Hardly a supply chain publication goes by without an article on the shortage of skills in our global supply chains.  Most of these periodicals are referring to the first world industrialised countries, so it can be concluded that in Africa we have a definite drought with regards to this problem.

The term supply chain management has probably only been around for about fifteen years, and although many of us have been working somewhere in the supply chain, maybe for decades, not many of us look past our office door or computer screen on a day-to-day basis.  To be a true employee in the supply chain we need an end-to-end global view of our supply chains and have a deep understanding of how the small daily decisions we make in our little isolated office impacts our supply chains and customers, either positively or negatively.

Companies are slowly, may be too slowly, beginning to understand the importance of proper supply chain management in their organisations.  We may manufacture the best products in the world, but it is our supply chains that deliver the promise of that brand to our customers.

Risks in the supply chain have also become more evident recently, with major disruptions in global supply chains due to volcanic ash, tsunamis, floods, counterfeit products and piracy on the high seas to name just a few.  There is also evidence that a company having a major glitch in their supply chain could suffer a 20% loss in shareholder value if they are not careful in fully understanding and mitigate these risks.

So having highly qualified and empowered employees in this area of the business is crucial today.  Therefore, the need is there, there is a shortage, now is the time for you to fill that gap.  But how, is the question?  Where do you start?

This article explores the career paths available for individuals and companies to ensure they ultimately have the people they require to operate their supply chains efficiently and effectively with continuous improvement thrown in to make sure their supply chain networks are evolving as global business changes.

To survive in today's world being 'street smart' doesn't cut it anymore, we need to be 'global supply chain smart' if we and Africa want to be players in the 'global neighbourhood'.  Africa's potential will never be realised if we don't start with this first and very essential step; developing well educated, trained and empowered supply chain people.

Everybody in an organisation needs to have a broad understanding of how their greater supply chains function, and many organisations have many different supply chains.  It is imperative that these people understand their roles and responsibilities in their supply chain roles and how they add value and positively, or negatively, impact their supply chain strategy.

Those working in all functions in an organisation need to have a much deeper understanding of how their supply chains operate and how decision and policies made in their functions impact their supply chains.

There are a number of different tools in our supply chain tool box and we need to be aware of all of them and what should be used where, and when, in order to give us an advantage over our competitors, and provide superior, best in class, customer service.

More recently, the latest addition to the SCOR model is the human element, detailing the education, training and qualifications required for those working at various points in the supply chain.  The APICS certification programs CPIM and CSCP being mentioned on several occasions in this section.

So, for a company to become a member of the SCC and adopt the SCOR model is almost a 'No Brainer'.  Why re-invent the wheel, when some very clever people have done all the work for you!

When it comes to improving you supply chains it is important to concentrate on constraints as improving a non-constraint is not likely to improve your throughput and therefore your company's performance.  A greater understand of this concept can be gained from reading the novel 'The Goal' by the late, great, Eli Goldratt and learn more about the concepts of 'Drum-Buffer-Rope' and 'Statistical Fluctuations' as our hero of the story, Alex Rogo, takes his son's scout troop on a weekend hike.

This read is a must for everybody wanting to improve their knowledge of improving Operations, and if you find it of interest there are plenty of follow up books and material to be had from the same author.

Once we have found the constraints in our business, it is time to start taking out the wastes, all eight of them:-

1.      Over Production

2.      Waiting

3.      Transporting

4.      Inappropriate Processing

5.      Unnecessary Inventory

6.      Unnecessary Motion

7.      Defects

8.      Waste of Human Potential

Lean teaches us about these wastes which are all over the place in our factories, supply chains and to a huge degree in our offices and administration processes.

'Muda' is the term we use for general waste, but there is also 'Mura' which is the waste generated by unevenness in our supply chains which in turn produces 'Muri' which is the stress we place on our supply chains due this unevenness, as well as the stress we put on our people working with this unevenness.

Lean needs to be understood and practiced by all employees in a business and can be very satisfying for people as they become involved in making a difference on a continuous basis.  It is a never ending philosophy as there will always be a better way of doing something; we just need to find it!

The concept of 6 Sigma needs to be used in conjunction with Lean.  Lean takes out the waste, after which 6 Sigma takes out the variation from the leaned out processes.  Every process has variation, whether it is drilling a hole in a piece of metal, or capturing an order on the computer system.  We need to reduce the variation in the time it takes to accomplish any process and ensure that the potential for an error occurring, or a reject being produced, is reduced to statistically 3.4 errors per million opportunities.  If this is achieved you are regarded as being at 6 Sigma level of performance.

