Change is needed throughout entire product lifecycle
 
In South Africa we produce R25.2 billion worth of waste annually – 90% of landfills are composed of avoidable waste. There is growing pressure on companies to understand the true value of waste instead of relegating the problem to the SHEQ or finance team.
 
“Forward thinking businesses are starting to see waste management as a value-add to the bottom line,” said Marilize Worst, Managing Director from SmartMatta, at the recent 38th Annual SAPICS Conference for supply chain professionals. “It is no longer enough to just consider waste management merely as a cost saving exercise.”
 
Think of waste as money down the drain
The typical waste hierarchy is first reduce, then reuse, then recycle.  Making a real difference however requires recreating a current supply chain as a continuous positive development cycle. 
 
“This optimisation of value throughout the life cycle of products is often referred to as a closed loop approach,” explained Worst. “The cycle should preserve and enhance natural capital, optimise resources, and minimise system risks.”
 
Modern consumers, when presented with two brands they like, will choose the one that is better for the environment. Recyclable packaging has already proven popular. Knowledge of the way carbon emissions were saved – and waste to landfill reduced – during the processing and transportation phases of a product could follow the same route to influence buyer decisions.

Find the value in waste
“Currently the consumption pattern of products is linear,” said Worst. “We take materials out of the ground, create a product, we then throw the waste away, although we do attempt to recycle some of it.”
 
“There’s nothing wrong with waste; it depends on how you manage it. The aim isn’t zero waste, but zero waste to landfill. The concept of circular economy is that we leave nothing behind.”
 
A circular economy is also financially valuable. The benefits to those companies participating in a circular economy include competitiveness, brand protection and customer loyalty, material/energy recovery, better supplier relationships, and ecological, health and social benefits.

Approach waste management from a systems perspective
To effectively develop a waste management strategy, a baseline of data and resources that represents the current situation should be created. From there, a waste management strategy based on this baseline should be developed, obtaining input from all functional areas in the business. 
 
Communication and feedback into the strategy should be allowed to make sure the plan is not just determined at the boardroom table, but aligns with the way a business actually operates.  The plan must be reassessed and realigned every time major operational changes are made. 

“Case studies have shown that changes in procurement strategies can reduce waste to landfill to almost zero,” said Worst. “The wider supply chain function should also focus on reducing waste generated within complex supply chains.”
 
The areas of improvement in supply chains include creating economies of scale by maximising recovery and restoring value, analysing and reducing energy consumption and carbon emissions, and finding synergies between the generators and potential users of waste.
 
Further improvements can be made by improving package design and selecting less harmful materials, reduce carbon footprint by optimising transport to and from distribution centres, and also by optimising repacking or refurbishing of product returns.
 
“Reducing waste has to be a strategic priority for every business,” warned Worst. “What we have is all we have; there is no backup earth, no hidden resources, no added extras.”
 
Marilize Worst will be a speaker at the regional SAPICS conferences for supply chain professionals in August. More information is available at http://www.sapics.org/events/sapics-regional-conferences/

ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, [email protected], www.atthatpoint.co.za
 
ABOUT SAPICS – your supply chain community
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
SAPICS is a proud APICS' exclusive Premier Channel Partner for Sub Saharan Africa. 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

Many South African manufacturers’ efforts to expand into Africa have failed. Two mistakes – according to speakers on the line-up for the 2016 SAPICS conference for supply chain professionals – are applying familiar product-focused processes, and discounting the importance of working within the existing framework of local culture.

Think distribution first, manufacturing second
“Focusing too much capital expenditure on the production and manufacturing side without enough investment in the outbound supply chain – warehousing and distribution – is probably the single biggest mistake that South African companies make when expanding into Africa,” says Carsten Schubert, Director (East Africa) at Transnova Africa.

“South African businesses readily accept the status quo of logistics systems and processes already in place in the country targeted for expansion, rather than challenging them and looking for more efficient ways of getting the product to market,” says Schubert.

It is a dangerous practice to decide to make do with existing warehousing facilities and distribution processes if they are not suited to requirements for expansions into that particular territory.

Another related mistake is abdicating control of the internal supply chain to distributors, with too much reliance placed on the local distributor’s network. “It is important to have visibility and control over your end to end supply chain,” warns Schubert. “Interacting directly and managing the relationship with your new customer base when you are trying to establish a foothold in a new market is a key success factor.”

Productive interaction with a new environment relies strongly on working to understand local culture and their capabilities, and respecting the historic lessons that inform existing processes.

