the range of readings it can make in addition to basic location reporting. Analysis of the trip data reported the following:

·        Real-time location

Driving to the event we were redirected twice due to misunderstanding road closures, but still arrived well in advance at FNB Soccer City for our batch starting time. 

• Note that the Tive Unit is not a navigational tool directing you where to drive, but rather a reporting tool recording where the unit travelled.

Live tracking - screenshot was taken post-event covering movements over 24 hours

The platform offers:

• geo-fencing, 
• clickable and zoomable maps down to street level, 
• data at each measuring point along the route. 
• While we only used 1 tracking unit for this experiment, the platform has the capability of tracking multiple tracking units simultaneously.

Each of the readings below can be tied back to a specific date, time and GPS location. This means a detailed audit trail is recorded onto a cloud for each trip, recording at any given moment:

·        Real-time temperature

Note that the temperatures were recorded inside a backpack, meaning external/ambient temperatures could have been higher

Temperature readings

·        Humidity

Again, recording inside a backpack. The higher readings around 2 pm were recorded when the rider stood under a water hose to cool down

                                                                                Temperature readings

·        Real-time acceleration

Acceleration is measured in G-force (a measurement of the type of force per unit mass) and not in km/h. 

These measurements in the context of logistics could indicate rough handling (e.g. dropping, knocking, bumping or throwing of items), or bad road conditions (traffic or other accidents, sudden stops or extreme braking).  For our rider, this meant uneven road surfaces and speeds of up to 55 km/h, and dropping the backpack once or twice.

Acceleration readings

Tracking your precious - Supply Chain applications

This platform offers real-time visibility across the different functions and geo-locations in your supply chain. Adding a Tive Solo 5G unit or more than one unit to your cargo, whether stored in a warehouse, or carried by your own trucks, or third-party/outsourced transporters (3PL, 4PL etc) offers the following benefits:

• The units are easy to activate and easy to use, with a battery life of up to 90 days (depending on reporting period setting selected). 
• Tracking units can be individually charged with a cell phone charger.
• The tracking unit can measure local conditions in time units ranging from 2 min to 5 min. This means every 2-5 minutes you can monitor in real-time the following conditions:
• Location – monitoring the actual location to detect delays, possible unauthorised stops, or deviations from approved routes
• Temperature – monitoring temperature-sensitive cargo, cold chain products, and perishable products e.g. to monitor SLA compliance, product or health & safety standards, etc
• Humidity – monitoring humidity-sensitive cargo, electronics, cold chain, and perishable products e.g. to monitor SLA compliance, product or health & safety standards, etc
• Light – confirming whether the truck/packaging has been compromised or opened along the way
• Acceleration – detecting bumps, knocks, and heavy handling will enable you to pinpoint damages and prove negligence for breakage

Not only does the Tive Solo 5G allow you access to real-time condition confirmation, but it also comes with the added benefit of historical data accessible from the cloud for a period afterwards ranging from 24 hours to 90 days.

Benefits of Visibility on your Supply Chain

The benefit of having full and real-time supply chain visibility provides bonafide fleet operators/transporters as well as cargo owners/importers / exporters with the peace of mind to:

• Drive accountability
• Monitor transporter performance
• Monitor safe handling of goods
• Enforce SLAs and penalties
• Prove damages and reduce claims
• Reduce unnecessary stops, route deviations, and unexplained delays
• Track late cargo

We are happy to report that both our Tive Solo 5G tracker and our rider (eventually!) completed the journey and got back home safely.

 

Should you need more information or wish to have a confidential discussion about your specific requirements, please contact Benjamin@cogniplex.co.za

• Please note that Cogniplex is not an event organiser, corporate sponsor or in any way associated with the owners and organisation of the Virgin Active Ride Joburg 947 event of 2022.  
• All trademarks and IP is the property of their respective owners. 

Need more information? Want to start a pilot project? Please contact us

If you have found this article useful or interesting, please share it with others in your company or industry.

