Research out on SA's competitiveness in supply chain management

This independent study, initiated and sponsored by Barloworld Logistics and now conducted by respected international research specialists Frost & Sullivan, samples the opinions on supply chain strategy of hundreds of senior executives in global South African companies each year.

New strategies needed for emerging markets

Now the global supply chain climate has once more undergone an important shift. As the centres of political and economic power move slowly away from the so-called 'developed' countries to the larger emerging economies, especially the BRIC grouping of Brazil, Russia, India and China, the position of South Africa and its relatively stable and efficient supply chain networks - at least in an emerging economy context - takes on a new importance. Of particular importance is how South Africa's supply chains enable it to compete with other emerging markets, as the global balance of power shifts.

Key indicators

This is the focus of the 2011 study, which reveals the following:

1. Benchmarking - South Africa's investment in logistics infrastructure, in particular, has shown a marked dip in recent years, especially compared to the increases in investment taking place among our competing BRIC countries and major African economies. Despite our relatively sophisticated infrastructure, we are losing ground on our international competition.
   
2. Sustainability and corporate governance - South Africa's reputation for good corporate governance is demonstrated by the commitment among respondents to health and safety and regulatory compliance. On the other hand our commitment to and knowledge of carbon emission reduction is sketchy at best.
   
3. Industry issues and supply chain alignment - There is now a strong degree of alignment between supply chain and business strategies. This is taking place in a context of global difficulty in improving the forecasting of customer demand and the management of inventory, however. A special section in this year's study is devoted to an analysis of the supply chain skills crisis in SA, and what companies are doing about it.
   
4. Infrastructure - South Africa's well-known imbalance between road and rail freight, interestingly, is comparable to other BRIC economies like India and Brazil. They seem to be more proactive about investing in and addressing the imbalance, however. Much of the private sector is disillusioned by the lack of co-operation and capacity in public sector infrastructure provision by Transnet - an issue the research discusses in full. It is hoped that the publication of this in-depth study of private sector experience and attitudes to the question of trade infrastructure will spur some additional action.
   

Download a free copy of the full report from www.supplychainforesight.co.za.