Strengthening supply chains spell business success

ADAPTING to the fast-changing global environment will help companies in Africa succeed this year. 

 

Sumesh Rahavendra, head of Marketing for DHL Express Sub Saharan Africa, said changes in the global economy present retailers, manufacturers, and other sectors with increasingly difficult and unique challenges that could impact their supply chains. These challenges include unstable currency markets, fast-growing global population, and rising number of Internet users, all of which companies can address and turn into opportunities for growth.

 

Mr. Rahavendra identifies several areas that are key to building a well-designed supply chain, including annual planning and reviewing, reverse logistics, and international supply chain management. 

 

A yearly plan and review enables business owners to see the bigger picture and gives them the flexibility to adapt to changing business needs. It encourages them to identify and evaluate all potential risks. All of these create a good foundation for an efficient supply chain.

 

A review of the previous year helps business owners ascertain issues that affected their supply chain. This enables them to assess improvements that can be made to avoid similar problems in the future. The impact of rising delivery costs, for example, resulting from fluctuating fuel prices could be minimized by streamlining delivery processes. 

 

This annual planning and reviewing may include looking at seasonal spikes in business that may require additional resources. Retailers, for instance, can study solutions to avoid customer delay and complaints during festive seasons and corresponding surge in sales. 

 

Reverse logistics is another key aspect of a well-designed supply chain, albeit it is often overlooked. Managing the flow of returned goods and packaging effectively reduces unexpected costs.

 

Meanwhile, international supply chain management will enable companies to look into challenges that arise from trading across borders, and make necessary changes to address concerns and prevent delays.

 

In Africa, businesses face congestion in major cities such as Lagos and Nairobi, and customs inconsistencies in terms of product classifications and duty and tax exemptions that can result in complex customs clearance processes. The lack of air connectivity presents a challenge as well, as this means just over 12% of cities are served by one flight a week.