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Supply chain collaboration needed in South African retail space

South African retail supply chains need to collaborate

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Our sister publication African Business Review originally covered this story

It was revealed at the Consumer Goods Council of South Africa 2015 Summit that South African retailers should collaborate to get maximum value from their supply chains in order to create value in an often difficult space.

RELATED: DHL: Collaboration is crucial to boosting trade in Africa

At the summit, Resolve Solution Partners strategic solutions lead Paul Dickson said: "South African retailers have the ability to optimise their competitive advantage, but currently bad forecasting makes for an unhappy customer experience. This has consequences for the brand, as well as the bottom line."

Retailers’ supply chains in South Africa are held back by high costs, non-optimal inventories and poor demand forecasting, as well as unreliable and volatile service levels.

RELATED: DHL Express completes multi million pound facility upgrade in South Africa

Dickson added: "In the First World FMCG market, companies in the US grocery business, for example, are connected in one network. They can streamline aspects in the supply chain. They have invested a lot of money and their forecasting accuracy is about 70 percent or more."

It was revealed that collaboration on non-competitive issues would allow companies to deliver value, while not having to compromise on the spirit of competition.

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SOURCE: [BusinessDayLive]

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