African and Chinese politicians are opening up the way for business to kick up a notch in Africa. And, as their talks rapidly move beyond so-called resources for infrastructure deals into areas such as agriculture, manufacturing, FMCG and consumer electronics, the time has come for African companies to position themselves to benefit from this trend. But, are supply chains ready to handle the demand that’s growing with each passing year? ‘The Pulse of Africa’s Supply Chains’ is the theme for this year’s SAPICS 2015* conference, which will be taking place from 31 May - 2 June at Sun City. Several Africa experts have been lined up to share their insights into optimising supply chains operating on the continent. When in Africa… As most people with experience of doing business in Africa will agree, the challenges are unique and therefore require an approach that’s different from doing business elsewhere. Wayne Whiffler, EY’s Executive Director in the Advisory Practice responsible for the Supply Chain Transformation, says an entire rethink of the integrated supply chain operating model is needed when doing business in Africa – the subject of his presentation at SAPICS 2015. “Upon entering African markets, the complexities in the supply chain increase exponentially,” he says. “The surge in cross-border flows, local regulations, tax implications, and the lack of infrastructure all add to the challenge of growth in developing markets.” The risk, he explains, is a ‘collection’ of independent markets and operating units with duplicated functions and limited alignment. “In these cases, point improvements do not deliver overall supply chain benefit. Transformational changes to supply chain operating models are required to improve customer service levels, reduce costs and working capital.” A problem shared… Taking an in-depth look at how to overcome infrastructure challenges in supply chains in Africa, University of South Africa Supply Chain Management lecturer, Beverley Kujawa-Waugh’s and Professor Hannie Badenhorst-Weiss’s interactive workshop is billed as a knowledge exchange session for both cargo owners and logistics service providers, as well as other stakeholders in African supply chains. “We aim to create a forum where we can discuss the infrastructure/operational challenges/issues affecting Southern African supply chains (and thus the pulse of African supply chains) and identify the impacts of the challenges on these supply chains,” Kujawa-Waugh says. “We will then brainstorm how these challenges can be addressed and overcome!” With an understanding of the challenges that may be faced and how to handle them, it’s time to talk about how to get your business ready, particularly considering the impact of bilateral China-Africa trade growth on African supply chains. Jacques Marais, COO of The Beijing Axis‘s talk will provide an update on the latest developments, and discuss how businesses may set up their supply chains to benefit from bi-directional trade growth. Gateways to Africa Although infrastructure in Africa is improving and the number of airports is growing, ports remain the gateways to African trade. However, ports face two competitive challenges – the large volume of increase and the need for greater efficiency. “This means loading and unloading vessels faster, reducing turnaround time and increasing the performance of the operators of both vessels and port operations,” says African Centre for Supply Chain Director-General and Multimix Academy CEO, Obiora Madu. “Ports must transform into logistics hubs, in addition to being more determined to have better connectivity with other modes and better accessibility to their hinterlands. Inter-modalism will be a critical factor in the success of supply chains, while the development of inland container depots and private container terminals form part of the chain.” During his presentation entitled: Modern Ports & Global Supply Chain Optimisation, Madu will identify all possible economic catalysts for optimum future development of port infrastructure and real estate, port commerce, inter-port co-operation and competition. The paper he will present will also provide a framework and navigation tool for using the full capabilities of the modern Port Authority in a post-privatisation environment and give priority to environmental and safety issues. Want to find out more? Catch these speakers and more at SAPICS 2015*. For more information on the 37th Annual SAPICS Conference & Exhibition, being held at Sun City from 31 May – 2 June 2015, please visit http://conference.sapics.org/ ENDS _______________________________________________________________________________________________________ MEDIA CONTACT: Cathlen Fourie, 012 644 2833, cathlen@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPICS please visit: Website: www.sapics.org.za Twitter: @SAPICS01 LinkedIn: SAPICS group Facebook: OperationsManagement ABOUT SAPICS – your supply chain network SAPICS is a professional knowledge-based association that enables individuals and organisations to improve business performance. SAPICS builds operations management excellence in individuals and enterprises through superior education and training, internationally recognised certifications, comprehensive resources and a countrywide network of accomplished industry professionals. This network is ever expanding and now includes associates in other African countries. ABOUT APICS APICS is the leading professional association for supply chain and operations management and the premier provider of research, education and certification programs that elevate end-to-end supply chain excellence, innovation and resilience. APICS Certified in Production and Inventory Management (CPIM) and APICS Certified Supply Chain Professional (CSCP) designations set the industry standard. With over 37,000 members and more than 250 international partners, APICS is transforming the way people do business, drive growth and reach global customers. APICS is based in the USA and has a broad global footprint. www.apics.org About Dr Beverley Kujawa-Waugh Beverley Kujawa-Waugh is a part-time lecturer at the University of South Africa (UNISA) and consultant. Until last year she was also Executive Director of the South African Shippers Council (SASC) and masters-theses supervisor at Jonkoping International Business School (JIBS) in Sweden. Before that she was with the University of Johannesburg’s Department of Transport and Supply Chain Management, as senior lecturer, managing editor of the accredited Journal for Transport and Supply Chain Management; and member of various industry and other interest groups. Prior to this she project managed an extensive logistics outsourcing project for South African Airways; developed and project managed educational models and programmes for the World Bank and the Department of Transport; held research and management positions for Transport Consultants and the Maritime Industry Training Board; .and worked as assistant accountant for a large construction company. She completed Honours, Diploma, Masters, and Doctoral studies while working. Her doctoral thesis on logistics outsourcing was recognised for its practical value to the supply chain management industry and profession, and led to the best speaker award at a SAPICS conference. About Prof. Hannie Badenhorst-Weiss Hannie Badenhorst-Weiss is a professor in the Department of Business Management at the University