The jury is still out on whether or not the automotive logistics sector is really going to make carbon emissions a definable KPI ahead of government regulation. But as Maxine Elkin discovers, companies have plenty to talk about, at least.
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We keep being told that carbon management will become a part of corporate supply chain strategy for major global companies, but in the absence of government legislation and customised guidance on how to measure and reduce carbon emissions, most of the work being done is by motivated individuals working within corporate constraints.
Not only has the South African car industry been severely impacted by the recession, with exports down close to 45% from 2008, and the local market off by much as 40% from its peak in 2006, but carmakers have struggled with chronically low productivity, an underdeveloped local supply chain and high logistics costs.
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The country's supply chain is a particular problem for an industry that appears to have developed more as a colonial satellite to its European, American and Japanese OEMs, rather than establishing its independent footing. Despite a history which has seven OEMs assembling cars, localisation rates are only 35%. There was a sense during the SAAW, and in private interviews outside the conference halls, that while the industry has high export potential, it must first work to become more efficient or risk seeing its major players pull out.
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