Canninah Dladla | Cluster President for English-speaking Africa | Schneider Electric | mail me |
The last five years have placed unprecedented strain on global supply chains. Geopolitical tensions, trade wars and natural disasters have exposed vulnerabilities across industries. As a result, these challenges have become the norm rather than the exception.
We have shifted from the era of “just in time” to “just in case”. In this environment, global supply chain strategy has become a central driver of resilience.
In response, leading companies are converting these challenges into opportunities. They now focus on transforming their supply chains into competitive advantages through a renewed commitment to global supply chain strategy.
Supply chain strategy is a business strategy
Supply chain management plays a central role in business strategy. It also directly influences profitability. Organisations invest significant effort and resources to understand customer needs. They then use these insights to anticipate demand.
Research by Accenture shows that companies with advanced supply chain capabilities achieve 23 percent higher profitability. Previously, companies designed supply chains separately from broader business strategies. Today, leading organisations integrate supply chain design into core strategic planning.
This shift emphasises agility, customer satisfaction, and long-term profitability. It no longer focuses solely on efficiency. A strong global supply chain strategy reinforces this shift by ensuring that operational decisions align with broader organisational goals.
From global to multi-hub supply chain design
In recent years, companies have begun to make strategic investments that strengthen supply chain resilience. They now recognise the value of both regionalisation and global connectivity.
McKinsey’s latest Supply Chain Pulse Survey highlights the global move toward regional models. This trend is increasingly relevant in Africa. Governments across the continent are shaping local manufacturing by incentivising production closer to demand centres.
In South Africa, policies supporting local procurement and industrialisation create opportunities for manufacturers. These opportunities extend to critical industries such as energy and mining.
In East Africa, Kenya and Ethiopia are positioning themselves as regional trade hubs. They support this ambition through major infrastructure investments, including the Lamu Port and the Standard Gauge Railway. In West Africa, Nigeria and Ghana are advancing localisation in oil, gas and power. They are also expanding their industrial base to meet rising domestic demand.
Managing geopolitical and economic risk remains crucial across African markets. Regional trade agreements, including the African Continental Free Trade Area (AfCFTA), aim to harmonise trade policies and lower tariffs. They also promote intra-African trade. These frameworks help companies balance local priorities with global competitiveness and reinforce the need for a coherent global supply chain strategy.
We use a multi-hub supply chain design. Each hub manages product specifications, R&D, supply chains and suppliers. Teams also work closely with local sales and marketing.
Finding the right balance between regionalisation and global integration remains essential for Africa. Local supply chains strengthen resilience and reduce dependency. Global networks provide backup capacity and access to established markets. African businesses will need both approaches to build sustainable, future-ready supply chains. A blended model supported by a robust global supply chain strategy will be critical to achieving this balance.
4IR is still lagging
Although the 4th Industrial Revolution (4IR) promises major change, the manufacturing sector still has significant ground to cover. Today, only 189 World Economic Forum-recognised Lighthouses exist worldwide. These advanced sites demonstrate the impact of cutting-edge technologies on resilience, efficiency and sustainability.
To close this gap, organisations must make strategic investments in digital solutions. These investments allow supply chains to adapt to disruptions in real time.
Emerging technologies such as IoT, AI, machine learning and blockchain offer powerful tools. They enhance visibility, accelerate data analysis, improve decision-making and optimise resources. They also enable end-to-end orchestration of supply chain operations across suppliers, manufacturing, logistics and transport. Companies that scale these technologies can build resilience and reliability into their networks while meeting customer expectations.
Strategic partnerships are a key to success
Strategic partnerships play an equally critical role. Companies have strengthened relationships with direct suppliers to maintain continuity during constraints. Yet major disruptions often originate upstream. Businesses must therefore choose partners that invest in their own supply chain resilience. They also need partners who develop strong relationships with suppliers at every tier.
Technology leaders can support effective transformation by prioritising resilience. They must also embrace advanced technologies and strengthen collaboration across organisations and partnerships.
As disruptions continue to intensify, the need for action has become urgent. Companies that invest in anti-fragility, digital innovation and skilled talent can build supply chains that thrive in adversity. The decisions made today will shape the future of supply chain strategy, long-term business success and the effectiveness of any global supply chain strategy moving forward.
