The Chartered Institute of Supply Chain Management (CISCM) has called for critical attention to supply chain management so as to cut down production cost.
It said institutionalisation of professional supply chain practices can effectively cut down production cost, especially as the government seeks to industrialise the economy and grow local productivity.
President of the institute, Richard Obeng Okrah, disclosed this during a CISCM dinner in Accra, and added that when effectively implemented, proper supply chain or procurement management can substantially reduce cost.
He spoke on the theme: ‘Local Content Development – The Only Way Out for Developing Economies,’ and reiterated the need for chief executives in the public and private sectors to adopt and apply integrated supply chain management (ISCM) principles and practices in developing governance structures, protocols and practices.
“Over the past couple of years, we have reviewed the national budgets and put it in perspective of supply chain management and have advised the government on how proactively they can implement those economic policies to gain value.
“Supply chain management is an integral part of most businesses, and is essential to company success and customer satisfaction. It helps to reduce the overall operating cost by ensuring efficiency in purchasing, production, and decrease fixed assets,” he said.
In the manufacturing sector, for instance, he said the entire production process from the establishment of plants to goods production entails procurement, and the utilisation of professionals in that process is the surest bet to eliminating waste, reducing procurement irregularities, and maximising efficiency.
To strengthen professional practices, he called for the enactment of norms and protocols to regulate the development of local content, with the ultimate goal of creating value for indigenous entities.
Group Chief Executive Officer, McDan Group of Companies, Daniel Mckorley, who was guest of honour, reiterated that institutionalisation of supply chain practices can be a game-changer for businesses in their quest to cut down cost and increase profit.
“Supply chain professionals design and operate all of the supply chains in a business entity and society, and manage from transportation, warehousing, inventory, packaging and logistic information. Societies with a highly developed supply chain infrastructure can exchange many goods and services between businesses and consumers quickly and at a low cost,” he said.
Mr. Mckorley added that ISCM is critical for ensuring human survival as humans depend on the supply chain for the delivery of necessities, such as food, water and medical supplies.
Meanwhile, to increase awareness of the profession, the CISM launched three new initiatives; namely: the CISCM Recognition Night, which seeks to identify and appreciate individuals and organisations that contribute to local content development; the CISCM Communications Platform – monthly newsletter, supply chain magazine, and weekly newsflash; and outdooring of the International Federation of Purchasing and Supply Management (IFPSM) African Championship – to be hosted by CISCM.
Source: Ghanaweb