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The impact of industry trends on supply chain operations

Johannesburg, 11 Sep 2012

Leading specialists in the supply chain environment have observed numerous shifts and emerging trends, and have indicated that approaches and practices used in the past are fast becoming outdated. In recent years, greater emphasis has been placed on technology and automation.

This is a key message that came through in each of the presentations delivered at the series of Zetes Supply Chain Showcase events recently held in Johannesburg, Durban and Cape Town.

In addition to current changes taking place within the supply chain environment, Africa is poised to take the lead internationally in terms of GDP growth, and many analysts compare Africa today with China and India in the 1990s. This unprecedented growth presents enormous opportunity for organisations that are ready to grab a share of this growing market.

"In this fast moving business environment, business agility is key towards maintaining a competitive edge in the supply chain, ensuring lower stock holdings and generating faster turnaround times," comments Andrew Fosbrook, managing director of Zetes South Africa, "and business agility requires visibility that in turn is dependent on mobility."

Technologies that support mobility within the supply chain have the ability to link the physical world with the digital world and are an important factor in achieving success. "The move towards technologies such as voice, RFID, vision and others by local and global organisations has resulted in faster visibility that enables process optimisation, increased efficiencies and better business decisions," adds Fosbrook.

Zetes is a leading provider of supply chain technologies, and a key contributor towards Zetes' position in this market is the ongoing research and development into these technologies, as well as Zetes' ability to meet the specific needs of its many customers. This is, in part, made possible by the Zetes 3i (Innovate, Improve, Implement) Competence Centres situated in Europe.

Gerrit-Jan Steenbergen, vice-president of the Zetes 3i (Innovate, Integrate, Improve) Centre that focuses on voice recognition, vision, RFID and group strategic mobility solutions travelled to South Africa for the Showcase events. Steenbergen further supported Fosbrook's claims, having said that "successful players will be those that can offer the right availability in all channels, a consistent customer experience in all these channels with sales activities that are fully integrated into social media".

In support of these claims, Steenbergen touched on two key trends that are impacting the supply chain.

The first of these is the change in supply chain focus from a 'push' manufacturer-dominant approach to a 'pull' customer-centric one. Never before has the term 'the customer is king' been more relevant. Steenbergen highlighted the importance of paying a great deal of attention to the customer within all processes, notwithstanding the supply chain.

A second trend highlighted by Steenbergen is the role played by digital information and social media in the customer experience. This new multichannel approach that essentially offers consumers so much more choice in terms of when, where and how consumers purchase, exercises influence over the way in which organisations manage their supply chains.

In addition to the need for increased 'real time' visibility within the supply chain, what has emerged from these trends is a number of new approaches within the supply chain. A network approach is replacing the step-by-step chain approach and timing has become fast and flexible to replace the long and slow. A demand-based approach to ordering stock is replacing the previous approach that relied on forecasting demand.

Furthermore, the consumer and not the manufacturer to a large extent determines what is done within the supply chain; while design was previously governed by the product forwards, the new approach is a shelf back approach, and whereas cost reduction has been seen as key, today organisations are realising the benefits of value and growth creation.

In striving towards a more customer-centric supply chain, leading local and global supply chain operations have realised the benefits of implementing technology solutions within their supply chain operations.

Steenbergen spoke extensively on voice technology, having highlighted how several customers internationally have benefited from the implementation of voice - directed work solutions in their supply chain operations. "Voice not only improves productivity and accuracy, it lends itself to easy management; people are easily trained in using voice technology and, very importantly, voice offers numerous benefits in terms of safety and ergonomics."

Advances in RFID technology were also placed under the spotlight, as were the benefits of mobility solutions within the supply chain technology make-up.

"In South Africa and Africa, we have before us a period of growth and development, and to avoid missing the boat during this key period, as many did during the growth of China and India in the 1990s, it is imperative that organisations adequately prepare themselves for the growth expected in Africa," concludes Fosbrook.

For further information, contact NewsEngine PR - Kim Heylen - Tel. : (+32) 3 260 96 42 - E-mail : kim.heylen@newsenginepr.com.

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Zetes

Zetes (Euronext Brussels: ZTS) is the leading provider of identification and mobility solutions for supply chains. Through intelligent use of automatic identification technologies, it links products or persons with new and existing IT systems. The result is a perfect exchange of information for its clientele, with data acquired in each process step and available in real time. In this manner, Zetes' solutions provide businesses, public institutions and governments with the monitoring they desire within and outside their facilities, thus enabling them to optimise overall performance, balance their accounts more efficiently, and master the most demanding traceability challenges. The Zetes Group, with headquarters in Belgium, has a presence in 15 EMEA countries and employs over 1 000 professionals. With a consolidated turnover of EUR220.6 million in 2011, Zetes is achieving sustainable growth. For more information, please visit www.zetes.es.

Zetes South Africa (formerly Proscan)

Zetes South Africa is part of the leading pan-European company that provides value-added solutions and services based on the Automatic Identification of Goods and People (Goods ID and People ID).

Zetes' head office in South Africa is situated in Bedfordview, Johannesburg, with regional offices in Durban, Cape Town and Port Elizabeth. The ProScan Group was acquired by Zetes Industries on 1 July 2011.

Editorial contacts

Ntombi Gama
P and P Communications
(+27) 11 447 3511
ntombi@pandp.co.za