#IOT  #supplychain #riskmanagement

Dude where's my cargo? Supply Chain Visibility Example

 

Dude where's my cargo? 

Estimated reading time: 4 min

A hypothetical supply chain risk scenario unfolding in real-life 

Short summary translation of the above newspaper article that appeared in the Rapport newspaper on 12 June 2022: 

A transport broker contracted a reputable transport company and made available cargo to be transported with the very reasonable expectation that said cargo (maize meal) would be carried from Point A (Meyerton SA) to Point B (DRC) by the appointed transporter. 

Why was this a reasonable expectation?  - The transporter 

• was a reputable and reliable company,
• specialised in cross-border cargo,
• had good references from a range of clients,
• had done this type of trip before,
• appeared to had a reliable fleet, and
• the necessary minimum payments were made.

However, according to the newspaper article, the client in the DRC informed him after some time that some scheduled deliveries never took place, despite payment and import clearances. Due to delays caused by border clearances and Covid19-related supply chain delays, the time required to do a one-way transport increased from an average of 14 days to 45 days. This made it difficult to gauge progress. Despite querying the progress often, the transport broker was assured all is under control and in accordance with the schedule. For this reason, the problem was not picked up much earlier. 

It is only after a phone call was received from a (probably) irate client in the DRC, that the transport broker's lingering suspicions got the better of him and he realised something major was amiss. He then jumped in his car, drove to the transporter’s premises, and much to his shock and horror discovered rows of semi-covered pallets of maize meal exposed to the elements: sun, wind, rain, and insects.  

This matter is now before the court.

This situation was preventable

We are using this real-world example, not in order to finger-point any type of transport service provider or attempt to allocate blame, as that is the matter before the court. For this reason, we also removed the names of the parties involved as it is not particularly relevant to the point being illustrated. 

This case, however, is a real case study where a number of parties to a cargo shipment that has to be transported from A to B have to rely on each of the other role players to do the right thing at the right time and thereby prevent any potential transport risk from materialising.    

The client (and their broker):

• Had to rely on the verbal confirmation of the service provider/transporter without any 3rd party or IT system confirmation of facts,
• Did not have reliable means of communication with drivers,
• Did not have agents at way-points to confirm status,
• Did not have any access to real-time reporting on the location of the cargo, and was, therefore, unable to track actual trip progress made,
• Did not have any real-time information on the condition of the cargo, and was, therefore, unaware that the cargo was left standing in the sun, wind and rain for an extended period of time.

Supply Chain Visibility

With the help of modern technology, some of these risks can be detected, monitored, managed and in some cases even prevented:

• Cargo items being exposed to elements (sun, wind, rain) or experiencing fluctuations in temperature leading to damages, losses, insurance, and legal claims,
• Transport and Border Delays, 
• Late deliveries,
• Unnecessary detours, 

If your company or somebody you know had a similar horror story, there are now Internet-of-Things (IOT) solutions that can assist you to monitor your fleet from the relative comfort of wherever you have internet access: a Fleet Visibility Platform offers you the following advantages

1. Transparency - having real-time end-to-end IOT visibility into where your operational assets/inventory/shipments are, with hyper-accurate location data, despite using different 3rd party logistics providers or channels, such as warehouses, handlers, or distributors in multiple locations. 
   
   
   

   Attribution: vecteezy.com/members/illustration4stock224427

2. Keeping track of critical performance data - Key indications such as transit time, stops and halt periods, loading times, and whether or not unauthorised pauses or unexpected delays happened are all available on the fly. This gives you information, allowing you to predict whether your operational assets, inventory, or freight will arrive on time, ahead of schedule, or late. It also allows you to keep track of the performance of your suppliers.
3. Auditability - Having an audit trail to demonstrate the real-time condition of fragile or high-value inventory / perishable shipments. Knowing whether the goods were handled in accordance with the SLA and/or regulatory compliance standards throughout the route.
4. Real-time condition reporting – Knowing the status of your perishable/fragile shipments in real-time, as well as being able to pinpoint and apportion blame for damage as it occurs.

