IT and the Internet are increasingly important in supply chain management in SA, but the local IT industry has little understanding of the issue.
This is according to the Supply Chain Foresight Survey, which was presented yesterday at the 26th International SAPICS Conference and Exhibition in Cape Town.
Brett Bowles, CEO of research firm Terra Nova, which conducted the survey, says IT is a critical enabler of supply chain management. Overall, there is a high level of satisfaction and the implementation of IT is high.
"This is not surprising as senior executives are seeing positive returns on investment, probably from cost savings in specific supply chain functions," Bowles says.
According to the survey, the five biggest challenges indicated by respondents with respect to the implementation of supply chain technology were: data integrity (58%), integration with other systems (56%), selection of systems appropriate to business (48%), staff training (46%), and availability of suitably qualified implementation personnel (45%).
Bowles says the two top challenges of data integrity and system integration reflect a realisation that information needs to be accurate, be shared across different functions and with suppliers and customers alike to maximise value.
He says there is an understanding that IT systems are only part of the solution and that the role of people in the process is often more important.
The role of the Internet in supply chain activities and management is set to increase in many different ways and more than half of South African companies are exploiting it to connect with internal stakeholders, the survey says.
"However, there are signs that the Internet is being used in a much more sophisticated fashion such as business sharing processes with customers and suppliers," Bowles says.
An examination of the current and future use of the role of the Internet indicates an internal or functional supply chain focus, such as trace and track. There was a relative lack of understanding of the importance of instant communication for the integration of customers and suppliers across the supply chain, the survey says.
There was a low overall participation by IT executives and IT-related companies in the survey. Many said they had little understanding of the issues in supply chain management.
"This is particularly ironic considering the importance of the role IT is now playing in supply chain management," Bowles says.
Share