SA businesses not keen to outsource

Contrary to the global trend, South
African businesses are still reluctant
to outsource much of their supply
chain, despite the fact that those
who have done so have seen a strong
positive impact on the growth of their
businesses.
This was one of the findings
of the 2016 Barloworld Logistics
supplychainforesight report launched in
Johannesburg last week.
According to Kate Stubbs, marketing
executive for Barloworld Logistics,
globally outsourcing is increasingly
being adopted with positive results to
business bottom
lines. She ascribes
the low adoption
rate in South
Africa to a possible
misunderstanding
of the true nature
and value of
the concept of
outsourcing.
“It seems to be
about control –
that businesses
believe they are
better able to control functions if they
are an internal part of the organisation,”
she said. “But if a specialised logistics
company handles these aspects in a
strategic, collaborative partnership with
their clients it is possible that some of
these functions could be performed
more effectively, efficiently or faster.
“The outsourcing of specialised
skills such as manufacturing or
logistics management can often help a
company gain market share, giving it a
competitive edge under tight economic
conditions,”
said Stubbs.
INSERT & CAPTION
Businesses believe
they are better able to
control functions if they
are an internal part of
the organisation.
– Kate Stubbs