Investment disconnect fails to resolve supply chain disruptions - IT-Online

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Kathy Gibson reports – Supplychain disruption is nothing new, though we've learned to deal with it better in age of globalisation. But 2020 brought a new set of dynamics, resulting in extreme stress and disruption, says Mark Wilson, of SYSPRO EMEA ~

Kathy Gibson reports – Supply chain disruption is nothing new, although we have learnt to deal with it better in the age of globalisation. But 2020 brought a new set of dynamics, resulting in extreme stress and disruption.In 2020, a Syspro survey found that 70% of South African business got through the pandemic in pretty good shape. “They reinvented themselves quite quickly, and recognised that technology was required to meet the new challenges.

The disconnect in investments in internal efficiencies versus external collaboration versus the supply chain and ecosystems shows up with about 70% of manufacturers and distributors facing disruptions along the supply chain – and about 60% of them unable to collaborate in realtime with customers and suppliers.

The study shows that 58% of business looked to optimise operation processes, including upskilling staff; 48% looked to improve customer services; 46% looked to improve resource efficiency; and 23% looked to improve external collaboration. There is a need for supply chains to compete on a global level, but there is still a big technology imbalance that means this isn’t happening yet.

The survey concludes with the finding that customers are still not at the centre of manufacturers’ and distributors’ business models. “They are still at the end of the supply chain,” says Zondi.

 

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