Latest wave of load shedding emphasises need for education in planning skills
 
“Up your game when it comes to supply chain planning – fast!” That’s the word from supply chain body SAPICS concerning electricity load shedding’s disastrous effects on the economy.

Although the cuts appear to be on hold, given the electricity supply’s vulnerability to poor weather and other risks, SAPICS is cautioning businesses to be ready to plan quicklyfor worst-case scenarios.“The latest wave of rolling black-outs emphasises the need for integrated operations planning in order to avoid complete disruption to your business,” says SAPICS President CobusRossouw.

“Without establishing an alternative energy supply, most businesses have little option but to mitigate this external risk through improved demand and inventory management. And even in the case of those which have some form of alternative energy supply to help power their priority operations,careful planning is still needed particularly if load-shedding remains a risk for the foreseeable future.”

Tip 1: Increase your inventory&hellipbut be smart about it
In the face of a reduced ability to produce during power cuts, Rossouw recommends that product availability be secured by carrying higher inventory levels to buffer against downtime. 

During last week’s cuts, it was reported that the output of some businesses– particularly those which are identified as the country’s top energy users – was immediately reduced by as much as one fifth.“Given significant cuts like this, the likelihood of recovering that 20% is very small; so we believe it’s important to be prepared to scale up production fast so that your losses are not quite so extreme.”
On the down side, however, Rossouw notes that having more inventory than one needs of the incorrect products or having them in the wrong locations is of little value. “It’s a catch 22 situation, so it’s in times like these thatwe realise how critical to business the skills of integrated planning are.” 

Tip 2: Improve your skill in demand and inventory management
SAPICS educates supply chain professionals in the science of demand and inventory management which, when correctlyapplied, can assist organisations to minimise the impact of load shedding.“For example, we host regular forecasting workshops where participants work through practical examples – even ones involving rolling black-outs - in an effort to hone their forecasting skills, effectively helping them to transition from ‘guessing’ to ‘knowing’. “And the more you improve your forecasting process and your general skill in this regard, the ‘luckier’ you will get,” he says.

Following such two-day workshops, participants may continue with their training to become Certified Professional Forecasters, a qualification that’s recognised globally by the Institute for Business Forecasting and Planning, an international professional body represented in South Africa by SAPICS

For more information on workshops and other training offered by SAPICS, visit www.sapics.org