The South African solution to supply chain - Supermarket.co.za
The South African solution to supply chain - Supermarket.co.za
The South African solution to supply chain - Supermarket.co.za
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
SUPPLY CHAIN<br />
▲<br />
“<strong>The</strong>re is a lot of theory around<br />
<strong>co</strong>llaboration between retailers and<br />
suppliers, but in <strong>South</strong> Africa, I do not think<br />
we have even scratched the surface,” says<br />
Liezl Smith from SAPICS.<br />
“Logistics <strong>co</strong>mpanies are service<br />
providers stuck between the cus<strong>to</strong>mer<br />
and the product owner so they can take<br />
shots from both sides a lot of the time,”<br />
<strong>co</strong>mments Permark’s Mark Aling.<br />
“A big no no is the sub-optimisation of<br />
parts of a <strong>supply</strong> <strong>chain</strong> network. <strong>The</strong> entire<br />
Every <strong>South</strong> <strong>African</strong><br />
<strong>co</strong>mpany needs <strong>to</strong><br />
get creative in<br />
trying <strong>to</strong> improve<br />
efficiencies and<br />
reduce <strong>co</strong>sts <strong>to</strong><br />
ensure that they’re<br />
still in business<br />
<strong>to</strong>morrow<br />
Ensuring the order is placed on the <strong>co</strong>rrect day (taking in<strong>to</strong> ac<strong>co</strong>unt the <strong>co</strong>rrect lead time)<br />
will ensure the s<strong>to</strong>ck arrives at the retailer in time <strong>to</strong> replenish outgoing s<strong>to</strong>ck and will, in most<br />
instances, reduce returns off invoice.<br />
<strong>supply</strong> <strong>chain</strong> needs <strong>to</strong> be looked at as a<br />
whole,” says Kelly. For example, you may<br />
be able <strong>to</strong> save <strong>co</strong>sts in one place, but then<br />
you need <strong>to</strong> see how it impacts on another<br />
part of the <strong>chain</strong>.<br />
“Planning is great but what is needed is<br />
<strong>to</strong> build a culture of quality in<strong>to</strong> every step<br />
of the <strong>supply</strong> <strong>chain</strong>. This will take years and<br />
needs buy-in from all players so it is very<br />
difficult, but that’s the only way we go<br />
forward,” says Aling.<br />
It’s not even just about <strong>co</strong>llaborating<br />
with the other parties – it’s about<br />
<strong>co</strong>ordinating within one organisation as<br />
well. “What underpins any <strong>supply</strong> <strong>chain</strong> is<br />
the link between the sales function and<br />
the distribution. Yet, <strong>co</strong>mpanies will<br />
often outsource the sales function so<br />
<strong>co</strong>mmunication fails between the two<br />
divisions,” says Kelly. “If there were better<br />
<strong>co</strong>mmunications between sales and<br />
distribution, I think sales would run a lot<br />
smoother as well,” he adds.<br />
“With better information, better<br />
decisions can be made. Less guesswork<br />
generally means fewer mistakes. <strong>The</strong>re is a<br />
clear case for better <strong>co</strong>mmunication and<br />
<strong>co</strong>llaboration,” says Smith.<br />
Quick wins<br />
Looking forward, there’s no doubt that the<br />
<strong>to</strong>ugh times are going <strong>to</strong> <strong>co</strong>ntinue. Fuel<br />
16<br />
SUPERMARKET & RETAILER, APRIL 2013