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Building Supply Chains that are tough enough for Africa

29th April 2014

  

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Africa is growing fast – according to research at a rate of up to three times that of advanced economies. It’s no surprise then that supply chain opportunities abound.

But, according to Africa supply chain experts who are getting ready to share their expertise at the SAPICS 2014 www.sapics.org conference on Resilient Supply Chains, taking place from 1-3 June at Sun City, not everyone knows how to make a success in this unique environment. 

“Africa is not for sissies. Neither is it a place for supply chains that are designed on a drawing board,” says Danie Schoeman, Managing Director, Danie Schoeman & Co.

A non-traditional approach to supply chain

According to Schoeman, many companies are beginning to embrace supply chain design as a core competence rather than a once-off strategic event.

“In recent years, the challenge of meeting the soaring demand for commodities has resulted in rapid growth for companies,” he says. “However, doing business in Africa, particularly when servicing remote regions, can lead to significant complexity and variability in logistics and other associated supply chain activities.”

“This is where it quickly becomes very clear that if you’re gearing your supply chain for growth even in tough parts of Africa, the traditional approach of a once-off strategic network design followed sequentially by a monthly tactical S&OP process will simply not support the requirements of the business and meet customer demand,” he explains.

Demystifying the African consumer

Some still believe that the growth in Africa is only resources-driven, but research has shown that much of this growth is actually driven by the rise of the African consumer.

“This is in fact so much so that advanced economies are beginning to look towards Africa as a trade mechanism to facilitate growth within their own economies,” says Schoeman.

During his presentation entitled: How to develop resilient supply chains for the African consumer market, Schoeman will discuss some of the idiosyncrasies, risks and challenges that hamper trade in Africa for those whose supply chains are not resilient.

An important part of this will be to understand the African consumer. “The African consumer behaves very differently to the European or US consumer,” he says. “During my presentation, I will examine typical consumer buying behaviour, and expound on their view of quality and brand loyalty. We’ll also discuss decisions around products.”

There are more outstanding “Africa Focused” presentations included in the programme – some with particular focus on the pharmaceutical industry, warehousing and logistics and people management.  For more information on these, and other, presentations at the 36th Annual SAPICS Conference & Exhibition, being held at Sun City from 1 to 3 June 2014.

*SAPICS Conference and Exhibition 2014 – Resilient Supply Chains – 1-3 June 2014, Sun City. For more info and to book, visit www.sapics.org

Africa’s leading event for Supply Chain and Operations Management Professionals, the Annual SAPICS Conference and Exhibition is the premier educational and networking event in Africa for Supply Chain and Operations Management Professionals. It offers practical and relevant information through excellent educational presentations, case studies and interactive workshops.

Edited by Creamer Media Reporter

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