South Africa lags in adoption of supply chain management

By Ashley Ellington for Softline Enterprise
Johannesburg, 31 Jan 2008

Using supply chain management (SCM) to gain competitive advantage is no longer possible in more advanced countries such as the US, Germany and India.

This is in stark contrast to South Africa where Ashley Ellington, MD, Softline Enterprise, says that most mid-market companies have yet to adopt this technology to drive competitive advantage or even use it as a mechanism to improve service delivery.

"While SCM technology has evolved and we have seen interest from big companies running 'just in time' assemblies within the automotive and manufacturing sectors, there has been very little uptake by other industry sectors," says Ellington. He says those that do utilise SCM see it as an extension to their ERP systems, using it to connect to complex supply chains.

But the adoption levels are still too low and there is a dire need for business education, according to Ellington. In particular, he says the retail sector should be looking at the value SCM will add to their businesses and not stop at implementing ERP and CRM solutions.

"The answer lies in implementing an integrated ERP and CRM system which is tightly coupled to SCM," says Ellington. "In doing this, you will avoid disparate functionality and systems across the supply chain and will also ensure that you do not limit your efficiencies to your internal systems only."

Ellington's approach has merit because a connected SCM system will also deliver seamless flow of real-time information across the supply chain. He believes that this is key to success in emerging markets, such as the one in South Africa.

"It all starts with a robust ERP system that becomes a vital link in the integrated supply chain, serving as the central planning and control system," advises Ellington.

It is thus clear that a colloquial approach to SCM is no longer an option. The global marketplace of suppliers and customers is a reality, and effectively directing and managing the supply and movement of products across the world demands a sophisticated supply chain.

While South Africa plays catch-up, developed countries have moved on to find new ways to provide supply chain excellence and add new competitive advantage.

Softline Enterprise

Softline Enterprise is a leading supplier of business management solutions, delivering performance and Web capability that is essential for success in today's competitive business environment. Addressing finance, construction, distribution, manufacturing, services, retail requirements, CRM and e-business, the product offering also supports and consolidates activity across expanding business needs. Available on a wide range of operating systems and compatible with a host of industry leading databases, it gives mid-range and larger organisations the reliability and scalability required to keep ahead of competitors.

Softline Enterprise products are supported through a network of accredited partners which bring together the individual product and service components to deliver a complete and tailored solution.

Softline Enterprise products include:

Sage 1000 - a new, single business management software application designed to span operations across mid-sized businesses, integrating front office CRM and back office ERP systems. By sharing information between functional areas, businesses can enjoy greater efficiency, experience fewer errors from re-keying of data, and increase service levels by making it easier to give accurate, timely information from across the business to customers.

Sage Line 500 - offering all the advantages of a traditional ERP solution, Sage Line 500 provides tight financial control with full visibility of costs and powerful reporting tools. In addition, it includes an evaluation of market trends to assist customers to make informed strategic decisions. The product also manages cash flow through close budget control and efficient purchase requisitioning and supports international business with multi-language, multi-currency, multi-company features. It includes vertical solutions such as manufacturing, construction and retail.

Sage SalesLogix - an affordable, fully scaleable and powerful CRM solution that is easily customised for medium-sized and divisions of large corporate businesses. Sage SalesLogix is designed to integrate seamlessly with other business software and back office applications, providing businesses with a holistic view of each customer.

Softline

Softline is a leading provider of accounting, payroll and CRM software solutions to small, medium and large companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in South Africa and Australia.

Focused on the development of accounting, payroll and CRM software solutions, Softline has a 17-year track record as a market leader. The group has a broad range of products offering users a variety of software solutions to run their businesses efficiently. Softline's leading brands include Softline Accpac, Softline Enterprise, Softline Pastel (Accounting and Payroll) and Softline VIP. The combination of the group's product offerings, provide Softline customers with comprehensive, well-branded accounting, payroll and CRM software solutions.

In November 2003, Softline was acquired by Sage Group plc, a FTSE 100 company. The software group includes market-leading businesses throughout the United Kingdom, Europe, North America, South Africa and Australia, supplying business software to the small, medium and large business community.

Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll and CRM software solutions that improve the efficiencies of businesses around the world.

Sage

The Sage Group plc is a leading supplier of accounting and business management software solutions and services to 5.5 million small and medium-sized clients worldwide. With over 13 900 employees, the Sage Group comprises market-leading businesses throughout Europe, United Kingdom, North America, South Africa and Australia. Its products and services are sold through a global network of 25 000 reseller partners, 40 000 accountants as well as directly to clients from Sage companies throughout the world. For the financial year ending 30 September 2007, the group's revenue grew by 30% to lb1,175.6 million.

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