Mar 28, 2008
Skills scarcity is a consistent challenge, logistics survey highlightsBack
© Reuse this
The supplychainforesight 2008, undertaken by TerraNova, found the issue of inadequate skills is one of the most consistent challenges experienced by all the 409 companies canvassed.
The companies said that they are experiencing skills shortages in the design and implementation of supply-chain strategy, as well as supply chain management and operational skills.
"I don't think that it is a secret that we face a massive skills crisis in our country, in particular; there is a serious skills shortage in the supply chain industry, not only in South Africa, but throughout the world. There is demand for professional supply chain abilities in every single market," Barloworld Logistics divisional director John van Wyk tells Engineering News.
TerraNova MD Brett Bowes said at the launch of the supplychainforesight 2008 report held earlier this month, that the skills shortage was "likely to worsen."
"There can never be a better time to have supply chain skills, and it is necessary for companies to develop these skills internally or through partnerships," added Bowes.
The survey also found that globalisation is a key challenge facing large South African businesses as they seek to remain competitive. It found that those businesses, which have been able to take their supply chain planning, management and execution capabilities into foreign markets, and cope better with the demands of a globally stretched supply and demand chain, as well as much more diverse customer needs as a consequence, are seeing significant returns in their industry sectors.
Seventy-five per cent of the companies that claimed they had both global complexity in their supply chains, along with the capabilities to deal with this, also claimed to be more successful than their competitors.
"We are faced with a reality that we live in a global village, and, since Africa is emerging from being the ‘sleeping giant', we have some serious opportunities in our midst. If you engineer, manufacture or are procuring from different territories globally, and bringing products into the market or exporting to other markets, there are complexity issues that arise. And if a company or organisation is not able to deal with this complexity, they will not be able to take advantage of what globalisation offers," explains Van Wyk.
The study suggests that where companies acquire the skills and infrastructure to compete in complex environments and develop the requisite sophisticated capabilities, they will do well in both growth and profitability.
While South Africa was rated twenty-fourth (out of 150 countries) by a recent World Bank report in terms of trade logistics, for many South African companies, achieving growth and profitability is a concern given the seeming lack of constructive collaboration between government and private enterprises.
Supplychainforesight 2008 is the fifth study released by Barloworld Logistics and TerraNova since the inception of the project in 2003, providing significant research into South Africa's supply-chain and logistics industry.
For the first time, the University of Stellenbosch was involved in the study to acquire an academic perspective, and the focus of the study was on linking business success to supply chain success "more meaningfully."
There were about 16 industries involving in the study, ranging from food and beverage, automotive, retail, engineering and mining.
To watch a video in which Brett Bowes and John van Wyk discuss the recent findings of supplychainforesight 2008, log on to www.engineeringnews.co.za and click on ‘Video Clips'.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Creamer Media Senior Deputy Editor
Other Video News
Updated 25 minutes ago JSE-listed Dipula Income Fund reported that its distributable earnings grew 33.2% in the six months ended February 28, translating into a combined growth of 6.8% in distributions for both A- and B-linked units. The distribution attributable to the A-linked units was...
Updated 32 minutes ago JSE-listed Growthpoint Properties’ Kirstenhof Office Park, in Johannesburg, has become the hundredth building in South Africa to achieve a Green Star SA certification from the Green Building Council of South Africa (GBCSA), securing a 5-Star Green Star: Existing...
Updated 47 minutes ago JSE-listed residential property developer Calgro M3 Holdings’ subsidiary, Calgro M3 Memorial Parks has diversified its portfolio by officially launching its first memorial park, in Nasrec, near Soweto. This is the first development of its kind by Calgro M3 in what it...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...