SAPICS – SA MANUFACTURING ONLINE – SOUTH AFRICAN MANUFACTURING

SA SUPPLY CHAINS GEAR UP FOR LEVEL 4 AND DEMAND FOR WINTER GOODS

Wed, 06 May 2020 17:37:18 +0000

As South Africa enters the second phase of the country’s Covid-19 lockdown – Level 4, which includes some easing of the initial restrictions on business and movement – the supply chain industry faces new challenges, according to SAPICS, The Professional Body for Supply Chain Management. These may impact the availability of winter clothing and homeware, SAPICS notes.

“Businesses not supplying essential goods have had to find short-term storage solutions for their products during the lockdown. Some were able to move their products to bonded storage facilities to delay the payment of VAT and customs duties, thereby alleviating cash flow issues, but many have had to use any storage they could find. This has been at an additional cost. The current challenge is to efficiently move the stored product into their facilities, and in the case of retailers move summer stock out of distribution centres, to create space for the storage and processing of winter stock,” says Mungo Park, SAPICS member, past president of SAPICS and senior key account director at DSV.

“Clothing and homeware retailers face the challenge of having summer stock in their stores and distribution centres and need to receive, process and distribute winter stock as quickly as possible,” he stresses.

Because online shopping has been constrained, most retailers have a backlog of online purchases made, which must now be delivered. Park says that this will put pressure on couriers and distribution centre operations as the number of workers on shifts at the distribution centres has been reduced to facilitate social distancing. “Online shopping is definitely something the government should allow and support as it allows shoppers to have the ‘retail experience’ while practising social distancing,” he states.

Park says that while most businesses are expecting a drop in demand for their products, there is also the challenge of a shift in demand for items. “One example is computer and laptop suppliers, where the demand for laptops has increased dramatically with the number of employees now working from home, while demand for desktop computers has dropped, leaving suppliers with excess, aging inventory of desktops.”

Increased air freight costs have and will continue to impact businesses’ supply chains. Park expands on this issue: “Many customers began moving products by air, which has been hugely problematic given the constrained air freight volume which has been available. Airlines have been using passenger planes as freighters able to carry about 100 tons of cargo at a time. Some service providers and large businesses have been making use of charters, which is very unusual in the South Africa market. Even so, airfreight rates have increased at least five-fold since mid-March and are still increasing weekly. Covid-19 regulations in countries of origin are further exacerbating the movement of air freight where shutdowns or an increase in customs inspections is inhibiting and delaying the departure of shipments.”

Looking ahead, Park believes that South Africa’s supply chain industry and supply chain management professionals are well-placed to rise to the ongoing Covid-19 challenges. “I have observed the strengthening of relationships and the development of a culture of partnership between service providers and customers who are working together to address the challenges. Service providers are demonstrating remarkable flexibility in terms of managing debtors’ books. The strengthening of relationships is fundamental for service providers and their customers and they must work together to identify potential points of failure in supply chains and to build resilience and redundancy to mitigate further disruption due to Covid-19,” he stresses. “This will enable them to better manage future supply chain disruption.”

Also encouraging, Park notes, is how well the supply chain profession in South Africa has responded during this challenging period. “Service providers have been innovative in creating solutions for customers. Internal logistics operations are successfully guiding businesses in the adoption of different approaches to managing supply chain costs. These are testing times, but supply chain management professionals have risen to the challenges. Some of the short-term activities, innovations and interventions have proved so successful that they will become standard operating processes going forward.”

Since its foundation in 1966, , The Professional Body for Supply Chain Management, has become the leading provider of knowledge in supply chain management, production and operations in Southern Africa. SAPICS builds operations management excellence in individuals and enterprises through superior education and training, internationally recognised certifications, comprehensive resources and a country-wide community of accomplished industry professionals.

Issued by Express Communications, on behalf of SAPICS.

For more information:

Tel: +27 (0) 11 023 6701

Email: [email protected]

ABOUT SAPICS: http://www.sapics.org

Since its foundation in 1966, SAPICS, The Professional Body for Supply Chain Management, has become the leading provider of knowledge in supply chain management, production and operations in Southern Africa. SAPICS builds operations management excellence in individuals and enterprises through superior education and training, internationally recognised certifications, comprehensive resources and a country-wide community of accomplished industry professionals. This community is ever expanding and now includes a multitude of associates in other African countries as well as around the globe. SAPICS is proud to represent the Association for Supply Chain Management (ASCM) as its exclusive premier channel partner in Sub-Saharan Africa.

Established 41 years ago, the annual SAPICS Conference is the leading event in Africa for supply chain professionals. The 2020 SAPICS Conference takes place in Cape Town from 22 to 25 November 2020.

