Digitalisation key for quality supply chain performance
PwC South Africa Digital Operation lead Pieter Theron explains what the supply chain of the future would entail
Some companies have been able to achieve supply chain excellence through the adoption of customer-centric and autonomous supply chains using smart technologies and solutions, PwC South Africa digital operations lead Pieter Theron noted during the Manufacturing Enterprise Solutions Association’s webinar on November 20.
He said leading companies go beyond functional efficiency, towards an end-to-end orchestrated supply chain ecosystem, with data showing South African businesses are also looking for greater external collaboration.
He explained that end-to-end orchestration is autonomous, data driven and highly automated.
Moreover, external collaboration extends beyond company walls and includes both suppliers and customer networks.
Theron said internal integration would overcome functional silos within the company and contribute to cross functional collaboration.
Moreover, functional efficiency focuses on the improvement of each function and their related key performance indicators.
He acclaimed that advanced supply chain capabilities cumulate to significant qualitative and quantitative benefits.
Theron explained that, as companies achieve higher supply chain maturity, multiple benefits add up to a higher level of cost efficiency, supply chain performance and increased product and service revenue.
Therefore, those that are championing digital are focusing on optimising their assets, managing supply chain risks effectively and increasing revenue by realising new business models.
Theron posited that investments into advanced supply chain capabilities pay off and that the supply chain becomes a significant value contributor.
He noted that South African businesses could also achieve benefits in this area.
For example, he noted that digital champions had achieved considerable savings of about 6.8%, on average, on supply chain costs in the last financial year.
Theron explained that investments into the supply chain resulted in new business models, new customer channels with higher customer centricity and faster delivery capabilities. This, he said, engendered additional product and service revenues.
Theron indicated that digital champions had achieved considerably greater cost reduction relative to their overall supply chain costs in the last financial year owing to their investments.
He mentioned that compared with digital novices, the cost benefits achieved by digital champions were twice as high.
Theron noted that the average payback period of investment into supply chain capabilities was less than two years, therefore, companies would see a return on their investment relatively quickly.
Moreover, he acclaimed that investments into advanced supply chain capacities also boosted supply chain performance.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation