It is time to reimagine how we build, manage and leverage supply chains - not just to survive disruption, but to grow stronger because of it.

This was the key message in an insightful SAPICS Conference presentation this year by Andries Retief, DHL Supply Chain’s chief commercial officer for EMEA. More than 700 supply chain managers convened in Cape Town for the 47th annual SAPICS Conference, to learn, share knowledge and network. The conference is the leading event in Africa for the supply chain profession.

Retief explored how today’s volatile global landscape, which is being shaped by geopolitical conflicts, technological advances and constant disruption, demands bold new thinking. "In calm times, logistics is the quiet engine of growth. But in disruption, it becomes something more: a strategic lever,” he stated.

“We are living through an inflection point. Trade lanes are being redrawn. Governments are investing in strategic autonomy. Sustainability is now a prerequisite. The pandemic was merely a stress test for what came next, and the shockwaves are still being felt across industries ranging from e-commerce to bio-pharma,” he told SAPICS attendees.

Looming over all of this is cybersecurity, which Retief said is a threat that keeps businesses up at night.

Amid this turbulence, however, lies opportunity, according to Retief. “Supply chain leaders who see the current forces at play as headwinds will fall behind. Those who harness them as tailwinds and align their supply chain strategy to these global shifts will accelerate toward sustainable growth.”

The presentation highlighted some concerning statistics. A staggering 92% of organisations struggle to mitigate supply chain risk due to a lack of visibility and collaboration with trading partners. And while 75% now check if key suppliers have continuity plans, 68% say they’re constantly responding to high-impact disruptions, often without enough time to recover before the next one hits.

Retief outlined what can be done differently. “In today’s landscape, strategy can’t be confined to balance sheets and boardrooms,” he stressed. “It must start with a clear-eyed view of a network - where it’s strong, where it’s vulnerable and how it responds under stress. We can do this by considering geographic and strategic tailwinds.

“Look at the advantages that the geographic diversity Africa can offer, such as proximity to key resources, proximity to key markets, access to transportation networks (like ports, highways and railroads), favourable trade agreements and access to resources,” he urged the SAPICS audience. “Through geographic diversity, businesses in South Africa and Africa, as well as foreign companies investing in the continent, can optimise their supply chains and increase their speed to market.

“To harness strategic tailwinds, organisations should align their supply chain operations with mega trends in e-commerce, global fulfilment networks and life sciences, as well as sustainability imperatives.”

Retief said that diversification is key and he shared highlights from a recent trend report emphasising the urgent need for supply chain diversification. “This is not a new concept, but one that is now sharply in focus,” he stated. “Diversification includes multi-shoring and omni-sourcing. Spreading supplier and manufacturing bases across countries or continents reduces dependency on one location and mitigates geopolitical or environmental risk. Increasing the number of suppliers - even within the same region - creates built-in resilience should any one vendor fail to deliver.

“Diversifying logistics operations – with a distributed network of warehouses and distribution centres - improves supply continuity and responsiveness in the face of localised disruptions.

“Multi-modal transport is also part of the mix. Relying on a mix of air, sea, rail, road - and even bicycles for last-mile delivery - ensures flexibility across the entire transport chain.”

Finally, supply chain orchestration must be the glue that holds it all together, Retief stressed. “This is the coordinated management of all elements - processes, people, technology and data - to ensure seamless, efficient operations across increasingly complex, global supply chains.

“The environment we live in today doesn’t just call for better supply chain management, it demands strategic reinvention. The supply chain must be reimagined, not as a cost centre, but as a competitive advantage: agile, diversified and ready for whatever comes next,” he concluded.