5. Actionable insights in real-time to:

• Protect your business operations against both known risks and unforeseen events and disruptions.
• Respond to and manage exceptions by making fact-based decisions.
• Lower expenses and minimise damage to perishable and fragile goods, as well as shrinkage and/or losses of high-value items.
• Improve the quality of forecasting and inventory management,
• Maximize operational efficiency,
• Increase customer satisfaction,
• Improve profitability,

 For more information please visit: Cogniplex Visibility Solutions 

Need more information? Want to start a pilot project? Please contact us

If you have found this article useful or thought-provoking, please share it with others in your company or industry.

#IOT  #supplychain #riskmanagement

Operations and Supply Chain Visibility - what is it and why do you need it?

 

SYNOPSIS: Having no visibility, real-time insights, or reliable data on business operations or the current status of your supply chains is conceptually not too far removed from driving blind. This article briefly explains some use cases and advantages of operational and supply chain visibility platforms and systems.

ESTIMATED READING TIME: 5min

First posted on LinkedIn - read the ORIGINAL POST here

You wouldn’t drive your car blindfolded, would you?

Driving blind is a dangerous and potentially life-threatening practice, perhaps best left to trained movie stunt professionals on movie lots. The rest of us, social influencers included (even those with very deep pockets and extensive liability cover), should best stay far away.

While the image in the title has been Photoshopped somewhat, this image ☝️☝️ is the real deal and comes from a YouTube video in which a popular YouTuber filmed himself driving blindfolded. The video sparked a public outcry and negative news coverage, as one could expect. This resulted in the video initially being age-restricted and demonetised, and then subsequently removed by YouTube.

The risks caused by driving blind are rather obvious and easy for all to see - apart from the aforementioned YouTuber, and include at least the following:

• Inability to see where you are going.
• Inability to see how the situation around your vehicle and inside the vehicle is changing in real-time.
• Inability to effectively make informed decisions in real-time or timeously execute corrective action to best adjust to the developing risks and changing situations around you.
• You are very likely to cause or end up in an accident, incurring costs, losses and liability claims, including but not limited to loss of life.

Swimming in a Sea of Business, Operational and Supply Chain Risks

The same goes for managing and coordinating the various activities inside a business: in today’s equally volatile and fragile economic climate, no accountant worth his salt will manage the finances of a business blind-folded either – meaning without knowing with a reasonable degree of certainty how much the expenses are, who needs to be paid or when the payments are due, or how many invoices are outstanding and how much is owed by each debtor.

If visibility is such an obvious requirement for driving and finances, why are there parts of business operations that are still “operating in the dark”, figuratively speaking?

Have a look at almost any media outlet or newspaper and one will see headings describing losses, damages, delays, bottlenecks, shortages, and other supply chain challenges brought on by a mix of internal and external factors as well as foreseeable and unforeseeable risk events. Many existing but previously manageable challenges were upgraded and further exacerbated by the great Supply Chain crisis of 2021-2022. This in turn was brought on by (some would say ill-considered) pandemic emergency measures, which caused systemic shocks, stock outages, and shortages, shutdowns of suppliers (both temporary as well as permanent in nature); significant supply chain delays; economic hardship; and increased volatility around the world. In the process, some entirely new problems were created. The only constant is change.

In no specific order, below please find a short list of 12 examples of current supply chain and operational challenges, many of which may or could affect business operations in the Southern African (or international) market:

Please scroll through this list. While this is by no means intended to be an exhaustive or comprehensive list, it does highlight the wide range of challenges that local businesses confront from time to time, some of which occur daily, including:

• Supply disruption due to lockdowns 
• Cargo and freight handling delays, accidents and incidents
• Wastage, damages and shrinkage to perishable foodstuffs, fresh fruit and veggies
• Political unrest, riots and looting targeting the supply chain, transporters, and warehouses
• Import and export delays, shipping delays, border congestion and delays
• Counterfeit products, supply chain control gaps, shortages and stock-outages
• Natural disasters, flooding, transport infrastructure (ports, docks and roads inaccessible), unavailability of services due electrical outages, water bursting, etc

