Improved visibility helps to address planning and forecasting challenge

Planning and forecasting, undoubtedly regarded as the single biggest challenge to an efficient supply chain, will become increasingly important for the success of companies in the current economic climate. This was one of the findings of the annual Supply Chain Intelligence Report (SCIR) released in Johannesburg last week. Conducted locally, the international, independent study on supply chain management and logistics practices in emerging countries aims to provide an insight into the many forces that are driving change in supply chain management and how the most successful companies are dealing with these new and evolving challenges, said Brett Bowes, CEO of TerraNova which conducted the research. A total of 210 respondents participated in the survey. Approximately one third of the sample were senior supply chain executives while 19.5% were logistics middle management. It was concluded that the only truly effective way to address the planning and forecasting challenge was to improve visibility in the supply chain while simultaneously increasing its reactivity. “It is our view that visibility is primarily achieved through the efficient use of technology and collaborative partnerships, both forward and backward in the supply chain. Supply chain reactivity is best improved through the appropriate use of in-sourcing, outsourcing and virtual resourcing, as well as through integrative techniques.” Bowes said it was found that companies with the ability to plan and forecast were all more successful than their competitors. “Through the research we developed four quadrants in which we placed the various respondents depending on their answers. The Complexity Masters quadrant, which was found to have a complex value chain, used more technology and implemented collaboration at all levels, while their reactivity was also brilliant.” Bowes said it was clear from the research that companies that had these qualities while also being more sensitive to local and global market changes had been proven to be the more successful businesses.