INDUSTRY INSIGHT
HOW POINT-OF-SALES CAN
REVOLUTIONISE SOUTH AFRICA’ S AUTO INDUSTRY
The South African automotive sector was lauded as one of the champions of the country’ s economy, with the President announcing a variety of investment plans, industrialisation programmes and local production expansion. While larger operators are ahead of the curve when it comes to tech adoption, smaller players in the aftermarket must not be left behind
Fatima Khota, Category Manager in Rectron’ s Point-of-Sale Division looks at how modern point-of-sales has evolved to become more than just about collecting data but how it revolutionises an entire supply chain.
The South African automotive industry, bolstered by substantial investments in globally competitive manufacturing ecosystems, is one of the country’ s most promising economic sectors. Original Equipment Manufacturers( OEMs) have been drawn to Special Economic Zones( SEZs) like Coega in the Eastern Cape and Tshwane Automotive SEZ in Gauteng.
Ford Motor Company has recently committed R5.2 billion( US $ 272 million) to its local operations, and other companies are also making significant investments in advanced technology and high-quality vehicle production for both local and export markets. These investments aim to enhance the automotive industry, but skills and infrastructure constraints could still hinder efforts to scale and enhance sophistication. actively implementing digital systems within its production facilities around the world, including South Africa, to further advance efficiency and sustainability in the automotive sector.
Although manufacturers have shown their confidence in the South African economy by investing billions in cutting-edge technology and dealer networks, the aftermarket sector, particularly smaller businesses, are not keeping up. While factories may be digitized and using the latest technology to manage their operations, the aftermarket sector often lags behind due to limited resources, skills, and competition.
FRAGMENTATION AND LEGACY SYSTEMS The presence of numerous small and medium sized enterprises makes the market highly fragmented. While competition is generally beneficial, fragmentation can lead to inconsistencies, including vulnerability to counterfeit products that compromise safety and reliability. Additionally, fragmentation can result in significant inconsistencies in skills and processes. Many local parts dealers still use paper to record incoming and outgoing stock, which is not only cumbersome and time consuming, but also increases the likelihood of errors, reduces customer satisfaction, and creates opportunities for abuse. Even among those who have adopted technology, many are still using outdated legacy systems to track their operations. stocktaking, businesses can significantly reduce labor and error. This allows staff to prioritize customer service and strategic initiatives. Although an initial investment is required, the return is realized immediately through cost savings, improved accuracy, time efficiency, and reduced employee stress.
TRAINING IS ESSENTIAL To fully leverage the transformative power of technology, businesses need to adopt a comprehensive training strategy that prioritizes continuous learning in an ever-changing digital landscape. This strategy should focus on developing a foundational understanding of modern digital tools and robust data analysis capabilities.
The goal is to ensure that users not only understand how each platform operates but also how their internal processes can be improved over time. This dynamic approach requires a significant shift in how people deploy smart transactional systems across different contexts. By combining strategic thinking with intelligent systems, even routine tasks like supply chain management can be transformed into innovative solutions that drive industries into the digital economy.
For example, many global companies are using digital twin technology to create virtual replicas of their supply chains. This enables them to simulate scenarios, predict disruptions, and optimize logistics.
To address these challenges and optimize resource efficiency, companies like BMW are implementing digitalization and AI integration in their production processes, aligning with principles of sustainability. Ford is also utilizing big data analytics to track its global supply chain and reduce its carbon footprint. By identifying areas for improvement in energy consumption and waste reduction, Ford aims to minimize its environmental impact. Toyota is also
CUTTING COSTS BY IMPLEMENTING TECHNOLOGY The integration of intelligent solutions in the automotive sector enhances efficiency and accuracy across the supply chain, from manufacturing to after-sales services. Even small parts dealers can optimize operations with specialized equipment for package handling, code scanning, and smart barcode label printing. By automating time-consuming tasks such as manual
The potential for developing innovative strategies and unlocking new growth opportunities is limitless, constrained only by the creativity and passion of users. The aftermarket sector, building on the automotive industry’ s investments and its leading position in the South African economy, presents a significant opportunity to meaningfully introduce new automation technologies, yielding both immediate and long-term benefits.
aBr WORDS IN ACTION 22 MAY 2025