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SAPICS POSTPONES THE LEADING EVENT IN AFRICA FOR SUPPLY CHAIN PROFESSIONALS AMID COVID-19 CRISIS

Mon, 20 Apr 2020 16:04:28 +0000

The Professional Body for Supply Chain Management,In light of the Covid-19 pandemic, SAPICS, The Professional Body for Supply Chain Management, has announced the postponement of the 2020 SAPICS Conference, Africa’s leading knowledge sharing and networking event for supply chain professionals.

New dates for the conference, which was scheduled for the end of June, have been secured from 22 to 25 November 2020 at the Century City Conference Centre in Cape Town.

“This is the first time in the annual conference’s 42-year history that a decision like this has had to be made. It was difficult, but was undoubtedly the right, responsible decision to make,” says SAPICS president Keabetswe Mpane.

“Planning for the 2020 SAPICS Conference was already well underway, with compelling presenters lined-up and delegates registered. Many of our speakers have confirmed their availability for the new dates, and we expect that everyone will be eager to connect with their peers and colleagues after months of virtual meetings and the lockdowns implemented around the world. In the wake of Covid-19, we anticipate a not-to-be-missed, very special, celebratory SAPICS Conference. There are going to be many stories to tell and learnings to share. It is the supply chain management profession that is currently helping to keep essential goods flowing and essential services operational while the world works together to fight this pandemic,” Mpane notes.

“The powerful networking element of the SAPICS conference has always set it apart and made this event a highlight on the supply chain profession’s calendar. This year, it will be more important than ever before for our supply chain superheroes to meet up face-to-face, to mingle, commemorate and celebrate,” she asserts.

Mpane says that presentation themes may change, but that SAPICS will ensure the same high-quality programme as always and looks forward to the same support and participation that this annual event has attracted for more than four decades.

“We are dealing with an unprecedented crisis. The world is never going to be the same, but the lessons that will be learnt, the new knowledge that will be gained, and the new tools and technologies that will be leveraged must be shared, to ensure that we are ready and better positioned to fight the next threat. The SAPICS Conference will, as always, offer the ideal platform for supply chain professionals to share knowledge and to network. This year, we will also honour and celebrate the key role played by supply chain management in beating Covid-19.”

For further information or to register for SAPICS 2020, call 011 023 6701 or email [email protected]. Up-to the-minute information is also posted on the SAPICS Conference website: https://conference.SAPICS.org

Issued by Express Communications, on behalf of SAPICS.

For more information:

Tel: +27 (0) 11 023 6701

Email: [email protected]

ABOUT SAPICS: http://www.sapics.org

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DEMAND DRIVEN WORLD AFRICA AT SAPICS 2020

Thu, 20 Feb 2020 13:34:58 +0000

Data from the Harvard Business Review reveals that businesses are disappearing faster than ever before, and that companies are dying younger because they are failing to adapt to the growing complexity of their environment.

Today’s supply chains are more complex and volatile than ever before; despite this, however, many organisations are using material requirements planning (MRP) systems that still plan the same way that they did 50 years ago, according to Kea Mpane, president of SAPICS, The Professional Body for Supply Chain Management in Southern Africa. To enable African supply chain professionals and businesses to benefit from the latest results, research and cutting-edge ideas in Demand Driven Material Requirements Planning (DDMRP), SAPICS will host the first ever Demand Driven World Africa Conference in Cape Town this year, she reveals.

“This event is an exciting addition to the annual SAPICS Conference, Africa’s leading event for supply chain professionals. We are delighted to have joined forces with the Demand Driven Institute (DDI), a United States based global organisation that is changing the way that businesses plan, operate, think and evolve,” Mpane expands.

She says that Demand Driven World Africa 2020 will be a show case for the emerging Demand Driven methodology and will feature case study implementations from Africa, including powerful Demand Driven success stories from Coca-Cola Beverages Africa and Protea Chemicals. “It will also include ‘Demand Driven Alley’ in the exhibition, featuring DDMRP compliant software and service providers. There will also be educators on hand to discuss the vast array of education options, from Demand Driven Sales and Operations Planning to DDBrix, the hands-on simulation workshop and training solution.”

Founded in 2011, the DDI’s mission is to advance and proliferate Demand Driven strategies and practices in the global industrial community. Co-founders Chad Smith and Carol Ptak literally wrote the books on the Demand Driven method. Together and individually, they have written and co-authored numerous articles and books on Demand Driven principles, finance and information and planning systems.

“Demand Driven essentially means sensing changing customer demand, then adapting planning and production while pulling from suppliers – all in real time,” Smith explains.

