Company Announement - African and Chinese politicians are opening up the way for business to kick up a notch in Africa. And, as their talks rapidly move beyond so-called resources for infrastructure deals into areas such as agriculture, manufacturing, FMCG and consumer electronics, the time has come for African companies to position themselves to benefit from this trend. But, are supply chains ready to handle the demand that’s growing with each passing year?

‘The Pulse of Africa’s Supply Chains’ is the theme for this year’s SAPICS 2015* conference, which will be taking place from 31 May - 2 June at Sun City. Several Africa experts have been lined up to share their insights into optimising supply chains operating on the continent.

When in Africa…
As most people with experience of doing business in Africa will agree, the challenges are unique and therefore require an approach that’s different from doing business elsewhere.

Wayne Whiffler, EY’s Executive Director in the Advisory Practice responsible for the Supply Chain Transformation, says an entire rethink of the integrated supply chain operating model is needed when doing business in Africa – the subject of his presentation at SAPICS 2015. “Upon entering African markets, the complexities in the supply chain increase exponentially,” he says. “The surge in cross-border flows, local regulations, tax implications, and the lack of infrastructure all add to the challenge of growth in developing markets.”

The risk, he explains, is a ‘collection’ of independent markets and operating units with duplicated functions and limited alignment. “In these cases, point improvements do not deliver overall supply chain benefit. Transformational changes to supply chain operating models are required to improve customer service levels, reduce costs and working capital.”

A problem shared…
Taking an in-depth look at how to overcome infrastructure challenges in supply chains in Africa, University of South Africa Supply Chain Management lecturer, Beverley Kujawa-Waugh’s and Professor Hannie Badenhorst-Weiss’s interactive workshop is billed as a knowledge exchange session for both cargo owners and logistics service providers, as well as other stakeholders in African supply chains.

“We aim to create a forum where we can discuss the infrastructure/operational challenges/issues affecting Southern African supply chains (and thus the pulse of African supply chains) and identify the impacts of the challenges on these supply chains,” Kujawa-Waugh says.

“We will then brainstorm how these challenges can be addressed and overcome!”

With an understanding of the challenges that may be faced and how to handle them, it’s time to talk about how to get your business ready, particularly considering the impact of bilateral China-Africa trade growth on African supply chains. Jacques Marais, COO of The Beijing Axis‘s talk will provide an update on the latest developments, and discuss how businesses may set up their supply chains to benefit from bi-directional trade growth.

Gateways to Africa
Although infrastructure in Africa is improving and the number of airports is growing, ports remain the gateways to African trade. However, ports face two competitive challenges – the large volume of increase and the need for greater efficiency.

“This means loading and unloading vessels faster, reducing turnaround time and increasing the performance of the operators of both vessels and port operations,” says African Centre for Supply Chain Director-General and Multimix Academy CEO, Obiora Madu. “Ports must transform into logistics hubs, in addition to being more determined to have better connectivity with other modes and better accessibility to their hinterlands. Inter-modalism will be a critical factor in the success of supply chains, while the development of inland container depots and private container terminals form part of the chain.”

During his presentation entitled: Modern Ports & Global Supply Chain Optimisation, Madu will identify all possible economic catalysts for optimum future development of port infrastructure and real estate, port commerce, inter-port co-operation and competition. The paper he will present will also provide a framework and navigation tool for using the full capabilities of the modern Port Authority in a post-privatisation environment and give priority to environmental and safety issues.