Pulling all this together and making the right decisions at the right time can be a challenge for any Management Team that is developing a strategic and tactical plan that will provide their company's supply chains with the correct attributes and performance required by their customers.

Here the Fresh Connection Supply Chain Simulation experience can be invaluable and should be tackled by all middle and upper management within an organisation to test out their understanding and to provide a non-threatening environment to try out various strategies and tactics and see the results of their actions in supply chain performance.

Those that have become involved in this experience have commented that is has done a fantastic job of putting into perspective all their supply chain education and given them confidence, back in the work place, to tackle their real issues effectively.

In teams of four, each taking on a different supply chain role, the object is, changing various strategic and tactical parameters in the business, to turn the ailing organisation around in a 2 - 3 year period from a negative return on investment to a positive one.

This is not necessarily something you would only experience once, but it should be tackled several times, each time you gain a better understanding of how you can bring this distressed company into position where it is moving into a profitable situation in less time and with a greater ROI.

Oh, and by the way it is also good fun and can be used to promote competition within the various teams in your organisation.

If you regard your position in the supply chain as a profession, which it is, then why shouldn't you join the professional society or association that aims to looks after and improves your interests, networking opportunities, education and professional certification in your chosen career?

There are a number of such organisations and let's briefly look at some of them and see what they have to offer. 

SAPICS, the Association for Operation Management in Southern Africa, has been in existence for well over 40 years providing a number of benefits for it members.  Many just see SAPICS as the conference and exhibition once a year.  But SAPICS also performs a much larger role, though their network of Authorised Education Providers (AEP), presenting education and certification courses in all the major centres in South Africa.  These AEP's provide public courses for individuals wanting to improve themselves, or in-house education for corporates wanting a greater level of understanding for their employees to ensure that they can perform at a higher level for the company.

Course are available for people working in the stores / warehouse, planning environment and operations right up to professional certification program in production and inventory management as well as supply chain management.  Some of the courses provided are:-

1.      Basics of Stores and Stock Control

2.      Warehouse Management in Practice

3.      Basics of Production and Inventory Management

4.      Principles of Production and Inventory Management

In addition, SAPICS runs professional development meetings, breakfast meetings, regional conferences and factory/site visits, all designed to grow your knowledge in your chosen profession and provide networking opportunities in industry.

SAPICS is one of the more than 65 affiliates around the industrialised world, of APICS in the USA.  APICS is the Association for Operations Management which started over 50 years ago in the auto industry in America.  In addition, to its international affiliates it has over 200 chapters in North America.  So, through this network we have a fantastic amount of information as to what is going on in the international world of operations and supply chain management.

If you take out professional membership with SAPICS, this will include membership of APICS with all the benefits that come with this association.

Apart from the two certification programs, CPIM (Certified in Production and Inventory Management) and CSCP (Certified Supply Chain Professional) that APICS promotes and that have worldwide acceptance, APICS also runs a number of events, globally.  Their annual conference takes place around October and moves around North America on an annual basis.  Everybody that regards Operation and Supply Chain as their chosen profession should, at least once, in their working lives make a plan to attend this event.  In addition, APICS runs global conferences in various parts of the world as well as teaming up with organisation such as the IBF (Institute of Business Forecasting) to run their 'Best of the Best' Conferences in various countries.

There are number of traditional benefits of APICS membership which include a number of free publications such as the monthly APICS magazine, the OMBOK document (Operations Management Body of Knowledge) and the latest copy of the APICS Dictionary whenever a new edition it is published.

More recently APICS has introduced more free documents for members including the competency models for a Supply Chain Manager and a Materials Manager.  These comprehensive documents include the knowledge and competencies required to effectively fill these two positions, for example the Supply Chain Manager function requires:-

Tier 1 - Personal Effectiveness Competencies

Tier 2 - Academic Competencies

Tier 3 - Workplace and Leadership Competencies

Tier 4 - Operations Management Technical Competencies

Tier 5 - Supply Chain Manager Knowledge Areas

Tier 6 - Supply Chain Technical Competencies

Tier 7 - Supply Chain Manager Specific Requirements

These documents include considerable detail as to the requirements at each of these tier levels.

More free documents released to members are the four career packs for the following roles:

Supply Chain Manager

Master Production Scheduler

Materials Manager

Buyer/Planner

These comprehensive documents are useful for people:-

Who are currently in these positions and want to empower themselves

Are looking to hire people in these positions

Are HR professionals looking to put together job description for these positions

People seeking work in these positions

They give an overview of the position, some of the key words related to these positions, advice on building job descriptions for these positions, and advice for persons seeking jobs in these positions.  These are a great asset for any professional and a serious benefit of membership.           

