Page 4 - Logistics News August 2016

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Uncovering value in the supply chain
This, the third and final episode of the supplychainforesight 2016 survey findings in
Logistics News, unveils the key shifts taking place within supply chain management
processes in South Africa.
IN ITS 13th annual supplychainforesight
programme, Barloworld Logistics explored the
journey of change and adaptation South African
businesses have undertaken over the past
year. The study analysed how companies and
leadership have performed, and highlighted key
learnings and insights gained.
The supplychainforesight 2016 survey
drew on a web-based survey to capture the
independent views and opinions of South
African business leaders and supply chain
professionals. Barloworld Logistics contracts
Frost & Sullivan, an international growth
consultancy company, to conduct this part of
the programme on its behalf.
“This year, it was clear from the feedback of
respondents that the supply chain has become
an integral part of the overall business strategy,” perceptions of outsourcing as a strategy seem
says Kate Stubbs, head of marketing, Barloworld
Logistics. “Indeed, from the most senior level
to the wide spread of industries represented,
supply chains have grown significantly in
importance and relevance – and are increasingly
being integrated into all business functions.
This is a major development with important
ramifications for business at all levels.”
According to the survey, ‘alignment of the
supply chain to the business strategy, customer
integration, supply chain collaboration, sourcing
and supplier integration’ are all key elements
of the supply chain that have created the most
positive impact on businesses to date.
2 August 2016 | Logistics News
Assessment of impact of SC elements on
business
Interestingly, the findings reveal a high adoption
rate for both supply chain technology and supply
chain and logistics skills development; however, the
full impact or value thereof is not yet being realised,
notes Stubbs.
“Even though supply chain outsourcing is
shown to have a positive impact for companies,
the adoption rate seems to be low,” she adds.
“This trend 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 doubts around
whether the true nature and value of the concept
of outsourcing is being correctly understood.”
The 2016 findings suggest that the prevailing
to be based primarily on the ability to control
functions better – if run internally as part of the
company.
“If, however, there is a specialised external
organisation that can perform certain functions
more effectively, efficiently or faster, we believe
that consideration needs to be given to outsourcing
such functions through strategic relationships,”
says Stubbs. “Much like the outsourcing of
manufacturing or IT management, outsourcing
of logistics management and logistical activities
can – and often are – an essential component of
gaining access to specialised skills and creating and
sustaining market share and a competitive edge.”