Page 5 - Logistics News June 2016

research

social uncertainties. This has resulted in more
of a short-term focus of sustainability and a
less optimistic view on driving forward-looking
strategies.

“This possibly indicates the adverse effects
of external factors, unforeseen events, weak
strategies or lower than required management
effort, to ensure success,” says Stubbs.

As previously identified, skills shortages
remain a major constraint for business
success in the long-term. An understanding
of the elements required to develop relevant
skills should guide education and training
accordingly.

The cost vs value equation changes identified in the opportunities
Respondents indicated current key focus ahead.”
areas for their businesses are managing rising
operating costs, pursuing their customer The study unveiled two key areas of focus
related strategies and addressing ongoing required by respondents to prepare companies
technological developments. for the future. The first one relates to customer
or market-related issues of customer strategy,
Operating costs are still seen as one of market intelligence, and data analytics. The
the biggest constraints of a business, which second area relates to the importance of
remains in line with previous surveys. skill levels referred to as staff training and
development. The development of existing
“We believe it is perhaps more prudent to employee competencies is one strategy to
understand the relationship of costs relative respond to this persistent challenge.
to the value they derive,” explains Stubbs.
“There are many examples of increased costs Supply chain takes centre stage
generating higher returns and greater value.” It is now very apparent that the concept of
supply chain management has taken centre
Expansion into new markets stage and is seen not as a separate subject,
The key opportunity expressed by respondents but an integral element in any organisation’s
is to seek growth opportunities outside of the business plans and strategies.
country, particularly in regional and neighbouring
territories. In the past, respondents ranked “By the same token, the management of
expansion into new territories as one of their top logistics strategies is being seen as a vital
five business objectives. This year, 69% of the element of implementing business strategies
respondents said they have plans to enter into and plans,” says Stubbs. “The planning of
new markets, but it appears their expansion plans logistics is now being seen as needing an
are still very southern Africa / regionally focused. holistic approach, supported by the physical
implementation of operational functions that
Readiness for future opportunities move the goods, information and funds up and
In questions raised as to the preparedness down pre-determined supply chains.”
of respondent companies to meet future
opportunities, only 35% indicated positively, What is clear from the survey responses
while 65% responded as being only partially is that there is recognition of an ongoing
prepared or unprepared. need in South Africa for speedy, constant
and well-managed change as a prerequisite
“This highlights the uncertainty pervading for sustaining competitive advantage and
today’s environment – and is not surprising economic security. It is a complex and
as we are living in the ‘age of innovation’ stimulating environment in which the status
and cannot possibly know what lies ahead,” quo is no longer a meaningful phrase. •
notes Stubbs. “It also raises the question as
to the confidence we have about the skills
and proven ability to implement, manage and
successfully bring to fruition the necessary

June 2016 | Logistics News 3