Sapics (the Association for Operations Management of Southern Africa) recently collaborated with the Massachusetts Institute of Technology’s Centre for Transportation & Logistics (MIT CTL) in Boston USA, in a global supply chain risk survey.
The purpose of the survey was to determine common perceptions and attitudes of companies and individuals towards supply chain risk management and to identify challenges faced in this field within a South African context. This is the first time South Africa has participated in such a high level survey.
More than 2 400 respondents from 70 countries took part, of which 250 were from South Africa. Imperial Logistics led the team in South Africa and will continue to be the motivation for the next phase of the project, where the cross-network risk impact will be analysed further.
“Increasing, international trade and the global significance of supply chains creates interdependence between multi-national buyers and sellers of goods to understand and manage local and international risk,’ explains Marius Swanepoel, Imperial Logistics CEO. Common internal risk factors include the likes of transportation carrier failure, raw material supply and cost fluctuations. Perceptions of external risk factors include concerns over electricity supply, protracted labour disputes and poor economic/recessionary conditions.
The majority of companies in South Africa either do not work with – or work ineffectively with – suppliers and customers to reduce overall supply chain risk. This shows that significant scope exists for greater shared opportunities for organisations with a strong risk management mindset.