Many of these problems are caused by external factors beyond the control of the average company; they are not isolated occurrences; they are not limited to specific suppliers or carriers; they are not necessarily industry-specific; and they can and do affect the entire Southern African economy, including international supply chain networks. And these issues have disastrous effects on operational efficiency and bottom-line profits. Research by McKinsey indicates that “supply-chain disruptions cost the average organization 45 percent of one year’s profits over the course of a decade.”. For South African businesses, the cost of e.g. importing goods has increased significantly, with a 400–500% cost increase for freighting a 12-meter container by sea from China to South Africa, even for large organisations with bargaining power. On some international trade routes, shipping costs have increased much more. Risk has increased significantly. Many of these costs are passed on to the consumer, who is now faced with rapidly increasing living expenses, rising inflation, and considerably less discretionary spending power, which, in turn, reverberates throughout the economy.

It is therefore advisable to use every tool in your arsenal to pro-actively respond to the changing situation around you. Because every load counts.

So what is Visibility?

Visibility platforms (software + tracking devices) compile and analyse real-time data across the shipping journey to provide end-to-end shipment visibility across different industry applications.

This means a commercial customer has the ability to track-and-trace assets or inventory live and in real-time, e.g. from the point where the item/shipment leaves the farmer's, manufacturer’s, supplier’s, or service provider’s warehouse/distribution centre up to the point where it arrives at the destination, allowing you to keep track of the current location, condition, and status of these items throughout the journey.

• Visibility platforms are frequently used for supply chain visibility but can have other related applications, e.g. large and complex business operations. It is important to understand that the visibility requirements can vary somewhat between e.g. a logistics business/farmer/manufacturer/distributor/retailer/importer/exporter, which could be very different from the visibility requirements of a bank or a pension fund.
• Different technologies are on offer and the platform can obtain data via API, directly from telematics or other types of tracking IOT devices.

6 Reasons why your business needs visibility

Consider how your company could profit from having Real-Time Visibility into your operations and access to a Single Version of the Truth:

1. Transparency - having real-time end-to-end IOT visibility on where your operational assets/inventory/shipments are, with hyper-accurate location information, despite using numerous 3rd party logistics providers or channels, such as warehouses, handlers, or distributors in multiple locations
2. Tracking important performance data - Key indicators such as transit time, stops and halt periods, loading times, or whether unauthorised pauses or unexpected delays occurred are all available on the fly. This provides you with knowledge, allowing you to forecast if your operational assets, inventory, or freight will arrive on time, ahead of plan, or behind schedule. And allows you to keep track of supplier performance.
3. Auditability - Having an audit trail to prove real-time conditions of fragile or high-value inventory / perishable shipments. Knowing if the cargo was handled in accordance with SLA and or regulatory compliance requirements for the duration of the trip.
4. Real-time condition reporting - Knowing the condition of your perishable/fragile shipments in real-time, and being able to pinpoint and allocate accountability for damage if and when it occurs.
5. Real-time actionable insights to:

• Make fact-based decisions to respond to and manage exceptions,
• Reduce costs and minimise damage to fragile and perishable goods, shrinkage and or losses of high-value goods,
• Identify operational bottlenecks,
• Make data-driven decisions to develop business cases, mitigate risks or loss prevention strategies,
• Improve the quality of forecasting and inventory management,
• Maximise operational efficiency,
• Increase customer satisfaction,
• Improve profitability,
• Withstand and defend against disruption.

The aforementioned cover some of the advantages that Visibility platforms have to offer – including aggregated, real-time data about the movement of freight along the shipping journey, providing end-to-end shipment visibility.

6. For rather obvious reasons, then, it comes as no surprise that research by the authoritative market intelligence and investment advisory firm, CBInsights, emphasised the importance of prioritising supply chain and operational visibility platforms as a focus area for retailers. What’s good for the goose …er retailer, is probably worth seriously thinking about for other players across different value chains and different industries, too.

