Africa will remain competitive with supply chain says ACSC

Africa as a continent will remain competitive at the global market as long as it pursues a veritable supply chain system that makes companies thrive amid challenging business environment.

A supply chain is made up of several business entities (suppliers, manufacturers, wholesalers, distributors, retailers and customers) concerned with ensuring the flow of raw materials, component parts or finished goods from the source to the final destination, organizations can no longer stand aloof from these business entities

“Supply chain is a key to the survival of any nation. I pray the new transport ministry will pursue this strategy with rigor,” said Obiora E. Madu, Director General, Africa Centre for Supply Chain (ACSC) at the   fourth fellowship Investiture & Induction Ceremony in Lagos.

“Africa is about 20 percent of the world and its supply to global output is abysmally at 3 percent despite the fact that most of natural resources are in Africa. Intra Africa is trade is 7.11 percent; In Europe, 60 percent; Asia, 52 percent,” said Madu.

Nigeria is having its bitter share of logistics problems as bad roads and menacing gridlocks caused by indiscriminate parking of trucks culminate in production stoppages and build up of inventory as containers full of raw materials are delayed at the Apapa port.

Flour Mills of Nigeria, the country’s largest miller said the worsening logistics situation at the Apapa port hindered product evaluation and delivering resulting in loss of volume.

The miller said the aforementioned challenges and other macro conditions led to increase in cost of input and put pressures on margins.

Analysts say lack of proper supply chain will make manufacturing projects uncompetitive, unprofitable and unsustainable. Industry observers also added that one of the tasks before the new minster for transport will be to solve logistics bottlenecks.

Manufacturing which has barely risen above a 10th of gross domestic product since independence in 1960, contracted by 3.8 percent, after a 14 percent expansion a year earlier.

Economic growth has slowed to 2.4 percent in the second quarter of the year, from about 6 percent last year.

The African Centre for Supply Chain is an umbrella networking body of logistics and supply chain professionals across Africa.

The objective of ACSC is to set up a world class research, learning and advocacy platform for the promotion of knowledge and excellence in the practice of Logistics, Supply Chain Management and allied business segments, according to Obiora.

“Today we have 130 members after today’s induction; we will be having 20 inductees, added Obiora.