A need for increased profitability in a low growth domestic economy and increased global uncertainty is pushing South African chief procurement officers (CPO) to add more value to their organisations.
This is according to Karoly Kramli, associate director of digital architecture technology at Deloitte South Africa, who said that traditional procurement operating models are changing due to a lack of talent and an increase in digital innovation.
Kramli believes that dramatic advances in computing memory and processing are spurring entrepreneurs and businesses to develop innovative new digital technologies and capabilities.
“CPOs are becoming more reliant on implementing supply chains that are connected, intelligent, scalable, and nimble supply networks which require conversion between the physical and digital worlds,” he said.
This was confirmed in Deloitte’s annual CPO survey which showed how South Africa’s political instability and economic uncertainty required new work streams to relieve systemic pressures in cost containment and predictive analytics.
The use of digital supply networks (DSN) is one strategy that offers services to companies and business leaders looking to capitalise on this opportunity and create competitive advantage, said Kramli.
“Adding an efficient model, in this case, DSN, has been paramount to increasing customer and consumer requirements and preferences for industry stakeholders, in so far as Deloitte’s alliance with General Electric (GE) and Singularity University, we are helping business leaders prepare for what’s coming next – the drive to digital industrial transformation,” he said.
The most forward-thinking perspectives on the future of supply chain, including artificial intelligence, advanced robotics, additive manufacturing, and the Internet of Things (IoT) relies on business leaders who can build and reconfigure digital supply networks as competitive differentiators”.