Supply Chain in Emerging Markets
How iSimPlan and DDRMP can be used to mitigate Supply Chain volatility
Supply chain volatility is a term that is often used interchangeably with supply chain variability . It’s also a term that is being used more frequently as supply chains grow in size and complexity. But what exactly is ‘supply chain volatility’? This is a question that has been asked repeatedly by supply chain professionals and academics, to the point where a conceptual framework has been developed to attempt to align all the different definitions out there . Regardless of the definition used, the result of supply chain volatility is that organisations fail to get the right product, to the right place, at the right time, and for the right price. In the African Market sources of variability are extremely varied and can come from within an organisation and from external sources as listed below. With so many sources of variability in emerging markets, it’s no wonder that growing an organisations’ presence in that market is challenging , . Supply Chain Barriers in African Emerging Markets (Adapted from)
- Geographic constraints in the form of access to multiple transportation modes (sea, inland waterway, rod and rail) and the physical location of the market base, including distances between these and established transportation routes.
- Instability (economic, political, social, etc.) leading to high variability. This is often linked with high risks and a lack of security.
- Political and regulatory barriers can come in many forms, including corruption, lack of legislation and/or transparency and sudden policy changes.
- Limited transport and logistics infrastructure which can be of poor quality where extant.
- Lack of supply chain structure resulting from a fragmented supply chain and narrow supply base.
- Market structure variability including customer disposable income and local competitors.
- Poor strategic supply chain planning.
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