Page 5 - Logistics News August 2016

research

Another key finding was Looking ahead: emerging opportunities
that the lowest-scoring supply When questioned about the future, respondents
chain elements rated by were surprisingly optimistic and detailed various
respondents were inbound key opportunities.
materials management and
environmental optimisation. “However, these factors must be seen as a wish
list rather than a statement of reality or intent,”
As noted in earlier surveys, cautions Stubbs.
environmental issues are raised
regularly as a priority – yet Emerging opportunities: A bright future?
adoption remains limited in Notably, transport and Infrastructure ranked the
practical application except highest in terms of an opportunity to impact
where financially justified or significantly and positively. Primarily, this
other direct benefits can flow. opportunity affects almost every sector of business
enterprise in South Africa as well as its people.
“It is interesting to Infrastructure development is not only related
see that inbound global to transport but relates also to power, water,
materials management was telecommunications and social structures.
such a low-rated supply
chain issue when, in relation Technology-related issues similarly rank
to the level of costs and highly – whether data and connectivity issues or
complexity involved, it can IT platforms and e-commerce, all of which will
have a significant impact on benefit from higher consumer spending power. As
the supply chain and business performance,” migration from rural to urban areas continues at a
comments Stubbs. “It is those companies that fast rate, appropriate infrastructure, transport and
effectively manage inbound flows that gain connectivity will be vital.
financial and service level improvement to
enhance competitive advantage.” Concerns regarding current SA business
environment
Good intentions, lack of follow through In questions raised as to the preparedness
This year’s survey also highlighted the strong focus of respondent companies to meet future
on a diverse range of supply chain factors that are opportunities, only 35% indicated positively, while
delivering significant value to local companies. 65% responded as being only partially prepared or
Universally, the alignment of supply chain strategies unprepared.
with business strategy has become more critical
and is delivering very positive results for South “This highlights the uncertainty pervading
African businesses. today’s environment, and the question as to the
confidence respondents have about the skills and
“When looking at the charts, there are some proven ability to implement, manage and bring
interesting revelations with outbound distribution to fruition the necessary changes identified in the
and outsourcing seen as being of potential high opportunities ahead,” concludes Stubbs. •
impact, but low on adoption,“ says Stubbs.

Similarly, inbound materials management has
possibly a higher level of potential impact than
is shown on the chart and is also low in terms of
adoption.

When evaluating the overall impact of supply
chain related issues, there is a high degree of
acceptance in nearly all areas – tabled as either
being a positive or moderate impact on their
business.

Overall SC performance
Respondents answers reflect the high degree of
impact supply chain management has had over all
business issues in recent years.

Of particular interest is the statement that
the lack of supply chain skills has not hampered
performance, which is contrary to the earlier
perception of skills being a major inhibitor to
growth and sustainability.

August 2016 | Logistics News 3