“Becoming Demand Driven requires a fundamental shift from the centrality of supply and cost based operational methods (commonly referred to as ‘push and promote’) to a centrality of actual demand and flow-based methods (commonly referred to as ‘position, protect and pull’). The term ‘actual demand’ is extremely important in distinguishing it from a re-branded and somehow superior forecasting approach.

“The Demand Driven Adaptive Enterprise (DDAE) Model now spans the operational, tactical and strategic ranges of an organisation, allowing it to continuously and successfully adapt to the complex and volatile supply chains we see today. It combines the fundamental principles of flow management with the emerging new science of complex adaptive systems (CAS). It is the way that successful organisations will work in the 21st Century.

“We very excited to bring Demand Driven World to Africa in 2020. Every business has a choice: continue to operate with rules, metrics and tools developed more than fifty years ago or make a break from convention, recognise the complex supply chains we live in and make a fundamental change in the way it does business; but don’t take too long or the choice will be made for you,” Smith concludes.

DDI co-founder Carol Ptak will be speaking at the inaugural Demand Driven World Africa. “This is a not-to-be-missed opportunity for African supply chain professionals to learn from a leading authority in the use of ERP and Supply Chain tools to drive improved bottom line performance,” Mpane states. “Carol’s expertise is well grounded in four decades of practical experience as a successful practitioner, consultant and educator in manufacturing operations. Her pragmatic approach to complex issues and dynamic presentation style has her in high demand at events worldwide.”

Now in its 42nd successful year, the annual SAPICS Conference is Africa’s leading knowledge sharing and networking event for supply chain professionals. Hosted by SAPICS, The Professional Body for Supply Chain Management, it takes place in Cape Town from 21 to 24 June 2020.

For further information or to register for SAPICS 2020 and Demand Driven World Africa, call 011 023 6701 or email [email protected]. Up-to the-minute information is also posted on the SAPICS Conference website: https://conference.SAPICS.org

Issued by Express Communications, on behalf of SAPICS.

For more information:

Tel: +27 (0) 11 023 6701

Email: [email protected]

ABOUT SAPICS: http://www.sapics.org

SAPICS builds operations management excellence in individuals and enterprises through superior education and training, internationally recognised certifications, comprehensive resources and a country-wide network of accomplished industry professionals. This network is ever expanding and now includes associates in other African countries. SAPICS is proud to represent APICS (the global end-to-end supply chain association) as its exclusive premier channel partner in Sub-Saharan Africa.

Established 41 years ago, the annual SAPICS Conference is the leading event in Africa for supply chain professionals. The 2020 SAPICS Conference takes place in Cape Town from 21 to 24 June 2020.

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GLOBAL SUPPLY CHAIN THOUGHT LEADER JOHN GATTORNA AT SAPICS 2020

Wed, 13 Nov 2019 13:01:15 +0000

One of the world’s pre-eminent supply chain thought leaders, Dr John Gattorna, will be a keynote speaker at the 2020 SAPICS Conference, The Professional Body for Supply Chain Management has announced.

Based in Sydney, Australia, Gattorna has helped to shape the thinking, understanding and practice of logistics and supply chain management globally for more than 40 years. His belief that the supply chain is “all about the people” has influenced many of today’s leading multi-national corporations.

“We are thrilled to give SAPICS delegates the opportunity to learn from a supply chain guru of John’s calibre,” comments SAPICS president Kea Mpane. “Over more than four decades in this vital, ever evolving profession, his writing, teaching, mentoring, presentations and consulting have helped to increase the profile of the supply chain as a key strategic driver of organisational success and profitability. A key focus of his has been on bringing the human element to the forefront of the supply chain. His ‘outside in’ view advocates that supply chains need to be proactively designed from the perspective of customers and the market.”

“We can no longer design our supply chains from the ‘inside out’, where we just hazard a guess or two at what we think customers are saying and thinking, and then develop a particular configuration around that,” Gattorna contends. “Instead, you’ve got to get outside yourself and look at the world and yourself through the eyes of the customer and try to understand what their expectations are.

“Even in the so-called best companies, the focus is often on technology, infrastructure, hard assets, processes, and the like; but they fail to recognise the critical importance of human behaviour and decision making throughout the supply chain,” he says. “At least 50 percent of the activity in enterprise supply chains is driven by humans making choices and decisions. On the outside, it is customers and suppliers, and on the inside, it is employees, management, and boards of directors. Yet where have we allowed for this major influence in the design and operation of contemporary supply chains?” Gattorna asks. His commitment to getting inside the customer’s head has earned him the moniker “supply chain anthropologist”.

