‘Flexibility is key in information age’

Agility and flexibility provide the quickest path to competitive advantage, according to Abe Uys, executive head of supply chain services provider Crossroads. “What works today won’t necessarily work tomorrow,” he told FTW, “a simple maxim that couldn’t be more appropriate to modern supply chains.” We live in an information age of consumerism and globalisation, he added. Product lifecycles are getting shorter, customers are becoming evermore savvy and fickle, and demand cycles are increasingly volatile. “In modern supply chains, outsourcing some or all of the logistics functions and then optimising them can have a tremendous impact on the income statement and balance sheet,” Uys said. “It can also fundamentally decrease risk profiles. “Also, it should be recognised that some 85% of potential logistics savings come from integrating the supply chain.” Another critical factor is responsiveness, according to Ken Light, executive head of SkyNet, the company’s courier/express parcel division. “Being able to respond timeously and effectively to fluctuating demand helps to prevent lost sales, and therefore contributes to market share gains,” Light added.