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Home » Small cold chain businesses need specialised supply chain skills to survive Part 1

Small cold chain businesses need specialised supply chain skills to survive Part 1

The success of small cold chain businesses—critical players in South Africa’s economy—faces a significant threat due to a lack of resources, skills, and support in the niche area of cold chain supply chain management, according to the supply chain industry body SAPICS. This is part one of a two-part series.

Small business restaurant.
Small business restaurant. Supplied by SAPICS

“Small and medium enterprises (SMEs) are vital to the national economy as job creators and contributors to inclusive economic growth. However, a key driver of their growth and sustainability is a deep understanding of supply chain management, especially cold chain operations, yet many are falling short. Large businesses must step up to support them,” says SAPICS President, MJ Schoemaker.

Cold chain businesses, which deal with temperature-sensitive goods like food, pharmaceuticals and medical supplies, face unique challenges in supply chain management. These businesses rely on maintaining a controlled environment from production to delivery, and even minor disruptions in the cold chain can lead to significant losses. Despite this, many small cold chain businesses lack the specialied knowledge and operational practices required to manage their supply chains effectively.

“Cold chain operations are complex and require meticulous attention to detail. Small businesses often juggle numerous tasks, leaving the critical cold chain management function overlooked. However, in an environment where temperature control is crucial, poor cold chain management can make or break a business. This is becoming more important in today’s volatile and complex business landscape,” says Schoemaker.

 

Corporate support for cold chain SMEs

Schoemaker suggests that corporate businesses can provide significant support to cold chain SMMEs through initiatives like the SAPICS Small Business Hub sponsorship. The SAPICS programme offers essential skills development and support, helping small cold chain businesses navigate the complexities of supply chain management. Through corporate sponsorship, large businesses can provide their suppliers with membership access to the Hub, fostering the growth of their cold chain suppliers and enhancing their own supply chain reliability.

“The SAPICS Small Business Hub offers a lifeline for cold chain businesses, helping them improve their operations, manage their temperature-sensitive supply chains, and overcome the unique challenges they face. Corporates can sponsor memberships for their cold chain suppliers, which not only empowers and uplifts these small businesses but also contributes to their Enterprise and Supplier Development (ESD) goals,” explains Schoemaker.

Source: Supplied by SAPICS, edited by Eamonn Ryan

Continue to Part 2…