In his latest book, “Transforming Supply Chains”, Gattorna builds on his outside-in model and urges readers to reinvent their supply chain with the customer at the centre, and to leverage customer insight, heuristics and digital tools to meet rising expectations and adapt in a volatile world. The lessons, insights and case studies in this book, which was co-authored by long-time collaborator, Deborah Ellis, are the focus of his 2020 SAPICS conference presentation.

“Transforming Supply Chains is a guide to designing supply chains that fit, and adapt, and bring competitive advantage – whatever your business and whoever your customers,” Gattorna says. “Customers have become increasingly demanding, and the operating environment has become more turbulent and complex. Mature companies wishing to survive and thrive in the coming decades must transform themselves to become flexible and market responsive. They need to reconsider their traditional supply chains and find ways to increase the clock speed of their operation and their decision making without creating more complexity for their staff and partners. But where to start this transformation journey? Most of the world’s largest corporations have logistics networks and supply chains that have evolved over time, many based around systems that drive a ‘one-size-fits-all’ philosophy which does not fit anymore. Most have not kept up with the changing cadence of their markets. This book describes the path to a different paradigm; where a set of tailored supply chains are used for in-built flexibility and adaption as the world changes, and where internal capabilities and digital capabilities are consciously aligned with the customers and strategies they serve,” he explains.

SAPICS Conference delegates can also expect to gain a powerful understanding of how they can use the “flywheel” effect to achieve sustained ultrahigh supply chain performance. For the last two decades, Gattorna has been working with major blue-chip companies, applying his framework and adopting a multi-disciplinary, whole-of-business approach to the design and management of enterprise supply chains. His work has influenced the strategic direction of organisations like Schneider Electric, Ralph Lauren, DHL, Dell and Unilever. He is currently the Executive Chairman of Gattorna Alignment, a Sydney-based specialist supply chain advisory firm.

“John’s SAPICS keynote will give African supply chain professionals all the knowledge and motivation they need to kick start their thinking about a transformation path for their own supply chains. This is a not-to-be-missed opportunity to learn from one of the global supply chain profession’s most influential thinkers,” concludes Mpane.

Issued by Express Communications, on behalf of SAPICS.

For more information:

Tel: +27 (0) 11 023 6701

Email: [email protected]

ABOUT SAPICS: http://www.sapics.org

Established 40 years ago, the annual SAPICS Conference is the leading event in Africa for supply chain professionals. The 2020 SAPICS Conference takes place in Cape Town from 21 to 24 June 2020.

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INTERNATIONAL ACCOLADE FOR AFRICA’S PROFESSIONAL BODY FOR SUPPLY CHAIN MANAGEMENT

Fri, 25 Oct 2019 11:00:10 +0000

The vital role being played by SAPICS, The Professional Body for Supply Chain Management, in skills development in Africa was recognised at the recent APICS Regional Learning Partner Awards in the United States.

This inaugural event was hosted by ASCM (The Association for Supply Chain Management), which represents a vast global network of supply chain professionals. “We are honoured to have been named the Outstanding Channel Partner for the Middle East and Africa (MEA),” comments SAPICS chief operating officer Jenny Froome.

“The ASCM Global Channel & Alliances team recognised the important role that SAPICS is playing in building a community of educated supply chain professionals in Africa, as well as our contribution to advancing ASCM and the APICS body of knowledge and cultivating supply chain talent in our part of the world. SAPICS was commended for our commitment to quality, professionalism and continuous improvement, and for our success in developing individuals and organisations in the supply chain profession through educational programmes, conferences and events,” she expands.

“Supply chain proficiency and competence is a catalyst for economic growth. There has never been a greater need for qualified, certified, professionally designated and ethically accountable supply chain professionals than there is in Africa today. SAPICS is proud to be at the forefront of the drive to develop and professionalise supply chain management, and delighted to have our achievements recognised by ASCM,” Froome concludes.

Issued by Express Communications, on behalf of SAPICS.

For more information:

Tel: +27 (0) 11 023 6701

Email: [email protected]

ABOUT SAPICS: http://www.sapics.org

Established 40 years ago, the annual SAPICS Conference is the leading event in Africa for supply chain professionals. The 2020 SAPICS Conference takes place in Cape Town from 21 to 24 June 2020.

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SAPICS INSPIRES ASPIRING YOUNG SUPPLY CHAIN PROFESSIONALS

Fri, 20 Sep 2019 11:31:03 +0000

This year’s 5^th annual Young Professional and Student Conference, hosted by SAPICS, The Professional Body for Supply Chain Management, was a resounding success, the organisers report.

Held recently in Johannesburg, it attracted up and coming supply chain talent from around the country. SAPICS president Kea Mpane says that several universities were invited to send students to the one-day conference, including the Universities of South Africa, Johannesburg and Pretoria, North-West University, and the Tshwane and Vaal Universities of Technology. “The energy, enthusiasm and commitment of this year’s attendees was inspiring,” Mpane enthuses. Students from North West University started their bus journey at 2.30am to travel to the eagerly anticipated conference.