So, if given a choice, you would not drive blindfolded, right? Where do you see Visibility adding the most benefit to your business?

Need more information? Want to start a pilot project? Please contact us

If you have found this article useful or thought-provoking, please share it with others in your company or industry.

#IOT #retail #supplychain #riskmanagement

Photo-credits:

All media belongs to their respective owners.

Shark photo Jacob Owens + Warehouse Photo by Bernd Dittrich found on Unsplash

COVID-19 BACK-TO-WORK PLANNING GUIDELINES AND RESOURCES

Photo Credit; VIACOM-CBS. Like Captain Picard of the USS Enterprise, leadership will have to steer the ship safely through the battlefield

BUSINESS UNUSUAL: BACK-TO-WORK PLANNING GUIDELINES AND RESOURCES FOR COVID-19 READINESS

ON 1 MAY 2020 PHASE 4 OF THE EMERGENCY REGULATIONS WENT LIVE IN ALL 9 PROVINCES. SOUTH AFRICANS WILL RETURN TO WORK IN A PHASED APPROACH AFTER AN UNPRECEDENTED COVID19 LOCK-DOWN STARTED MORE THAN 5 WEEKS EARLIER.

READING TIME: 4 min

This article was originally published on LinkedIn - you can read the original post here.

For many organisations, reopening might not simply be a case of unlocking the doors and switching the lights back on. Quite a lot might have happened while nothing happened during the lockdown.

The following is a high-level checklist / key considerations for executives and business owners alike. Additional South African and international resources are provided at the end of the article, some of which contain detailed examples, boilerplate templates, etc.

While some of the references specifically refer to South African business law and requirements, the recommendations are generic and applicable to businesses in various countries

1. Conduct an Overall Assessment

Brace yourself - while the damage or impact of the lockdown might not be immediately visible or easily identifiable the moment you walk back through the doors, the organisation might have "sprung a leak below the waterline” (metaphorically speaking). There is also the very real possibility of a future risk event that might still fully unfold in the next few weeks or months (e.g. as a consequence of the chosen strategy, implementation thereof, and extent of compliance with regulations, or other factors). 

Conduct a thorough and comprehensive assessment to determine the impact of the lockdown/virus to date on:

• Staff and management
• Business Assets, Stock, IT systems
• Other Stakeholders – customers, suppliers, shareholders, creditors, landlords, regulators, etc.
• Business operations
• Business Finances and Cashflow

2. Understand the requirement of the various Stages and Regulations of the Disaster Management Act [1] and its impact on your strategy, operating model, and plan corrective action:

• Establish a Covid19 Task Team (if you have not done so yet, and appoint specific COVID19 Compliance Officer(s) ), co-opt expertise and allocate responsibilities and develop a strategy as well as supporting policies.
• Confirm if and when your business or organisation qualifies to open and trade during a specific Phase of the lockdown. Also, confirm whether or not any additional permits are required. If unclear or if your specific organisation falls in a grey area which is not spelt out in the Emergency Regulations, contact your legal advisor and obtain professional legal advice.
• Take the time to do a detailed impact assessment to understand exactly what the requirements for each phase are, and how these may impact both your organisation as well as the wider industry in which you operate. Note that there are different requirements for different sizes, types of businesses and industries which might affect locations or different types of outlets differently.
• In real-world terms, these requirements could affect the date that your business can practically open for business because these measures need to be put in place first, e.g. steps to ensure social distancing, preventing crowding in admin offices or public spaces like the staff canteen, or while customers wait for quotes or while collecting goods. This is also impacted by the required level of hygiene, PPE for employees, additional safety requirements, etc.
• Consider whether the business operations should be suspended, and if not, which products and services can be offered now, vs. phased in subsequently in compliance with lockdown regulations.
• Plan the necessary workforce and capacity requirements accordingly.
• Demand planning may require a rethink, as well as any impact of these changes on outsourced services and contracts where capacity might have to be reallocated in the short run, in consultation with service providers.
• Reopening requires a high degree of Response Preparedness [12], and may necessitate Scenario planning – e.g. how will you handle a situation where the company operates across multiple provinces, but some of these provinces operate under different phases (e.g. Phase 5 or Phase 3)