of South Africa (UNISA) and specialises in Purchasing and Supply Chain Management where she does research, supervises post-graduate students and manages undergraduate and short learning programmes in the area. She was instrumental in the development and accreditation of two new degrees BCom in Supply Chain and Operations Management and BCom Public Procurement Management. She has published widely and is co-author and editor of various books, serves on editorial boards of various international and national subject journals and on the scientific committee of two international associations. Over the last 2 years she also chaired the organising team of the 2014 IPSERA Conference (International Purchasing & Supply Educators’ and Researchers’ Association) offered for the first time in Africa. About Jacques Marais Jacques Marais obtained a civil engineering degree and continued to earn honours and master’s degrees in industrial engineering from the University of Pretoria. He later acquired an Executive MBA degree from the Graduate School of Business at the University of Cape Town. Jacques started his career in civil engineering at Transnet. He became interested in supply chain management and after gaining his industrial engineering qualifications worked in the mining information systems industry. He then joined a major South African supply chain management company where he held various general management positions. He joined IMPERIAL Logistics in 2011 and is currently COO at The Beijing Axis, an Imperial partner. He lives in Beijing with his family. About Wayne Whiffler Wayne is an Executive Director at EY in the Advisory Practice responsible for the Supply Chain Transformation service line for both Africa and South Africa. With has over fifteen years of experience in the business advisory arena, consulting to blue-chip clients, Wayne specialises in performance improvement and business transformation initiatives, specifically in the supply chain field. He has consulted both locally and internationally, with extensive experience across Africa. Having experience across multiple industries including, Financial Services, FMCG / Retail, Automotive, Hotel and Leisure, Media, PetroChem, Utilities, Manufacturing, Mining, and Logistics, his knowledge of optimizing asset, consumer and service centric value chains ranges from the operational through to strategic. In addition Wayne has been a guest lecturer at some of the foremost SA universities, as well as a speaker presenting numerous papers, both case studies and thought leadership articles at various conferences and seminars. About Obiora Madu Recipient of the 2014 National Productivity Order of Merit Award, Obiora Madu who is the Chief Facilitator and CEO of Multimix Academy, CEO of BPO Academy Nigeria and Director General of African Centre for Supply Chain has over 30 years of related working experience with international corporate exposure in international trade, customs and maritime as well as transport logistics & supply chain management. He consults for International Trade Centre in Geneva, The US Commercial Service, USAID, African Development Bank amongst others. An adjunct lecturer at the Centre for Logistics and Transport University of Port Harcourt, Madu is a Fellow of the Institute of Export of Nigeria, Chartered Institute of Supply Chain Ghana. Obiora the author of: Exporting - Frequently Asked Questions and Export Financing, Agro Commodity Export Guide, Getting Paid in International Trade, Managing Import Logistics, is concluding a doctorate programme (DBA) with SMC University in Switzerland Supply chain disruptions can have an enormous impact on company performance. One source estimates that firms experiencing these problems on average see an 11% reduction in shareholder value. Another estimates they incur around a 40% reduction in stock price. With supply chain complexity rising fast over the past 30 years, the best organisations can do right now is to prepare themselves for such unforeseen problems. But how? Be Prepared As the old scout motto says: “A scout must prepare himself by previously thinking out and practicing how to act on any accident or emergency so that he is never taken by surprise.” “This sums it up pretty well,” says Paul Pittman (Ph.D., CFPIM, CSCP, Jonah), Professor of Operations Management at Indiana University Southeast. “The companies that seem to handle unexpected events relatively well aren’t merely lucky. In truth, these organisations’ leaders are just more mindful of their environments and decisions.” Pittman and his colleague, Brian Atwater, will share their insights on mindful leadership during their workshop entitled Mindfulness to Becoming an Effective Supply Chain Manager at the SAPICS 2015 conference, taking place from 31 May - 2 June at Sun City. The concept of being mindful deals with simply being more aware of your surroundings, or using what you do know to be more prepared to deal with what you don’t know. While the definition of mindfulness is quite simple, practicing mindfulness is not. During the presentation at SAPICS 2015, Pittman and Atwater will share several tools designed to help managers see far deeper than normal. “Mindless thinking says ‘problems just happen’ and ‘things are never as they appear’,” he says. “By contrast, mindful managers believe that most problems can be predicted and that is why they look deeper for signs of underlying issues.” During the session, participants will discuss why people spend so much time engaged in mindless activities, share examples of routine scenarios to contrast mindful versus mindless decisions. They will also discuss specific techniques to increase managers’ mindfulness while working in the field of operations and supply chain management. “We’ll teach you how to see patterns in events and identify underlying systemic structures within an organisation that can be the key to preventing potential disaster,” he says. According to Pittman, this kind of thinking empowers managers to shift from a ‘victim’ complex that seeks to apportion blame, to a solution orientation that sees potential problems as challenges that can be addressed. Seek answers where there seem to be no questions (1) What can go wrong? (2) What is the likelihood of it happening? (3) What is the impact if it does happen? “By seeking the answers to these three basic questions concerning everything from a regular oil spill that you notice on the factory floor to the likelihood of a supplier’s failure to perform, it’s possible to mitigate most risks facing supply chains today,” he says. To help managers do this, during their presentation they will introduce and expand on tools that track cause and effect, as well as analyse the likelihood of failure and map supply chain vulnerabilities, amongst other tools for improving mindfulness. “By applying these techniques, it may just be that few things will catch you by surprise ever again,” concludes Pittman. Now that’s something to think about. Want to find out more? Catch Pittman and Atwater at SAPICS 2015 The presentation by Paul Pittman and Brian Atwater at SAPICS 2015 is entitled: Mindfulness to Becoming an Effective Supply Chain Manager. For more information on the 37th Annual SAPICS Conference & Exhibition, being held at Sun City from 31 May – 2 June 2015, please visit http://conference.sapics.org/ ENDS _______________________________________________________________________________________________________ MEDIA CONTACT: Cathlen Fourie, 012 644 2833, cathlen@thatpoint.co.za, www.atthatpoint.co.za ABOUT SAPICS – your supply chain network SAPICS is a professional knowledge-based association that enables individuals and organisations to improve business performance. SAPICS builds operations management excellence in individuals and enterprises through superior education and training, internationally recognised certifications, comprehensive resources and a countrywide network of accomplished industry professionals. This network is ever expanding and now includes associates in other African countries. For more information on SAPICS please visit: Website: www.sapics.org.za Twitter: @SAPICS01 LinkedIn: SAPICS group Facebook: OperationsManagement ABOUT APICS APICS is the leading professional association for supply chain and operations management and the premier provider of research, education and certification programs that elevate end-to-end supply chain excellence, innovation and resilience. APICS Certified in Production and Inventory Management (CPIM) and APICS Certified Supply Chain Professional (CSCP) designations set the industry standard. With over 37,000 members and more than 250 international partners, APICS is transforming the way people do business, drive growth and reach global customers. APICS is based in the USA and has a broad global footprint. www.apics.org About Paul Pittman Paul is a Professor of Operations and Supply Chain Management at Indiana University Southeast, where his teaching has earned him numerous teaching honors, including Indiana University’s system-wide distinguished teaching award. As a partner of The LAMP Group (www.thelampgroup.com ), Pittman has more than 20 years of international consulting experience assisting organizations in learning and applying systemic thinking, executive leadership and decision-making, lean and continuous improvement, and project management. He most recently served on the APICS Supply Chain Council Board of Directors and past experience includes serving as CPIM Program Chair, member of the C&C Committee, SMR Committee Chair. Paul is a frequent speaker at professional chapter meetings and international conferences and has published numerous articles including several in the APICS Magazine. About Brian Atwater Brian is an assistant Professor of Operations Management at Indiana University Southeast (IUS). He also currently serves on the committee that oversees the Basics of Supply Chain certification exam. He teaches courses in Systems Thinking, Operations Management, and Project Management. Professor Atwater has published over 50 articles in a variety of journals including APICS Magazine, International Journal of Operations & Production Management, and International Journal of Production Research. He has worked as an examiner for the Shingo Prize, and has provided consulting services for several businesses including Apple, Carrier Transicold, Schuller/Manville and 3M. Why putting people first makes for winning partnerships When it comes to improving supply chain efficiency, a South African success story proves that focusing on relationships with people in developing healthy partnerships works better than simply spending more on processes and upgrading technology. An internationally recognised partnership between Nike Africa and Barloworld Logistics has succeeded in reducing logistic costs to net revenue by almost 40%, off-setting labour increases by a 9% annual productivity increase while sustaining double digit growth for Nike. At the same time, Nike has experienced a two thirds reduction in reverse logistics flow. The secret to their success will be shared by Mark Whitehead (Nike Africa, Senior Manager: Distribution & Logistics) and Andre Hough (Barloworld Logistics, General Manager Nike CSC) when they present their workshop entitled What it takes to keep on winning at the SAPICS 2015 conference, taking place from 31 May - 2 June at Sun City. “If you want to improve your logistics, don’t pay more; just work with your partners on getting the right commercial model in place,” says Whitehead, reflecting on the six-year partnership with Barloworld Logistics. “Like any relationship, it takes work – but it’s worth it!” Maturity in a long-term relationship One of the greatest keys to their success, according to Hough, is their vested approach in terms of how they partner. “A lot of the decisions we have made to date are made with no end in mind, despite the fact that we have a contract that comes up for review at fixed times. Truly well entrenched with each other, we make decisions jointly as though our partnership will never end,” he says. This kind of understanding requires a great level maturity in the relationship, according to Whitehead. “Not unlike a marriage, such a successful partnership requires compromise, transparency and that both parties give of their all without holding back,” he says. “And when things go wrong, don’t blame each other. Rather work together to fix things.” An outcomes-based approach Having the same goal in mind is another key fundamental. “We don’t focus on the ‘what’ or the ‘how’ but rather on what we want to achieve. We are then able to figure out more clearly what it’s going to take from each side to achieve our objective,” says Whitehead. Reward performance Understanding client needs remains critical to success, says Hough. But equally so, according to Whitehead, “If you want your logistics partner to innovate and perform, you must incentivise such performance. There needs to be something in it for both parties.” Importance of stakeholder buy-in Another crucial factor in the equation is obtaining the necessary buy-in from all stakeholders, not just top management. “In our case, even the staff in our warehouse operations now view themselves as working for Nike in a blended environment.” “For a partnership to work, everyone needs to take responsibility for their part in improving overall performance – after all, supply chain is a team-sport,” concludes Whitehead. Want to find out more? Catch Whitehead and Hough at SAPICS 2015. The presentation by Mark Whitehead and Andre Hough at SAPICS 2015 is entitled: What it takes to keep on winning / Working together to win the next race. For more information on the 37th Annual SAPICS Conference & Exhibition, being held at Sun City from 31 May – 2 June 2015, please visit http://conference.sapics.org/ ENDS _______________________________________________________________________________________________________ MEDIA CONTACT: Cathlen Fourie, 012 644 2833, cathlen@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPICS please visit: Website: www.sapics.org.za Twitter: @SAPICS01 LinkedIn: SAPICS group Facebook: OperationsManagement How to double your warehouse productivity in a dash Productivity of workers in South African warehouses is in some cases believed to be as little as a third of that of their overseas counterparts. This, together with a big increase in labour costs, high fixed costs, labour instability and supplier unreliability makes warehousing – which is one of the most important links in the supply chain – also its most vulnerable. “There are however much that warehouse operators can do to improve their productivity,” says Martin Bailey, SAPICS board member and chairman at Industrial Logistic Systems. Bailey will present a workshop entitled 20 Steps to Productivity Improvement in Warehouses at the