Supply chains must be tailored to the end-user

Never underestimate the value of effective logistics solutions, says Abrie De Swardt, marketing director of Imperial Logistics. “The ability to increase market share while lowering prices is the result of implementing superior logistical and end-to-end supply chain solutions and systems,” says De Swardt. “Many companies have found that moving materials, components and finished products through their supply chains at a low cost helps them become more competitive.” He says when defining that supply chain it is important to remember that it begins at the point of origin for each raw material and ends at the point of consumption of the finished product. “The traditional supply chain approach focuses only on the price of an item, which leads to a lack of understanding of the full supply chain costs or a willingness to explore opportunities. A comprehensive supply chain view looks at all the entries and it is the responsibility of everyone to ensure that value is being added all along the way.” He says with many chief executive officers too often having viewed logistics as a cost centre – trucks, warehouses and overheads – outsourcing has increasingly gained ground. “It is important to communicate the value of logistics to these CEOs in terms that they understand and that means bringing the chief financial officer on board as well.” De Swardt says it is important for all companies to remember that one size does not necessarily fit all and that supply chains must be tailored to the end-user. “Supply chain managers will succeed only if they understand the key needs of key customers and strive to maintain alignment between the supply chain’s design and its customers’ changing needs and desires.”