Lack of skills might NOT be hampering SA's supply chains - survey

| 0 Comments

 

supply-chain-management-139.jpgA lack of supply chain skills has not hampered performance of South African organisations, found Barloworld Logistics’ Supplychainforesight Survey 2016. However, this is contrary to perceptions in previous years’ surveys where skills were identified as a major inhibitor to growth and sustainability.

The disparity in results may be attributed to skills development initiatives whose full impact or value is not yet being realised. Skills development in supply chain logistics was among the areas that survey respondents indicated had a high adoption rate, but full impact or value thereof is not yet being realised.

 Respondents indicated the same for supply chain technology.

Similarly, even though supply chain outsourcing is shown to have a positive impact for companies, the adoption rate too seems to be low. This is interesting to note and is in contrast to general shifts seen in the market both locally and internationally.

“Outsourcing also appears to be off the radar for future strategies, which raises the question of whether the true nature and value of the concept of outsourcing is understood?” The perception seems to be based primarily on the ability to better control functions if run internally as part of the company, said the survey.

A diverse range of supply chain factors is delivering significant value, found the survey.

Universally, the alignment of the supply chain strategy with the business strategy has become more critical and is delivering “very positive results for South African businesses”.

Integrating customers into the supply chain was recognised as an approach that delivers improved customer centricity, enabling improved performance and satisfaction levels.

Furthermore, while outbound distribution is seen as being of potential high impact, it is low on adoption. Similarly, inbound materials management’s high level of potential impact was met low adoption, noted the survey.

The lowest scoring supply chain elements rated by survey respondents were inbound material management and environmental optimisation. Previous surveys have noted that “environmental issues are raised as a priority regularly, yet adoption remains limited in practical application except where financially justified or where other direct benefits can flow.”

Inbound global materials management was such a low rated supply chain issue when, in relation to the level of costs and complexity involved, it can have a significant impact on the supply chain and business performance, said the survey report.

“It is those companies that effectively manage inbound flows that gained financial and service level improvement to enhance competitive advantage.”

Future importance of supply chain

Whilst supply chain management is evolving into an integral part of overall business strategy integrated throughout an organisation, the perception of its importance is still key to competitive advantage, efficiency, effectiveness and sustainability, indicated the survey respondents (see chart).

 

SCF2016.jpgOne-third of the respondents stated that their own supply chain is not yet ready to meet their future needs, and a further 45% stated they partially agree with this.

Interestingly, the survey indicated that the level of strategic performance to date has, in most instances, not achieved its anticipated goals. The survey linked this with the application of broad strategies, such as cost cutting, which is often a frequently-followed route to counter down turns, but is in some instances a simple broad strategy that often fails to take into account the value being eroded or gained.

“All costs incurred are relative to the value they create. The future determination of strategies and priorities is likely to include a better understanding of the costs to serve and where value is created or eroded in each element of the business venture,” said the survey.

There remains a lot of work to be done before we see South African businesses gaining the full and real value from their supply chain and business strategies, noted the report.

However, over the last 13 years that the Supplychainforesight programme has tracked SA’s supply chains, it has become evident from the feedback of respondents that the supply chain has become an integral part of the business strategy.

“Alignment of the supply chain to the business strategy, customer integration, supply chain collaboration, sourcing and supplier integration are all elements of the supply chain that have created the most positive impact on businesses in South Africa to date.”

Leave a comment


 

 

Career opportunites

Planner

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Are you looking for new career opportunities as

Procurement Specialist

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing Supplier / Business Development
As a specialist Supply Chain recruiter, I am

Logistics Controller

  • <500 000 Gauteng Logistics & Warehousing Procurement Officer / Specialist
Seeking dynamic up and coming candidates looking for

Supply Chain Manager

  • >500 000 Permanent Procurement Management Supply Chain Western Cape
As a specialist Supply Chain recruiter, I am

Business Process Specialist

  • <500 000 Gauteng Procurement Consultant Procurement Officer / Specialist Supply Chain
A company within the financial services sector is

LOC Procurement Manager

  • Gauteng Permanent Procurement Management Procurement Officer / Specialist
Your Responsibilities: Job Purpose To be the interface ...More

Account Manager

  • >500 000 Procurement Officer / Specialist Supplier / Business Development Western Cape
Key Performance Areas:• To ensure that all aspects

Consultant

  • >500 000 Gauteng Procurement Consultant Strategic Sourcing Supply Chain
Key Performance Areas:• You'll be concerned primarily with

Commercial Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Technical Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Business Development Executive

  • >500 000 Gauteng Supplier / Business Development
A retail solutions company is seeking a New

Financial Manager

  • >500 000 Contract Operations, Planning & Inventory Procurement Management Western Cape
Looking for an unemployed CA (SA) in Cape

Chief Financial Officer

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
An exciting opportunity exists for a CFO with

Procurement Consultant

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing
Key Performance Areas: A profound knowledge of sourcing

Commodity Specialist: IT

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Effectively applies acquired technical/functional skills

Senior Consultant

  • >500 000 Gauteng Projects / Category Management Supplier / Business Development
Key Performance Areas:• Adheres to best practice processes

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Procurement Management
Key Performance Areas:• Manage warehousing and distribution 3PL's

Head of Franchise Network

  • >500 000 Contracts Operations, Planning & Inventory Western Cape
The opportunity to work for a multinational retail

National Driver Manager

  • >500 000 Analyst Contracts Logistics & Warehousing Operations, Planning & Inventory Western Cape
The opportunity for an extraordinary individual to join

Commodity Specialist: Industries

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Under the guidance of the