Covid19 Workplace Plans[2] should include:

• Return-To-Work Policies, updated HR and Operational Policies and Procedures,
• Risk and Hazard assessments and Preventative Measures,
• Compliance Checklists

3. Review of Financial position

• Do not arbitrarily increase prices to make up for losses or to profiteer from market shortages [15]
• Carry out a line-by-line analysis of expenses to determine minimum cost and strategies to curtail costs until business conditions improve,
• Determine restructuring costs (if applicable) as well as Covid-19 related expenses, and bring these into consideration when completely re-working the budgets, forecasts, projections and cash flow. Communicate these changes to the line managers,
• Review solvency and liquidity, financing arrangements and debt repayments,
• Review and (re)negotiate trading terms with a view to optimise liquidity and maximise working capital.

More resources available from [8] and [11] below.

4. Consider Occupational Health & Safety requirements[3] and Sectoral or Industry Guidelines:

New risk assessments are required that could necessitate amendments to existing Risk Management as well as HR policies, AND special measures to be implemented such as proper social distancing, action plans in case of infection or symptom screening, etc. Existing Risk management policies and procedures will have to be updated (refer to Point 9 below).

The OHSA further requires employers, to ensure, as far as is reasonably practicable, that all persons who may be directly affected by their activities (including but not limited to own employees, customers, clients, contractors who enter their workplace or come into contact with their employees) are not exposed to hazards to their health or safety. 

Source: https://www.zupermar.com/

• For one business this might require social distancing, supplying employees with PPE and hand sanitizers while electronically screening customers for fever at the door and recording their details. Note the Department of Trade and Industry published requirements for material masks

Source: Gautrain Whole-body Disinfection

• For another, this might e.g. require intermittent professional disinfecting of public areas and or equipment or further steps. 

5. Review the Supply Chain:

Supply chains and logistics could have been significantly affected due to:

• Supplier factory lockdowns,
• delayed raw material shipments or stockouts,
• import delays due to ships unable to dock at ports or air cargo curbed,
• warehouses might have limited capacity to accept new stock,
• some stock items might have spoiled or deteriorated or might simply be unavailable for an undefined period.

Under the current circumstances, the efficient frontier might have shifted and you may need to find a new happy balance between service, capacity, inventory, and lead time.

• Review stock levels, re-order levels (specifically where programmed/automated re-order levels exist) and investigate outstanding orders. Ensure that no artificial shortages are created in the process [15].
• Re-rate suppliers: consider supplier resilience, flexibility under fluctuating demand and ultimately, supplier reliability,
• Reassess respectively, the degree of visibility, and the viability of the current supply chain – resources and capacity might have to be rebalanced.

6. HR considerations, Staff Planning and Consultation

The Department of Labour communicated stringent requirements in a briefing by Labour Minister Thulas Nxesi on 3 May 2020 (view on Youtube). The media statement with transcribed speech can be found here [16].

Consider staffing capacity requirements and re-activation, e.g.:

• identifying specific staff members forming part of the first 30% or applicable regulated percentage for your type of business,
• vs each subsequent wave as lockdown restrictions are gradually lifted.
• This will require a detail situational assessment to e.g. deal with employees currently based in other provinces or other cities.

All changes to existing Policies and Procedures, as well as any new requirements, must be communicated formally with staff [2]. Staff may also require training in new or amended operational procedures.

Consider flexible work arrangements such as:

• staff rotation,
• or continued working from home,
• and how IT can be used to your benefit to reduce the need for clients or staff to come to the office.

7. Assess the IT landscape

Consider the potential impact of changes in business operations on critical infrastructure, systems, and processes, e.g.:

• Productivity software to improve work-from-home efficiency and productivity,
• Disinfecting of keyboards, electronic equipment, access control equipment, and or contactless alternatives for time and access control systems,
• Consider increased IT risks (refer to point 9 below).