The latest additions to the benefits of APICS membership are big discounts on the APICS Folio Series:

1.      APICS S&OP Folio: How to be an S&OP Champion

2.      APICS Supply Chain Risk Folio: Protect your Business with Risk Management

3.      APICS Supply Chain Strategy Folio: Make the Most of Supply Chain Strategy

4.      APICS Supply Chain Sustainability Folio: Uncovering the Triple Bottom Line

APICS Folios provide a 'go-to' resource on a variety of industry topics and trends.  APICS Folios are grounded in research and aim to keep supply chain and operations management professionals ahead of the game.  APICS Folios cut through the clutter and bring you best practices, how-to steps, and practical advice that gives you and your organization a competitive advantage.

The UK based Chartered Institute for Purchasing and Supply has, over the years, done a great job of introducing their Certificates and various Diplomas throughout Africa.  The South African wing of the society CIPS SA recently took over the old Purchasing Institute of South Africa and now these qualifications are available throughout the country.  So, if your area of expertise is in procurement then this is the association to which you should belong.

Another UK based organisation is Chartered Institute of Logistics and Transportation (CILT), which also has a South African affiliate, CILTSA.  They too have a number of international certificate and diploma qualifications.  So if logistics and /or transportation is your forte, then this might be an organisation to which you should belong.

The American Society for Transportation and Logistics (ASTL), although having a fairly small international footprint, is well established in the USA.  There is currently a move to establish the ASTL and its certification programs in South Africa and already a few people locally have written and passed their PLS qualification, Professional Designation in Logistics and Supply Chain Management.

Their flagship certification is CTL, Certified in Transportation and Logistics which consists of three core modules and three of six electives.  If students have their APICS CPIM and CSCP they are then exempt from one of the core modules and one of the electives.

One interesting qualification they also offer is the GLA, Global Logistics Associate, which is designed for schools and community colleges, as an attempt to get students to see the importance of logistics as a potential career choice.

The Institute for Business Forecasting again has a pretty significant USA footprint and has recently moved to expand into the rest of the world.  At SAPICS we have been fostering a relationship with this organisation for a number of years and have been running their certification programs here in South Africa.  So, currently we do have a few people with their CPF, Certified Professional Forecaster qualification.  If Demand Management is where you see a future, then this is the qualification to pursue.  One can progress from the CPF to the advanced certification ACPF at a later stage.

One of the newest Institutes on the block has to be the Sales &Operations Planning Institute and their CS&OP qualification which will be available, at this stage only in the USA, later in 2012.  It seems we will have to wait until 2013 before this certification is due to be available to us in the other parts of the world.  Much of the study material for the certification comes from Tom Wallace who is regarded as the 'Guru' when it comes to S&OP and is also the examiner for the qualification.

There are other organisations out there that don't necessarily have education and certification programs but can provide useful information and support.  The Lean Institute I have always found useful with their regular newsletters and in South Africa we have the Lean Institute Africa (LIA) which has a useful role to play when it comes to Lean with their regular workshops and conferences on the subject matter.

In addition, there are many other sources of information out there, one just needs to 'Google' any of our keywords and you will be inundated with more information than you can physically and mentally handle.

As you will probably now appreciate, supply chain management is not about one aspect of business, but an integrated collections of function focusing on one outcome, and that is a delighted customer.  I don't think we will ever find one person that has a complete knowledge of the whole supply chain, but what we need to do is select our niche and do everything we can to improve our knowledge and keep up with trends, best practices and new technology in order for us to do an excellent job in our area of expertise.  But at the same time have some overall knowledge of the total supply chain.

I have been fortunate over the last few years to attend many events and conferences across the world and I find it quite scary that the more I get to know on the subject, the more I know, I don't know!  Most of us are toiling away on a day to day basis focused on the task at hand and glued to our computer screens oblivious of what is happening out there the global industrialised world.  We need to get out of the office occasional and learn something new and network with others in our field and continuously try to do a better job on an on-going basis.

So where can you focus your supply chain career?  The following are some aspects of Supply Chain Management in which you might want to be become an expert.  Becoming an expert can be very rewarding career wise and financially.  People are prepared to pay for knowledge and expertise; make sure yours is good and up to date!

With regards to a company's internal supply chain probably Demand Management is the first and most important process.  Without a reasonable idea of one's demand how can the rest of the organisation organise the supply to satisfy the customer demand?

