Findings contained in a new report by the United Nations Conference on Trade and Development (UNCTAD) indicate that Africa’s economies have the potential to become major players in global supply chains.
The Economic Development in Africa report, released in mid-August, says given the continent’s vast resources of materials needed by the technology sector, it is perfectly positioned to service demand.
Minerals and metals like aluminium, cobalt, copper and manganese are essential components of the latest technologies.
“Africa also offers advantages such as shorter and simpler access to primary inputs, a younger, technology-aware and adaptable labour force, and a burgeoning middle class, known for its growing demand for more sophisticated goods and services,” UNCTAD adds.
In light of this positive outlook, it has become vital for African countries to optimise their supply chains to a global standard.
Enterprise resource planning (ERP) solutions are playing a significant role in this process.
ERP intelligence gives supply chain managers real-time insights into demand patterns, inventory, supplier performance and even distribution so they can make the best possible decision for the company.
Procurement professionals also benefit, as this software offers tremendous visibility into aspects like raw material availability and supplier delivery. It puts them in the enviable position of being able to improve sourcing strategies and negotiate the best terms with suppliers.
It doesn’t end there either, says Stephen Howe, a director at South African Sage business software and implementation specialist Times 3 Technologies (T3T).
“The ERP system benefits everyone from production managers to quality control and inventory teams. By having greater insights, they can all optimise their performance to build an even stronger supply chain”, he says.
The advanced analytics tools embedded in the ERP solution process analyse real-time data, meaning that trends, patterns and any anomalies can be quickly identified and addressed.
The intelligence also tracks key performance indicators (KPIs) such as lead times, on-time delivery rates and inventory turnover. Dashboards and reports visualise these metrics, enabling quick assessment of performance.
Howe believes the solution’s demand forecasting capability will be particularly useful to African countries as they play a greater role in global supply chains.
“This solution helps organisations anticipate fluctuations in demand and adjust production and procurement accordingly,” he says.