The global economy has evolved at a rapid pace over the past 3 years since the Covid Pandemic, with compound pressure being placed on both businesses and the consumer. The modus operandi which worked for leading organisations for years, even decades, has changed, forcing organisations to navigate differently to survive and to remain relevant across industries. In an environment where value within the supply chain is becoming increasingly important to ensure sustainable, mutually beneficial and trustworthy relationships, over and above sales volumes, the need for long-term partnering, trusting relationships, and thoughtful strategic planning is the key to unlocking the potential in an ever-changing environment.
 
CHANGING THE WAY YOU DO THINGS

Organisational agility is an important driver in enabling businesses to navigate through change and ensure competitive advantage. In unlocking the potential that the industry has in this ever-changing environment to ensure future forward-thinking and creating shared value within the network the following factors should be considered:
 
Technology

Organizations should not underestimate the impact of technological advancements in the industry and the rapid rate at which it will change over the next 3 years. Investing in technology and innovation for technology that is currently changing industries worldwide will be a key driving factor in ensuring that the industry remains competitive, transparent, accurate and reduce costs.
 
Sustainable Environmental Practices

Supply chain organizations will not be able to ignore the impact that their businesses have on climate change and will increasingly need to adapt in their strategies their environmental responsibilities. Development and adoption of sustainable environmental practices to ensure a reduction in the environmental impact the industry currently has will need to be incorporated within the strategies. The industry is seeing that consumer perception on go-green products is increasing and this is followed through the entire supply chain from consumers reviewing the sourcing of the product all the way through to how it gets on the shelf. Interestingly customers are willing to pay more for products if an environmental approach is followed, this will increase customer loyalty as well as positively impact the brand reputation.
 
Networking, Public – Private Partnerships and Collaboration

There are numerous challenges facing South Africa and multiple industries simultaneously that cannot be resolved by a single organisation or in isolation. In developing a shared vision amongst organisations and across the industry the united power can drive the change in a seemingly helpless situation to a change trajectory that can move towards increased growth and sector development and improvements. The advantage of collaboration across the industry as well as other relevant industry players where strategically viable, will have positive outcomes which may include investment opportunities, increase stakeholder value, and encourage long-term mutually beneficial relationships.
 
Workforce

Employees are an important element in executing any changes that the organisation intends to implement. Leaders need to ensure the involvement of staff in suggested changes and communication filtered throughout the organisation effectively and establish motivational factors. Workforce empowerment should be conducted through training and upskilling staff to ensure they are capable of handling future changes and changes in technology should be bedded down timeously. 
 
Consumer

The value proposition for the consumer should be clear and effective communication on industry challenges will provide understanding, while also engaging with consumers through a platform for questions they may have. One example would be discontinued products instead of just ending a product being sold with no reason, effective communication, and alternative products can ensure the consumer is felt to be well informed and preferences cared for thus retaining customer loyalty.

It is vital for organisations to remain positive, agile, and focused in times of change and uncertainty, navigating the negative into positive which will ensure future adaptability by seeking opportunities affecting change which will lead to growth. The challenges will always be there, however how you adapt may not end, but with the right foresight and collaboration, you will be able to unlock your potential in an ever-changing economic environment.   

About Diplomat 

Diplomat Group is a leading sales and distribution company in the FMCG sector. With over 50 years of experience, Diplomat offers a portfolio of global and local premium brands. Our unique one-stop-shop and cash-to-cash models enable vendors to reduce risk while extending market penetration and empower retailers to drive business growth. With an uncompromising commitment to customers, Diplomat provides excellence in end-to-end supply chain management, logistics and distribution solutions supported by sales and marketing management with proven models for integrating them successfully. Diplomat is committed to growth by seeking new business opportunities wherever it operates, and expanding to new categories, sectors, and territories across the globe.

For more information on Diplomat, visit https://www.diplomat-global.com/sa/about-us/ OR contact:

Deon Morgan
VP of Business Development
+27 71 90 2272
deon.m@diplomat-global.com