People in a business try to shy away from anything to do with forecasting because every time they get it wrong, and that is every time, they get beaten and blamed.  Developing a consensus demand management process in the business assists in this regard, so when it goes wrong, and it will, we can look at and improve the process rather than blaming the people involved and thereby continuously improve.

A good process here can have huge benefits to the organisation and customer satisfaction.

Once we have a reasonable idea of the demand we can then start organising the supply.  Supply planning in a manufacturing business happens at three very distinct and different levels, and performed by different people or groups, in the organisation.

We will assume that the organisation has a strategic plan out for the next 3 to 5 years which becomes a major input to this level of planning performed by the top management team.  Here we plan the volume going through the various sections of the plant.  This plan will normally extend to 2 years into the future but in product families revolving around the plant or production lines.  Our object here is to determine when capacity will need to be significantly changed, allowing us sufficient time to achieve these changes.  The S&OP is normally a monthly process with the aggregate plan in monthly buckets.  The output from the process is an aggregate production plan, aggregate sales plan and an aggregate inventory/backlog plan.

The benefit here to the supply chain is a 'Game Plan' which is communicated to the whole organisation giving visibility of the bigger picture and becoming a document that authorises people at the lower levels to work to certain levels of production, sales and inventory holding.

Master Production Scheduling is the second level of planning where the production plan from the S&OP process is disaggregated into the mix and broken down into weekly buckets.  This process also takes into account the detailed demand plan and customer orders as well as current inventory levels of finished products.

A good stable Master Schedule that supports the customer demand and the S&OP production plan can have enormous benefits to the supply chain by developing an anticipated build scheduled out to the cumulative lead time, often in the region of 6 months, to enable the purchase of long lead time raw materials.  This stability in the supply chain can lead to regular continuous flows of material through the supply chain, reducing inventory levels and providing better customer service and order promising.

MRP is the third level of planning and requires real-time accuracy from six major inputs, most of which are not the responsibility of the planners.  So it relies very heavily on those concerned to understand the importance of them doing their jobs correctly, accurately and in real time. 

The key inputs are:-

A stable MPS

Accurate, real-time inventory records

Accurate purchase order records, with no past due dates

Accurate shop order records, with no past due dates

Appropriate planning data, lead times, order policies, safety stocks/lead times, etc.

Accurate Bills of Materials

Having an excellent MRP process in place will mean material availability as and when required to ensure better material flow in the supply chain and improved customer service.

Buyers are responsible for the procurement of the materials required by the company to ensure a smooth manufacturing process.  In addition, it is their responsibility to find and develop good suppliers.  A company is only going to be as good as its suppliers; with poor suppliers one doesn't have much hope of becoming an excellent company.

So, procurement has a key role in supply chain management in dealing with the right companies and collaborating with them to improve material flow, reduce lead times and inventory in the supply chain.  After all, every Rand saved in this function goes straight to the bottom line!

The role of planners on the shop floor is to execute the Master Production Schedule and make the best use possible of the resources on the shop floor, such as people, machines and materials.

This is a key job to enable work to flow efficiently through the factory in order to provide good customer service.

Our traditional ERP systems are really just simulation tools that assume infinite resources, which is not the case.  We should be making better use of the new technology using linear mathematics and optimise our operations.  These tools can be used at various levels in the organisation, such as designing logistics networks, where to put plants and warehouses and which supplier should supply where and which customers should be supplied from which plants and warehouse.  This kind of problem can be too big to cope with for our relatively simple brains.  APS can also be used at a more detailed level in say a job shop environment where routings vary considerably according to the low volume of products and demand finite scheduling that current ERP systems find difficult to handle with the millions of calculations required to resolve the problem.

These tools can save a company and the supply chain millions of Rands if used properly and in the appropriate areas

A product on its journey from the earth to the retail outlet can pass through a large number of stores or warehouses.  Therefore the importance of having excellent processes in place to speed the product on its journey as efficiently and as quickly as possible is essential.  I get the feeling to be sent to work in the warehouse is regarded as a bit of a penance and hence we don't generally have our best educated, trained and empowered people looking after one of our most valuable assets; inventory.

The job of people working in this environment can be describes simply as providing the rest of the supply chain with 100% accurate data as to what they have and where it is, in real-time.  This is a simple objective but one that seems to be difficult to obtain in the real world. 