Source: Youtube Fever Screening Solution

8. Legal Review: Contracts, SLAs and Projects, ongoing Litigation and Disputes

Stay on top of existing litigation and disputes pre-dating the pandemic.
Investigate and identify any potential new contract breaches, terms not complied with, obligations not met, situations where performance was delayed, partially or completely withheld, where deliverables and deadlines were missed during the lockdown – both from the viewpoint where:

• your organization is the recipient of goods or services, as well as where
• your organization is the provider of goods or services.

Identify any instances where it was, or remains impossible to perform or fully comply, as a result of a set of circumstances beyond the reasonable control of either party.

• Obtain professional legal advice – some situations might be remedied with respectful and mutually pragmatic (re)negotiation.
• Standard contracts, terms and conditions might need some improvement going forward.

For more legal resources, please refer to [13] and also refer below under Governance and Risk.

9. Governance and Risk management

Be mindful of Directors Duties [4] in general, and specifically under Covid19 conditions (see resources here [5] and here [6]) where financial distress [7] poses a very real risk. Review your risk management plans.

• Consider any additional governance/reporting requirements [2][3].
• Consider increased IT-related risks (e.g. cybercrimes such phishing, malicious websites, and malware [9]) targeting a distributed workforce, or leaking of information [10].
• Institute strict record-keeping and improve overall risk management[11], including but not limited to OHS/PPE compliance and fever temperature screening. Accurate and complete record keeping will be crucial as the new Emergency Regulations appear to shift the onus and burden of proof onto the employer.
• Review insurance policies, business interruption, liability cover, etc.
• When in any doubt, obtain legal advice.

10. Stakeholder management

Communicate as may be required with, and monitor communication from certain stakeholders including Staff, Customers, Suppliers, Shareholders, Creditors, Landlords, Regulators, Government, Other interested parties.

Conclusion:

Successfully navigating the risk and many pitfalls of the Covid-19 crisis will require leadership, teamwork, frequent measurement, and adapting the plan and operations to changes in the environment from time to time.

If you found the article helpful or interesting, please feel free to share.

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Resources*: The following resources were consulted in the compilation of this article.

[1] https://www.gov.za/documents/disaster-management-act-regulations-29-apr-2020-0000
[2]https://neasa.co.za/covid-19-return-to-work-toolkit/
[3] http://www.gpwonline.co.za/Gazettes/Gazettes/43257_29-04_Labour.pdf
[4] https://www2.deloitte.com/content/dam/Deloitte/za/Documents/governance-risk-compliance/ZA_DutiesOfDirectors2013_16042014.pdf
[5] https://www.werksmans.com/firm-news/covid-19-duties-of-directors/
[6] https://www.financialinstitutionslegalsnapshot.com/2020/04/managing-a-company-and-covid-19-south-african-directors-and-their-duties/
[7] https://www.bowmanslaw.com/insights/restructuring/covid-19-financial-distress-insolvency-and-restructuring/
[8] https://www.ansarada.com/ COVID-19 resources
[9]https://www.riskiq.com/blog/analyst/covid19-cybercrime-update/
[10]https://www.ensafrica.com/news/detail/2651/south-africa-coronavirus-covid-19-how-to-avoi/
[11] https://www.aon.com/event-response/coronavirus.aspx (generic but valuable information)
[12] https://www.aon.com/COVIDplanningtoolkit/default (generic but valuable information)
[13]https://www.lexisnexis.co.za/news-and-insights/covid-19-resource-centre
[14]http://www.treasury.gov.za/comm_media/press/2020/Annexure%20B%20-%20Recommended%20Guidelines%20Fabric%20Face%20Masks%20RSA%20DTIC.pdf
[15] https://www.bowmanslaw.com/insights/competition/excessive-pricing-in-south-africa-in-the-age-of-covid-19-2/
[16] https://www.gov.za/speeches/minister-thulas-nxesi-directions-coronavirus-covid-19-alert-level-4-3-may-2020-0000

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