Become immersed in the new culture
“Every step of a new process needed to be designed through the eyes of the local workforce and their capabilities,” advises Bryan Baylis, Associate Director of Supply Chain with US-based Merck & Co Inc.

“When local supply chain owners completely understand the proposed solutions, only then can your team execute a sustainable process, which can successfully meet the needs of the organisation today and well into the future.”

Baylis explains that, as an outsider in a new environment, success is realised through complete immersion of oneself into the local culture, clearly understanding any existing processes, and working together as a cohesive team to provide viable solutions.

“While new environments present unique challenges when designing supply chain systems, there is a common need to create a flexible system that can quickly adjust to today’s global environment,” says Baylis.

The key to the success of an expansion project seems to be dependent upon keeping solutions smart enough to be effective, but simple enough to be sustainable in the local environment.

Carsten Schubert and Bryan Baylis will present their unique supply chain insights at the 38th Annual SAPICS conference and exhibition for supply chain professionals in Sun City from 12 to 14 June 2016. More information is available at conference.sapics.org

Different to the tourism or marketing environments where digital integration has been absorbed organically, supply chain and manufacturing professionals have been sluggish to phase out what is a deeply entrenched traditional mentality.

Thinking must change
Prominent supply chain analyst and founder of Supply Chain Insight, Lora Cecere, believes that supply chain professionals have defined their processes as linear and inflexible; trusting enterprise resource planning (ERP) and advance planning and scheduling (APS) to optimise production and distribution processes.

“To become digital, we need to define processes from the customer’s customer to the supplier’s supplier and use new technologies to listen, sense, and adapt,” explains Cecere. “This is not the platform of traditional technologies and the belief structures of traditional supply chain leaders. This is an opportunity for Africa. Consider the adoption of mobile phones, alternative payment structures and collaborative sharing in economies such as in Nigeria. It’s time that we question the status quo and traditional principles.” 

Cecere will in June join Flatiron Strategies’ Senior Industry Analyst, Peter Vanderminden; and Oracle’s digital supply chain expert, Maha Muzumdar; to speak at the 38th Annual SAPICS Conference and Exhibition for supply chain professionals, to be held at Sun City, 12-14 June 2016.

The trio, while encouraging organisations to pursue a digital supply chain, accepts that this progression isn’t without flaws that businesses must take cognisance of.

Big data, big concerns
While the emerging IoT (Internet of Things) delivers huge dividends, it also presents potential data security risks for manufacturers as numerous corporate assets and end products will be linked via networks to provide a steady flow of real time data.  As data volumes and Internet connectivity grow in the supply chain and on the manufacturing floor, there is increased risk of data security being compromised, cautions Maha Muzumdar, Vice President of Industry Transformation, Oracle Cloud Business Group.

“Manufacturers today need to be more vigilant of intellectual property and trade secret violations and potential corporate espionage,” adds Muzumdar. “Today there are new security issues for companies to deal with as automation and data volumes increase.  Data security needs to be addressed at multiple levels - the enterprise level, the shop floor level and at the user device level.  Companies need a comprehensive portfolio of security strategies such as identity management, access management and mobile security to ensure data privacy, protect against internal and external threats, and enable regulatory compliance.”
 
While IoT devices – such as digital sensors – forgo the need for manual input of data, thus achieving greater accuracy, businesses must also be able to use this new flood of data effectively. This, too, can present a problem, explains Peter Vanderminden, Senior Industry Analyst at Flatiron Strategies
 
“This does result in a flood of ‘big data’ which organisations may not have the capability to analyse and use effectively.  That is where the breakdown often happens.  As you implement IoT capabilities into your products, making them digital, it’s all about how we bring both these worlds together – converging IoT operational with traditional SCM IT and bringing the physical and digital supply chain together,” he says.

For more information on #SAPICS2016, or to register, visit conference.sapics.org

ENDS

MEDIA CONTACT: Juanita Vorster,  juanita@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

A broader look at energy use in South Africa’s manufacturing sector and related supply chains – which saps a quarter of global energy annually – could lift businesses away from fiscal watershed. 

Even though new levies and rising tariffs peck at what little fat remains of business resources, cost-cutting options related to energy use are far from exhausted. Producing energy efficient buildings and operations, and replicating the supply chain structures, holds enormous potential.

Ralton Moses, Divisional Director of Operations at UTi Pharma and speaker at the upcoming SAPICS Conference for supply chain professionals, explains that while warehousing has remained largely static with operations being somewhat consistent in South Africa over the last two decades, the associated costs are a different story altogether now.

