Blame for the growing water crises in South Africa has been shifted from corruption at municipal level, to lack of maintenance planning at water treatment facilities, to copper theft and electricity infrastructure failures, and most recently, to the unexpected hot weather. According to supply chain experts, the long term solution to the on-going service delivery problems of South Africa should begin by changing the public sector understanding of basic supply chain management principles.

“In acting on their mandate to deliver basic services to citizens, state officials tend to focus on the procurement of goods and services rather narrowly, whereas they should be looking at the supply chain as a whole, from the sources of raw materials to the end-user,” says Colin Seftel, a former director of SAPICS, the industry body for supply chain professionals in South Africa. 

Procurement vs Supply Chain Management
Seftel explains that procurement refers to the specific function of purchasing goods and services from a direct supplier, and takes little account of the upstream suppliers and processes that go into the production of goods, maintenance of infrastructure and delivery of services. By contrast, supply chain management looks at the whole chain, which usually begins with the production of raw materials and ends with delivery to consumers. 

Supply chain management attempts to balance supply with demand, and so its starting point is the consumer demand. In balancing supply and demand, it includes disciplines such as demand planning, quality management, capacity planning, maintenance planning, as well as increasing and upgrading infrastructure and resources in line with future growth.

Public vs Private Sector
The supply chain management way of thinking is better understood in the private sector, where companies have to compete for business. Oversupply represents a potential loss to a company, whereas undersupply results in unhappy customers who are likely to take their business elsewhere. 

In industries with advanced supply chains, such as the automotive industry, companies understand that they exist—and are competitive—only insofar as the supply chain of which they form part is operating optimally. Thus all the companies within a particular supply chain collaborate as closely as possible. This means sharing the vital information flowing from the customer, and then optimising all activities along the supply chain in the light of that information. 

“Government’s supply chain has somewhat different dynamics, but the principles are not dissimilar,” Seftel maintains. “The current problem however stems from the strong focus on procurement in government supply chains, instead of a focus on delivery.”

“What if government were to consider the supply chain in its entirety, and how to get it functioning optimally—and geared to supply what the customers or citizens want? That way you would start to get the various components of the supply chain working together to satisfy the citizen, rather than each one simply trying to optimise its own profit, and government could start to see its spend being more directly linked to benefits its citizens.”

“In other words, you wouldn’t be looking for the lowest tender for supplying replacement parts to a water treatment facility, but the most efficient way to supply clean running water to a thirsty community,” Seftel concludes. 

PHOTO CAPTION: Colin Seftel, former director of SAPICS
ENDS

MEDIA CONTACT: Juanita Vorster, 079 523 8374, [email protected]

For more information on SAPICS please visit:
Website: www.sapics.org.za
Twitter: @SAPICS01
LinkedIn: SAPICS group
Facebook: OperationsManagement

The impact of disruption, one of the biggest buzzwords of 2014, isn’t limited to only the technology industry. The breakneck pace of disruptive innovation has one of the biggest ripple effects since the industrial revolution, forcing many industries and businesses to re-evaluate direction and growth potential. 

This re-evaluation leads to the identification of knowledge and skills gaps, some of which are easily bridged by reassigning existing resources, and others that appear to be chasms of impossibility. For industries to move with the ever-increasing pulse of business, it is necessary to fill those gaps as a matter of great urgency.

While formal education is traditionally used to address knowledge and skills gaps, a more informal approach might yield results quicker, albeit not as comprehensive. Informal education events such as workshops and conferences are a proven way of sharing maximum knowledge in minimum time. An additional benefit is that attendees receive input from multiple sources, thereby increasing the range of knowledge transfer.

“With so many changes in technologies, techniques and experience it is necessary to regularly participate in industry events; whether it be to increase your knowledge, or confirm that you are on the right track,” says Jenny Froome, General Manager of SAPICS, the industry association for supply chain professionals.

“Supply chain management is a discipline that is influenced immensely by developments and changes in a variety of industries,” says Froome. “For the good of the profession it is imperative that influencers with diverse expertise and background share their knowledge and expertise with those involved in the day-to-day shaping of supply chains.”

During an industry conference attendees have the opportunity to learn from many experts at once, and the benefits for speakers are sometimes even more valuable. “In sharing your knowledge with conference attendees you not only help others achieve their personal and professional goals, but also enable the growth of the industries represented by the attendees,” says Froome.

A spin-off benefit for speakers at industry events is of course the market awareness they create for themselves in their professional capacity, as well as the company or organisation they represent.

Sharing knowledge and experiences isn’t only beneficial for the recipients but also for the individual speaker and the company or organisation they represent. Conference speakers also usually have the benefit of attending sessions by other speakers, exposing them to ideas that might either strengthen or challenge their own.

“We usually advise prospective speakers to evaluate opportunities based on location, timing, whether the topic or theme of the event suits their expertise and passion,” says Froome. “One of the leading platforms for supply chain professionals in Africa to share their stories is the annual SAPICS Conference & Exhibition, of which the 37rd edition will take place in South Africa from 31 May to 2 June 2015, themed ‘The Pulse of Africa’s Supply Chains’.”

Details of speaker submissions for the conference are available online at www.sapics.org.za

Several popular speakers from this year’s SAPICS Conference have already been confirmed for the 2015 line-up, including 2014 Best Speaker award winner Sean Culey, 

“There are so many passionate local and global supply chain experts,” concludes Froome. “SAPICS 2015 provides the perfect platform share their hard-earned expertise with fellow industry professionals and keep their fingers on the pulse of Africa’s supply chains.”
ENDS


MEDIA CONTACT: Juanita Vorster, 079 523 8374, [email protected] 

For more information on SAPICS please visit:
Website: www.sapics.org.za 
Twitter: @SAPICS01
LinkedIn: SAPICS group
Facebook: OperationsManagement