SAPICS 2015* conference, taking place from 31 May - 2 June at Sun City. Increasing productivity “Worldwide, labour is often the biggest risk when it comes to running an efficient operation,” says Bailey. “But, by implementing some very practical systems and processes, it’s possible to double – and even triple – one’s productivity in a very short space of time.” - Education and training According to Bailey, warehousing still suffers from a poor image, causing companies to neglect its people when it comes to education and training. “This is changing as companies start realising that every supply chain component needs equal attention,” he says. For this reason, he emphasises the importance of education and training in improving productivity. - Measurement & incentive schemes “With the correct management tools in place, it’s possible for SA warehouses to become globally competitive,” says Bailey, referring to practical tools such as measurement. Once one knows how much workers are doing (or not), one can then incentivize them to reach targets. “A major SA supermarket chain does this so well that most warehouse staff skip lunch and push to work overtime in order to earn more money!” - Automation A major trend abroad is warehouse automation. “The cost of automation has decreased dramatically in recent years. And, with the promise of improved productivity and reduced labour costs (by as much as 90%), it has become a viable option for many.” Becoming more customer-focused Maintaining a ‘people over pallets’ philosophy, Bailey says becoming more customer-focused is another way of increasing the overall effectiveness of the supply chain. “Since the warehouse is often the final interface between the vendor and the customer, it just makes sense to use this opportunity to deliver better service along with goods,” he says. In a case study that will be examined during Bailey’s workshop, he refers to an SA retailer that has greatly improved its efficiency by ensuring that products leave the warehouse in a sale-ready format, so they simply need to be wheeled down the aisles at their destination. “Such innovations come from simply making the effort to understand customer needs, right down to what kinds of trucks their warehouses can receive.” Another major global trend that Bailey will discuss is e-commerce. He says that what happens in warehouses today is increasingly being dictated by end consumers. “We used to deliver truck-loads, but now we deliver single items in a shorter space of time than before. For this one must have excellent IT systems and well-trained people,” he says. “In the end, it becomes clear that the success of today’s warehouse operations depends more on the calibre of its people and their commitment to great customer service than simply the number of packages they’re able to store and dispatch,” Bailey concludes. ________________________________________________________________________________________________________ Want to find out more? Catch Martin Bailey at SAPICS 2015*. The presentation by Martin Bailey at SAPICS 2015 is entitled: 20 Steps to Productivity Improvement in Warehouses. This three hour workshop focuses on providing warehouse operators with a set of practical guidelines on how to optimise warehouse operations, removing operational constraints and optimising costs. Much of the workshop focus is on customer service and operational benchmarking. Delegate takeaways: • Practical tools to improve warehouse operations. • Methods to improve customer service ______________________________________________________________________________________________________ For more information on the 37th Annual SAPICS Conference & Exhibition, being held at Sun City from 31 May – 2 June 2015, please visit www.sapics.org.za. *SAPICS Conference and Exhibition 2015 – The Pulse of Africa’s Supply Chains – 31 May- 2 June 2015, Sun City. For more info and to book, visit www.sapics.org. Africa’s leading event for Supply Chain and Operations Management Professionals, the Annual SAPICS Conference and Exhibition is the premier educational and networking event in Africa for Supply Chain and Operations Management Professionals. It offers practical and relevant information through excellent educational presentations, case studies and interactive workshops. About Martin Bailey Martin has developed Supply Chains for the Who's Who of SA Industry. He has designed and implemented over 400 warehouse facilities in South Africa, Middle East, Europe and Australia. Martin is actively involved in education for the past 30 years and is ex Chairman of SAIMH, LISA, Vice Chairman of CILTSA and ex Member on Council of ECSA and SAIIE ENDS ________________________________________________________________________________________________________ MEDIA CONTACT: Cathlen Fourie, 012 644 2833, cathlen@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPICS please visit: Website: www.sapics.org.za Twitter: @SAPICS01 LinkedIn: SAPICS group Facebook: OperationsManagement ABOUT SAPICS – your supply chain network SAPICS is a professional knowledge-based association that enables individuals and organisations to improve business performance. SAPICS builds operations management excellence in individuals and enterprises through superior education and training, internationally recognised certifications, comprehensive resources and a countrywide network of accomplished industry professionals. This network is ever expanding and now includes associates in other African countries. The annual SAPICS Conference is the leading supply chain event in Africa. The 37th SAPICS conference will be held 31 May – 2 June 2015 at Sun City and promises to bring together a wide variety of local and global speakers to discuss solutions and best practices in the supply chain management field. ABOUT APICS APICS is the leading professional association for supply chain and operations management and the premier provider of research, education and certification programs that elevate end-to-end supply chain excellence, innovation and resilience. APICS Certified in Production and Inventory Management (CPIM) and APICS Certified Supply Chain Professional (CSCP) designations set the industry standard. With over 37,000 members and more than 250 international partners, APICS is transforming the way people do business, drive growth and reach global customers. APICS is based in the USA and has a broad global footprint. www.apics.org Applying supply chain management (SCM) principles makes the world a better place. From saving money when stocking the pantry to helping others by regularly passing on the things we don’t need. Once we start benefiting from the application of supply chain principles, it can become addictive. US-based business scientist and supply chain consultant Keith Launchbury (CFPIM, CIRM, CSCP), went through an organising process in his house using the 5S principle and managed to declutter an entire family’s lives considerably. SCM for the home One family member – who loves shopping – used to buy more items than the home can afford or had place to store. “When the family designed and implemented an inventory control system in the pantry with minimum and maximum levels, the spendthrift husband could see what was possible to buy before he left for the store. It worked a charm and avoided many disagreements over such a small thing,” he says. Examples of how SCM application makes life better abound. Like