Collaboration imperative drives SA supply chain thinking

Research study finds new shifts among SA’s top players JOY ORLEK GLOBAL SUPPLY chains rather than companies in the same industry are increasingly competing against each other as the need for global competitiveness overrides traditional thinking in an increasingly cut-throat market. That’s one of the key findings of the Supply Chain Foresight survey – the second such research study into the South African supply chain and logistics market – initiated by Barloworld Logistics and undertaken by research organisation TerraNova. Based on the responses of 257 executives in the industry, the findings revealed a far greater willingness to collaborate, with over 80% of respondents indicating this as a key objective. Last year just 40% rated collaboration opportunities as a “challenge to meeting strategic objectives.” Comparing this year’s survey to the last, the results reveal a greater alignment between strategy and operations, an awareness that profitable growth will only be sustained if organisations build supply chains that are flexible and responsive to market changes, and an increasing focus on the critical skills gap. The responses to the quality of South Africa’s logistics infrastructure came as no surprise, as indicated by the accompanying graph, but companies were urged to find creative ways around the problems rather than submitting to paralysis. Privatisation has clearly worked to the benefit of SA’s road networks and airports, which are seen to be reasonably well run and efficient. “The expense of road transport and the inability of the rail network to show signs of rapid restructure and increased efficiency confirms the necessity of free-market competition in this sector to foster efficiency,” said Barloworld Logistics director Barry Saxton. Of the 257 companies researched in the study, 60% to 70% have an annual turnover of R1bn or more.