Mpane explains that the event is aimed at young professionals and students who want to gain insight into the supply chain profession from the conference’s practical perspective. “Because it is sometimes misunderstood and undervalued, the profession is not attracting the young, emerging talent that it needs. Events like this are vital to inform graduates and students of the opportunities that exist in this exciting and dynamic field, which is constantly evolving and leveraging new technologies.”

The young professionals who attended are currently working in related fields, in their first or second years of graduate programmes or learnerships.

The event’s varied programme included speakers from diverse backgrounds who gave the young delegates career path guidance as well as insights into the supply chain management profession’s many facets. Supply chain tools and methodologies such as Demand Driven Material Requirements Planning (DDMRP) were highlighted by speakers such as staunch SAPICS volunteer Liezl Smith.

In his presentation, internationally recognised supply chain guru Steven Melnyk addressed the emergence of the strategic leader. Melnyk is Professor of Supply Chain Management at Michigan State University in the United States. He highlighted how supply chains are transforming from tactical to strategic and noted that this new supply chain requires a supply chain leader with skills and orientations not currently found in many supply chain managers. He outlined what needs to change, and the traits that differentiate the supply chain leader of tomorrow from the supply chain manager of today.

Chantal Kading, managing director of The People Shop, shared her experience and expertise on how to achieve career success in today’s fast paced, increasingly complex business world. “In an AI (artificial intelligence) age, EI (emotional intelligence) is the foundation,” she told the attending students and young professionals. Both Chantal Kading and Karen Pretorius, another speaker at the event, offered guidance on how they should represent their brand via social media, in their CV and at in-person interviews.

Personal experiences from individuals travelling the world with their supply chain knowledge were included in the programme. Grant Swanepoel, himself once a student who has been a member of SAPICS since University, shared his experiences and the opportunities his supply chain skillset has afforded him. Glenda Maitin, who owns her own supply chain consultancy and heads up the public health project for the Association for Supply Chain Management (ASCM) funded by the Bill and Melinda Gates Foundation, talked about her career path to programme director of this exciting project, improving last mile delivery of medicines to the most needy in Africa. Martin Mvulane, a seasoned and well-respected supply chain professional with an extensive and successful career at companies such as Tiger Brands, SA Breweries and Unilever shared his experiences with the audience.

How jobs in supply chain will be affected by the Fourth Industrial Revolution was the topic of a presentation by Tony Sinton, CEO of Netstock, South Africa. “The speed of current breakthroughs has no historical precedent,” he told attendees, and stated that the breadth and depth of these changes herald the transformation of entire systems of supply, production, distribution, management, and governance.

Antoinette (Toni) Tebbutt thrilled and entertained with her popular presentation about her time as a contestant on the popular reality TV show Survivor South Africa.

SAPICS also used the event to raise funds for Tumelo Home for mentally disabled children, with donations received for supply chain books presented to the home.

“The SAPICS Young Professional and Student Conference has become an important fixture on the calendar of aspiring young supply chain professionals. We are proud to be helping to attract and develop a much-needed pipeline of talent to address the critical skills gap in the supply chain profession,” Mpane concludes.

Issued by Express Communications, on behalf of SAPICS.

For more information:

Tel: +27 (0) 11 023 6701

Email: [email protected]

Netstock South Africa

ABOUT SAPICS: http://www.sapics.org

Established 40 years ago, the annual SAPICS Conference is the leading event in Africa for supply chain professionals.

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HEALTHCARE LESSONS FROM NIGERIA FOR SUPPLY CHAIN PROFESSIONALS

Tue, 20 Aug 2019 09:07:20 +0000

A supply chain membership platform for the private sector in Nigeria has strengthened private sector spending for public health. Azuka Okeke, who pioneered the project, will be sharing her experiences and insights at the upcoming SAPICS Spring Conference in Johannesburg. This event is hosted by SAPICS – The Professional Body for Supply Chain Management.

“Okeke oversees supply chain transformation projects in several African countries, with a key focus on Nigeria. She is an expert in engaging governments and is currently serving as a thought partner and advisor to national ministries of health in Africa. We are delighted to have her in our Spring line-up of outstanding speakers with knowledge and lessons to share with supply chain professionals,” comments SAPICS president, Kea Mpane.

