Only companies that can adapt to the fast changing global environment – unstable currency markets, growing global population and rising number of internet users – and can make them work in their favour will be successful in 2015.
“Businesses in Africa are under increasing pressure in the current economic climate to remain competitive, both locally and globally, and sometimes lack the ability to build resilient supply chains,” said Sumesh Rahavendra, Head of Marketing for DHL Express Sub Saharan Africa.
He noted that business decision-makers should be asking themselves how they can respond quickly to fast-changing customer demands; how they can contain or reduce escalating costs and how they can enter emerging markets without substantially increasing their risk. These, he points out, are dependent on having a well-designed supply chain and are crucial to successful running of businesses.
Rahavendra says the following three things are key to building a well-designed supply chain:
Annual planning and reviewing: This lays the foundation for an efficient supply chain as it assists business owners to see the bigger picture and gives them the flexibility they need in the face of changing business demands. All potential risks must be identified and assessed, no matter how improbable.
It is equally important to review the past year to ascertain what impacted the supply chain, and what can be improved upon to avoid unnecessary interruptions in the future. For example, the fluctuating fuel price directly impacts delivery costs. It is therefore important to streamline delivery processes in order to stabilise costs and in turn, keep client tariffs stable.
Another area to look at is seasonal spikes in business activities which may require additional resources. For example, retailers often experience a surge in sales over the festive season – effective solutions need to be put in place to avoid customer delay, and ultimately complaints.
Reverse logistics: This is often overlooked, however, effectively managing the flow of returned goods and packaging is key to reducing unexpected costs.
International supply chain management: Trading across borders can present a number of challenges, unique to each country. In Africa, these include congestion in major cities – such as Lagos and Nairobi – customs inconsistencies with regards to product classifications and duty and tax exemptions, which can lead to complex customs clearance processes, and a lack of air connectivity with just over 12 percent of cities served by just one flight a week. It is important to understand these challenges and make the necessary plans to circumvent potential delays.
Rahavendra advises that in order to maximise a business’s bottom line, decision-makers should aim to take a more holistic approach to managing supply chain risk and achieve greater visibility, flexibility, and control.
“Outsourcing logistics strategically can make a significant contribution to a business’s profitability so make sure that you have the right partners who understand the global economy and more importantly, the intricacies of doing business with each individual African county – it’s not a one size fits all approach,” he concludes.
“Businesses in Africa are under increasing pressure in the current economic climate to remain competitive, both locally and globally, and sometimes lack the ability to build resilient supply chains,” said Sumesh Rahavendra, Head of Marketing for DHL Express Sub Saharan Africa.
He noted that business decision-makers should be asking themselves how they can respond quickly to fast-changing customer demands; how they can contain or reduce escalating costs and how they can enter emerging markets without substantially increasing their risk. These, he points out, are dependent on having a well-designed supply chain and are crucial to successful running of businesses.
Rahavendra says the following three things are key to building a well-designed supply chain:
Annual planning and reviewing: This lays the foundation for an efficient supply chain as it assists business owners to see the bigger picture and gives them the flexibility they need in the face of changing business demands. All potential risks must be identified and assessed, no matter how improbable.
It is equally important to review the past year to ascertain what impacted the supply chain, and what can be improved upon to avoid unnecessary interruptions in the future. For example, the fluctuating fuel price directly impacts delivery costs. It is therefore important to streamline delivery processes in order to stabilise costs and in turn, keep client tariffs stable.
Another area to look at is seasonal spikes in business activities which may require additional resources. For example, retailers often experience a surge in sales over the festive season – effective solutions need to be put in place to avoid customer delay, and ultimately complaints.
Reverse logistics: This is often overlooked, however, effectively managing the flow of returned goods and packaging is key to reducing unexpected costs.
International supply chain management: Trading across borders can present a number of challenges, unique to each country. In Africa, these include congestion in major cities – such as Lagos and Nairobi – customs inconsistencies with regards to product classifications and duty and tax exemptions, which can lead to complex customs clearance processes, and a lack of air connectivity with just over 12 percent of cities served by just one flight a week. It is important to understand these challenges and make the necessary plans to circumvent potential delays.
Rahavendra advises that in order to maximise a business’s bottom line, decision-makers should aim to take a more holistic approach to managing supply chain risk and achieve greater visibility, flexibility, and control.
“Outsourcing logistics strategically can make a significant contribution to a business’s profitability so make sure that you have the right partners who understand the global economy and more importantly, the intricacies of doing business with each individual African county – it’s not a one size fits all approach,” he concludes.
