Survey reveals level of supply chain skills deficit

South Africa faces a looming supply chain crisis, according to the Chartered Institute of Procurement & Supply (CIPS), as it reveals that just over a third (35%) of South Africa’s supply chain managers say their employer has failed to equip them with the new skills they need to fulfil the demands of their jobs and avert major crises.

This finding forms part of the results of a global survey of 645 supply chain professionals which reveals that globally the required skill set has moved beyond hard analytical skills to include a broader skills base and a need for a range of ‘soft skills’ such as relationship management, influencing and persuasion skills, alongside the need for more sophisticated and technical expertise.

When asked about the level of respect accorded to the role of supply chain manager, a worrying 65% of respondents from South Africa believe their role is not adequately respected within their business, hampering their capacity to improve the way their supply chains are managed and to develop their own skills. This has the added effect of demotivating talented individuals.

The survey reveals that a core of inadequately trained supply chain managers are failing to prevent malpractice, investigate the origin of raw materials or follow best practice. Globally 80% of those who consider themselves as inadequately trained supply chain professionals admit that there could be undetected malpractice in their supply chain with only 17% able to see the entire length of their supply chain. Perhaps most telling, adequately trained supply chain managers are 53% more likely to be carrying out yearly supplier audits, an important way to prevent disruptions and spot fraud.

The news comes as the Q2 2015 CIPS Risk Index reveals that global supply chain risk has jumped to its highest level since late 2013. The rise has been driven by a tightening of credit rules in China which has forced supply chain managers to look much more closely at the durability of their Asian supply chains and discovering more risk.

The survey also reveals that South Africa’s supply chain managers see ethical considerations as the most important responsibility of the profession. Almost half (45%) say that treating human beings fairly at all levels of the supply chain is one of the top aims of a supply chain professional, alongside fulfilling regulatory standards (59%). Supply chain managers are also decreasingly concerned with driving down supplier quotes at all costs. Only 12% in the survey were motivated by driving a hard bargain, with 46% motivated by the task of contributing to business growth.

Andre Coetzee, managing director, CIPS Africa, said:  “Our findings show that in South Africa demand for skills is not being met and the ability of professionals to do their job has been undermined. Without proper skills and training we risk human rights abuses and malpractice all along the supply chain. Professionals are doing the best they can with insufficient training but as the threats to South Africa’s supply chains continue to evolve, so skills must be continuously refreshed to keep up.