‘Embrace technology or get left behind’

Companies in the fast moving consumer goods (FMCG) sector that don’t embrace technology will be left behind and ultimately be forced to close their doors. According to Doug Hunter, head of professional services for Syspro Africa, small to medium-sized companies still operating off spreadsheets will feel the impact sooner rather than later. He told FTW the lack of technology had a ripple effect across the supply chain – and more importantly limited logistics visibility, which in turn tended to push up costs. “Let’s say a company is importing a mix of products. There has to be a clear understanding of the quantities to spread the logistics costs. If one does not have visibility of that and your logistics price escalates, your goods are going to cost more than your competitor and sit on shelves,” he said. “The supply chain needs to be efficient the whole way through. Technology not only provides visibility throughout but also synchronises activities.” According to Hunter technology is often seen as an expensive purchase – and rapid developments in the sector can be overwhelming with systems needing to be continuously upgraded. But, said Hunter, the lack of technology would have a far bigger impact. “Good technology leads to better service to customers from the same amount of stock and investment because it allows a business to maximise the systems that are getting smarter all the time.” He said a large number of businesses would fail if they did not embrace technology.