using those last few minutes before bed to put out one’s clothes for tomorrow, or putting out three baskets for laundry so that it’s already sorted by the time you do the washing. One supply chain student even reduced his laundry time by over 50% by using the principle of overlapping operations. “One of the things that make this successful is when everyone in the house shares the same vision to make life simpler,” says Launchbury. “But I would not recommend moving forward with any kind of project without the complete agreement of your family.” SCM for the greater good In another example, a supply chain expert used SCM principles to streamline her voluntary work. This enabled the smooth distribution of leftover food at supermarkets, from the efficient collection thereof, to its sorting and eventual redistribution to homeless shelters according to a carefully devised route schedule. “The faster the food can be distributed, the fresher it is when it arrives at the various shelters around time, to the benefit of its recipients,” comments Jenny Froome, general manager of SAPICS, a South African network for supply chain professionals. SAPICS beneficiary Operation Smile also benefits from smart SCM solutions. “A warehouse management system we implemented has helped Operation Smile to become more efficient in managing the supplies it needs to enable each medical mission,” says Froome. “This means donations go further and planning is more efficient. Also where the assistance of the entire team was required to pack up all the equipment and make a proper inventory of all the medications and supplies that were left over, the technology and system we’re using now enable this massive operation to be completed by just a couple of volunteers.” “The implications for Operation Smile in terms of saving money and time are enormous,” explains Froome. “It means they will be able to help more children in the long run – and that’s why we just love applying smart supply chain principles.” “There are plenty of ways to use the principles that are contained in the SAPICS curriculum at home. In fact, once you start, it’s easy to become obsessed with applying the tools in one’s everyday life!” concludes Froome. Want to find out more? Catch Keith Launchbury at SAPICS 2015*. For more information on the 37th Annual SAPICS Conference & Exhibition, being held at Sun City from 31 May – 2 June 2015, please visit www.sapics.org.za Photo caption: Keith Launchbury (CFPIM, CIRM, CSCP) ENDS _________________________________________________________________________________________ MEDIA CONTACT: Cathlen Fourie, 012 644 2833, cathlen@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPICS please visit: Website: www.sapics.org.za Twitter: @SAPICS01 LinkedIn: SAPICS group Facebook: OperationsManagement Supply chain management (SCM) costs make up as much as 80% of an enterprise’s total expenditures. That means a 10% savings in supply chain operations can translate into a massive 60% increase in profit while maintaining or improving quality. That’s according to Charlie Villaseñor, Chairman and CEO of the Procurement and Supply Institute of Asia (www.pasia.org), who will present a workshop on the United Nations Supply Chain Education Programme at the SAPICS 2015* conference, from 31 May - 2 June at Sun City. According to Villaseñor, improving ones business through the effective application of SCM principles is the way forward. “It’s clear that effective management of resources, processes and relationships with suppliers, contractors and customers is an essential task for every business. It can mean the difference between profit and loss, between success and failure.” “In order to streamline SCM, your business needs trained, competent managers to devise and implement required processes.” According to Villaseñor, who is on the Advisory Board of the MLS-SCM Program of the International Trade Centre – a joint agency of the UN and World Trade Organisation – there is an international drive to develop supply chain skills in emerging countries as a means of increasing export capability. “With the world’s economy shifting towards developing countries, Africa must be a particular focus – and given the potential that SMEs have to boost local economies, it’s chiefly SMEs that we want to see benefiting from supply chain management education,” he says. Villaseñor says helping companies to be more able to meet today’s challenging market conditions starts with equipping them with supply chain management (SCM) skills. “Sharp supply chain skills can do a great deal for your business. It’s time for small businesses to get skilled!” “Small businesses in South Africa can already benefit from globally recognised supply chain management certifications through SAPICS,” concludes Jenny Froome, SAPICS General Manager. “The APICS Certified Supply Chain Professional (CSCP) and Certified in Production and Inventory Management (CPIM) programs, DDI’s Certified in Demand Driven Planning (CDDP) and IBF’s Certified Business Forecaster are ideally suited to small businesses that recognise the positive influence these competencies can have their employees thus ensuring the company’s success.” *SAPICS Conference and Exhibition 2015 – The Pulse of Africa’s Supply Chains The presentation by Charlie Villaseñor at SAPICS 2015 will focus on the Modular Learning System for SCM (MLS-SCM) and the United Nations Supply Chain Education Programme. The 37th Annual SAPICS Conference and Exhibition is the premier educational and networking event in Africa for Supply Chain and Operations Management Professionals and will be held 31 May – 2 June 2015 at Sun City. The conference is widely known as the leading event in Africa for supply chain professionals and offers practical and relevant information through excellent educational presentations, case studies and interactive workshops. For more information and to register, visit www.sapics.org.za Photo caption: Charlie Villaseñor ENDS _________________________________________________________________________________________ MEDIA CONTACT: Cathlen Fourie, 012 644 2833, cathlen@thatpoint.co.za, www.atthatpoint.co.za Real World Lessons You Won’t Learn at Business School Most Enterprise Resource Planning (ERP) implementations are way too complicated, with too few people in the organisation who understand how to apply it. That’s according to US-based business scientist and supply chain consultant Keith Launchbury (CFPIM, CIRM, CSCP), whose decades of experience in supply chain research have delivered a wealth of information on what really works when it comes to ERP. Launchbury will present a workshop on Overcoming the 10 Major Problems of ERP at the SAPICS 2015* conference, taking place from 31 May - 2 June at Sun City. Simple systems needed According to Launchbury, the problem begins with ERP software vendors who do not want to support customised versions of their systems. “That’s why they program their software to fit every conceivable type of business. This one-size-fits-all approach makes the ERP system excessively complex. The same ERP system can work in many different business environments, and while this is good for selling software to top management, it leaves the burden of implementation on middle management,” he says. The problem gets worse when Senior Management isn’t involved in the implementation process. “The correct implementation of ERP imposes strict disciplines in many businesses, and