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When a transport operator bids for a contract with a large shipper, its approach to data protection is now likely to be evaluated alongside rate and fleet reliability, and it increasingly plays a role in deciding which operators are appointed.

This reflects a structural shift in how shippers and freight forwarders assess risk, and it’s changing what it takes to make the shortlist.

The Personal Information Behind Every Consignment

Freight and logistics is often viewed as a physical business of pallets, routes, fuel and turnaround times. Behind every consignment, however, sits a considerable amount of personal information that moves through a freight operator’s systems, from delivery addresses and driver IDs to proof-of-delivery signatures and customer contact numbers, all of which is protected under the Protection of Personal Information Act (POPIA). A logistics provider handling last-mile delivery for a retailer is, in effect, processing that retailer’s customer data on its behalf.

Under POPIA, the freight operator is therefore classified as an “operator”, subject to the data protection obligations imposed by the shipper’s contract and a potential source of risk should an incident occur. A lost handheld device containing delivery records, a driver app that stores more customer detail than it needs to or a data breach at a downstream sub-contractor can leave the shipper answerable to the Information Regulator. With this in mind, shippers are now factoring data protection into who they invite to tender in the first place.

How Shipper Concerns Become Tender Questions

The growing focus on data protection in freight procurement stems from several developments, each of which appears increasingly in the request for proposal as specific questions.

Shippers are transferring risk along the supply chain. Large retailers and manufacturers recognise that they remain accountable for personal information even when logistics functions are outsourced. As a result, their contracts now include POPIA operator clauses, breach notification timelines and audit rights, and tender evaluators are required to assess whether bidders are able to meet these obligations. This typically leads to questions such as:

• Do you have a documented information security and data protection policy specific to your operations?
• Who is accountable for data protection in your organisation, and can they answer questions directly?
• How quickly would you notify us if a data breach occurred?

Freight data has become richer. Route optimisation, real-time tracking, driver telematics and e-commerce delivery apps all mean that more personal information is being collected. Because more data in motion means more opportunity for something to go wrong, evaluators are now asking:

• What personal information does your systems collect, and is it limited to what the operation requires?
• What happens to consignment and customer data once a shipment is complete?
• How long is information kept, and how is it disposed of?

Sub-contractors extend the shipper’s exposure. A breach at a regional trucking sub-contractor can expose a national retailer’s customer base. This knock-on risk has made shippers far less willing to onboard an operator whose data practices they can’t verify, which is reflected in questions such as:

• How do you vet your sub-contracted fleets and last-mile partners before appointing them?
• How do you monitor their handling of personal information on an ongoing basis?

Together, these questions are designed to establish whether an operator can function as a predictable, low-risk extension of the shipper’s own operation. Bidders who can answer them clearly, with supporting documentation, are in a stronger position when tenders are evaluated.

Data Risks Specific to Freight

Some data protection issues are particular to the manner in which freight operates, and shippers are increasingly alert to them:

• Driver monitoring: Telematics systems and dashcams collect information about drivers, including their location, driving behaviour and, in some cases, video footage. Drivers need to know what is being collected and why, and the information gathered should be limited to what the operation requires. Dashcam footage may also capture customers or members of the public, which brings that footage within the scope of POPIA as well.
• Owner-drivers: Many operators rely on owner-drivers who handle customer information on the operator’s behalf. Shippers will expect clear agreements setting out how these drivers protect that information, along with evidence that the operator monitors compliance.
• Cross-border data transfers: Personal information can leave South Africa in less obvious ways, such as through fleet management platforms or route planning software hosted on servers abroad. POPIA places conditions on these transfers, so shippers may ask how you ensure the information remains adequately protected once it leaves the country.

Addressing these areas in advance allows operators to respond to tender questions with confidence and demonstrates an understanding of how POPIA applies to their day-to-day operations.

Preparing for Tender Scrutiny

Data protection is now assessed alongside established tender requirements such as Broad-Based Black Economic Empowerment credentials and health and safety compliance, with shippers expecting the same level of documented evidence. Meeting that expectation depends on having the right foundations in place well before a tender is issued.

The most useful starting point is visibility. A simple register of the personal information moving through your telematics and delivery systems, with a named person accountable for it, answers most tender questions before they’re even asked.

From there, operators should address the freight-specific risks outlined above. Reviewing the settings on driver apps and dashcams to limit what they collect reduces exposure if a device is lost or stolen, while formal agreements and periodic reviews give shippers the evidence that they expect regarding owner-drivers and sub-contracted fleets. A documented incident response process completes the picture by demonstrating that a lost device or missing delivery record would be dealt with promptly.

A mid-sized freight operator with these foundations in place is well positioned to compete against much larger fleets that have yet to give data protection proper attention.

Building Trust With Shippers

Freight and logistics has always competed on the trust that a load will arrive on time and intact. Data protection now forms part of that trust, and its influence extends well beyond the award of a tender. Shippers that include audit rights in their contracts are likely to exercise them over the life of the agreement, and an operator’s data practices will increasingly be reviewed at renewal alongside service levels and pricing.

As the Information Regulator’s enforcement activity grows, these expectations are also likely to reach smaller carriers and sub-contractors, many of whom may not yet regard themselves as handling personal information at all. Operators who invest in data protection now are positioning themselves for long-term relationships with shippers as the market continues to mature.