Business is booming for SA supply chain

Despite the tendency of the media and the SA public to focus on the negative, large-scale infrastructure projects continue to forge ahead and investment continues to flow.

For those in the supply chain industry, this means an abundance of opportunities as a real enabler of economic growth.

“These are exciting times for those in the supply chain game,” said John van Wyk, director of sales and marketing at Barloworld Logistics. “We may be a small contributor to global GDP, but Africa is going through a rebirth and the forward-thinking players have great opportunities for trade.”

Barloworld Logistics has produced its 2008 supplychainforesight report, which focused on supply chain capability of local companies and the level of complexity their supply chains face. The report found a significant correlation between supply chain reform and business success. Most often, reform involved a re-evaluation of supplier and customer relationships in facing up to growth and globalisation imperatives.

“The companies that mastered complexity were usually early adopters who identified the pockets of opportunity that exist for those operating out of Africa. Those who built up supply chains early have benefited. For latecomers, there are choices — accept a move to complexity and invest in skills, or focus on being strong locally in their own markets. Playing globally requires investing in greater capability to avoid marginalisation,” said Van Wyk.

“The perennial challenge is forecasting and planning, and the better players excel in this area. Companies that plan properly are best placed to take advantage of market conditions, instead of being reactive. The reality is that too many companies focus on operational performance only,” he added. — Brendan Peacock

Source: thetimes