some organisations have difficulty kicking bad business habits,” he says. Towards a cross functional approach Businesses are organised around traditional functions such as sales, production, accounting, engineering etc., whereas Launchbury says successful ERP implementation requires a cross functional approach. “Some companies think that ERP implementation is an IT project, but you cannot simply migrate data from one software system to another. Successful ERP demands complete data integrity, and policies and procedures in place to ensure the ongoing accuracy of every piece of data in the system,” he says. This also requires a specially trained kind of person to handle the kind of integration that’s needed. Business generalists vs. specialists Successful ERP implementation requires a level of business integration that crosses multiple disciplines. “So, in order to be successful as a member of a cross-functional project team, a person must be capable of thinking outside the traditional box of their profession,” explains Launchbury. “Just as technology has become more mobile, so must our people. The more exposure they have to multiple disciplines the more valuable they will become.” To this end, Launchbury says what’s needed is a sharp move away from education that pushes people into traditional career paths in the silos that pervade most businesses. “People are restricted to narrow functional disciplines that do not reflect the reality of the world today. Take a subject like using 3D printers to create human organs from stem cells for example. Where does that fit in a traditional university curriculum? It is necessary for a researcher to understand the physics, biology, medicine, engineering, and legal issues involved,” he says. “Business today needs generalists not specialists. It is no longer good enough to understand one narrow discipline.” ERP of the future Another problem that Launchbury sees with ERP is that it is looking very dated. “Most ERP systems were developed several decades ago whereas today’s computers have advanced and changed dramatically since those mainframe days. We live in a world where data has to be mobile,” he says. While it may be difficult to imagine how SAP or Oracle could work on mobile devices, some companies are making good progress in research. According to Launchbury, Google is working on integrating ERP systems to mobile devices such as Google glass, wearable devices, smart watches, android phones and tablets. Also, applications like salesforce.com address the issues that are created when companies sell products by subscription using software as a service. “Furthermore, the advent of new technologies such as customised medicine, 3D printing, RFID tracking to avoid counterfeit goods, and cashless payments will force changes to the way in which we use ERP systems,” he says. “It’s simply not possible to effectively implement ERP in 2015 if you’re still using a system and approach that dates back several decades.” Want to find out more? Catch Keith Launchbury at SAPICS 2015*. The presentation by Keith Launchbury at SAPICS 2015 is entitled: Overcoming the 10 Major Problems of ERP: Real World Lessons They Won’t Teach You at Business School. The seminar is designed to help any person, team or company struggling to implement and get the full benefit out of their ERP system. During the seminar, he will distribute a checklist and conduct an interactive workshop, which will enable the companies in attendance to conduct their own assessment about how well their company is using their existing ERP system. It would be helpful if a team of people from the same company attended together, so that they conduct discuss their own issues and have an opportunity to work together on plans to increase their level of ERP performance. *SAPICS Conference and Exhibition 2015 – The Pulse of Africa’s Supply Chains The 37th Annual SAPICS Conference and Exhibition is the premier educational and networking event in Africa for Supply Chain and Operations Management Professionals and will be held 31 May – 2 June 2015 at Sun City. The conference is widely known as the leading event in Africa for supply chain professionals and offers practical and relevant information through excellent educational presentations, case studies and interactive workshops. For more information and to register, visit www.sapics.org.za About Keith Launchbury, CFPIM, CIRM, CSCP Keith Launchbury is a Business Scientist who has conducted extensive research with 130 different sized businesses from small one person operations to large multinational organizations, to uncover countless examples of what businesses do well, and what they don't do well. He is a widely recognized international speaker and authority in the area of Integrated Resource Management, Production and Inventory Management and Supply Chain Management, and he is certified in these three programs by APICS, the Society for Operations Management of which he was the International President in 1991. Keith won the Toyota Cup for the best presentation at the SAPICS conference in 2000. ENDS _________________________________________________________________________________________ MEDIA CONTACT: Cathlen Fourie, 082 222 9198, cathlen@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPICS please visit: Website: www.sapics.org.za Twitter: @SAPICS01 LinkedIn: SAPICS group Facebook: OperationsManagement It is easy to forget about those in need at a time of year where the focus on personal achievement is top of mind. Irrespective of the season embraced by the majority, there are still those whose biggest achievement centers on satisfying the most basic of needs. Poor food distribution is one of the key causes of global hunger, according to experts, who also blame high food prices and the unequal distribution of resources. According to the CSIR, globally between 30-50% of food produced is wasted before it reaches consumers. “This also results in environmental impacts throughout the supply chain, as well as the waste of resources used in food production and distribution,” says Claire Bloom, ex US Navy officer, and Founder and Executive Director of End 68 Hours of Hunger, a US-based non-profit organisation that fights childhood hunger. Bloom will present a workshop on Ending Childhood Hunger at the SAPICS 2015* conference, taking place from 31 May - 2 June at Sun City. It is estimated that South Africa generates over 9 million tonnes of food waste per year, a sobering thought when one considers that roughly 14% of children in SA suffer from hunger. “In South Africa in particular, childhood hunger – or food insecurity – is a national problem. After a while, children who receive insufficient food on a regular basis or miss entire meals, experience ‘fear of hunger’, which affects their behaviour as much as physical hunger affects their bodies,” she says. “19% of South African children have no breakfast, and 51% have no lunch. 