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Africa must harmonise its trade policy to boost supply chain- Nigerian US-based expert

By OLAYEMI OLANIYI
27 July 2024   |   11:47 pm
Simon-Attah Lawrence, a supply chain expert with more than a decade of experience, explains in an interview with OLAYEMI OLANIYI how Africa can grow its supply chain industry  Can you tell us about your background and how you got into the field of supply chain and logistics? My journey into supply chain and logistics started with…


Simon-Attah Lawrence, a supply chain expert with more than a decade of experience, explains in an interview with OLAYEMI OLANIYI how Africa can grow its supply chain industry

 Can you tell us about your background and how you got into the field of supply chain and logistics?

My journey into supply chain and logistics started with my academic background in Electrical and Electronic Engineering from the University of Lagos, where I cultivated a keen interest in systems thinking and process improvements. I initiated my career at Stag Engineering, focusing on the procurement and supply of power systems utilities, which introduced me to the intricacies of supply chain management. A scholarship from NLNG/BW allowed me to further specialise at Gdynia Maritime University in Poland, deepening my understanding of maritime transport and the logistical challenges of global LNG cargo transport.

My professional path led me to significant roles at BW Gas AS, where I managed complex logistic operations for LNG cargo worldwide. Following this, I pursued an MBA at Cornell University, specialising in Supply Chain Operations and Strategy, which enhanced my strategic and leadership skills. I’ve since applied these at leading companies like Wayfair and Amazon, focusing on sustainable supply chain and logistics management.

I’m also an active member of several professional bodies, including the Nigerian Institute of Shipping, and the Council for the Regulation of Engineering in Nigeria, and have been recognised for my contributions to the field through various publications. My goal is to leverage my expertise to drive technological advancements and support the growth of the supply chain sector, particularly in emerging markets like Africa and the Middle East.

What inspired you to focus on supply chain and logistics as a discipline?

My interest in supply chain and logistics took root during my early engineering career when I recognised how crucial efficient logistics are to global trade and everyday life. A quote that deeply resonated with me and helped steer my career path is, “Half of the world will freeze and the other half will starve without a supply chain.” This statement highlights the critical role of logistics in ensuring goods move seamlessly from places where they are abundant to where they are needed most. It underscored for me just how indispensable and impactful this field is, driving me to dedicate myself to improving supply chain systems and making a meaningful difference in this essential industry.

How would you describe the current state of the global supply chain and logistics industry?

The global supply chain and logistics industry is undergoing a profound transformation, marked by rapid technological integration and shifts towards greener practices. According to a report by MHI and Deloitte from 2021, 49 per cent of supply chain professionals believe that digital technologies like Artificial Intelligence, the Internet of Things, and blockchain are crucial to their operations. These technologies are improving efficiency by enabling real-time tracking and enhancing transparency across the supply chain. Furthermore, disruptions from recent global events have underscored the importance of resilience, with many companies reevaluating and strengthening their supply chain strategies to handle future challenges more effectively. This ongoing evolution aims to not only address immediate operational challenges but also to align with broader sustainability goals, as companies increasingly prioritise reducing their environmental impact within supply chain operations.

What opportunities do you see for emerging regions like Africa and the Middle East in the supply chain and logistics industry?

Emerging regions like Africa and the Middle East hold significant supply chain and logistics potential, largely driven by their strategic geographic locations as gateways between continents. According to a World Bank report, Africa’s e-commerce sector could grow by more than $14.5 billion by 2025, emphasising the need for robust logistics solutions. Additionally, the Middle East is seeing increased investments in logistics infrastructure to enhance connectivity and efficiency, as seen with Dubai’s expansion of Jebel Ali Port. These developments point to a growing trend where both regions could become central hubs in international trade networks, particularly if they continue to embrace digital transformation and sustainability initiatives in logistics operations.

What steps can governments in Africa take to support the growth of the supply chain and logistics industry?

African governments can catalyse the growth of the supply chain and logistics sector by adopting a three-pronged approach. First, policy harmonisation across the continent is crucial to reduce the bureaucratic red tape that often hinders cross-border trade. For example, streamlined customs processes under a unified policy framework can decrease cargo clearance times significantly. Second, investment in technology-driven infrastructure such as smart ports and automated freight systems can greatly enhance operational efficiencies. The success of Rwanda’s use of drones for medical deliveries exemplifies how targeted technology investments can solve specific logistical challenges. Lastly, the governments should foster partnerships between educational institutions and industry leaders to create specialised programmes that build the workforce needed to manage these advanced supply systems, much like Germany’s dual educational system that combines apprenticeship in a company and vocational education.

How can supply chain companies tap into the talent pool in Africa?

Tapping into Africa’s talent pool requires an integrated strategy focused on education, recruitment, and retention. Companies should collaborate with local universities to develop a curriculum that includes logistics and supply chain management, leveraging emerging technologies such as AI and machine learning. Internship and apprenticeship programmes are vital for giving students real-world experience. Furthermore, companies can use digital platforms to offer continuous professional development in supply chain innovations. For example, leveraging mobile technology platforms can provide scalable training resources accessible across diverse geographic regions, helping to maintain a pipeline of skilled professionals.

What is your perspective on China’s rapid growth in the supply chain and logistics industry?

China’s rapid ascension in the supply chain and logistics sector is primarily driven by its strategic focus on infrastructure investment, technology adoption, and regulatory reforms. The Belt and Road Initiative illustrates how infrastructure investment facilitates new trade routes and logistics hubs. Additionally, China’s commitment to integrating advanced technologies like IoT and blockchain has improved traceability and efficiency in supply chain operations. However, this growth also presents challenges, such as increased scrutiny and geopolitical tensions, prompting a need for careful navigation of international relations and adaptation to global supply chain shifts.

What role do you see for collaboration between the United States and other regions, including Africa, in maintaining a competitive edge?

Collaboration between the US and Africa can leverage the strengths of both regions to create a more resilient and dynamic global supply network. Such collaborations can focus on technological exchange, the development of green supply chain practices, and joint investments in logistics infrastructure. For instance, partnerships in renewable energy sectors can lead to more sustainable logistics solutions, reducing carbon footprints and operational costs. Additionally, knowledge exchange programmes can help African companies adopt best practices in supply chain risk management and compliance, essential for integration into global markets.

Can you provide examples of successful initiatives in Africa or the Middle East that are helping to grow the supply chain and logistics industry?

Successful initiatives in Africa include the development of the Djibouti International Free Trade Zone, which serves as a major gateway for trade in East Africa. In the Middle East, Dubai’s Logistics City is a prime example of how dedicated freight corridors and specialised logistics parks can enhance trade flows and economic diversification. Both regions are leveraging their strategic locations to develop state-of-the-art facilities that support multilateral trade engagements and improve supply chain efficiencies.

How do you see the role of AI and machine learning evolving in supply chain management and logistics?

Artificial Intelligence and machine learning are poised to revolutionise supply chain management by enabling predictive analytics, optimising network designs, and automating manual tasks. For example, predictive analytics can be used to anticipate market demands and adjust supply strategies proactively. AI-driven robots and autonomous vehicles are already transforming warehouse operations and last-mile deliveries, reducing labour costs and improving delivery times. The continuous evolution of AI will likely lead to more proactive and self-regulating supply chains, drastically reducing inefficiencies and enhancing responsiveness to market changes.

By focusing on these advanced strategies and integrating technology-driven solutions, professionals in the supply chain and logistics sector can effectively navigate the complexities of the global market, ensuring sustainability, efficiency, and profitability.

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