Dramatic need for flexibility stretches supply chain

Customers want more options to suit their individual needs JOY ORLEK IF YOU’RE interested in a snapshot of South Africa’s supply chain trends ten years down the line, keep an eye on developments in the US. There are strong moves to extend the supply chain further and further down the line, including domestic transportation and greater control of door to door deliveries, while greater flexibility has also become a key factor, says UPS Supply Chain Services director Thore Saether. “For example you might give the client three different options per day – that the goods arrive by 8am, 10am or 12. “It’s part of the dramatic need for flexibility of delivery, clearance, storage and the like. Customers are looking for increased options and variables to suit their individual needs, particularly for imports into America. And good supply chain management needs to find a balance between trying to package something that gives individual client flexibility without reinventing a process for every customer. That balance is becoming more sophisticated and demanding in America and will eventually affect our markets,” said Saether. The US logistics industry has been gearing up to meet these sophisticated needs, and this has seen significant investment in infrastructure by UPS and its competitors. “This is the year we have to make those investments work,” says Saether. UPS for example has invested heavily in trucking facilities and increased the fleet dramatically. “It has also significantly increased the number of delivery dates in terms of flights,” he said. “This is all based around improving flexibility and alternatives. “As we see our market becoming more demanding, the supply chain is all about how we can make our customers more effective and efficient, particularly retail customers who need cheaper ways of distributing.”