800,000 of these children are under five, and the malnutrition they experience has a profound impact on their future. When children are hungry, they cannot learn, and if they cannot learn, they cannot master the information and skills they are taught in school,” says Bloom. According to Bloom, several organisations are making progress in combating childhood hunger, however, much more is needed. “The ‘much-more’ relates in great part to communities and companies partnering to assess the scale of the problem in their area and then working together to see it solved. It’s possible – and we can do it!” she says. After retiring in 1998 from the United States Navy following a very successful tour as the first woman to be the Second In Command of USS Constitution, Bloom established a feeding programme in New Hampshire (USA) in 2011. The programme puts nourishing food in the hands of primary school children to carry them through the weekend – 68 hours of hunger that some children experience between the free lunch they receive in school on Friday and the breakfast they receive in school on Monday morning. Volunteers at Bloom’s organisation buy the food, pack the bags and deliver them to the offices of the selected primary schools. From there, a school employee delivers the food to the classrooms of the individual participating students. The students take the food home on Friday afternoon and the cycle begins again the following week. Each bag of food provides two breakfasts, two lunches and three dinners for a child, with some left over to share. Bloom’s organisation currently feeds around 1000 children weekly in 34 towns. “We have a model that works well and there’s no reason that some of the key principles cannot be adopted and applied to the South African context to great effect,” she adds. Bloom’s presentation at SAPICS 2015 will focus on the impact of the food insecurity problem in South Africa, what is currently being done, as well as what conference attendees themselves can do to help. *SAPICS Conference and Exhibition 2015 – The Pulse of Africa’s Supply Chains The 37th Annual SAPICS Conference and Exhibition is the premier educational and networking event in Africa for Supply Chain and Operations Management Professionals and will be held 31 May – 2 June 2015 at Sun City. The conference is widely known as the leading event in Africa for supply chain professionals and offers practical and relevant information through excellent educational presentations, case studies and interactive workshops. For more information and to register, visit www.sapics.org.za About Claire Bloom The presentation by Claire Bloom at SAPICS 2015 is entitled: Ending Childhood Hunger: What we can do and how we can do it. This presentation will focus on the impact of childhood hunger in South Africa, what is being done, and what conference attendees can do to help. With 20 years of service in the US Navy to her credit, Claire has Master Degrees in Strategic Intelligence and Educational Leadership, and is a Myers-Briggs Type Indicator Master Practitioner. She is certified in Integrated Resource Management by APICS, the Operations Society for Resource Management. She retired from the United States Navy in 1998 following a very successful tour as the first woman to be the Second In Command of USS Constitution. Her personal awards include the Navy Meritorious Service Medal (one award), the Navy Commendation Medal (five awards), the Navy Achievement Medal (two awards), the Charles Francis Adams Award from the USS Constitution Museum, the Margaret Cochran Corbin Award from the Daughters of the American Revolution, the Toyota Award from SAPICS, and designation as a 2013 Purpose Prize Fellow by Encore. She is the author of “End 68 Hours of Hunger: Ending Childhood Hunger in America One School at a Time”, co-author of “Getting Better: My Journey Through Transverse Myelitis and Lessons for Health Care Providers, Patients and Families” and the editor of “Business Intelligence: Lessons I Learned from the Oxymorons at Work” and “Intelligent Business: Lessons I Learned from the Experts at Work.” ENDS _________________________________________________________________________________________ MEDIA CONTACT: Cathlen Fourie, 012 644 2833, cathlen@thatpoint.co.za, www.atthatpoint.co.za ABOUT SAPICS – your supply chain network SAPICS is a professional knowledge-based association that enables individuals and organisations to improve business performance. SAPICS builds operations management excellence in individuals and enterprises through superior education and training, internationally recognised certifications, comprehensive resources and a countrywide network of accomplished industry professionals. This network is ever expanding and now includes associates in other African countries. The annual SAPICS Conference is the leading supply chain event in Africa. The 37th SAPICS conference will be held 31 May – 2 June 2015 at Sun City and promises to bring together a wide variety of local and global speakers to discuss solutions and best practices in the supply chain management field. For more information on SAPICS please visit: Website: www.sapics.org.za Twitter: @SAPICS01 LinkedIn: SAPICS group Facebook: OperationsManagement ABOUT APICS APICS is the leading professional association for supply chain and operations management and the premier provider of research, education and certification programs that elevate end-to-end supply chain excellence, innovation and resilience. APICS Certified in Production and Inventory Management (CPIM) and APICS Certified Supply Chain Professional (CSCP) designations set the industry standard. With over 37,000 members and more than 250 international partners, APICS is transforming the way people do business, drive growth and reach global customers. APICS is based in the USA and has a broad global footprint. www.apics.org A lack of understanding of end-to-end supply chain management is at the root of many service delivery problems experienced in South Africa and a big part of the solution lies in a commitment to supply chain training to supplement current qualifications. In what appears to be a global first for the supply chain education sector, a young South African production planner has become an APICS CPIM (Certified in Production and Inventory Management) in record time. 26-year-old Kyle Eckstein, who has worked for SAB for the past three years, successfully passed all five examinations, each three hours long, during November 2014. Kyle has been an APICS member since June 2014, and had roughly 3 months to complete the CPIM. According to SAPICS, through whom the APICS CPIM certification is offered in South Africa, most candidates take around 12 to 18 months to successfully complete all their examinations. Since 1973, more than 97,000 professionals worldwide have earned the APICS CPIM designation. “The APICS CPIM is the strategic advantage that operations management professionals need in today's world, where the rate of organisational and technological change is accelerating exponentially,” says Jenny Froome, general manager of SAPICS, the South African association for supply chain management professionals. “The in-depth approach taken to understanding and evaluating production and inventory activities within a company's global operations is why this certification is preferred by thousands of employer's worldwide,” she adds. “In the nearly 20 years I have been involved with SAPICS and APICS I have watched the professional and personal growth of many individuals flourish with the benefit of the APICS Body of Knowledge which is encapsulated in the APICS certifications.” The CPIM covers essential terminology concepts and strategies related to demand management, procurement and supplier planning, material requirements, planning, capacity requirements planning, sales and operations planning, master scheduling, performance measurements, supplier