GLOBAL uncertainty is no longer happening far away from our vicinity; it is now intertwined with our supply chains, commodity prices, currencies and customer confidence.
The era of chasing pure efficiency is over.
For our local C-Suite leaders, the priority has shifted from forecasting the next shock to building operating models that thrive in a state of constant flux.
Decisions made in distant governments now echo instantly through our boardrooms and mining spaces in Zimbabwe.
The key strategic pillars for success would be:
The supply chain — From just in time to just in case
Global trade is increasingly driven by supply-side shocks rather than demand.
Container shipping costs have surged by 40% year over year, and trade tensions between major powers continue to reshape global flows.
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Byo author eyes SA award
- DeMbare fire blanks in drab draw
- Tarakinyu, Mhandu triumph at Victoria Falls marathon
Keep Reading
In light of that, organisations must establish a network of suppliers and avoid relying on a single source of raw materials.
They should diversify suppliers and increase local buffer inventories.
Given that we now live in a global village, information communication technology (ICT) has become a vehicle for global marketing.
An organisation can source materials from various countries using ICT tools and find the best quality and pricing with favourable terms and conditions of supply.
Firms are able to manage relationships with suppliers and build networks, enabling them to supply raw materials directly to their partners, ensuring consistent supply and supply chain stability.
By having global networks, firms can establish backup suppliers and alternative routes, mitigating disruptions caused by disasters or geopolitical issues.
Moreover, ICT plays a critical role as it aids in predicting material needs and automates reordering, preventing shortages and reducing holding costs in warehouses.
These networks leverage ICT for real-time tracking, forecasting demand, and ensuring cost-effective delivery of raw materials.
ICT becomes the backbone of the global supply chain as it integrates internal and external suppliers, allowing seamless collaboration and faster decision-making.
The use of AI and analytics allows firms to analyse massive data sets for better demand forecasting and rapid response to market fluctuations.
ICT tools also aid global firms in identifying disruptions early and building more resilient, agile, and sustainable supply chains.
ICT tools also enable end-to-end tracking of goods, reducing losses and improving accountability.
The commodity and climate seesaw
This refers to the complex, inverse relationship in which climate disasters such as droughts and heatwaves disrupt food production, triggering price hikes.
Our local economic ecosystem is anchored in mining and farming.
While global commodity prices for strategic minerals like lithium remain favourable, climate-related risks still loom.
Climate-related events are forcing a re-evaluation of supply chain resilience, leading to sudden shifts in the availability of raw materials.
Climate risk is now being priced into commodity options, forcing investors to demand premiums for holding assets exposed to climate-related volatility, thereby encouraging more sustainable investment.
The interaction between climate events and market speculation has created high volatility, prompting the use of advanced analytics such as machine learning to predict disruptions.
Monetary stability
Our tight monetary policies have successfully moderated inflation, with forecasts suggesting a drop to single digits this year.
Such a conducive business outlook enables businesses to set prices and plan investments.
Due to the use of a multi-currency regime in the market, inflation is kept under control, enabling consumer purchasing power to remain steady.
Marketers can better predict demand for goods and services.
A stable monetary policy helps maintain a predictable exchange rate, making imports cheaper and more competitive.
A stable financial environment reduces the need for hedging against extreme volatility, allowing resources to be directed toward productivity rather than risk management.