“For most major corporates, the socially responsible aspect of going green can no longer stand in isolation or be ignored and/or avoided; it needs to be aligned with the profitability strategy of the organisation in order to provide the required benefits to all stakeholders,” warns Moses. 

“Organisations should address the impact of carbon on their supply chain, as a significant percentage of a product’s value is derived from it. When a consumer purchases a product they are also buying the supply chain that delivers that particular service,” says Moses.
 
“Increased labour costs also add inflationary pressure to operations and continually forces companies operating warehouses to reduce their carbon footprint in order to not only take care of our planet, but also to cut costs,” says Moses. “Organisations can significantly reduce their running costs through technology that measures and mitigates carbon dioxide.”

In building their new state of the art green facility in Meadowview Gauteng, UTi Pharma managed to consolidate eight of its nine operations into one. The healthcare distribution r giant delivers around half of South Africa’s temperature-sensitive pharmaceutical products in the private market and had to incur significant expenditure on energy to monitor, control and regulate the temperatures of its storage and distribution facilities.

The new facility’s has an annual energy demand   of 60% of that of the preceding facility. 

Turning the lights off during weekends is no longer enough; an energy conscious strategy should incorporate everything from motion sensors and zoning systems for lighting, to grey water harvesting techniques and thermal storage systems.

A key point identified by Moses as a less cost intensive solution is that businesses should select the most accessible, well-connected facility possible, one that’s optimally located in terms of the organisation’s demand and supply base. Transportation contributes more to a company’s energy footprint than warehousing, which means the choice of venue has a significant impact. 

Ralton Moses will describe in more detail the UTi Pharma hub’s green credentials and process followed at the 38th Annual SAPICS Conference and Exhibition for supply chain professionals, to be held at Sun City, 12-14 June 2016. For more information, or to register, visit conference.sapics.org 

ENDS

MEDIA CONTACT: Cathlen Fourie, 012 644 2833, [email protected], www.atthatpoint.co.za

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

Millennials have swept the world of work, bringing their own attitudes and beliefs about the workplace. Their difference in approach could be very important in the survival of increasingly complex supply chains that demand efficient responses to challenges.

Organisations have up to four generations represented at any time, bringing with it potential conflicts. Given that millennials will account for 50% of organisations’ workforces, understanding this generation will be pivotal in unlocking competitive advantage and achieving harmony in the workplace. Competitive advantage no longer lies in having the better widget, it now lies in having the best people who can co-ordinate resources, solve problems and respond to today's challenges in innovative ways.

Lungelo Khumalo, a proud supply chain millenial, will at the upcoming SAPICS conference for supply chain professionals provide a deeper understanding of what makes millennials tick. Khumalo will also share research and practical approaches from senior local and global business leaders on getting the best out of your new talent.

The 38th Annual SAPICS Conference and Exhibition - to be held 12-14 June 2016 at the brand new Sun Sky Village - will be the highlight of the organisation celebrating its 50th year of existence. More information is available at conference.sapics.org.

ENDS

MEDIA CONTACT: Cathlen Fourie, 012 644 2833, [email protected], www.atthatpoint.co.za

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

Empty store shelves, increased pollution levels, and infrastructure in various states of breakdown are not just elements in the story line of a movie about the end of the world. These issues, together with basic services and resources that are just not available when and where they’re needed, form the reality of a world without efficient supply chain management.

Supply chain management is much more than just procurement or just logistics and transportation of goods. It is the function that takes an integrated look at how to balance the supply of goods and services with the demand of customers.

As simple as this sounds, the expertise required to plan and maintain this balance is highly complex, as is evident from the topics that have been presented over the past 37 years on the programmes of the Annual SAPICS Conference for Supply Chain Management Professionals.

The 38th Annual SAPICS Conference and Exhibition, scheduled for 12-14 June 2016 in South Africa, will explore topics that will help delegates to overcome the challenges supply chain management professionals face on a daily basis.

Energy and water shortages, technological developments, labour and skills demands, and environmental concerns are just some of the issues that supply chain professionals need to take into account when planning and executing profitable supply chains.

The speaker line-up for the 2016 conference will include a number of highly sought-after international speakers.  SAPICS aims to provide the supply chain community access to the latest in supply chain thought leadership, while keeping costs in line with the declining local economy.

Speakers who would like to share their supply chain stories with delegates can submit their proposals until 15 January 2016.

Significant savings on delegate registration fees are available until 29 February 2016, and preferential accommodation rates have been made available to SAPICS.

For more information please visit conference.sapics.org

 \
ENDS

MEDIA CONTACT: Cathlen Fourie, 012 644 2833, [email protected], 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.