SAPICS: expanding the manufacturing supply chain beyond South Africa
South African manufacturers’ efforts to expand into the greater continent have met with failure. Two mistakes – according to speakers on the line-up for the 2016 SAPICS conference for supply chain professionals – are applying familiar product-focused processes, and discounting the importance of working within the existing framework of local culture.
Transnova Africa Director (East Africa) Carsten Schubert, said: “Focusing too much capital expenditure on the production and manufacturing side without enough investment in the outbound supply chain – warehousing and distribution – is probably the single biggest mistake that South African companies make when expanding into Africa.
“South African businesses readily accept the status quo of logistics systems and processes already in place in the country targeted for expansion, rather than challenging them and looking for more efficient ways of getting the product to market.”
It is important to have visibility and control over your end to end supply chain. Interacting directly and managing the relationship with your new customer base when you are trying to establish a foothold in a new market is a key success factor.”
Merck Associate Director of Supply Chain Bryan Baylis added: “Every step of a new process needed to be designed through the eyes of the local workforce and their capabilities.”
“When local supply chain owners completely understand the proposed solutions, only then can your team execute a sustainable process, which can successfully meet the needs of the organisation today and well into the future. While new environments present unique challenges when designing supply chain systems, there is a common need to create a flexible system that can quickly adjust to today’s global environment.”
Carsten Schubert and Bryan Baylis will present their unique supply chain insights at the 38th Annual SAPICS conference and exhibition for supply chain professionals in Sun City from 12 to 14 June 2016.
More information is available at conference.sapics.org