In her presentation, Okeke, who is the Regional Director of the Africa Resource Centre, will highlight the massive strides being made in Nigeria to professionalise supply chain management, with particular focus on the work being done to align public health and private sector collaboration. “In a country made up of 36 different states, challenges abound. Each has its own governance, cultural differences, infrastructure challenges and supply chain complexities; and each is working with the National Department of Health, with the support at the highest level, to prioritise the elevation of supply chain management as a profession. Education is key. Collaboration is essential,” Okeke stresses. She notes that Nigeria is working on getting it right to ensure that the right products are delivered to the right people at the right time and in the right condition. “In the public health space this means saving lives.”

SCOR (the Supply Chain Operations Reference model), which has been used by hundreds of organisations worldwide in pursuit of supply chain excellence, is also on the agenda for the SAPICS Spring Conference 2019. Presenter Andrew dos Santos will discuss the exceptional results that can be achieved by combining SCOR with DDMRP (Demand Driven Material Resource Planning) and the Demand Driven Adaptive System (DDAS). “SCOR and DDAS have a natural synergy and can be used in concert to achieve supply chain excellence. Both bridge the gap between operational and strategic levels within an organisation,” asserts Dos Santos, who is a Director of AppliSential, which provides supply chain management advisory services for the design and implementation of supply chain best practices and technology. AppliSential developed the first DDI (Demand Driven Institute) compliant software solution in Africa.

Future fit demand planning, entrepreneurship and the value of fostering an ownership mentality in employees are other important topics lined up for the 2019 SAPICS Spring Conference.

The planning world has changed and continues to evolve at an exponential rate. Linear planning is no longer good enough. Presenters MJ Schoemaker and Jeremy Basckin will discuss the latest predictive methods and tools that deal with multiple inputs and cumulative amounts of data to provide reliable demand forecasts.

SAPICS Spring Conference speaker David Hallett aims to encourage and mentor young entrepreneurs who are thinking of starting or have launched SMEs. “Small enterprises can really have an impact on our economy, create jobs, create value and be innovative in ways that large corporates struggle to do in turbulent times,” he contends, but notes that SMEs need support, mentoring and motivation to push through tough times and make their mark. Hallett, who is the Principal Consultant at Path to Peak Consulting, South Africa, will share his advice with delegates aiming to make their mark in SMEs.

“Moving from Compliance to Ownership” is the topic of the presentation by Jürgen Tietz. “We have to do things better, faster, cheaper and safer in order to survive and thrive,” he stresses. “It is about systems, equipment and people; it is about the people who pick, pack, place, pull and push products, papers and buttons and drive millions of miles. We have to become proactive and move all our people from compliance to ownership. We should not just be telling them what to do, but rather equipping them to make their own choices.”

The SAPICS Spring Conference will provide supply chain management professionals with the opportunity to spend a day immersed in world class, interactive and stimulating presentations along with exceptional networking opportunities. It is aimed at delegates who were unable to attend the 2019 SAPICS Conference in Cape Town, explains SAPICS president Kea Mpane. “It is ideal for supply chain practitioners who are looking for a high calibre, high impact and informative event that doesn’t require extended time out of the office. With no less than three SAPICS Conference Award winning speakers – Steven Melnyk, Jeremy Basckin and Jürgen Tietz – on the agenda, this is an event not to be missed,” she adds.

For further information, or to register for the event on 10 September 2019, call 011 023 6701 or email [email protected]. For up-to the-minute information, visit the SAPICS website: www.sapics.org

Issued by Express Communications, on behalf of SAPICS.

For more information:

Tel: +27 (0) 11 023 6701

Email: [email protected]

ABOUT SAPICS: http://www.sapics.org

Established 40 years ago, the annual SAPICS Conference is the leading event in Africa for supply chain professionals.

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The Future of Zero Waste to Landfill and the New Carbon Tax

Sat, 27 Jul 2019 12:21:31 +0000

South Africa is fast approaching a situation of running out of landfill space; the inevitable “day full” is on our doorstep. The roll-out of the country’s carbon tax – which is geared towards reducing carbon emissions by 34% by 2020 and 42% by 2025 – will change the way that companies do business.

This was the message from Wasteplan CEO Bertie Lourens in a presentation at the 2019 SAPICS Conference in Cape Town. Africa’s leading event for supply chain professionals is hosted annually by SAPICS, The Professional Body for Supply Chain Management. This year, it attracted close to 800 delegates representing 28 countries.

Lourens noted that, year after year, South Africa, which is the world’s 169th most populous country, has ranked as the 17th dirtiest energy producer on the planet – out-polluting the UK and France. “The carbon tax is an attempt to mitigate this consumer behaviour and reduce high greenhouse gas emissions while stimulating investor appetite for low carbon alternatives. As of June 1, 2019, South Africa started rolling out the Carbon Tax Bill, which will be implemented in stages and phased in over time to ensure a smooth transition,” he explained.

