South Africa’s supply chains face a looming crisis, warns CIPS

12th August 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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About 35% of South Africa’s supply chain managers have revealed that their employers failed to equip them with the new skills they need to fulfill the demands of their jobs and avert major crises, which could possibly lead to a supply chain crisis, education and qualification body, the Chartered Institute of Procurement & Supply (CIPS) has found.

This finding formed part of the results of a global survey of 645 supply chain professionals, which uncovered that, globally, the required skill set has moved beyond hard analytical skills to include a broader skills base and a need for a range of “soft skills”, such as relationship management, influencing and persuasion skills, alongside the need for more sophisticated and technical expertise.

When asked about the level of respect accorded to the role of supply chain manager, 65% of respondents from South Africa believed their role was not adequately respected within their business, hampering their capacity to improve the way their supply chains were managed and to develop their own skills. This had the added effect of demotivating talented individuals.

The survey further found that inadequately trained supply chain managers were failing to prevent malpractice, investigate the origin of raw materials or follow best practice.

Globally, 80% of those who considered themselves as inadequately trained supply chain professionals admitted that there could be undetected malpractice in their supply chain with only 17% able to see the entire length of their supply chain.

“Perhaps most telling, adequately trained supply chain managers are 53% more likely to be carrying out yearly supplier audits, an important way to prevent disruptions and spot fraud,” the survey stated.

This followed the release of the CIPS Risk Index for the second quarter, which exposed that global supply chain risk had jumped to its highest level since late-2013. The rise was driven by a tightening of credit rules in China, which forced supply chain managers to look much more closely at the durability of their Asian supply chains, and discovering more risk.

The survey also showed that South Africa’s supply chain managers saw ethical considerations as the most important responsibility of the profession. About 45% said that treating human beings fairly at all levels of the supply chain was one of the top aims of a supply chain professional, alongside fulfilling regulatory standards.

Supply chain managers were also becoming less concerned with driving down supplier quotes at all costs. Only 12% in the survey were motivated by driving a hard bargain, with 46% motivated by the task of contributing to business growth.

“The growing complexity of supply chains coupled with a heightened focus on supply chain risk, are changing the role of supply chain managers. There is already evidence showing a fundamental shift in the role and priorities of supply chain managers, from a traditional cost control role to one that increasingly prioritises managing risk and building fair and sustainable supply chains.

“However, our findings show that, in South Africa, demand for skills is not being met and the ability of professionals to do their job has been undermined. Without proper skills and training, we risk human rights abuses and malpractice all along the supply chain. Professionals are doing the best they can with insufficient training but, as the threats to South Africa’s supply chains continue to evolve, so skills must be continuously refreshed to keep up,” CIPS MD Andre Coetzee said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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