Logistics firms focus on cost and waste reduction

Renewed commitment to efficiency and lean operations must be a priority for business in 2010, according to the latest supplychainforesight report sponsored by Barloworld Logistics. The survey found that while in 2009 CEOs were addressing the recessionary conditions by aligning supply chain and business strategies, the focus of 2010 has definitely changed with industry looking at how they can become more competitive while approaching the upturn. According to Kate Stubbs, general manager: marketing for Barloworld Logistics, the research proves that the country’s major industries are taking an optimistic and strategically positive view of the ways in which South Africa’s supply chains will enable recovery from the recession. “According to the study the short-term objectives of SA businesses in 2010 demonstrate a continued focus on cost and waste reduction. Lowering procurement costs, reducing their inventory, improving communication with customers and warehousing optimisation also came out as the top objectives for the next few months.” The study found that the top five challenges facing business in 2010 were the implementation of efficient planning and forecasting tools, optimising the distribution network, waste and inefficiencies across the supply chain, potential failure of key suppliers and implementing a demanddriven supply chain. “There is definitely a continued focus on lean operations while the study shows a strong return to the basics of business following the recession,” said Stubbs.