Lourens summarised the carbon tax roll out for SAPICS delegates: “Phase 1 will run from implementation up to December 2022. The initial marginal carbon tax rate will be R120 per tonne of CO2e (carbon dioxide equivalent). With the below thresholds in mind, the effective tax rate is much lower and ranges between R6 and R48 per tonne. A basic percentage-based threshold (up to 60%) applies for the first phase of implementation that is not tax payable, in order to help businesses transition and adopt low carbon alternatives. Additional tax-free allowances include an additional allowance of up to 10% for process emissions; an additional allowance for trade exposed sectors, to a maximum of 10%; and an additional allowance of up to 5% based on performance against emissions intensity benchmarks. These benchmarks will be developed in due course. There is also a carbon offsets allowance of 5 to 10% per cent, depending on sector, and an additional 5% tax-free allowance for companies participating in phase 1 of the carbon budgeting system. As part of the tax, the carbon offset mechanism also allows companies to participate in a market-based approach to reduce emissions.

Ensuring Right Reporting

“Carbon emissions are submitted to the Department of Environmental Affairs (DEA) through legislation known as the National Greenhouse Gas Emission Reporting Regulation (NGER). Here, companies that rely on energy generation from their own equipment are obligated to report on all business-related activities for tax purposes.

“Once the carbon tax has been calculated, it will be paid to (and administered by) National Treasury, which will determine any further tax allowances, based on trade exposure, business performance, etc. At this point the process could become quite abstruse and bogged down by litigative complexities, and you’ll need some expert assistance,” he cautioned SAPICS delegates.

“We would recommend getting experts to help you navigate the tricky terrain of tax law.” He stated that there were things businesses could do now to anticipate this burden and reduce their waste to landfill so that less of the business is exposed to heavy carbon taxability, including investing in renewable energy, cool carbon projects and biogas digesters, and reducing waste to landfill.

“Africa is uniquely poised to leapfrog fossil fuel, carbon heavy systems and adopt wind, solar and water energy on sustainable, large-scale levels,” Lourens asserted.

“The tax will take all your activities into account, including the activities related to your waste disposal on site,” he informed SAPICS attendees.

As a means of offsetting their carbon footprint, he recommended that companies invest in effective and environmentally sustainable projects that come in under the marginal carbon tax rate of R120 for every tonne of CO2e. “These partnerships are not only financially incentivising; they help support worthwhile green initiatives in other parts of the world.”

The biogas digester is a well proven technology that converts organic waste into a clean and sustainable energy source. Lourens explained that when organic waste such as discarded food waste is landfilled, it produces methane gas, which is many times more potent than CO2. Biogas digesters have been around in South African since 2014. “Unfortunately, many of the installations did not perform, with several facilities having closed-down or running with severe performance constraints. The most important lesson for successful implementation is the selection of an experienced local operational partner that can assist in the development process from start to finish,” he advised.

Lourens said that the Western Cape Government has implemented legislation that will completely ban organic waste to landfill by 2028, which will force companies to implement solutions for the waste.

“New innovations are making Zero Waste to Landfill a reality. It requires an integrative approach with separation at source and effective down-stream waste management practises. This approach maximises recyclables recovery, while organic waste is isolated and treated using composting or biogas. The remaining waste consisting mainly of unrecyclable plastic packaging can then be converted, either into energy (such as electricity or oil) using Pyrolysis or, into bricks or concrete to build much needed infrastructure. The waste-to-energy landscape in South Africa is still in a vulnerable state, but we believe this will all soon change as our economy is shifting to a low carbon economy,” he concluded.

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The Future of Zero Waste to Landfill and the New Carbon Tax

Mon, 22 Jul 2019 10:54:00 +0000

Ensuring Right Reporting

“Africa is uniquely poised to leapfrog fossil fuel, carbon heavy systems and adopt wind, solar and water energy on sustainable, large-scale levels,” Lourens asserted.

“The tax will take all your activities into account, including the activities related to your waste disposal on site,” he informed SAPICS attendees.

Lourens said that the Western Cape Government has implemented legislation that will completely ban organic waste to landfill by 2028, which will force companies to implement solutions for the waste.

/Ends

Issued by Express Communications, on behalf of SAPICS.

For more information:

Tel: +27 (0) 11 023 6701

Email: [email protected]

ABOUT SAPICS: http://www.sapics.org

Established 40 years ago, the annual SAPICS Conference is the leading event in Africa for supply chain professionals

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UNCERTAINTY IS THE BIGGEST THREAT TO SOUTH AFRICAN ECONOMY, BUSINESS AND SUPPLY CHAINS

Wed, 03 Apr 2019 12:57:50 +0000

While South Africa’s power crisis is reportedly costing the country up to R80 billion a month, it is not load shedding itself that is currently the biggest threat to the economy. According to Dr Robert Besseling, executive director of risk consultancy EXX Africa, the main business and supply chain disruption in South Africa today is uncertainty – around the power blackouts, as well as industrial action and key pieces of legislation.

