Page 9 - Logistics News - December 2021

O P I N ION

Training is a digital transformation must. In Spending and innovation
software use, there is software system admin, but just • 31 percent of businesses wish to diversify – investing in
as important is to expose implementing suppliers new technology.
to your business. They must understand the generic • 70 percent committed to starting or optimising
traits of your industry, but salespeople/executives/ application of enterprise resource planning (ERP) and
implementation teams must get into the trench business intelligence (BI).
together with customer teams – to succeed, you are • 58 percent are earmarking the importance of business IT
interdependent. Have customers lead suppliers around for future recovery.
their operations to see/hear/touch/smell/taste what But,
matters. And customers, you must pay as it fuels a • 65 percent fund investments out of their own pocket.
performing team. • 65 percent prefer traditional cost cutting to fund
efficiencies.
Chief financial officer (CFO)
In Nairobi, with the Institute of Certified Public Whilst Kenyan CFOs hunger for diversification/
Accountants of Kenya (ICPAK) – Kenya CFOs and investment in digital transformation, having to use their
accountants, we presented our Industry 4.0 regional own funds they stick to cost cutting, downsizing, etc.
research into manufacturing/distribution companies So, funding fueled survival, not economic revival as the
during the COVID-19 period – findings which may apply government hoped. Value-add reduced 0.1 percent in
globally. 2020/21compared to 2.5 percent growth in 2019

Recovery Supply chain
• 7 percent of companies say they’re fully recovered. • 77 percent suffered delays in global and local supply.
• 51 percent said full recovery by end 2022. This impacted Kenya’s dominant food and beverage
• 36 percent said recovery will only be 2023 and beyond. industry, as well as sectors like fabricated metals,
automotive supply and other manufacturers.
Trading conditions
• 50 percent believe conditions are fair – meaning doing The ‘Covid business disease’ appears to be companies
ok, not thriving. sticking to continuous improvement (renovation) of
• 1 percent said they are thriving. existing processes, rather than step change (innovation)
where more sophisticated technologies are introduced to
Although 50 percent seem ok, all companies had reengineer supply chains, add e-commerce and predictive
to weather economic slowdown, some due to measures functions like AI/ML or to simply optimise planning and
instigated to curb COVID-19 spread like lockdowns, execution. This is strange for Kenya, which is renowned
restricted movement, etc. But management time is for trading entrepreneurialism and application of
available in slack times, so moving up the digital curve is technology and is always trying to lead.
a real opportunity – was this competitive move to come
out of COVID-19 running missed? If Kenya, the brightest star in Africa, has CIOs/CFOs
keen to innovate with technology like ERP, but not able to
Funding assistance – at hand, or is it? execute adequately due to funding and COVID-19 mitigation
Europe/USA-linked companies received assistance from constraints, other African economies, including South Africa,
their principals. Government assisted by reducing tax may come out of COVID-19 in truly bad shape
and structural reforms, but the research showed:
• 51 percent received no direct funding. We’re all part of the same world, but just like L O GI S T I CS NEWS
• 38 percent benefited from tax deductions only. COVID-19 vaccination inequity, funding inequity may be
• 13 percent benefited from stimulus packages. slowing Africa – let’s change that. •

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