Once we have finished product we now need to get it to the customer in the most effective and efficient way.  This area of the supply chain is going to encompass warehousing, transportation and logistics.  Designing a distribution network came be a complex task and maybe the use of the APS tools mentioned above could be of assistance.  As supply chains change and technology changes, the distribution network may have to change as well.  The example of moving from the printed book and its physical distribution networks to the e-book required a mammoth change to the distribution network.  This distribution network has now succeeded in dramatically reducing lead-times, costs and now provides a significant benefit to the end user, as well as the environment.

With more global movement of goods the issue of transportation and shipping is a huge subject on its own and requires a great deal of understanding to ensure the smooth flow of goods from one mode of transport to another, across international borders.  The question here is how much distribution should a company do itself and how much, if not all, should be sub-contracted to 3PL and 4PL service providers.

Making the right decisions in this area can make for more efficient and cost effective supply chains.

If it hadn't been for technology and information systems we wouldn't be talking about supply chain management today.  Software and technology has been dragging us kicking and screaming into a paradigm shift in the way we do business.  And, I guess will continue to do so well into the future.  Not keeping up with technology or using it to the full extent in the right circumstances is really a crime against the stakeholders in a business and their extended supply chains, and ultimately the consumer, who pays for all these wastes and inefficiencies and the checkout till!

Keeping up with the rapid advances here and being able to implement them effectively is not easy when most companies are still battling to use their ERP (MRPII) systems properly that have only been around for the last 30 years plus!

Everybody needs a better understanding of these systems and how they integrate and how they will provide a huge benefit to the organisation if implemented properly, the first time.

When ones get to know more about supply chain management one begins to realise that the majority of what it is about is collaboration between internal customers and suppliers as well as the same collaboration between external customers and suppliers.  The CRM (Customer Relationship Management) and SRM (Supplier Relationship Management) modules available to us today in our integrated ERP software assist with this daunting, but essential task.

Getting to know our suppliers and customers better is paramount to the success of our supply chains and requires a great deal of focus and dedication by management and the employees working in these areas of the supply chain.

As we go more and more global, the risks to disruptions to our supply chains are becoming greater.  It is a subject that is being address more and more at international supply chain conferences.  Who would have bet money on a volcano in Iceland bring Europe to its knees for several weeks, a Tsunami in Japan causing major disruptions to the auto industry worldwide or a flood in Bangkok having such a major impact on the computer industry.  There are many actual case studies that indicate that a major disruption in a company's supply chain can cause up to a 20% loss in shareholder value, virtually overnight or within a few weeks.

The latest threat we hear, apart from pirates off the horn of Africa, is counterfeit products reaching a company's market faster and cheaper that the real thing.  At least somebody, albeit the counterfeiters, are taking proper supply chain management seriously to heart!

So, this thing we call Supply Chain Management is huge and requires a huge amount of educated, trained and empowered people throughout our organisations to ensure that it works correctly, effectively and efficiently.

My challenge to you, and also to myself, is to get out there and no matter what you think you might know there is always more to learn in an environment that is continually changing and moving forward at a rate with which is difficult to keep up. 

So, five challenges for you...

1.      Firstly, get out there and get a broad vision of the supply chain and what it encompasses.  The APICS CSCP certification program is an excellent vehicle for the purpose.  Persuade your colleagues that they also need to do this as well if the company wants to be more successful.  Everybody on the Management Team needs this information.

2.      Secondly, join the professional association that most closely looks after your area of interest.  Once a member, make sure you take advantage of all the resources offered by the society and become certified with them to the highest level you can, and maintain these certifications by attending as many events, workshop and conferences as you can.  Why not take it to next level and teach these programs, after all, the best way to learn, is to teach!

3.      Thirdly, you need to encourage your company to become a member of the Supply Chain Council and adopt the SCOR model and ensure that all key employees are conversant with the model by attending the SCOR workshops and hopefully many of you becoming SCOR-P certified.  Why make it up as you go along, adopt a well-accepted and researched path and just get on with the job!

4.      Fourthly, start a Lean continuous improvement culture within your organisation getting everybody, and I mean everybody, involved.  APICS has an excellent Lean Workshop Series that can be used for this purpose, with cross functional team performing Kaizen events after the education putting into practice what they learned in the classroom and making a difference in their work environment.  Often the real savings from these first Kaizen events can more than pay for the cost of the education, which you should be claiming back from your SETA anyway, so there is a double benefit!

5.      Lastly, decide where you want to be in the supply chain and learn as much as you can, and never stop learning.  We all need to become 'Knowledge Workers', make sure your knowledge is better than most.  People will pay handsomely for knowledge.  After all, that is how I have put bread, jam and plenty of cream on the table for the last twenty years or so.