“When will load shedding end? The real disruption is not actually switching off the power, but the nebulous information from Eskom and the Public Enterprises Ministry on the load shedding outlook in the longer term,” Besseling asserts. “Once the risk is known, it can be qualified and quantified; risk mitigations can be applied, and businesses can work around it.”

Besseling, who will be sharing his insights with delegates at the annual SAPICS Conference for supply chain professionals, which takes place in Cape Town in June, compares the current state of electricity supply in South Africa to Brexit. “It is the uncertainty around the UK’s exit strategy that is the real threat and cost to business; not the fact that the UK is leaving the European Union. In South Africa, we know that we are going to have power cuts, but the lack of clarity from Government and the power utility is the real issue. Major enterprises in South Africa today have back up generation and can work around the blackouts to some extent. The situation is dire for small to medium enterprises that are 100% reliant on Eskom, but everyone needs clear answers in order to plan and mitigate the risks.”

While the vague information around load shedding tops Besseling’s list of the key risks facing South African business today, it is closely followed by industrial action, much of which is linked to the lack of clarity on Eskom, he notes. “In his State of the Nation address, President Ramaphosa said that the power utility will be broken up into three; but he wasn’t clear whether this would include the partial privatisation of Eskom and whether job cuts are expected. The ratings agencies are in favour of both. ANC allies COSATU and the Communist Party, however, are not, and President Ramaphosa is relying on their support to run for re-election. The political tightrope that the President is treading – trying on the one hand to satisfy foreign investors, local businesses and rating agencies, and on the other, trying to satisfy his key electoral support base – makes for huge uncertainty on the industrial action front,” he states.

Communal unrest is another threat to business and supply chains in South Africa today, Besseling maintains. He says that the outbreaks of violence that have been labelled service delivery protests are often politically motivated. “Protests in KwaZulu-Natal and in Western Cape towns like Hermanus have made news, but not all the incidents are publicised and there have also been violent demonstrations on the Garden Route and in the Karoo. All of these affect critical national infrastructure, including highways and airports.”

Regulatory risk – and Government’s unclear stance on issues like BEE, the revised Mining Charter and land redistribution – also rank high on Besseling’s list of current concerns in South Africa. “The lack of clarity on key pieces of legislation must be on the risk agenda for South African businesses, particularly those involved in the main employment, high tax generating sectors like mining and agriculture.” While land ownership is dominating the election debate, Besseling believes all the rhetoric is unlikely to culminate in the expropriation by Government of privately-owned or commercially held land around South Africa. “I am highly sceptical about all the rhetoric and believe it will most likely be land held by the state and traditional leadership that is redistributed.”

Supporting this view is the fact that Finance Minister Tito Mboweni made “no provision whatsoever” for land expropriation in the budget, Besseling says. “There was no budget allocated to benchmarking land sales or to establishing commissions to investigate and implement the requisite policies. Even if the Constitution is amended and there is expropriation without compensation, there are still associated costs to be considered, and Minister Mboweni made no provision for these. I do not see Government moving on land expropriation in the immediate outlook.”

Looking ahead at how these key risks could change or be resolved after the general elections in May, Besseling says much depends on whether President Ramaphosa can win a decisive mandate. “He needs around 55% to turn around the ANC’s decline, to have a mandate to govern the country, elect a cabinet of his choice and move ahead with reform. If he doesn’t win a decisive mandate, he could face a challenge from within his own party, be recalled and Deputy President David Mabuza would automatically take the helm.” Besseling believes that Ramaphosa has a 60% chance of winning the decisive mandate that he needs, but with new problems and issues unfolding almost daily, this could change.

Now in its 41^st successful year, the annual SAPICS Conference is Africa’s leading knowledge sharing and networking event for supply chain professionals. Hosted by SAPICS, The Professional Body for Supply Chain Management, it takes place in Cape Town from 9 to 12 June 2019.

For further information or to register for SAPICS 2019, call 011 023 6701 or email [email protected]. Up-to the-minute information is also posted on the SAPICS Conference website: https://conference.SAPICS.org

Issued by Express Communications, on behalf of SAPICS.

For more information:

Tel: +27 (0) 11 023 6701

Email: [email protected]

ABOUT SAPICS: http://www.sapics.org

Established 40 years ago, the annual SAPICS Conference is the leading event in Africa for supply chain professionals. The 2019 SAPICS Conference takes place in Cape Town, from 9 to 12 June.

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