Post COVID-19 and Supply Chain Responsiveness in Africa

The COVID-19 pandemic has affected the operations of many companies and industries worldwide. As economies were exposed, many countries saw the need to put up measures to curb the spread of the virus.

Besides creating awareness and strengthening of the health systems, most of the countries in Africa locked down cities and banned travels. The lockdown affected not only the human movements but also the supply chain to great lengths. The unprecedented disruptions have caused supply shortages, surges and drops in some segments, shortages in inventory placement, and reduced productivity.

The severe financial and operational consequences brought about the need to adopt a new supply chain management model. These can manage the crisis and build stronger foundations aimed at future growth.

Supply Chain Challenges in Africa during COVID-19 Times

In Africa, all industries have been significantly affected by this pandemic, but food production and supply have been the worst hit. The lockdown measures implemented in different regions and countries have disrupted considerably internal and external food supply chains and halted food production.

This situation is ironic in the sense that while some regions have a shortage of food, there is wastage and rotting in others. In the Benue state of Nigeria, for example, paddy rice is in plenty but going nowhere due to the lockdown. On the other hand, the demand for the same is high across the nation, but not enough supply.

The lack of clear direction of precisely what is essential and can be moved around without restrictions or police harassment has made it hard to get the product to the ready market. This situation is reflected in the entire sub-Saharan Africa, where the future of logistics is uncertain.

The regional and global chain disruptions strain value propositions based on economic performance, rendering their projections redundant. Companies have had to use data-driven strategies to balance their supply and demand and build resilient supply chains with strong foundations necessary for immediate to medium-term effects.

5 Areas That Require Immediate Action

1. people-The planning workforce need mental, emotional, and physical safety for effective operations.
2. Leverage data for visibility-In the event of the pandemic where there are severe imbalances in demand and supply, goods, and services should be availed to those that are most in need.
3. Prioritize demand through Segmentation-Planners should use analytics to analyze the market and identify those high-touch micro-segments.
4. Dedicate an execution team: The team exercises better and faster decision making over the high-touch micro-segments, reviews supplier leads, and monitors the execution of plans aimed at meeting high-touch needs.
5. Supply chain evaluation- Planners run simulations to help them predict where demand shortages or excesses may occur, and move inventory to meet the anticipated needs.

5 Pillars of a Resilient Supply Chain

·         Carry out an end-to-end risk assessment of the supply chain-Speed and responsiveness to demand in the short term cannot be overemphasized. The first step involves identifying changing demands and critical gaps in production capacity and supply.

Then, breakdown supply chain activities to leverage additional networks in sourcing, production, and distribution. Build action plans based on the analysis of the scenario and re-prioritize the short-term projects as needed.

• Have a risk management process in place and diversify your network of suppliers- The companies should map out their supply chain networks, from the end consumers to their suppliers, and have a method of risk measurement in place.

• Automate manufacturing- Implementing digital technology solutions for manufacturing operations will reduce over-reliance on specific individuals for activities and standardizing daily work. Automating manufacturing capabilities enables a company to run its operations with interchangeable personnel, reduced labor needs.

• Evaluate procurement and adjust priorities- A sound procurement system drives resiliency by factoring category strategic priorities on variables like cost, quality, innovation, to define new relationships with suppliers.

Introducing digital procurement technologies will benefit a company with social networks of suppliers, strengthening sourcing capabilities, and suppliers’ collaboration in challenging times like these of COVID-19.

• Invest in collaborative, agile planning- Investing in technologies that sense demand, track movement of goods, forecast solutions, and monitor social media behavior impact how businesses understand demand signals and quickly respond to them. These capabilities affect business performance both in pandemic times and in standard business conditions.

Conclusion

Businesses in all sectors of the economy have been affected and disrupted at different lengths by this pandemic. Companies, therefore, need to assess, recover quickly, and respond to these challenges and gaps in the supply chain that paralyzed their operations and build a resilient supply chain for the future. Digital technologies in the post-COVID-19 world will play a critical role in building resilient supply chains, an enhanced user experience, and processes that are intelligently optimized for business success.