Changing landscape of Supply Chain in South Africa

The global supply chain management industry is changing which requires a more sophisticated approach to managing the alignment of supply and demand. Also in the South African context, we have seen some key changes in the last year with retailers shifting to centralized distribution, supplying stores from a central point instead of trucking products from the manufacturer to individual outlets.

This necessary change was spurred on by the entry of Walmart and the opening up of African markets. Some believe that international players will increase with Tesco also following in the market as they see South Africa's growing population, which results in increased consumer spending.

However, besides the threat of international players, centralized distribution does offer numerous benefits as it gives procurement tighter controls, standardized processes, power to negotiate with vendors and organizations the ability to achieve new efficiencies and savings. Where centralized distribution has been achieved there are savings in this environment of anything from 5% to 7% of supply chain costs.

There is a lot still to be done to drive efficiencies through the supply chain. By focusing on demand planning, improved merchandising strategies, and better collaboration between retailers and suppliers, the South African supply chain will no longer be considered 'highly inefficient and high cost'. And we'll be ready for Walmart and the rest.

The goal of every organization is to create a competitive advantage through expanding their market and cost-cutting, however, the key to all of this is profitability. Especially in the retail space, the framework of mass production for a mass market is no longer relevant. The changes within the consumer market regarding the demand for the product range, variants, and customized solutions have made the supply chain a complex arena.

We understand the importance of having the right people in place within your Supply Chain in your organization. Communicate Recruitment is a specialist Supply Chain/ Freight recruitment agency. We represent a variety of top-notch candidates ranging from procurement, distribution manager, demand planner, supply chain analyst, and more. If you are looking for a new career opportunity, we can also help. Contact us today.

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