Experts Advocate Innovation in Nigeria’s Supply Chain Dynamics to Mitigate Global Economic Shocks

Esther Oluku

In a bid to bolster economic resilience and reduce Nigeria’s vulnerability to global economic shocks, supply chain expert and Director General, Lagos Chamber of Commerce and Industry, Mrs. Chinyere Almona, has canvassed for strategic shifts and innovation in Nigeria’s supply chain management to secure a future-resilient economy.

Almona led the call during the Price Waterhouse Coopers (PwC) Consumer and Industrial Products and Services industry breakfast dialogue which held in Lagos recently themed “Building Supply Chain Resilience in a Dynamic Operating Environment”.

In her address, she stated that Nigeria imports a staggering 85 per cent of intermediate goods from outside the continent noting that while the African Continental Free Trade Area (AfCFTA) presents massive opportunities for growth, with intra-African trade standing at only15 per cent compared to 60 per cent in Europe and 40 per cent in North America, four strategic levers- localization, digital visibility, supplier diversification and human capital investments- lay at the heart of driving realtime economic gains.

“Localization and regional integration means reducing over dependence on a particular supplier or on a particular route. If one is dependent on only one source, one becomes fragile and if anything happens to that source, one is in trouble. So, we must rethink global supply chain and look to our local and regional markets as much as possible.

“Also, modern supply chain needs digital visibility and analytics. The truth is, you can not manage what you can not see. So we need to have a way to see from end to end of our supply chain. A PwC survey revealed that 80 per cent of resilience companies have invested in digital supply chain tools, and this includes predictive analytics, Blockchain based traceability. We need end to end visibility tools, demand sensing and predictive analytics, Blockchain for Providence tracking, IoT enabled warehousing, and of course, cyber security governance.

“Thirdly, supplier diversification. Resilient firms today are adopting a strategy of using a global supplier plus local so that they have options that they can pivot to depending on how things move and lastly, human capital investment. Supply chain leaders must be data literate, geopolitically aware and equipped to navigate all emerging challenges,” she said.

Meanwhile, Lead, Consumer and Industrial Products and Services PwC, Oladele Oladipo, stated that the meeting is coming at a crucial time to address the importance of supply chain reengineering in Nigeria to maintain a risk-proof economy.

“Supply chain is the critical ingredient in business success and it is important for leadership and management to make sure that they invest in their supply chain ensuring that it is efficient, agile, resilient and fit for the future.

“Efficiency in supply chain management will reduce wastages in the economy, a lot of people are going to be employed and it provides a fertile ground for innovation, thus improving the quality of life of Nigerians,” he remarked.