relationships, quality control and continuous improvement. The certification is organised into five modules, each focusing on key areas that are integral to mastering production and inventory management principles. Benefits of CPIM According to SAPICS, the APICS CPIM helps candidates to improve the efficiency of their organisations’ supply chains, while streamlining operations through accurate forecasting. “You will also be able to predict outcomes more accurately and increase profitability by optimising your organisation’s inventory investment. This results in maximised return on investment on existing systems and technologies,” says Froome. A qualified industrial engineer, Eckstein was enrolled in the course by his employer, SAB. “The course opened my mind to the many different approaches to solving supply chain challenges,” he says. “It broadened my horizons, emphasising a practical, logical approach.” In his opinion, Eckstein says more companies, whose offerings are underpinned by supply chain skills, need to market themselves to the younger generation in much the same way that accountancy and management consulting firms market themselves at tertiary level. “In this way, more students will be made aware of this exciting field and companies will benefit from a larger pool of graduates from which to choose,” concludes Eckstein. “Given the fact that supply chain skills are essential to organisations in so many sectors, it would really make sense for them to work with bodies such as SAPICS and APICS to promote the field to students.” ENDS _________________________________________________________________________________________ MEDIA CONTACT: Cathlen Fourie, 082 222 9198, cathlen@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPICS please visit: Website: www.sapics.org.za Twitter: @SAPICS01 LinkedIn: SAPICS group Facebook: OperationsManagement One of the world’s top supply chain learning tools, The Fresh Connection, is heading back to South Africa in 2015 to test the skills and insights of the country’s leading supply chain professionals. Hans Kremer, partner at The Fresh Connection’s developers, Inchainge, will also be presenting a workshop on the tool at the SAPICS 2015* conference, taking place from 31 May - 2 June at Sun City. Billed as the “ultimate value chain learning experience”, The Fresh Connection has taken the global supply chain community by storm, with Appletiser and Resolve (previously Volition) having emerged as the overall winners the first two times the learning game was run in South Africa some years ago. Worldwide, the tool has been lauded by the likes of Coca-Cola, BASF, Canon, UTi, Henkel and DHL and is regularly used as a training tool within these organisations. “A high-performing supply chain depends on the collaboration of team members from across the organisation,” says Kremer. “With this in mind, tearing down silos and creating the correct cross-functional mindset is critical, but can often be a serious challenge. This is where getting your team to work together on The Fresh Connection is an excellent solution.” How it works “Quite simply, it’s the next best thing to a real-life scenario,” says Kremer of this cross-functional business simulation. As a web-based simulation, The Fresh Connection can be offered in many ways. For example, all the teams can be in one room and compete against each other, or different teams can be on different continents and still interact through the game, with the between-rounds learning delivered in a webinar environment. A typical round of The Fresh Connection takes between 90 minutes and two hours to complete, but the length of the simulation can be varied to suit particular needs. “It’s also possible to tailor the training to specific learning objectives,” he says. Benefits The benefits of engaging with The Fresh Connection are endless, according to Kremer. “Through the experience, your team is able to experience the power of true alignment and a well-articulated supply chain strategy, supported by tactical skills and knowledge. “ The alignment that’s in view concerns departments, strategy and execution, as well as alignment between partners in the supply chain. While achieving greater alignment between functions, team members will also develop critical skills and knowledge, while building strong teams and strengthening relationships with customers and partners. “In the end, it’s a proven fact that learning through experience is 10 times more powerful than other classical training methods,” he says. “And with The Fresh Connection, we bridge theory and practical application in a real-life environment, whilst creating an optimal fit with specific learning objectives.” Want to find out more? Catch Hans Kremer at SAPICS 2015*. The workshop by Hans Kremer at SAPICS 2015 is entitled: Creating Alignment in Supply Chain Management. This workshop will give you a chance to test your supply chain skills and insights using the groundbreaking learning tool The Fresh Connection. *SAPICS Conference and Exhibition 2015 – The Pulse of Africa’s Supply Chains The 37th Annual SAPICS Conference and Exhibition is the premier educational and networking event in Africa for Supply Chain and Operations Management Professionals and will be held 31 May – 2 June 2015 at Sun City. The conference is widely known as the leading event in Africa for supply chain professionals and offers practical and relevant information through excellent educational presentations, case studies and interactive workshops. For more information and to register, visit www.sapics.org.za ENDS _____________________________________________________________________________________________________________________________________________ MEDIA CONTACT: Cathlen Fourie, 012 644 2833, cathlen@thatpoint.co.za, www.atthatpoint.co.za ABOUT SAPICS – your supply chain network SAPICS is a professional knowledge-based association that enables individuals and organisations to improve business performance. SAPICS builds operations management excellence in individuals and enterprises through superior education and training, internationally recognised certifications, comprehensive resources and a countrywide network of accomplished industry professionals. This network is ever expanding and now includes associates in other African countries. The annual SAPICS Conference is the leading supply chain event in Africa. The 37th SAPICS conference will be held 31 May – 2 June 2015 at Sun City and promises to bring together a wide variety of local and global speakers to discuss solutions and best practices in the supply chain management field. For more information on SAPICS please visit: Website: www.sapics.org.za Twitter: @SAPICS01 LinkedIn: SAPICS group Facebook: OperationsManagement ABOUT APICS APICS is the leading professional association for supply chain and operations management and the premier provider of research, education and certification programs that elevate end-to-end supply chain excellence, innovation and resilience. APICS Certified in Production and Inventory Management (CPIM) and APICS Certified Supply Chain Professional (CSCP) designations set the industry standard. With over 37,000 members and more than 250 international partners, APICS is transforming the way people do business, drive growth and reach global customers. APICS is based in the USA and has a broad global footprint. www.apics.org |
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