Manufacturing: Cost-cutting energy options far from exhausted

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.
 

Therefore, 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.

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.”

Solution?

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 38^th 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: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, 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 community of accomplished industry professionals. This community is ever expanding and now includes associates in other African countries.

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ABOUT APICS

SAPICS is the 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

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