Historical and future overviews of supply chain management were explored at the recent virtual inaugural lecture presented by Professor Micheline Naude from the School of Management, IT and Governance.
Themed: Supply Chain Management: Past, Present and Beyond, the inaugural lecture also highlighted cost-effective supply chain management strategies that can be implemented by businesses in future.
Naude is an academic and NRF (National Research Foundation) rated researcher, having published articles in journals and presented papers on purchasing and supply chain management locally and abroad. Her area of expertise in supply chain management are purchasing, operations and logistics management; with more than 20 years of teaching experience in this field.
In her lecture, Naude unpacked the concept of supply chain, providing an overview of how it has evolved after the sixties for different industries. She said this sector has grown resilience despite disruptions and production factors experienced from global crisis like COVID-19, geopolitical tensions, and climate change.
‘The supply chain disruptions have impacted global and local supply chains, and availability of supply is problematic. It has become a matter of, can you even get raw materials and components? Previously, there were many more options available to businesses. Hence, there has been a power shift from buyers to suppliers because there is a shortage of commodities, raw materials, and components,’ she said.
To overcome complexities and avoid vulnerability, Naude said different strategies need to be adopted by supply chain managers. In a study she developed with other supply chain experts, they proposed a tool that managers or owners of small medium enterprises (SMEs) can use as a tool to identify, evaluate and minimise operational risks.
‘We found that SMEs tend not to formally assess and manage their risks but rather respond when the risk materialises by using risk avoidance and risk transfer techniques. This is despite evidence that businesses that adopt risk management strategies are more likely to survive and grow,’ she said.
Looking at how supply chain management will continue to change in the future, Naude said Industry 4.0 (4IR) can help global supply chains acquire connectivity, visibility, optimisation, and autonomy.
‘In that way, performance of the supply chain would be improved by optimisation and autonomy, symbolising the operation’s ability to handle themselves. This can result in a more adaptive and intelligent supply chain management,’ she said.
Naude said even though many types of jobs will become obsolete due to 4IR technologies, these new technologies are likely to create new job opportunities that currently do not exist.
‘Thus, as supply chain practitioners and educators, we need to embrace the advancements made in artificial intelligence,’ she said.
